Batavia's plan to borrow $20 million isn't popular

The Batavia park board got it with both barrels Tuesday night from people opposed to borrowing $20 million to build a recreation center.

A half-dozen speakers criticized the board for not telling the public more about the bond authorization ordinance it adopted April 20, other than in a legal notice published in the Daily Herald's April 23 classified advertising section. Objectors have until May 23 to file petitions to force the district to have a referendum on the issue.

And they disagreed with the district's contention that taxpayers won't pay more taxes for the project, pointing out that the ordinance says property taxes would be used to repay the bonds if revenues from the rec center aren't enough.

The rec center was proposed in January by Preferred Development Inc. It would be built at Wilson Street and Island Avenue, on land where a McDonald's and a strip shopping center stand. The project would also include stores and a parking garage.

No official plans have been submitted to the park board or the city. The developer provided the $20 million figure to the park district.

"I'm appalled that the majority of the people did not know anything about it because it was hidden in the legal section of the paper," said resident Yvonne Dinwiddie, a longtime Batavia civic watchdog who routinely reads the legal notices. Objectors need to gather signatures from at least 1,466 registered voters of the district.

Dinwiddie obtained many by standing outside the Jewel-Osco last weekend. She said she and about 30 other people are aiming for 2,000 signatures to make sure they have enough in case some signatures are deemed invalid.

The ordinance enabling the bond sale was listed on the April 20 park board agenda, but the agenda did not detail what the bond issue was for. Agendas are posted online and on the front door of the park district's Civic Center.

There was nothing on the district's website specifically about the bond issue, nor were any messages sent to subscribers to the district's e-mail notices before or after that April meeting, according to the speakers.

The comments came at Tuesday's required public hearing on the bond ordinance. The district cannot sell any bonds until the 30 days have passed.

Park board President Patrick Callahan said the proposal has "many moving parts" and may never come to fruition. The developers approached the park district about it in December, and the city had a public meeting about it in January.

Passing the bond ordinance shows the district is seriously interested in the plan, and it needs to show the developer how the project would be funded, Callahan said.

The bonds would be repaid within the district's current debt limits, as old debt is paid off, he said. The district can have up to $600,000 in bonded debt per year on the books without having to ask voters for permission; that amount was set in the early 1990s when the state enacted the property tax cap law.

He said this "would result in no tax increase," and that the current tax rate for that debt would remain the same.

Speakers took exception to that characterization.

"To me as a taxpayer I find that very offensive, given that many taxpayers are struggling today," said Tom Hoffman. "What about not borrowing the money and not extending debt?"

The bonds would be issued through the federal Build America program, and would be eligible for a rebate on the interest rate.

Even a rec center supporter chided the board. She found out about the hearing in a gym class she was taking Tuesday night at the center.

"I wish I had known about this meeting; I would have been able to bring a few people with me who do support this project," Melinda Beck said.

In 2008, district voters rejected a plan to build a recreation center at Beach Park and remodel Hall Quarry Beach.

Borrow: Residents seek 2,000 signatures to force referendum