Nov. 18--TIFFIN -- The renovation of Seneca County's 1884 courthouse can be financed in many ways, the county's bond counsel said yesterday, but there are some practical considerations at the moment.
As county Commissioner Ben Nutter put it, there's "the realistic debt limitation of not being able to pay it back."
Although commissioners have expressed support for a $7.99 million plan to renovate the downtown landmark and put it back into service as a center for the common pleas courts, they have struggled to keep the county in the black as its primary source of income -- sales tax revenue -- remains 10 percent lower than last year's.
The county still needs space for its probate and juvenile courts, though, and commissioners are exploring ways to finance the county's share -- about $4.5 million if promised financial help from the state comes through.
John Larson of Squires, Sanders & Dempsey said the county can issue up to $5 million in general obligation or sales tax revenue obligation bonds. He also said commissioners could borrow up to $2.84 million through the Recovery Zone Economic Development Bond program, a new option offered in the federal stimulus bill. Under that program, the county would be reimbursed for 45 percent of its interest costs.
Commissioners also are considering applying for a low-interest loan through the U.S. Department of Agriculture, although they could use a combination of sources, said James Seney, a member of the Seneca County Courthouse and Downtown Redevelopment Group.
Commissioners authorized Mr. Larson to work with the courthouse group on financing options, and Franklin Conaway, who heads the group, suggested they meet with USDA officials as soon as possible to get all questions answered about the low-interest loan program available through the department's rural development office.
Mr. Conaway also told commissioners he believes $80,000 placed in an escrow account last year to reimburse the county for what it had spent on demolition plans can be released now that commissioners have decided to proceed with renovation.
The courthouse development group has been trying since March to get commissioners to sign an agreement that calls for reimbursing the development group up to $250,000 for its expenses if the renovation does not exceed the cost of demolition and new construction. Although that agreement has not been signed, Mr. Conaway said releasing the $80,000 would allow the firms involved in the project to be partially paid.
Also yesterday, Juvenile and Probate Judge Jay Meyer talked to commissioners about the need to move forward with construction of a juvenile detention center to replace the 1950s facility that is inefficient to operate.
Last year, Seneca County landed a $1.8 million grant from the Ohio Department of Youth Services for the project, which requires a 40 percent match, or about $1.2 million, from the county. Judge Meyer asked commissioners to pass a resolution in support of the project and work with him to find ways to pay the local share.
"I don't want the people of Seneca County to miss out on this $1.8 million," Judge Meyer said.
Contact Jennifer Feehan at:
jfeehan@theblade.com
or 419-724-6129.
To see more of The Blade, or to subscribe to the newspaper, go to
http://www.toledoblade.com. Copyright (c) 2009, The Blade, Toledo, Ohio Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
