City Council pursues bond sale to fund new park

by Marianne Gasaway

The Clear Lake City Council has approved $1.3 million in bond issue funding for a new city park on South 15th Street.

At its Jan. 17 meeting the Council approved an agreement with Northland Securities to serve as the placement agent for its bond sale. 

City Administrator Scott Flory explained the $1.3 million bond issue will fund about  70 percent of the projected cost to turn the former county shed property into an all-inclusive playground with adjoining splash pad and park area.

“The total project budget is around $1.8 to $1.9 million for the inclusive playground and park development project, so $1.3 million of that would come from the subsequent bond issue that we are talking about here, and the remainder would come from general funds and cash donations,” Flory told the Council.

The Council has discussed a probable project budget of approximately $1.8 to $1.9 million for the project; the Everybody Plays Playground Committee, which launched the playground idea two years ago, has raised another $250,000 in private donations.   General funds and donations will be used to fund the remainder of the project.

As they did when the City was pursuing a Wellness Center project, local banks have indicated they are interested in bidding on the City’s bond issue.

Chip Schultz of Northland Securities, who spoke to the Council remotely, said while the city may not see as low of interest rates on bonds this time, he still considers this a favorable interest rate environment.  He said he conservatively expects the interest rate will be 1 to 1.25 percent.