The Plymouth City Council took action Monday night to take another step closer in the city building renovation project.
City Attorney Sean Surrisi presented a resolution that would approve a lease between the Plymouth Redevelopment Authority and the Plymouth Redevelopment Commission and the issuance of lease rental bonds by the Plymouth Redevelopment Authority.
“Part of this resolution authorizes the transfer of the building to the Redevelopment Authority who will hold the title to that throughout the term of the lease which would be a ten-year lease,” said Surrisi. “At the end of the term when nothing is due, basically the title can transfer back to the city from the Redevelopment Authority.”
The resolution also authorizes the Plymouth Redevelopment Authority to sell the bonds that will finance the renovations to the city hall and chamber of commerce building.
TIF money will be used to fund the lease payments which will be applied to the bonds. Surrisi said the lease paperwork presented outlines the maximum amount on each of the funding points.
“The issuance of bonds would not exceed $3 million. The target that we’re aiming for with the soft costs and construction is somewhere under $2.5 million. The interest rate would not exceed five percent which we’ll certainly be significantly below that. The lease would not exceed 20 years. The recommendation from our financial advisors, the mayor, clerk-treasurer, and me is to go with a ten-year term.”
Bonds will be sold at the end of July. Bids will be opened for the project at the July 10 meeting of the Plymouth Board of Public Works and Safety so the exact amount of the project will be determined at that time.
The Plymouth Redevelopment Commission will hold a public hearing concerning the lease on June 20. The Redevelopment Authority will then approve the lease and move along with the bond sale when they organize and meet the next day.
The Plymouth City Council members unanimously approved the resolution.