Bond refinancing, development plan could mean money for Monessen
MONESSEN — Refinancing a bond issue could save the city a quarter million dollars or more.
Details about the bond refinancing will be discussed at the regular monthly council meeting next Monday. It was advertised over the weekend that the city is looking to refinance up to $10 million, which is the maximum permitted each year. Councilman Ron Chiaravalle said the solicitor has been looking into the possible refinancing in order to reduce the city’s debt service requirements.
“We’re not going to accept it unless there is a savings of at least $250,000,” Chiaravalle said.
Councilwoman Patricia Bukowski questioned why the issue had not been discussed by council prior to the legal ad being placed and was told the issue had been discussed several months ago and that the solicitor could answer all questions next week. Chiaravalle said the refinancing was suggested by the consultant working with the city to keep it from becoming declared a distressed community.
“Two years ago we went to the bank to lower the interest rate but it didn’t work out,” said Mayor Lou Mavrakis.
A proposal that would eliminate a lien on properties owned by the Monessen Redevelopment Authority was also discussed. Robert Thornton, CEO of the Pittsburgh real estate development firm R&K Capital Investments, said he has been meeting with the mayor and now-councilman Ed Lea who previously served on the redevelopment authority, for the past three or four months discussing plans for a gated senior citizen apartment complex in town.
Thornton said a potential site has been identified on Schoonmaker Avenue between Second and Third streets for the 40- to 50-unit building that would include an underground garage.
“We’ll have designs later this year. We’re putting all the numbers together to make sure it makes sense,” Thornton said. “We want to bring Monessen what you really want.”
Thornton said the senior building is the first phase of development under consideration by his company. Thornton said additional single-family home development could come in the future.
Next week, council will be considering a request from St. Michael Orthodox Church to use City Park Amphitheater and Pavilion 1 on Oct. 2 from 9 a.m.-1 p.m. for church services and a picnic free of charge.
Bukowski said she would like council to consider an amendment to the current ordinance providing the facilities free to nonprofit organizations.
“I’d like to change that to make it half price for nonprofits. We’re not bringing in enough to cover our expenses,” Bukowski said.
Chiaravalle agreed, noting that the city has to pay a minimum of two hours of overtime on Sundays for the worker who goes to unlock the facilities at the park and anything else needed to prepare the site.
“We’re not trying to make money on it, but we can’t lose money on it,” Chiaravalle said.
In other matters, a public hearing on how the city’s 2017 Community Development Block Grant funds should be used will be at 4 p.m. Thursday in council chambers.