The third floor of the Isabella County Administration Building after being gutted during asbestos abatement. (Photo courtesy Nicole Frost).
Isabella County commissioners could borrow no more than $11 million to pay for the rehabilitation of the administration building, which has been closed for asbestos abatement since October.
In a unanimous vote with Commissioner Jerry Jaloszynski absent, the board approved a resolution of intent Tuesday to issue bonds to finance the design, acquisition, construction, reconstruction, improvement, repurposing, rehabilitation, furnishing and equipping of new and existing county facilities.
County Administrator Nicole Frost told commissioners in a June 7 memo that the county “is already undergoing some of these costs, and has the ability to reimburse some of the costs already incurred towards the project.”
“In order to reimburse prior related expenses, the county board must approve a reimbursement resolution,” Frost told commissioners in the memo.
To go forward with the process of obtaining bonds, the county has assembled a team including a financial advisor and a bond attorney, Frost said.
“Fortunately for Isabella County, we have a well-established relationship with financial advisor Andy Campbell of Baker Tilly Municipal Advisors, LLC and with Eric McGlothlin at the Dickinson Wright PLLC law firm for bond council services,” Frost said in the memo. “Throughout a bond issuance, the financial advisor and bond attorney work in concert, but very independently, as there exists a legal distinction between the services they are allowed to perform.”
McGlothlin wrote up the reimbursement resolution, which serves to declare the county’s intent to issue bonds to finance a portion or all of the costs, and reimburse some of the advanced costs for the project, Frost said.
The resolution also established the $11 million limit.
When asbestos was found in the administration building, it was evacuated and offices housed there moved to different locations while the abatement was underway.
Because it was more extensive than originally anticipated, the building was gutted, and Frost said $750,000 annual payments have been added into the budget to pay off the anticipated loan.
McGlothlin, who spoke to commissioners during their Tuesday meeting via Zoom, said the resolution does not force the county to borrow money but allows them to do so, and noted that they payments will depend on interest rate and how much the county borrows.
The next step for the county is a 45-day referendum period, and the source of payment for the principal and interest of the future bond issue is intended to be general fund dollars.
Asbestos abatement is completed with the exception of a mechanical room, and Frost said that will be finished next month.
Showing commissioners a fisheye photograph of the third floor of the administration building gutted, Frost explained that rehabilitating the structure is more cost-effective than starting from scratch.
Isabella commissioners begin hashing out possible budget cuts
Isabella to finance administration building rehab – The Morning Sun #Isabella #finance #administration #building #rehab #Morning #Sun
Source Link: https://www.themorningsun.com/2024/06/20/isabella-to-finance-administration-building-rehab/amp/
Isabella to finance administration building rehab – The Morning Sun – Information Important Online
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