There are two parts to the bond, one for the Public Improvement Project (realignment of Sunset/Melrose, turn lane into OUP, etc.) the other for the purchase of unit 103 in the South building to be used for City/Police offices as well as a multi-purpose room. This has been commonly referred to as the Community Center. The combined total of these two projects was estimated at $950,000.
The largest portion of that is for the public improvements. By letting the bond, the city will pay for these improvements now, and then there will be a special tax assessment on OUP Property ONLY that will repay those costs. No current University Heights property owner will pay for any of the costs of the Public Improvement project. That project was estimated at $625,000.00
The smaller portion is for the community center space. That will be repaid by ALL city property owners via their property taxes. OUP property owners will also pay this assessment.
The city put their 10 year bond out for auction on Monday, Aug. 29th. When that happens banks and other entities bid to get the bond. The lower the bid, the LESS the city has to repay in interest. We were hopeful that we could get bids in the 2% to 2.25% interest range. There were 6 bids submitted. The winner, Banker's Bank of Madison, WI, bid 1.7%. That bid saved the city of University Heights $115,000.00 in projected interest payments. Due to how we structured our agreement with One University Place developers, the lower interest rate reduced the cost of the community center from $390,000.00 to $275,000.00. The lower rates saved U-Heights tax payers 29.5% on the cost of the community center. I remarked at the meeting that we are purchasing a community center for roughly the median house price in University Heights.
Full details of the financing can be found here:
Aug. 29 Special Meeting Agenda & attachments
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