Lake Co. forest dist. to spend $35 million

The Lake County Forest Preserve District is reloading with another $35 million coming its way for land purchases and other improvements.

Last week, that amount of land acquisition and development bonds was auctioned online, with eight bidders competing. The successful bid for the 25-year bonds was a 3.66 percent interest rate, considered low for such an issue, and subsequently a good deal for taxpayers, according to district officials.

"A couple of the bidders actually came back three times to sweeten their bids," finance director Bonnie McLeod said.

Forest preserve district bonds are considered safe and desirable for investors because they have the highest rating available.

It was the second $35 million package of bonds sold by the district since November 2008, when voters authorized it to sell up to $185 million in bonds. The forest preserve district has until November 2013 to issue the remaining $115 million.

The state of the financial markets and the need for more cash to buy property prompted the bond issue. Open land remains available at discounts because development has slowed.

"It's still holding," forest preserve district executive director Tom Hahn said of the market for purchases in Lake County. "I just had a call this morning about a 63-acre parcel. The owners have been trying to sell it to developers, but it's been sitting on the market. That's a typical call."

About $30 million of the bond proceeds will be used to buy land.

"We've got a lot of opportunities and projects we're pursuing right now," Hahn said. There are about 42 active transactions.

The other $5 million in bond proceeds will be used for development of existing facilities.

"Primarily, now we're targeting increases to the Millennium Trail in the Round Lake and Lindenhurst area," Hahn said.

That also includes trail crossings at Wilson and Rollins roads and Grand Avenue. Those projects are being designed and are expected to be installed this year or next.

One unusual aspect of this bond sale is they were taxable bonds rather than the typical tax-exempt bonds.

Though taxable bonds carry a higher interest rate, the district still will save money because of the 2009 Build America bond program, part of the stimulus package that reimburses entities for higher debt payments, McLeod said.

The district initially will receive a $604,000 rebate each year. The taxable bonds are another indicator of the marketplace, she said.

"If you say, `We're only going to sell tax exempt (bonds),' you may not get that many bidders," according to McLeod.