Mayor William Matakas (left) and City Administrator Mark Kim explain the advantages of refinancing Fairlane Green shopping center bonds at a lower interest rate, and the need to re-activate the Brownfield Redevelopment Authority to approve the move, since “The Hill” is located atop a brownfield site.
By SUE SUCHYTA
Sunday Times Newspapers
ALLEN PARK – City Manager Mark Kibby said Finance Director Robert Cady hopes to refinace Fairlane Green shopping center — “The Hill” — bonds to reduce interest payments by $35,000 annually, for a $250,000 cumulative cost avoidance.
Any savings would remain in the city’s general fund, Mayor William Matakas said.
The Hill bonds have seven to 10 years remaining before they are retired.
Kibby said Cady plans to meet with Standard & Poor’s to raise the city’s credit rate above its current “A” designation, to be eligible for a lower interest rate.
The city also must re-establish its Brownfield Redevelopment Authority to approve any bond refinancing, since the shopping center sits on a brownfield site, Matakas said.
He explained that the state-appointed emergency manager dissolved the Brownfield Authority, which must now be rebuilt. The City Council approved six of seven mayoral appointees at its Jan.22 meeting.
Matakas said he had hoped that resident John Kozuh would rejoin the revived Brownfield Authority, but as the current Lincoln Park Department of Public Works director, Kozuh declined the nomination, citing the extensive time demands of his current position.
Kibby said he and Cady hope the bonds can be refinanced before June 30, which marks the end of the city’s fiscal year.
Kibby said Cady is diligently searching for cost savings for the city.
“He leaves no stone unturned,” Kibby said.
(Sue Suchyta can be reached at [email protected].)