City Borrows $12.75M For Ravinia Fire Station, Capital Projects

Highland Park IL

16 February, 2022

2:50 PM

Description

HIGHLAND PARK, IL — The Highland Park City Council on Monday approved the issuance of $12.75 million in general obligation bonds to finance capital projects, including a new fire station in the Ravinia District. Councilmembers also unanimously signed off on bids from contractors to construct a replacement for Fire Station No. 32 at 692 Burton Ave. Of the proceeds from the new bond issue, $8 million is earmarked for the fire station, with $2.5 million set aside for sewer improvements and $2 million due to be used for street improvements. The remaining money will be used to cover the cost of issuing the bonds, Finance Director Julie Logan said in a memo to the council. The principal and interest for the portion of the bonds used for the fire station and streetscape will be paid from the city's property tax levy, while the sewer improvements will be financed by sewer revenue, according to Logan. City officials pledged $1.3 million a year for the next 15 years — a total of $19.5 million — to pay principal and interest on it, according to the terms of the bond issue. Logan said the levy, the sewer revenue and payments on the principal and interest are included in the city's 2022 budget and estimated within the city's long-term plans. Closing on the bond is expected by March 9. According to the official statement accompanying the bond issuance, the city will have about $55 million in outstanding principal from its debt on general obligation bonds after the latest series. Nearly $36.4 million of that debt is self-supporting. The statement also notes that the city has received $1.365 million under the Coronavirus Aid, Relief and Economic Security Act and Coronavirus Response and Relief Supplemental Appropriations Act, or CARES acts, and last year got more than $2 million from the American Rescue Plan Act, or ARPA. City officials expect to get another $2 million in APRA funds in 2022. The city's capital budget for the current fiscal year includes $8 million to replace the fire station. The budget for construction is $6.61 million, with $1.88 million of that set aside for soft costs like a temporary station in Brown Park, across the street from the construction site, Fire Chief Joe Schrage said in a memo to the council. Construction of the new station is being managed by the Addison-based firm Frederick Quinn Corporation. According to the firm, the city received a total of 112 bids for 26 bid packages. Only one bid for landscaping services was received, and it was incomplete, so the city and firm plans to re-open it for bids. "With the approval of [the bid package] contracts and FQC's maximum price amendment [contract], the new Ravinia Fire Station will be constructed efficiently and in a timely manner," Schrage said. "The new station will provide an efficient delivery of services for many future decades." Related: Work Begins On Temporary Ravinia Fire Station In Highland Park