Earlier this month, the Mount Clemens City Commission approved publishing a notice of intent to issue capital improvement bonds for the Mount Clemens Ice Arena.

Earlier this month, the Mount Clemens City Commission approved publishing a notice of intent to issue capital improvement bonds for the Mount Clemens Ice Arena.

File photo by Patricia O’Blenes


Bond plan in place for Mount Clemens Ice Arena

By: Alex Szwarc | Mount Clemens - Clinton - Harrison Journal | Published October 15, 2020

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MOUNT CLEMENS — Through the end of 2020, a schedule has been laid out for capital improvement bonds for the Mount Clemens Ice Arena.

On Oct. 5, the Mount Clemens City Commission approved publishing a notice of intent to issue capital improvement bonds. It also approved the resolution of intent, the financial advisor agreement with Northland Securities, and authorized the mayor and city clerk to execute the agreement.

City Manager Don Johnson said the issuance of capital improvement bonds is to finance new compressors, a new roof and resurfacing the parking lot at the ice arena, located at 200 N. Groesbeck Highway. The arena is owned by the city of Mount Clemens.

“It does not obligate the city to follow through with the rest of the process, however, it is a critically important part of the process,” Johnson said. “The notice is the official start.”

The bond issuing schedule includes the municipal advisor providing bond details and bid specifications to bond counsel for a bond authorizing resolution Nov. 3, a final draft of preliminary official statements distributed by Nov. 12, and the bond issue closing Dec. 22.

The bond authorizing resolution is currently scheduled for Nov. 16.

“That resolution would grant approval for the city to issue the bonds,” Johnson said. “Once the approval is granted, the rest of the process is in the hands of staff, our financial advisor, and bond counsel.”

The commission was set to hold a work session to review the project and financing Oct. 19, after press time.

In the summer, it was reported that the estimated cost to replace three compressors, installed in 1994, would be $1.4 million. The city estimated it will cost $800,000 to replace the roof, with parking lot replacement coming in around $550,000.

The bond is at 3.5% for 20 years. The city would be able to bond without an increase in taxes to residents.

Previously, Mount Clemens Finance Director Cliff Maison said the arena has $6.9 million in assets and about $80,000 in cash. He added that the lifespan of new compressors would be between 25 and 30 years. New compressors would reduce the arena’s electricity bill, which currently is between $15,000-$18,000 a month.

Jeff Aronoff, an attorney at Miller Canfield, P.L.C., will serve as bond counsel on the issue, while Michael Gormely of Northland Securities was named the project financial advisor. Northland Securities will provide financial advisory services related to this bond issue.

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