(Clarinda) — Clarinda city officials have taken the next step toward securing financing for infrastructure in a recently established business park.
Meeting in regular session Wednesday evening, the Clarinda City Council unanimously approved setting a public hearing for its January 8th meeting on entering into a general obligation corporate purpose loan agreement, borrowing up to $3.5 million towards the Hugh and Maxine Loudon Business Park. Donated to the city for commercial or industrial use, the park is located on roughly 54 total acres in the southeast part of town between Agrivision Equipment and Agriland FS Clarinda along Highway 2. City Manager Gary McClarnon says the bond proceeds would go towards the majority of the estimated $4.35 million in infrastructure costs for the development.
“We could then proceed with putting in the streets, storm sewer, sanitary sewer, water, and we could also cover street lights and everything like that with the bonds,” said McClarnon. “This does not have to go to a vote of the people because it’s considered an essential purpose. So, (the council) can approve them but we do have to hold a public hearing, which we’ll do January 8th.”
McClarnon says the engineer’s initial concept drawing broke up the portion of the business park north of the Highway 2/71 bypass into 24 lots of varying sizes. Between potentially utilizing funding from local option sales tax typically set aside for roads and upcoming reductions in other debt payments, McClarnon says they are hopeful for little to no increase in the debt service levy to pay off the proposed GO bonds.
“Right now, between those two, we’ve got $230,000 we can pay from other funds and not have to raise the levy rate, and we’re looking at roughly $260,000 to $280,000 (in annual payments), but it all depends on how the interest rates come out,” McClarnon explained. “So, honestly, the net effect on taxes will be very little and once I get valuations, my hope is to not raise the tax levy at all–that’s what I’m working towards.”
He notes that if they would need to raise the levy, the projected maximum property tax impact on a home worth $100,000 in valuation would be $84 a year over the life of the 20-year bond. While they have already reached purchase agreements on seven lots, McClarnon says the land will be farmed for at least one more year.
“If all this goes through, that will give the engineers until October or November of next year to do the design work for the engineering and my hope is that next November to go ahead and do the bid-letting,” he said. “That’s the best time to do a bid-letting and that’s usually when you’re going to get your best prices.”
While noting he wants to avoid raising taxes as much as possible, Clarinda Mayor Craig Hills says the business park is a good thing for the community.
“I don’t like to raise taxes,” said Hill. “But, with the potential of what we’re going to do for the community moving forward, I feel this is something we should be pursuing and I think it’ll be a benefit for everyone.”
At a previous meeting, McClarnon also discussed using $500,000Â from the city’s street account for a down payment on the roads and funding the sanitary sewer out of its respective improvement fund, leaving the $3.5 million to borrow through a GO bond.
In other business Wednesday, the council…
–Unanimously approved a lease purchase agreement for the sale of a hanger at the Clarinda Municipal Airport-Schenk Field and set a public hearing for its January 8th meeting on the disposal of the hanger at 85 Airport Road for $175,000 to Milo and Colin Beery for their crop spraying business. They would also be required to pay a $200 monthly lease to city for the federal land the building is on.
–Held a public hearing and unanimously approved the 2024 amendment to the Urban Revitalization Plan for the Clarinda City-Wide Urban Revitalization Area.
–Unanimously approved pay request no. 2 to Henningsen Construction for $101,906.50 for the construction of five-unit t-hangers and taxi lane extension.
–Unanimously approved the five-year airport capital improvement plan.