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Show t Lakeside Review, Wednesday, Feb. 16, 1983 Bountiful ISs , The bonds will be issued in an amount not to exceed $300,000. If the'city.fldcidest 4 gains t issuance By RON KNOWITON Review Staff BOUNTIFUL The Bountiful City Council has agreed to a proposal that would allow the issuance of industrial revenue bonds to the buyer "of two buildings at Colonial Square. The two tab the present tins, ajt. (t'lMitm e were owned by Zions First National Bank, but are being sold to Shirl A. Shepherd. Ed Felsing, representing Zions Bank, said the bank wanted the city to issue the IRBs to make the purchase attractive to the buyer of the property. (Bonds For " 1 ' tout ) s ' bonds. of the IRBs, then Shepherd would need to buy the property at a higher rate of interest. The higher costs likely would be passed on to shoppers when businesses are opened to fill the vacant buildings, Felsing said. The IRBs would allow for a 914 percent interest rate over a loan period, Felsing said. Councilman Paul Allen noted that the city had never before issued industrial revenue bonds without first knowing what business would be using the with neighboring businesses. It leaves me a little uneasy to approve the issuing of bonds for vacant buildings. He said the city should first know the economic feasibility of the new business locating in Bountiful. But Councilwoman Phyllis South-wic- k said the city is protected by its zoning ordinances. Felsing said that under the law a variety of businesses are not permitted. If the IRBs were used for those businesses, the bonds would no longer V V be tax free. Car dealerships, fast food restaurants and any business that involves entertainment would not be permitted to use the IRBs, he said. If the new owner of the buildings were to lease to a business not permitted under the IRB law, the bank would automatically be notified and the bonds would no longer be tax free and the debt would automatically accelerate, Felsing said. I can tell you, were not going to let them go taxable, he said. Felsing said the bank is eager to sell J V V V the property. The banks seem to do well at lending money, but they dont do well as shopping center managers . . Wed prefer to be out of the property. By selling the property, it gets someone who knows how to manage it and eliminates an eyesore, Felsing said. Allen said he would like to help Colonial Square, but we may regret what they put in there someday. Felsing said the law protects against oddball activities. . I think what youe probably going to see in there is retail space. V -- V brings back the good old days with Token Tenpak UTA tov. Colonial Square Stores We dont know what the intended use is and if it would be compatible 4 !? i r, P . A Great Savings 20 discount. Its like A Fare Deal portation needs. nostalgic offer: $5 worth of UTA tokens for ONLY Were helping bring back the putting money, in the bank and filling your trans- good old days with a special Pick up your Token Tenpak at these convenient locations: Harmons Stores ZCMI Smith's Food King Stores J C Penney Bountiful U of U Student Union Bldg. in nm n & For moro Faro Information Cali: Salt Lake 263-373- 7 Ogden 621-58- t 62 3A LaytonKaysville 773-136- 1 |