Wyoming council approves EDA lease-revenue financing and construction contracts for city hall, fire station

The Wyoming City Council on July 21 approved a package of financing and contracting steps to advance construction of a new city hall and fire department, voting to authorize lease-revenue bonds through the Wyoming Economic Development Authority (EDA), approve an amendment to the construction manager agreement and award an initial group of construction contracts.

City Administrator Linwood told council the financing structure uses a ground lease and a lease-purchase agreement so the EDA can issue lease-revenue bonds. Linwood said the city retains ownership of the property, occupies the facilities and will make lease payments that are pledged to repay the bonds. "The lease payments are subject to annual appropriation by the city council and do not constitute a general obligation pledge of the city's full faith and credit," Linwood said.

The project team also presented Amendment No. 2 to the construction management agreement with Kraus Anderson, which updates the agreement for the transition from preconstruction to construction, identifies the senior project managers and establishes construction-phase compensation. Linwood said the amendment does not increase the overall project budget and that the amendment's costs are covered within previously approved project financing.

In addition, the council approved the first group of competitively bid construction contracts for the project, including work for demolition, concrete and masonry, roofing, mechanical systems and paving. Staff recommended giving the city administrator limited authority to approve individual construction change orders up to $20,000 provided they remain within the council-approved project contingency, do not change overall scope or budget, and are reported at the next regular meeting.

Council discussion focused on financing tradeoffs and project timing. Bond counsel Jenny Bolton, participating remotely, said the rating and sale process will be handled by the city's municipal adviser and that lease-revenue bonds are typically rated "very slightly below" a city's general obligation rating because of appropriation risk. "It is based on the city's rating, but it is generally adjusted just slightly downward from a general obligation bond," Bolton said.

Councilmember Yeager objected to using EDA-issued bonds for the project, saying, "I'm not in favor of taking out EDA bonds. That's gonna cost the taxpayers more than GO bonds for a project where costs have already...will continue to escalate." Other members said the council had earlier given staff direction to pursue the selected financing and emphasized that delays had driven costs higher.

Mayor Iverson moved to approve the financing documents (Resolution 260782); Member Lugar seconded and the motion passed by voice vote. The council also approved Amendment No. 2 to the construction management agreement (Resolution 260783) and the construction contract awards and limited change-order authority (Resolution 260784) by voice votes.

The council was also invited to an Aug. 5 groundbreaking ceremony for the project, beginning at 5:30 p.m. with brief remarks, renderings on display and light refreshments. Linwood encouraged council members to attend for photos and remarks.

What happens next: city staff will complete the bond-closing process and present additional construction contracts as they are bid; change orders approved under the delegated authority must be reported to council at the next meeting.