Aspen city council will talk bonds, housing, and Parks & Rec at meeting tonight
October 13, 2015
Aspen city council will meet at 5 p.m. this evening to look at outstanding bonds, housing concerns and a future Parks and Recreation project relocation.
In the first public hearing of the meeting, city staff will request that council consider authorizing Burlingame Housing Inc. to issue bonds that will refund outstanding bonds from Burlingame's 2005 multifamily housing bonds.
The call date for these bonds is Nov. 1, according to a memo to the council from city finance director Don Taylor.
As of now, the nonprofit housing corporation – which operates 100 seasonal, affordable housing units at 050 Harmony Place, according to the memo and Aspen Pitkin County Housing Authority's website – lacks the necessary funding to pay off the bonds.
However, Burlingame Housing Inc. may issue new bonds to generate the funds to pay off the old bonds and also lower its interest costs.
Staff proposes Burlingame Housing issue the bonds at $5,780,000, and expects the bonds to generate premiums in the amount of $404,000.
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City council has the option to approve, deny, or postpone issuance of bonds to a later date. Staff recommends council motion to approve the ordinance.
In more bonds talk, staff also requests council authorize the issuing of $3,760,000 in bonds in an effort to refund outstanding bonds from the Parks, Recreation and Open Space department in 2005. According to a memo to the council from city finance director Don Taylor, the bonds' current interest rate is at 5.07 percent, while the proposed bonds' net interest cost is estimated at 1.35 percent.
The memo said the bond issue will save the city approximately $250,000 over what would have been the remaining life of the With the goal of lowering interest rate costs, staff recommends approval of this ordinance.
In other park news, the Parks Department requests approval of an agreement between the City and a private homeowner – Aspen Stream LLC – that will allow the relocation and construction of an improved Oklahoma Flats Trail across the owner's property, according to a memo to the council from city Trails Manager Austin Weiss Matt Kuhn and Open Space Manager Austin Weiss.
The agreement that will be presented before council at Monday night's meeting says that the city and the owner of 855 Bay Street will collaborate to design and improve the trail as it crosses the property.
Built in the late 1970s, the Oklahoma Flats trail is a steep trail that was originally constructed as a pedestrian and bicycle corridor between the city's residential area and core. The current trail and slope are not stable, causing the trail to fail at the edge, the memo said, adding that, the proposed improvements "will help stabilize the slope and reduce risks of erosion."
Staff recommends the council approve the agreement between the city and Aspen Stream LLC, which will save the city an estimated $175,000 or more.