Forest board looks for land-buy cash

After approving $42 million in land buys in a single day last week, the Lake County Forest Preserve District has been getting more calls than usual from would-be sellers.

While district leaders are excited about preserving as much land as possible, they soon will be out of cash. So, they are planning a pre-emptive strike to replenish their coffers.

A public hearing will be Feb. 12 to allow the district to sell up to $65 million in bonds in two issues, one in May and another later in the year.

That was the recommendation Thursday of the district's finance, administrative and education committee.

The discussion focused on a dense layer of financial variables. But the bottom line was that because bond rates have dropped in a volatile market, the district could expect to pay less in interest. Stretching an already approved debt limit from 17 to 20 years also would provide a route to more cash.

At the same time, because other bonds will be retired, the amount of tax the owner of a $200,000 home pays for bonds and interest would drop from about $41 this year to about $19. The $22 decrease is greater that the $18 drop the district originally estimated.

"We're getting more back to the residents (and) we may be able to buy more land than we expected," forest board President Bonnie Thomson Carter said.

"As long as the taxes decrease, that's fine," finance committee member Audrey Nixon of North Chicago said. "We're holding to what we said four years ago."

She was referring to a decision in October 2005 when the district was in a similar situation -- more land to buy than cash on hand. At the time, the forest preserve board rejected a referendum and opted to leverage its bonding power to raise up to $85 million.

Of that amount, $45 million already has been issued and either spent or targeted for other purchases.

"We have offers out on properties that unless we have additional funding, we can't move forward on," said Tom Hahn, the district's executive director.

Based on recommendations Thursday, a May bond issue of $35 million would be used to settle the bill for the 700-acre, $42 million purchases approved last week. The subsequent issue, of up to $30 million, would be used for other acquisitions, with $5 million designated for the development of forest preserves.

The plan would take the district to the limit of what it can borrow for land acquisition without voter approval.

The $65 million bond issue would leave about $10 million available for land acquisition. The rest of the proceeds would be used to pay for the approved $42 million acquisitions and others in the works.

Hahn said that even if proposed deals in the works to purchase property fall through, there are many other opportunities to pursue.

"I don't think spending money on good land acquisitions is a problem," he said.