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Hillsborough council approves USDA application steps, bond ordinance and architect contract for new fire station
Summary
The Hillsborough City Council adopted a resolution to pursue a USDA loan, passed an ordinance authorizing debt issuance and approved a contract with Sheldon Architects to design a proposed $5 million fire station, all contingent on USDA funding.
The Hillsborough City Council on July 15 voted to move forward with financing and design steps for a proposed new fire station, adopting a resolution to seek USDA loan financing, passing an ordinance to authorize future bond issuance and approving an architectural-services agreement.
City staff presented Resolution 2025-09, which authorizes the city to proceed through the USDA application process and to accept loan terms if USDA awards financing. Matt Stiles, the city staff presenter, told council the resolution "expresses our intent to seek that financing through [USDA]" and noted the application deadline had been moved up to Aug. 1; staff said USDA indicated it could provide notice within about 45 days of submission.
Council members discussed how the resolution, the subsequent ordinance and construction financing fit together. A staff adviser explained the ordinance is the city’s typical authorization to issue bonds and that it allows the city to enter contracts (such as an architect agreement) by signaling the intent to pay using bond proceeds and temporary construction financing.
Council then approved an agreement with Sheldon Architects to prepare a preliminary engineering report (required by USDA) and to design the station. Stiles said the architect’s fee is estimated at about 6% of construction costs, "no more than $300,000," based on a building cost estimate near $5,000,000, and that the architect cannot proceed beyond the preliminary engineering work until the city receives USDA notification. The contract includes a termination clause allowing the city to end the agreement within five days of written notice if financing does not materialize.
All three items—the USDA intent resolution, ordinance 14-09 authorizing issuance of debt, and the Sheldon Architects agreement—passed on council motion. According to council action, the mayor will sign the adopted resolution. The design agreement and debt-authorizing ordinance are contingent on the USDA process and on later formal bond or note issuances to fund construction.
