The City of Turlock moved, yet again, one more step forward to financing and constructing the planned project of a new $35 million public safety facility that will house Turlock Police and Fire operations to be located at Broadway Ave. and Olive Ave. next to the Carnegie Arts Center.
At the January 25, 2011 Turlock City Council Meeting, the Council voted 4-1 (Councilwoman Mary Jackson opposing) to approve the issuance of bonds and increasing the interest rate cap from 7.25 percent to 8.5 percent, potentially decreasing the Redevelopment Agency (RDA) proceeds for the public safety facility from $14 million to just $11.5 million.
The decision was made in light of many factors including the California Governor Jerry Brown’s proposed State Budget on January 10, 2011 that calls for eliminating Redevelopment Agencies statewide and City Staff’s report that some rebids on the public safety facility project came back with a total increase of $170,000 with expectations of even further increases up to $1 million if rebidding was necessary again.
Late Friday, Turlock City Manager reported that the City of Turlock sold the bonds.
“The bonds sold at a TIC (True Interest Cost) of 7.47 percent realizing just a little over $13.5 million for project funds,” stated City Manager Roy Wasden. “Total issuance was $15 million.
City Manager Wasden did not have the debt service information with him but said that the total repayment will be around $40 million.
The $13.5 million from the recent sale of bonds will be added to the $28 million total of funds needed to complete the Public Safety Facility project, including contributions from the estimated $2.5 million from the hopeful sale of the existing police station on Palm Street, and the projected $8 million in Capital Facility Fees (fees paid by developers for the cost of City infrastructure).
While the City’s funding mechanism is short of the $28 million still needed to complete the $35 million project and dependent on future projected revenue, the City may borrow funds from other City capital facility fees accounts in the meantime.
With the urgency of awarding bids and rebids on time, along with the State’s looming decision to do away with Redevelopment Agencies, the Turlock City Council will hold a Special Meeting on February 1, 2011, at 5:30pm in City Hall to award the bids.