Politics & Government

City to Select Bank to Finance Loan for Alton Parkway

The Lake Forest City Council is taking on short-term debt to keep the project on schedule.

At its Tuesday evening meeting, the City Council will scrutinize and potentially select from among prospective lenders of $10 million in bridge financing the city is seeking to keep the Alton Parkway project on track.

In early June,  to ensure the gap closure project would be completed by October, rather than waiting for fees that developers are obligated to pay the city once construction of approximately 4,000 new homes in Lake Forest gets under way.

Earlier this month, the council  for the bridge financing, intended to cover cash shortfalls as the city begins several major projects.

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The money will be used to fund several planned public facility projects, including a sports park, recreation center and civic center.

According to the staff report, on Tuesday the council can pick a bidder and select either a 15- or 20-year term or choose to reject all bids.

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However, any proposals submitted by the 10 a.m. deadline are only good for 24 hours because the proposed interest rate is locked and guaranteed for the financing during that time.

Debt payments would not begin until December 2013.

According to the city staff, developer's fees from home building in the future are expected to cover the city's debt obligations.

The council meeting begins 7 p.m. at .


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