Sykesville expected to close on bond

$1.14M move would refinance debt, pay for projects and purchases

The 15-year bond, which was issued by Bank of America, is attractive, Sykesville officials said, because it has a 3.46 percent fixed interest rate.

Members of the Town Council originally discussed taking out a $1.06 million bond, but at their June 9 meeting voted to include the extra $80,000.

About $30,000 of that money will go toward demolishing the River Place property, and the remaining $50,000 will go toward moving a house from its current location near Norwood Avenue about 100 yards to the parking lot across from the Old Main Line building on Oklahoma Road.

Because the interest rate is so low, Mayor Jonathan Herman said issuing the bond is a sound decision that will help the town start some crucial work.

“The price of oil is rising and asphalt is made with oil so as the price of oil goes up, the cost of asphalt goes up dramatically,“ he said. “The cost of the loan at 3.46 percent is less than inflation, so it gives the town a wonderful opportunity to get caught up on paving projects.“

The largest portion of the money — $535,000 — will go toward paying off and refinancing the town’s debts, which are on an annulled bond, some infrastructure bonds, and some vehicle and property purchases, according to the town’s treasurer, Irma Bast.

The remainder of the bond will go toward infrastructure projects, including road paving, purchasing an emergency police generator, building a shed for the public works department, and constructing a parking lot near the intersection of Main Street and Oklahoma Avenue.

One of the main reasons the bond — which was brokered by Davenport, a brokerage firm in Richmond, Va. — is needed is the fact that will help keep the town from falling behind on such infrastructure improvements, Herman said.

Work on the projects should begin soon, Bast said.

“I assume it will be shortly, but we don’t have a definite start date on anything,“ she said. “I imagine anytime after July 1.“