Kane County helps ensure budget control over Longmeadow
Kane County officials Wednesday put in place a key final piece of completing the Longmeadow Parkway project. A preliminary vote gave a six-figure contract to a Chicago-based firm that will help ensure the least expensive path for the county to borrow $30 million to build a toll bridge over the Fox River.
The county board's finance committee approved a contract with CITI for underwriting services. The full county board will take a vote in April.
The deal is worth an estimated $363,000, including $75,000 in attorney fees and a $50,000 management fee. Bonds will pay for the cost of the contract. CITI was one of seven firms seeking the contract.
The contract assumes the county will borrow $30 million in one or more bond issues. Board members have not voted to lock in the bond amount. Some members have suggested borrowing more than $30 million to ensure adequate funds to maintain the bridge if, as some members have advocated, the toll sunsets. Estimates suggest a toll between 50 cents and 75 cents.
Opponents of the project believe the toll bridge will fail no matter what the county board charges.
The contract with CITI puts in writing statements made by Kane County Department of Transportation officials last September. Officials said taxpayers will not be liable for repaying the bonds if the toll fails.
"Debt service on the bonds will be payable from net toll bridge revenues," reads the description of the request for proposals that resulted in the selection of CITI. "Bond debt service will not be payable in any manner by taxation, and the county will in no manner be liable by reason of the failure of the net toll bridge revenues to be sufficient for the payment of the bonds."
KDOT said that guarantee is possible because the county can raise or lower the toll on the bridge and/or extend the repayment of the bond as needed until the debt is retired.
Joe Onzick, the county's chief financial officer, said the selection of CITI will also help minimize the debt the county will go into to build the bridge.
"CITI provided the most ideas as to what we can do to reduce the risk for the bond issue, which would enable a possible higher bond rating and allow us to save money on the interest rate," Onzick said. "They had a very impressive marketing strategy. They are able to target from data who the most likely parties will be in terms of interest in buying the bonds. From that pool of investors, they can create a competition to further ensure we are getting the lowest price."
The deal with CITI could serve as a de facto vote on borrowing money and moving forward with the toll bridge. County board members have said they will make a formal commitment on the toll bridge in early spring. That would allow for construction to begin shortly after selling the bonds and before a new county board is seated in November.
Two opponents of the Longmeadow Parkway, Tara Jacobsen and Chris Kious, won uncontested Democratic primaries last week. They both have Republican opponents in the general election.
Opposition to the project has quieted in recent months. A post last week on The Stop Longmeadow Tollbridge/Bolz Road Bridge Facebook page said there has been "no word and no movement" on the pending lawsuits to derail the remaining portions of the project. A GoFundMe page started to help pay for legal fees shows $195 raised out of a $25,000 goal.
"At this present time, there is nothing more to do until we hear how the judge rules regarding both lawsuits," the post reads. "After her ruling, we will have a clearer idea of the best way to proceed."