District Library Board approves $14 million bond proposal

After a long discussion at its regular meeting April 12, the Belleville Area District Library Board voted unanimously to sell $14 million in bonds to build a new library building in downtown Belleville.
The proposal will go before voters in the Nov. 8 election.
It is yet to be determined for how long the mills would be levied. For 20 years it would be .74 average millage and cost $8,704.167 in estimated interest of 5%. For 25 years, it would be .65 average millage, with 5.5% estimated interest totaling $11,748,625.
The interest rates used on the tables presented to the library board represent conservative rates, reported Public Financial Management of Ann Arbor which prepared the charts.
If the bonds were sold in the current market, the interest rate would be about 1% less than those shown on the chart.
“However, due to the fact the bond sale is at least six months away, we recommend using a conservative interest rate when computing the millage impact. Otherwise, if the interest rates rise, the District could be forced to levy a millage over the millage given in the pre-election information,” Public Financial Management wrote.
The board also voted unanimously to hire bond counsel to work on the $14 million bond proposal.
A great deal of time was spent discussing the probable construction costs for a 31,900-square-foot library, which amounted to $13,529,000 for the main downtown library, $250,000 for the satellite branch in Sumpter Township, plus $125,000 miscellaneous costs, for a total of $13,904,000.
Treasurer Tanya Stoudemire pointed out the $14 million is 5 mills less than what the board asked for to build the lakeside library on the DNR property in Van Buren Township.
Architect Dan Whisler said there will be a minimum of 18 months of construction because of the phasing, building the new library first and then tearing down the old library for a parking lot. That would cost $28,000 to $30,000 per month for the construction manager.
The library board has about six months to put it before voters and if it is approved in November the bonds will be sold and by the end of 2017 it would go out for bids. It will be built in 2018 and open in 2019.
“We should use local workers when possible,” said building committee chairperson Joy Cichewicz.
“It is appreciated by the community,” agreed architect Whisler.
Board members talked about cutting this or changing that and board attorney John Day said, “You’re really just guessing.”
“You need a hard number for a bond, a number you think we can pass,” Day said. “From a bond standpoint, you don’t have to build when it’s passed. Whatever you ask for you can get a building in place for.”
Whisler said, “We can build a lovely building in downtown Belleville for the amount of money you decide.”
“With a millage amount under .7, I’m happy,” said board member Mike Boelter.
Library Director Mary Jo Suchy asked when it is feasible to stay at one story.
Architect Whisler said a 25,000-square-foot library ought to be on one floor. If they cut the size back that small, it should be on one floor.
“This is a growing community, so I wouldn’t go below 30,000 square feet,” Stoudemire said.
Day said they can’t go across Charles Street and can’t go towards Main, so the only way to expand this site is to buy Main Street Computers and its asking price is $800,000.
Whisler said the question is the bond and millage.
Day said they asked about 2 total mills last time and will be asking 1.4 mills this time, both which includes the .7 mill for operation. The voters already have approved .7 mill for operation which expires in 2022.
Whisler said the building committee has been meeting with the city to make sure library plans coincide with the city’s zoning ordinance. He showed updated floor plans and three-dimensional drawings of the preliminary library design.