Parks: Extra $8 million could go toward land

Fox Valley Park District officials predicted they'd get a favorable rate on the sale of $8.5 million in general obligation bonds.

But they never expected to get a near record-low 3.26 percent rate they say will save them $8.1 million in interest and shave a year off their 19-year payment schedule.

That should be good news for taxpayers, who last month voted to approve the district's plans to borrow $44.85 million to buy land and improve sports fields, parks and playgrounds as well as Blackberry Farm, the district's history park.

About half of that money is dedicated for land acquisition, trail improvements and restoring areas along the Fox River.

The lower interest rates could help the district acquire additional land, officials said, and perhaps allow it to eliminate one more year's worth of payments in January 2009 when its expects to sell the remaining $34 million in bonds.

"That was definitely a bonus," Executive Director Steve Messerli said Monday. "We went in prepared to get about a 4.6 percent rate, so we're very happy to knock that year and interest payment off."

"The market is so cyclical that you never quite know what you're going to get," he said. "But we're expecting that 2009 rate to be as low or lower and allow us to knock this thing down to about 17 years."

Board President Rose Smilgys said she intends to put the $8.1 million toward acquiring land.

"I'm happy to say we will save the taxpayers a lot of money," she said. "And now we can use the funds to buy the land we need and get going on our projects."

"The land is available now, so we're ready to begin working on the sites we have targeted," Messerli said.

He said the district hopes to acquire between 100 and 150 acres, mostly along the Fox River, that either feature natural resources or are blighted areas. Planning also will begin later this year on renovations to the 40-year-old Blackberry Farm and development of the Stuart Sports Complex.

Construction of those projects likely will begin in 2009 in an effort to have them both ready in 2010.

Next, the district will be looking to improve access to the Fox River, extending the Gilman Trail and constructing new links of the Fox River Trail.