Bullard crunches numbers for projects

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September 13, 2012

Bullard crunches numbers for projects

Faith Harper Jacksonville Daily Progress The Jacksonville Daily Progress Thu Sep 13, 2012, 08:12 AM CDT

BULLARD — The city council will hold a workshop on Monday to discuss funding options for new streets and two massive projects, which could bring in the city’s first hotel and subdivision of town homes and duplexes.

“We are going to do a workshop on Monday, kind of like we do budget workshops, and talk about the different bonds, what the rates are, and what we may do with them project-wise,” said finance director Brent Stephenson.

The meeting will be at 6 p.m. in city hall, and is open to the public.

Stephenson said the council is considering taking out a certificate of obligation for the debt, which would not require voter approval. He said the loan would be paid back out of the interest and sinking account, which is factored into residents' property taxes.

“We can take on this debt without raising any sort of taxes, and the reason we can do this is we have two bonds that are maturing in 2014,” Stephenson said.

The council has not approved a specific dollar amount, but Stephenson said the city is considering taking out a total of $3.25 million. He said, in very early plans, $2 million would be used for street repair and $1.25 million would potentially got to the Bullard Economic Development Corporation for incentive packages on two large developments to the city.

The first proposed project, Cherokee Village, is a 10.97 acre mixed-use commercial district planned for the intersection of U.S. 69 and County Road 3801, in front of Oak Grove Estates. The development would include a 102-room hotel, a gas station with an in-house barbeque restaurant, a coffee shop, bank, fast food restaurant and four full-service restaurants.

Developer Tom Roper is asking BEDCO for $250,000 to help with infrastructure setup costs for the Cherokee Village project.

The second is Heritage Springs, which is a 34-acre mixed-use project, proposed to be placed at the intersection of F.M. 344 and U.S. Highway 69. It is planned to contain 260 town homes and duplexes along with office spaces, retail and non-retail space.

Developer and former Bullard Mayor A.W. Hines is $750,000 from BEDCO to help with infrastructure costs and building a road in a proposed $50 million project.

Stephenson said the council has not specified roads to be repaired or lined out projects to be completed.

The workshop will help officials crunch numbers to find the best financing deal.

“We have looked at several different companies,” Stephenson said. “We are looking at the amounts with terms and also looking at the fees that the bonding company will charge. We are trying to see where we can get the best rate and lowest fees.”

Stephenson said the council may also look at and approve BEDCOs fiscal year 2012 to 2013 budget, which must be approved by law before October.

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