The Chanute City Commission on Monday approved a resolution related to issuing $7 million in bonds to fund the final phase of the water plant improvement project.
Garth Herrmann of Gilmore and Bell visited with commissioners on Monday. He said the principal bond amount is $7.2 million with interest not to exceed 5.75%.
The city can issue up to $10 million a year in bank qualified bonds. The city of Chanute issued bonds in 2021, 2024 and will again in 2025 for the project.
Herrmann said the city is working with UMB Bank. He will return to the commission in March for further agreements related to the issuance. The bonds will close on March 25. After that the money will be wired to the city for use on the water plant project.
City Manager Todd Newman said the project cost is about $26 million. Crossland Construction is the contractor for the work and has been paid about $5 million for mobilization out of the 2021 bond issue. The next payment to Crossland will be in April.
In other matters, the commission: — Heard that the windows would be delivered this week for the improvements on the former Masonic building at 112 W. Main.
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Work continues this week on replacing the roof on the Stone House golf course club house in Chanute.
— Heard that the roofers were again working on the clubhouse/ restaurant at Stone Creek golf course.
— Agreed after a discussion to begin marketing the restaurant space at Stone Creek and charge $1,500 a month for rent and $500 a month for utilities. “We want a long-time tenant. That’s the plan of this whole restaurant operation. We don’t want to go through this process again in a year and have a restaurant in there for six months,” Newman said. Dalton’s was in the space for six or seven years and Colborn’s for less than a year.
— Accepted the bid from Mission Construction, St. Paul, to build 10th Lane in the Osa Martin subdivision at a cost of $559,010.
