Council advances lease-financing for Station 5 after public hearings and debate

The Muncie City Common Council voted Aug. 3 to move forward with lease-financing and construction actions for a new Station 5, authorizing a not-to-exceed financing amount of $11.5 million and allowing the administration to proceed with construction procurement.

Mayor Dan Ridenour told the council the $11.5 million figure is a not-to-exceed bond amount that gives the city timing flexibility and noted that Ball State’s pledged $1.5 million could be used to reduce draws. "You don't pay interest on the 11.5 until you borrow on it, until you access it," Ridenour said, urging the council to minimize borrowing and use the Ball State funds where possible.

Bond counsel Bob Swins of London Whitley Group explained the financing is about timing: "If during that time the money shows up in the bank... we can reduce the bond issue. But if for some reason we fail to get that money in in a timely manner, then we would really want to issue the full amount." He characterized the $11.5 million as a maximum that need not be fully issued if outside funds arrive.

The public hearing drew lengthy testimony. Firefighters’ union president Jason Chaffin urged progress, saying the project follows multi-year studies and that a new station would benefit neighborhood safety and city infrastructure. By contrast, several residents raised fiscal concerns: Rob Miller urged a long-term stress test, and others warned that the city’s bond rating and changing state funding could make debt costly. Sergeant Jenny Jackson, who works at Station 5, described substandard conditions at the existing facility, saying sewage often backs up into living and work spaces.

Council members pressed administration officials about how Ball State’s $1.5 million pledge would be handled. The mayor and staff explained the university’s board provided a letter pledging a one-time payment when necessary approvals and a construction contract are in place and that the pledged funds are intended for Station 5. Greg Martz of GM Development and bond counsel described a build-operate-transfer construction arrangement and a multi-step schedule: approximately six months for design and 15–16 months to build, with a temporary facility constructed in parallel.

Following discussion and public comment, the council voted to adopt the ordinance enabling lease-financing and to proceed with the associated appropriation and construction resolutions. The council also scheduled follow-up procedural steps and required the administration to provide more written financial detail to the council ahead of a special meeting spelled out during the session.

The council approved the financing motion and related resolutions; the administration said contract and appropriation details would follow as required before funds are accessed.