- Associated Press - Monday, January 12, 2015

STARKVILLE, Miss. (AP) - Starkville aldermen have voted to expand the city’s certificate of participation financing limit to a maximum of $3 million.

The Commercial Dispatch reports (http://bit.ly/1u00J0R ) the money could be used to either purchase Cadence Bank for the Starkville Police Department or to renovate the existing City Hall as police’s long-term home.

Certificates of Participation are articles of debt that are backed by promises that future boards will pay annual lease payments. The certificates pose a bigger risk to bond buyers than general obligation debt because future boards could balk at the expenditures.

Aldermen have eyed buying the bank’s Main Street location for months now. The board is expected to negotiate a $2.55 million-maximum purchase in the future.

Starkville listed its current administrative home and surplus lagoon property for sale after appraisals placed the properties’ values at $800,000-$900,000 and $420,000-$600,000.

Almost $1.3 million in certificates of participation left over from the prior administration’s public-private City Hall construction project were earmarked for renovations to the city’s current home. Board attorney Chris Latimer previously told aldermen they can shift that money to cover property acquisition costs.

The board’s action this past week gives aldermen flexibility for a purchase if the city cannot find a buyer for its two properties.

If the Cadence deal does not go through, it also gives Starkville flexibility to make additional renovations to the current City Hall for continued police department use.

___

Information from: The Commercial Dispatch, http://www.cdispatch.com

LOAD COMMENTS ()

 

Click to Read More

Click to Hide