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Council authorizes $3.52 million Series 2020 tax notes for the 503-509 S. Johnson St. purchase, 4-1
On May 12, 2020 the council adopted Ordinance No. 7853, 4-1, authorizing Tax Notes, Series 2020, to reimburse the City for property at 503-509 South Johnson Street that it bought on January 28, 2020. Councilmember Elaine Hays voted no after asking whether 15-year financing could lower the yearly cost; the City's financial advisor said that could only be done with certificates of obligation. When the council approved the $3,850,000 purchase in January, the minutes say the property would be important to the expansion of the Civic Center. City records show $3,520,000 in seven-year notes issued and fully spent for "acquiring land for municipal facilities," maturing in 2027. The City later cited the notes as part of the FY2020/21 debt-rate increase.[1][2][3][4][5][6]
Ginger NelsonElaine HaysFreda PowellEddy SauerHoward SmithLaura Storrs
What the sources say
- ✓ Verified
On May 12, 2020 the council passed Ordinance No. 7853, authorizing Tax Notes, Series 2020, on first and final reading, 4-1: Mayor Nelson and Councilmembers Powell, Sauer and Smith voted aye and Councilmember Hays voted no. The minutes say the proceeds would "reimburse the City for the purchase of property at 503-509 South Johnson Street," bought on January 28, 2020, and that the council had approved a reimbursement resolution on March 24, 2020. The City's financial advisor said the notes were for seven years, five bids were received and Citigroup Global Markets, Inc. was the winning bidder. [1][4]
- For
- 4
- Against
- 1
- ✓ Verified
Councilmember Hays said the cost per $100,000 of value was higher each year because of the short term and asked about 15-year financing; the City's financial advisor said that could be done only as certificates of obligation and estimated the yearly cost would drop from about $5.00 to about $2.50. Councilmember Sauer said the interest rate was below the inflation rate. [1]
- ✓ Verified
On January 28, 2020 the council voted 5-0 to buy an office, warehouse and land at 509 South Johnson Street for $3,850,000 plus closing costs, with a leaseback. Mayor Nelson said the property would be important to the expansion of the Civic Center, and City Manager Jared Miller said it was the last piece in the area required for the proposed expansion. [2]
- Price
- $3,850,000
- For
- 5
- Against
- 0
- ✓ Verified
City financial records list $3,520,000 of Tax Notes, Series 2020, at 2.00-3.00%, maturing February 15, 2027, for "acquiring land for municipal facilities," with all $3,520,000 spent and $1,075,000 outstanding at September 30, 2025. [5][6]
- Issued
- $3,520,000
- Outstanding 2025
- $1,075,000
- ✓ Verified
Laura Storrs: At the September 8, 2020 tax-rate hearing, Assistant City Manager Laura Storrs said the FY2020/21 rate included no increase for maintenance and operations and an increase in the interest and sinking (debt) rate for the Thompson Park Pool and "the Johnson Street property recently purchased." [3]
