By Karin Hill
Jonesboro Sun
JONESBORO — The city is planning a public hearing to consider the issuance of up to $45 million in bonds for construction of the Nordex USA wind turbine plant.
The City Council on Tuesday set the hearing for 6:15 p.m. Sept. 7, just before the next regularly scheduled council meeting.
The council had already agreed to issue up to $125 million in bonds last year. Nordex began construction of the plant in October, and it was completed just a few weeks ago.
Now Nordex is asking the city to act on its agreement to issue the bonds, which consist of three series: $11 million Taxable Economic Development Revenue Bonds, ADFA/AEDC Guaranty Program (Nordex USA, Inc. Project) Series 2010A; $9 million Tax Exempt Recovery Zone Facility Bonds (Nordex USA, Inc. Project), Series 2010B; and $25 million Taxable Economic Development Bonds (Nordex USA, Inc. Project) Series 2010C.
The Series A and B bonds will be sold in a public underwriting by Crews & Associates Inc. The Series C bonds will be privately placed with an affiliate of Nordex.
The bond proceeds will be used to reimburse Nordex for the costs of constructing and equipping the project, thus providing permanent financing for the project. The Jonesboro facility is the company’s first manufacturing facility in the United States.
The Nordex plant will be conveyed to the city and leased back to Nordex for the term of the bond issues. The city has no responsibility for the plant and will be indemnified by Nordex for any costs.
Repayment of the bonds comes from lease payments made by Nordex. The city has no financial risk and is under no obligation to the bond holders or to Nordex.
Also Tuesday the council approved an agreement with the U.S. Army Corps of Engineers for a master drainage study.
The city requested assistance in developing a comprehensive plan for long-term operations, maintenance and improvements to the city’s storm sewer system. The project would allow the city to be in a better position to manage storm water and its associated infrastructure within the community.
Current estimated study costs are just over $4 million, and the city would be responsible for half. However, that portion does not have to be in the form of actual dollars, and the city intends to use in-kind contributions for its part.
This study is set to take place over four years and will include detailed plans for the Big Creek Basin, Viney Slough Ditch and Little Bay Ditch and their tributaries and miscellaneous channels and tributaries in the Valley View area.
The planning process will emphasize developing a sustainable drainage system that not only mitigates flooding but also improves water quality, promotes environmental stewardship and provides possible recreational opportunities, according to the agreement.
In other business the council approved:
• a resolution to accept a permanent drainage easement from the Esther L. Kitterman Revocable Trust for the purpose of drainage improvements;
• a resolution to accept a permanent drainage easement from City Water and Light for a detention pond (Alderman Charles Frierson abstaining);
• renewal of a lease agreement with the Nettleton Masonic Lodge 657 for five years;
• several amendments to the 2010 budget to reflect changes already approved by the council; and
• appointments to various boards — Dr. Rebecca Matthews to fill the unexpired term of Everett Fair on the Jonesboro Economical Transportation System board; reappointments of Amy Hutson and Martie Shull to the JETS board; and Beverly Bartels to the unexpired term of Robbie Lyle on the City Water and Light board.
The council also held the first reading of an ordinance to rezone 0.31 acres at 2822 East Nettleton Ave. from R-3 high-density multifamily residential to C-3 general commercial. The second reading was waived so the matter will be back for one more reading before approval.
Council members Tim McCall, Darrel Dover, Chris Gibson and Ann Williams were absent.
