Council approves $7M bond issue

The Lancaster News - Friday, October 29, 2010 at 7:00 am (Updated: October 29, 7:17 am)

Several county projects will soon have funding, now that County Council has approved the purchase of millions of dollars in bonds.
Council unanimously approved final reading of the bond ordinance Tuesday.
However, on final reading, council doubled the amount of the bond – from  $3.5 million to $7 million.
County Administrator Steve Willis said $3.5 million of the bond will be used to recoup $520,000 in costs for the new county coroner office and about $2.5 million to acquire and upgrade property for another project that is still in contract negotiations. He said the bond will also include about $480,000 for another project not yet identified, though council has discussed applying this funding for a potential new emergency medical services station in Buford.
The $3.5 million added to the bond will provide funding for several economic development projects.
Willis said it will be used to develop a county airport business park, to construct speculative buildings in the Heath Springs Industrial Park and to upgrade the Lancaster County Economic Development Corp. building.
Council Chairman Rudy Carter explained the addition of $3.5 million to the bond during a public hearing prior to the vote.
“This money is going to be used to develop an industrial park at the airport,” Carter said. “We’ve been told the airport is a most ideal spot and economic development is saying it’s a crown jewel, but we need to get some money in there. And that’s why we need the bonds.”
Councilman Larry Honeycutt supported the bond increase.
“I don’t look at this as a gamble. The airport is a goldmine and we need to jump on it and start digging,” Honeycutt said.
Several audience members asked council how long it would take for the bonds to be paid off.
County Attorney Mike Ey said the bonds would most likely have a 15-year maturity date and the interest on the bonds would be determined at the time of the sale of the bonds.
Willis said the bonds can be issued without council making a final determination on where all of the funding will be allocated.
Council also approved final reading of an ordinance to refinance $4.1 million in previously sold county bonds.
The bonds were issued in 2001 to help pay for the County Administration Building and fire trucks. Ey said the county has a little less than half a million dollars left to pay on these bonds. These bonds can now be refinanced to take advantage of lower interest rates, Willis said.