July 23, 2014 at 2:10 p.m.

Industrial Park Drive project is a go (02/06/07)

Portland Redevelopment Commission

By By RACHELLE HAUGHN-

The bonds are sold. Let the work begin.

Members of the Portland Redevelopment Commission learned Monday that bonds for the Industrial Park Drive project have been sold and construction is expected to begin on Thursday.

"Our hope is, and our expectations are, to close on the bonds on Thursday," said Greg Guerrettaz of Financial Solutions Group, Inc., Indianapolis.

The bonds were sold to City Securities of Indianapolis and MainSource Bank, a Greensburg-based company with branches in Jay County. The City Securities bond will be paid off from 2013 to 2028, and the MainSource bond will be paid off from 2009 to 2021.

A total of $1,910,000 is being borrowed for the Industrial Park Drive project. The interest rates for City Securities range from 4.25 to 4.75 percent, and 4.50 to 5 percent for MainSource.

Some of the funds will be used to pay Guerrettaz and Sue Beesley, attorney with Bingham McHale LLP, for their services. The borrowed funds also will be used to pay engineering fees, to create a debt service reserve fund, and to pay interest on the bonds in 2007 and 2008 before the TIF funds are collected, Guerrettaz said this morning.

The City Securities bond will be backed up with property taxes. Guerrettaz said two other financial institutions considered the bond sold to MainSource but passed because it would not be backed up by property taxes.

Plans call for Industrial Park Drive to be widened to three lanes and for a lift station to be moved to the east side of the street. The project is expected to take about six months to complete.

The construction will be done by LICA Construction Corp., of Linn Grove. The company bid $1,297,564.

To have a large amount of money upfront to pay for a project, bonds can be issued. The bonds can be repaid through increased assessed valuation generated in the tax increment financing (TIF) district.

The commission did not need to take action on the matter, Guerrettaz said.

Also Monday, commission members voted to have the Portland Board of Works process all claims for the Industrial Park Drive project.[[In-content Ad]]
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