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Council and MCDC debate financing options for $10M Heritage Park pledge; no final borrowing decision
Summary
Council and Midlothian Community Development discussed vehicles to deliver a pledged $10 million for Heritage Park — options included city‑issued certificate of obligation, MCDC sales‑tax revenue bonds, cash or hybrid approaches — and directed staff to return with bids and additional scope in April.
Council heard an extended presentation from MCDC and bond advisors about ways to provide a pledged $10,000,000 for Heritage Park and related improvements. MCDC representatives outlined options: issuing a city certificate of obligation (CO) to borrow on behalf of MCDC, issuing a sales‑tax revenue bond through MCDC, paying cash in lump sum or phased payouts, or a hybrid approach. Advisor Mark McLaney (Samco Capital Markets) said the city’s AA+ rating could save roughly $177,000 in interest versus an MCDC issuance, while MCDC noted that a sales‑tax revenue bond would impose reserve requirements and slightly higher interest. MCDC reported available bond‑fund and operating balances and said monthly sales‑tax revenue is roughly $700,000.
Public commenter Lisa Healy urged using cash instead of debt: “Can we just do it the old fashioned way and save the money? Do it with cash.” Council members expressed differing views: some favored cash if feasible; others said timing, scope and the total $18 million package (including other partners’ commitments) mean staff should return with finalized bids and cost estimates before choosing a financing vehicle. Council asked staff to bring the matter back during or after the April meeting with bids and scope details; no borrowing action was taken that night.
