by Frank Lee
operations@thenewsleaders.com
A groundbreaking ceremony for a new government center in St. Joseph was held March 31 just as the city is close to finalizing the sale of its city-hall building that was at one time a bank.
The government center will be located to the west of Colts Academy, which was sold by the St. Cloud School District to the City of St. Joseph in September for more than $2 million.
“There are two approaches to financing this type of project,” said Monte Eastvold, vice president of Northland Securities Inc., who spoke at the April 4 St. Joseph City Council meeting.
State statute allows general-obligation capital-improvement-plan bond funding for certain capital improvements of city buildings. Another bonding option is public-project-revenue bonds.
“You have issued in the past for your public works facility some years ago where the (Economic Development Authority) actually issues the bond and owns the facility, and they lease the facility to the city, which makes payment to the EDA,” Eastvold said of public-project-revenue bonds.
“Theoretically, the city could walk away from that public works facility or the (proposed) government center and have a government center (built) somewhere else,” he said. “But there is a higher interest rate on that type of financing versus a general-obligation bond issue.”
The proposed 18,000-square-foot building that will provide more space for the police department and city administration may someday be connected to Colts Academy, which is slated to be converted into a community center.
“Typically, the EDA bond issue – the non-G.O. bond issue – is about half of a percent higher rate versus a G.O. bond issue,” Eastvold told the council.
The estimated cost to build the new government center, which will include a public community room, is about $4.8 million, and it could open in February.
Meanwhile, St. Joseph city officials started planning the completion of the annexation of a section of St. Joseph Township during an April 4 work session.
The 1,800-acre section would broaden St. Joseph’s city limits from Interstate 94 to the Sauk River and will allow for the city to provide services to township residents like plowing and firefighting, but the earliest the land would be officially annexed would be in January.
A new government center for the city of St. Joseph that is expected to open in February will be built west of Colts Academy and cost about $4.8 million, to be financed by either general-obligation capital-improvement-plan bond funding or public-project-revenue bonds.
Monte Eastvold, vice president of Northland Securities Inc.,, talks to the St. Joseph City Council at its April 4 meeting about a new government center for the city of St. Joseph that is expected to open in February that will be built west of Colts Academy and cost about $4.8 million and be financed by bonds.
