City Creates Leasing Co.
July 28, 2016 at 4:25 p.m.
The Warsaw City Council met in special session Wednesday to establish the City of Warsaw Building Corp.
A not-for-profit corporation is being created because the city plans to dedicate County Economic Development Income Tax revenues, among other funds, to pay for the proposed wastewater treatment plant.
Using EDIT without going through a leasing company, Jeff Heck of Baker and Daniels explained, would cause the city to exceed the 2 percent debt limit. With this standard procedure and issuance of lease rental revenue bonds to pay for a portion of the project, the city's debt limit is not affected.
The debt limit is affected by general obligation bonds.
The organizational meeting of the building corporation's board of directors - Warsaw Mayor Ernie Wiggins, John Elliott and Bob Gast - is set for 11:30 a.m. Oct. 29 at the Boathouse Restaurant in Winona Lake.
City employees, not the corporation board, will be responsible for the day-to-day operation of the sewage facility.
A resolution was approved authorizing the execution of a lease for construction and issuance of sewage works revenue bonds in an amount not to exceed $5.8 million to pay for a portion of the project's costs.
In addition to EDIT, sewage works revenues and Northern Economic Development Area tax increment revenues will be applied toward the plant's construction.
The council also approved an ordinance to authorize improvements and extensions to the city's sewage works as well as to issue and sell additional revenue bonds for the project.
Costs of the new facility and infrastructure are estimated at $16.8 million. The initial $5.8 million bond issue will be subtracted from the total figure. And $10 million or so will be bonded when the sewage plant begins operation around July 2004.
Installments of $550,000 paid twice a year for 23 years, bring the new plant's cost to $31.1 million over the next two decades.
In other business the board :
• Approved an ordinance establishing a commercial planned unit district for Petro Family LLC.
Recommended by the plan commission Oct. 22, the council heard the corporation plans a C-3 development on 26.98 acres on the west side of Ind. 15 north of the Wal-Mart SuperCenter.
City council members are Joe Thallemer, Jerry Patterson, Bill Rhoades, Charlie Smith, George Clemens, Jeff Grose and Trish Brown. [[In-content Ad]]
The Warsaw City Council met in special session Wednesday to establish the City of Warsaw Building Corp.
A not-for-profit corporation is being created because the city plans to dedicate County Economic Development Income Tax revenues, among other funds, to pay for the proposed wastewater treatment plant.
Using EDIT without going through a leasing company, Jeff Heck of Baker and Daniels explained, would cause the city to exceed the 2 percent debt limit. With this standard procedure and issuance of lease rental revenue bonds to pay for a portion of the project, the city's debt limit is not affected.
The debt limit is affected by general obligation bonds.
The organizational meeting of the building corporation's board of directors - Warsaw Mayor Ernie Wiggins, John Elliott and Bob Gast - is set for 11:30 a.m. Oct. 29 at the Boathouse Restaurant in Winona Lake.
City employees, not the corporation board, will be responsible for the day-to-day operation of the sewage facility.
A resolution was approved authorizing the execution of a lease for construction and issuance of sewage works revenue bonds in an amount not to exceed $5.8 million to pay for a portion of the project's costs.
In addition to EDIT, sewage works revenues and Northern Economic Development Area tax increment revenues will be applied toward the plant's construction.
The council also approved an ordinance to authorize improvements and extensions to the city's sewage works as well as to issue and sell additional revenue bonds for the project.
Costs of the new facility and infrastructure are estimated at $16.8 million. The initial $5.8 million bond issue will be subtracted from the total figure. And $10 million or so will be bonded when the sewage plant begins operation around July 2004.
Installments of $550,000 paid twice a year for 23 years, bring the new plant's cost to $31.1 million over the next two decades.
In other business the board :
• Approved an ordinance establishing a commercial planned unit district for Petro Family LLC.
Recommended by the plan commission Oct. 22, the council heard the corporation plans a C-3 development on 26.98 acres on the west side of Ind. 15 north of the Wal-Mart SuperCenter.
City council members are Joe Thallemer, Jerry Patterson, Bill Rhoades, Charlie Smith, George Clemens, Jeff Grose and Trish Brown. [[In-content Ad]]