City purchases bonds for street construction

The city of Battle Ground on Wednesday purchased the bonds necessary for the Scotton Way development project.

The city council approved the purchase at a meeting Wednesday by a vote of 4-0. Councilmen Paul Zandamela, Alex Reinhold and Chris Regan were absent.

The city purchased bonds totalling $4,855,000, which included $575,000 of tax exempt bonds and $4,280,000 of taxable Recovery Zone Economic Development Bonds.

The interest on the recovery zone bonds is subsidized at 45 percent through the American Recovery & Reinvestment Act. The interest rate of the bonds is 3.69 percent, inclusive of the interest subsidy.

The Scotton Way project will extend Scotton Way west from state Highway 503 to Southwest 20th Avenue. Two developers with property in the area will pay 50 percent of the debt service payments until enough tax revenue is generated from the properties to meet the obligation.