North Beach Wavers On Town Hall Funding
Council Weighs $2.4 Million Bond Deal
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Sunday, September 28, 2008
The North Beach Town Council slowed its pace toward funding a new town hall, temporarily pulling back $2.4 million in construction bond money.
During a public hearing this month, about 100 North Beach residents criticized the proposed two-story, nearly 10,000-square-foot town hall. Opponents said the building would be too big and expensive and could bring a tax increase.
"The town doesn't have faith in the council," North Beach resident Jean Rupard said during the council meeting Wednesday. "We elected you, and we think you should listen to what we want."
The original town hall was torn down about a year ago after extensive mold was found in the building. Since then, town officials have operated out of a trailer.
The council is expected to decide by Tuesday whether to approve an agreement with SunTrust to sell bonds at a fixed interest rate of 4.59 percent to build the town hall. The deadline to finalize the agreement is Friday.
Under the agreement, the town would have to sell up to $2.4 million in tax-exempt bonds by the end of the year or face a contract breakage fee of $17,850. Once the bonds are issued, the town would have three years to spend the money raised.
"Is it worth the $17,000 to guarantee what is right now a pretty good rate?" town attorney John Shay asked the council Wednesday.
Lisa Goldman, who has lived in town for a year, said financial experts have told businesses to "not jump into any long-term investments and projects until all this calms down." Given the national financial crisis, she asked whether the council and its financial advisers had "inside information" that supports the town hall project.
But Joseph D. Mason, an investment consultant for the town, said it was a good time for the project.
"Triple-A-rated entities, including major Maryland state agencies, can't sell bonds right now. You have a firm offer in hand," he said.
Several residents said they preferred to rent or buy a building in town instead of constructing one. Council member Andrew "Bud" Hunt said, "I'm not in love with the building, either. I think what we need to do is take a good look at what we need in our town hall."
Town officials said they tried to rent space from the North Beach Community Center and the Boys and Girls Club but were turned down.
