Council authorizes bonds for Miller ground purchase
By Jan Schultz
The Imperial Republican
The city of Imperial’s purchase of Melvin and Dorothy Miller’s ground east of Schroeder Park took a step further at the July 13 council meeting.
At last week’s meeting, the council approved a resolution, issuing up to $380,000 in economic development fund bonds for purchase of the ground.
The Miller property is certified for 75.6 crop acres.
Bruce Leffler of Ameritas was at last week’s meeting to review the resolution.
The bonds will be paid back over a 10-year period using money that has accumulated in the economic development fund from the city sales tax.
Leffler said the bonds will be “callable” in three years. He expected to have buyers for the bonds by this week. Interest rates on the bonds had not been set as of last week’s meeting, but Leffler didn’t expect a rate of more than 5%.
The city will have a $45,000 to $48,000 annual debt service in paying off the bonds.
City Clerk/Administrator Jo Leyland said, based on the city sales tax history, there should be no problem meeting that commitment.
That economic development fund averages a monthly intake of between $12,000 and $15,000.
At the council’s June meeting, approval was given to the purchase agreement on the land, with a $20,000 earnest payment made.
Imperial Economic Development Director Leslie Carlholm said the ground will be used primarily for development of an industrial site for prospective business.
The city and the Millers are expected to close on the property Aug. 17.