The city issues these short-term notes until the projects are complete and the debt can be transferred to longer-term bonds, a representative for the city said, adding that the timing of that transition is dependent on the interest rate market and the timing of the project itself.
The second note, at $1.75 million, will go toward replacing the roof at the Municipal Court building and upgrading the Police Department complex on Hebble Avenue.
Finally, the last of these bonds at $3.58 million, will go toward the cost of acquiring and improving properties within the city, including three acres on Broad Street, and improving several properties on Main Street or Third Street “in support of economic development and job creation within the city,” according to city documents.
This money encompasses several economic development projects Fairborn already has in motion for the area of the Broad Street and Main Street intersection, according to the city.
Fairborn purchased and demolished three motels on Broad Street for redevelopment, and Spark Fairborn, the city’s kitchen incubator, is also part of this project. City staff is working with a developer to acquire property on Broad Street to create new market-rate housing, said Fairborn communications manager Emily Gay.
The city also purchased and tore down the mobile home park and Geno’s Timeout Tavern on Colonel Glenn Highway.
“All three of these projects have improved the surroundings and are all integral parts of our long-term economic development strategy,” Gay said. “The Spark incubator has more than a dozen members and has been a key contributor to the renaissance that is occurring on the west end of Main Street.”
Gay said the city has used this debt model for several years, as the return on the investment of the city’s cash reserves is higher than the interest on the debt.
“Issuing debt delivers the best value for Fairborn taxpayers because it allows the city to finance needed infrastructure projects while holding and investing its cash reserves,” Gay said. “For several years, the city of Fairborn has used bonds to raise money for large, long-term capital projects like infrastructure improvements that cannot be funded entirely from current operating revenue. This allows the cost of these projects to be spread out over time, limiting the financial burden.”
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