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Slinger RDA reviews lease revenue bond plan to finance police department construction
Summary
At its Nov. 6 meeting, the Slinger Redevelopment Authority heard a presentation from Ehlers & Associates on using lease revenue bonds to finance a planned police department building; the RDA asked questions but took no formal action.
Harry Allen of Ehlers & Associates presented an overview Nov. 6 to the Slinger Redevelopment Authority on a lease revenue bond structure the RDA and village staff are considering to finance the planned police department construction project. The presentation described a lease between the RDA and the Village, with lease payments set to equal annual debt service.
Allen said the bonds could be issued for up to 40 years to lower annual debt service and that the initial offering is likely to be structured as a 20-year issue with a large payment in year 20 that would be refinanced for the remaining term. He told members the financing is less commonly used today than in past years and that a negotiated purchaser and banks with experience in this instrument would be sought. Ehlers is compiling a list of candidate banks; village staff will select which banks receive a request for proposals and will review offers for favorable terms.
RDA members asked about the earliest opportunity to repay the bonds. Allen said call provisions would be negotiated with the funding partner and that a callable feature around the 10-year mark is likely but not guaranteed. Administrator Margaret Wilber said members and other interested parties could contact her or Ehlers for additional information after the meeting.
No motion or vote was taken on the financing structure at the meeting. The presentation was provided to keep the RDA informed of next steps in the funding process; staff will return materials and proposals to the board when they are available.
