By Jeremy Carroll
C & G Staff Writer

ROYAL OAK — City officials took the first step to finance a series of projects, including the purchase of the Jim Fresard Body Shop, through capital improvement bonds worth a total of $12.85 million.

The City Commission unanimously approved its intent to issue the bonds during a July 21 meeting.

Among the projects included in the proposed bond issue are the purchase and development of the Jim Fresard Body Shop property into a parking lot for just under $5 million; various water and sewer projects, including 11 water main replacement projects, totaling $3.5 million; $650,000 for various vehicle purchases; $620,000 for repaving the Department of Public Services yard; and $2.1 million for an undisclosed property acquisition.

The city’s finance director, Don Johnson, said the approval of the intent to issue the bonds is the first step in actually issuing the bonds. The city now must wait through a 45-day period in which residents can circulate a petition against the bonds, forcing a vote on the issue if more than 10 percent of the registered voters in the city sign.

“You do have several opportunities from today to the date of the bond sale to reduce the amount,” Johnson said at the meeting.

Commission members indicated they wanted to have several discussions to go over the projects contained in the potential bond issue, including scheduling the first meeting for 6:30 p.m. on July 28 in City Council Chambers at City Hall.

“I want to dig into this and size this bond properly because the numbers are big,” Commissioner Chuck Semchena said. “There is justification for each of the components, but I would like to dig deeper.”

City officials agreed to terms to purchase the Jim Fresard Body Shop lot, 600/700 S. Main St., for $4 million in June, and expect to pay $800,000 to turn it into a parking lot. Half of the total cost will be paid for through the Downtown Development Authority.

According to the current plan, the city will finance the total $4.8 million through the bond, and take the more than $2 million from the DDA to put in the parking fund, increasing the amount that can be transferred to the general fund. City restrictions allow the city to transfer up to 20 percent of the parking fund to the general fund.

The various accounts — parking, water and sewer, and motor pool — will pay for the projects, Johnson said.

“(There’s) nothing in here that would charged to the general fund at all,” he said. “The whole thing is about trying to protect the general fund.”

Added on at the meeting was the possibility of adding $2.1 million to the bond issue for property acquisition. City officials said they plan to have an executive session before the July 28 meeting to finish discussions they started, but didn’t finish, in closed session on July 21. The Open Meetings Act allows the city to discuss property purchase or lease in closed session.

You can reach Staff Writer Jeremy Carroll at jcarroll@candgnews.com or at (586) 279-1110.