City Considers Incurring Debt For Sports Park, Civic Center

If soil is to turn in the next few years on a and civic center in Lake Forest, the city might have to bear millions of dollars in debt.

Ben Siegel, assistant to the city manager, told the City Council Tuesday that it will not have enough cash to front the $133 million in construction costs at the onset. Going into debt would allow the construction to proceed on schedule, he said.

He floated the option while presenting the council with an update to a five-year plan that calls for several new major public facilities: a $77-million sports park, a $20-million recreation center and a $36-million civic center.

The plan also identifies three major construction projects for which the city has already secured reimbursements: Alton Parkway ($8 million), Rancho Parkway ($3 million) and intersection improvements ($13 million).

The city can expect a $1.2 million grant for Rancho Parkway from the Orange County Council of Governments in the near future, Mayor Peter Herzog annouced at the meeting.

Generally, the city needs to "keep moving ahead" with these projects since the excitement generated by their construction is likely to bring additional financial investment into Lake Forest, Councilwoman Marcia Rudolph said.

Construction on the sports park—where the recreation center would be built—could start as early as this fall if it gets final approval. The civic center is still in the initial planning phase.

Taking on debt would capitalize on the city's strong credit rating, Siegel added.

Another option is to reappropriate the money from other city funds earmarked for other projects, or issue certificates of participation—a type of bond—to immediately recoup money spent on the Alton Parkway extension, City Manager Robert Dunek said.

The council has time to consider its options, Dunek emphasized.

Speaking in favor of the debt plan, Mayor Peter Herzog called the financing plan a tool that will help the city pull through times when cash flow is tight.

He was echoed by Councilman Scott Voigts, who expressed interest in issuing certificates of participation for the city's $8 million investment in Alton Parkway.

The council will revisit its funding plan for the projects at a council meeting in July.