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Spencer Council Approves Financial Component For New Commercial Development On City’s North Side

September 20, 2022 Steve Schwaller

(Spencer)– The Spencer City Council Monday approved an important financial component that will allow the city to proceed with plans for a new commercial development near the North Y, on the city’s north side. Deputy City Manager Brian Weuve told the council the action paves the way for the city to issue bonds to purchase land for the project…

“The entirety of that, the purchase of land and the infrastructure, we’ll be issuing bonds, debt, here later this year or early next year probably, once we know what the construction costs are going to be. And under the IRS Code because we issue our debt as tax exempt, we’re not to have any, what they call, hard costs which would be physical things such as land or infrastructure before we actually issue the debt. We can’t use those proceeds to reimburse ourselves unless we go through this process and say upfront before we actually expend it on those things we’re going to take those bond proceeds and reimburse, basically, our fund balances which we would be doing for the purchase of the land.”

The council authorized the land purchase earlier this month. Weuve says the city is expected to close on it in October.

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