SELLS BONDS - East Tawas Tax Increment Finance Authority Chairman Kevin Jungquist looks over some of the paperwork Thursday for the city’s $2.3 million streetscape project. - Photo by John Morris

TIFA sells bonds for $2.3 million streetscape project
by John Morris

EAST TAWAS - It’s official.

The East Tawas Tax Increment Finance Authority (TIFA) awarded the sale of the $2.3 million bond issue to fund the city’s streetscape project.
The awarding resolution was approved by TIFA at a special meeting Thursday.

The 2008 development bonds were purchased by Bernardi Securities, Inc., a joint partnership with Raymond James and Associates, Inc., Oppenheimer and Company, Inc. and Comerica Securities.

Bernardi Securities, Inc. was the lone bidder to purchase the bonds. The true interest costs to TIFA over the 25-year life of bond repayment is 4.851926 percent.

The bonds will be repaid by TIFA. In essence, tax increment financing is a tool which has been used for redevelopment and community improvement projects throughout the United States. Tax increment financing captures a percentage of increased property taxes that a new real estate development generates to finance costs of projects.

The East Tawas City Council at a special meeting on May 21 approved a resolution pledging the city’s full faith and credit toward the bond issues. The city last month received an A+ credit rating by Standard and Poor’s Corporation.

The bond sale closing is expected on June 23.

The city’s streetscape project is now expected to begin in late June. TIFA officials said at the meeting the contracts for the project will be awarded to bidders “right away.”

Chip Hendrick of R.C. Hendrick and Son, Saginaw, is the project’s construction manager. Hendrick was the city’s construction manager for the East Tawas Community Center and waterfront development projects. He also worked in the same capacity for Frankenmuth’s phased streetscape project.

TIFA also on Thursday finalized how it will spend the $2.3 million. The project will include new streetlights similar to those at Harbor Park and along Newman Street near the community center, decorative brick pavers and exposed aggregate sidewalks, decorative concrete intersections with brick crosswalks and traffic bump-outs along Newman Street, including a “compass rose” at the Westover Street intersection, a new drinking fountain, several new trees and tree guards and grates, new planters and planter benches, floral hanging baskets and an irrigation system to water them and a greenbelt, raised sidewalk, sewer and drainage improvements at the Main Street parking lot.

Eliminated due to costs over the $2.3 million for the project are tree electrical outlets and new bike racks, benches and trash receptacles which could be added to the project should the $150,000 contingency fund come in under budget. Work on the two parking lots at Sawyer and State streets were eliminated from the project last month also due to costs.

The city’s streetscape project is now expected to begin in late June. TIFA officials said at the meeting the contracts for the project will be awarded to bidders “right away.”

Chip Hendrick of R.C. Hendrick and Son, Saginaw, is the project’s construction manager. Hendrick was the city’s construction manager for the East Tawas Community Center and waterfront development projects. He also worked in the same capacity for Frankenmuth’s phased streetscape project.

TIFA also on Thursday finalized how it will spend the $2.3 million. The project will include new streetlights similar to those at Harbor Park and along Newman Street near the community center, decorative brick pavers and exposed aggregate sidewalks, decorative concrete intersections with brick crosswalks and traffic bump-outs along Newman Street, including a “compass rose” at the Westover Street intersection, a new drinking fountain, several new trees and tree guards and grates, new planters and planter benches, floral hanging baskets and an irrigation system to water them and a greenbelt, raised sidewalk, sewer and drainage improvements at the Main Street parking lot.

Eliminated due to costs over the $2.3 million for the project are tree electrical outlets and new bike racks, benches and trash receptacles which could be added to the project should the $150,000 contingency fund come in under budget. Work on the two parking lots at Sawyer and State streets were eliminated from the project last month also due to costs.

A preconstruction meeting for the project will be heldr June 18.