HOLLAND, MI (WHTC) - The biggest bond issue in Holland municipal history is coming.
During a special joint business meeting with the board of the Holland BPW, the City Council last night approved the issuing of up to 160 million dollars in bonds to pay about 72 percent of the construction costs for a new natural-gas fueled power plant in the vicinity of Fairbanks Avenue and 5th Street, near the Eastern Gateway. The bonds will be paid back over a 25-year period through customer fees, with the remaining costs for the project coming from the utility’s cash reserves.
Representatives of both Standard and Poor’s and Moody’s gave the city a double-A rating following a tour of the area earlier this month, which means that the interest rate on these bonds will be around 4.25 percent, and one bond agent felt that these tax-free bonds would sell quickly once they reached the market, beginning on March 18th.
Efforts to secure all of the property needed for the project should be complete this spring, with a target date to begin operations at the new plant set for late 2015.