Palatine borrows to buy two properties

Palatine is preparing for redevelopment with two major bond sales.

The village recently issued $1.19 million of bonds to buy the land for a new fire station on Quentin Road. Another series of bonds totaling $8 million was issued to purchase the former Menards property on Rand Road.

Mark Forbes of Spear Financial called the interest rates, 4.47 percent and 5 percent, respectively, "phenomenal" and said they were possible because of the village's AA+ bond rating, which was upgraded last year.

If the rating was just one classification lower, the village would pay up to $350,000 more in interest over the life spans of the bonds.

"It does show the financial stewardship we have does pay off and save taxpayers in the long run," Village Manager Reid Ottesen said.

He added the rating will easily save a million dollars in interest payments once Palatine issues bonds to fund a new police station.

The bond sales won't affect property tax rates.

The former Menards building at 1775 N. Rand Road has been vacant since the home improvement store moved to Long Grove. The village is currently reviewing submissions after putting out requests for redevelopment proposals. Assistant Village Manager Sam Trakas said officials don't have a set vision for the site and are open to different concepts.

On the northwest side of town, plans are in motion to build a new fire station at Quentin Road and Echo Lane. The village council will likely vote on hiring an architectural firm within a couple weeks.

Officials determined the Dundee Road fire station, which the village took over in 2001 after partially consolidating with the Palatine Rural Fire Protection District, is not in a proper location to ensure acceptable response times.