The Township′s $6 Parks 20-Year Bond Sale occurred on Monday and had four bids. The best bid for the bonds had a True Interest Cost (TIC) of only 1.81% -- which is significantly below↓ the original estimate of a 2.75% TIC offered when the Board originally approved moving forward with the Parks Bond.

To place this interest rate into perspective, during the first half of 2021, the best mortgage rates have been in the high-2% range. And a 'good' mortgage rate has been around 3% to 3.25%. 

Construction on the Schmidt Heritage Park portion of the projects funded by the Parks Bond will begin in the fall with extension of water and sewer into the park.

Sports fields, pickleball courts and a jogging trail at Schmidt Heritage Park will be completed by June of 2023.

As part of the bond sale process, S&P Global Ratings assigned a 'AA' rating and stable outlook to Grand Haven Charter Township′s 2021 unlimited-tax general obligation (GO) Park bonds.

As part of the rating statement, S&P noted that “the township has existing full-faith-and-credit limited-tax GO pledge bonds with an agreement to levy ad valorem property taxes, within statutory and constitutional tax limitations applicable to the township. We rate the limited-tax bonds at the same level as our view of the township's general creditworthiness because there are no significant resource-fungibility limitations.”

Further, the S&P rating statement opined that “management is strong with good practices and policies; it uses long-term capital planning, and an adherence to a formal reserve policy should help mitigate growth pressure,” and continued by stating that “the township's participation in the Grand Rapids MSA and strong management are stabilizing credit factors.”

Township staff met with Kittle Property Group to discuss a potential development on the vacant land north of Speedway and south of Walmart. (See aerial photo below.)

At this time, the general intention of the developer would be apartments with a percentage of workforce housing units that would be subsidized by MSHDA through a Payment in Lieu of Taxes (PILOT) agreement. (PILOT agreements for workplace housing are relatively rare in the State. Approval of a PILOT remains solely a decision of the elected official.)

An initial phase of apartments could vary between 180 to 216 units and include 1-, 2-, and 3-bedrooms.  

The developer is also likely to establish commercial outlots along 172nd Avenue.  

The total size of development would be about 30-acres. If approved, the development would be connected internally with an access drive to the Walmart pursuant to an existing PUD agreement.

Consumers Energy provided details on our their “Clean Energy Plan” would impact the three (3) coal-fired units at the 600 MW Campbell generating complex in Port Sheldon Township – which is immediately south of Grand Haven Charter Township.

  

In brief, all three coal-fired units will be decommissioned by 2025 – which is fifteen years earlier than originally projected. About 310 workers work at the Campbell facility.

The closure will have a material impact of the Port Sheldon property tax revenues – and will have a lessor financial impact the Grand Haven Area School District, Loutit District Library, and Ottawa County. 

That said, Consumers Energy stated that they remain committed to supporting their employees and communities through the transition away from coal as a fuel source for electricity by finding new roles for workers who want to remain with Consumers Energy, fulfilling their environmental responsibilities at the sites and helping local leaders pursue new economic possibilities.

Other than the possible job loss for Township residents employed at the Campbell generating complex, the 2025 closure should not have a financial impact on the Township.

The link below is a video conference with Consumers Energy CEO, Garrick Rochow discussing the closure and related topics:  

If you have specific questions about Township operations, please send an email to bcargo@ght.org .