At its regular meeting on June 24, the Van Buren Township Downtown Development Authority unanimously voted to hire Huntington Securities as the underwriter for its proposed $5 million bond for the widening of Belleville Road.
Andy Campbell, the DDA’s municipal financial adviser for the bond, said since the DDA is going out for the bond by itself and not under the township, it doesn’t have to do a notice of intent.
He said the bond resolution will come to the DDA later on this fall. He said he will advise on the best way to sell the bonds, the cheapest interest rates, and whether to go competitive or negotiated.
He said the next step is choosing an underwriter. Without the township’s credit rating behind it, someone will have to go out to the market, an underwriter. Campbell, the adviser, cannot do that.
Campbell of Bendzinski & Co. Municipal Finance Advisors, was hired at the DDA’s April 22 meeting (at an amount not to exceed $28,500), along with the lawfirm of Miller Canfield Paddock & Stone (at an amount not to exceed $38,500) to work on the bond and be paid out of bond proceeds.
The tax-exempt bond is expected to be for $5 million for 15 years. The DDA currently has three other revenue bonds.
Also at the April 22 meeting, the DDA passed a resolution for reimbursement to the two firms from the bond proceeds, as well as other reimbursements to the township. A deadline was nearing on the proposed timeline and so the resolution was considered and passed. Now they can go back 60 days for reimbursements and also forward.
At the June 24 meeting, Campbell was present by zoom. He recommended the DDA hire Huntington Securities, which handled the DDA’s last bond and has quoted a reduced rate, that would be a fee about $52,500.
There is no charge to the DDA from the attorney and advisors if the bonds are not passed.
He said no action was needed immediately. But after discussion, the board approved hiring Huntington since it had experience with the firm.
DDA Executive Director Merrie Colburn said the township doesn’t want to back this bond because it has the old Visteon bond project in its mind and it’s not uncommon for DDAs to go out on their own.
On April 22, Campbell said the tariffs are influencing the interest rates on the market because people panic. He said with an optimistic public, the market rises and now it is flip-flopping.
“No one knows what’s happening day to day,” Campbell said. He said the interest rates are unpredictable right now and bond interest goes up and down, day by day.
VBT supervisor Kevin McNamara asked about the current interest rates.
Campbell said two months ago the DDA bond interest would have been under 5% and now it’s about 5.5%. He said the hope is the interest will settle out, but he’s talking about interest for this new bond in the 5% range.
Supervisor McNamara asked about what Standard and Poor’s looks at to set a rating and Campbell said S&P looks at the DDA revenue, cash flow, strength of the revenue and how it has changed over the last 10 years. It also looks at companies and residents in the DDA district, and taxable values.
Campbell said currently the DDA carries an A minus rating. McNamara said the township is a AA. McNamara said the DDA is considering extending its life and he asked if it would benefit the township if the DDA died and there was discussion on this.
Campbell said the best interest rates would come for the DDA bond if it was backed by the township. He said the DDA went out by itself on bonding in the past and he doesn’t know the personalities involved. He said there would be a 1% interest differential.
“We had a problem with a bond in the past,” McNamara said of the Visteon Bond. He asked DDA Director Merrie Coburn to get the figures on options.
Campbell said with a “naked revenue bond” the DDA would stand on its own.
Coburn said the DDA currently captures $2.5-$2.6 million a year.
Campbell said he will go to the township in the next couple of months to let it know the sale options. He said if they decide on roundabouts any time in the future, they would need the township.
Campbell presented a proposed timeline for the bonds.
The Belleville Road widening project, in cooperation with the Michigan Department of Transportation, will widen the road from two lanes to three lanes, including a dedicated center turn lane, the realignment of the Belleville and Tyler road intersection, as well as include a shared-use, 10-foot path on the east side and a five-foot gap sidewalk on the west side to improve traffic flow, safety, and accessibility.
At the June 24 meeting, Coburn reported the timeline has been set back since the wrong plans were commented on by Wayne County and the plans had to be resubmitted. Also, since staff has changed in a department at EGLE, now a wetlands delineation is required prior to approval of a NEPA application. Wade Trim is working to get this done.
In other business at the 40-minute meeting on June 24, the DDA:
• Accepted the audit for the fiscal year ending Dec. 31, 2024;
• Considered a request in the 2026 budget of purchase of a large light-up tree for the Light Up the Park event and repainting of the DDA buildings. A finance committee meeting will be scheduled to review this and report at the next meeting;
• Heard Coburn report that two addresses on the rights of way for the road widening are being challenged in court and the DDA attorney is reaching out to the property owners’ attorney to see what the ask is before the DDA decides what to do next. With the delay in the NEPA application, MDOT has put a halt on paying out the relocation benefits for 7810 Belleville Rd., which is still owed and will be paid once NEPA is approved at an amount to be determined. She said to date the DDA has paid out $812,851.75 for ten ROWs, one being the full take, and in 2016 it paid out $154,060. The DDA still owe for four, amount unknown, she said; and
• Heard Coburn ask them to take, at their leisure, the Project Priority Survey in their packet. This is part of the setting up of a District Advisory Citizens Council as required by PA 57 if there are more than 100 residents in the DDA district. She said they have been actively seeking nine residents in the district to take part and so far have been unsuccessful.
Also on April 22, Coburn reported that a streetscape pole fell into Belleville Road because it was rusted out. She said DTE assessed the 72 poles to see which others are rusted and need to be replaced.
DDA workshop
Following the regular, 50-minute meeting on April 22, a workshop session with Wade Trim was held to brainstorm multiple DDA Plan updates and a timeline for extending the DDA by two years, but not giving groups the ability to opt out of the tax capture.
- Previous story Editorial: Thursday night is Belleville-area meeting time
- Next story Three robotics team members tell what it means to them