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Show City Council Discusses Bond Issue A special meeting of the City Council was held Tuesday, Tues-day, January 25, to discuss current developments in the public bond issue which will be underwritten to provide funds for the Lowell, Marsac and Main Street Improvement Improve-ment Districts. Bond dealer, Thorton Davis, explained to the Council Coun-cil that he is running into difficulty floating the $372,000 issue. Mr. Davis has been given a 3 percent commission by the City for handling the issue. According to Davis an additional ad-ditional two points are needed need-ed to assure rapid movement of the bonds. Zions Bank of Salt Lake has agreed to take the entire issue. However, Zions will take the issue only if they are given two percentage points as a bonus. If Zions takes the issue, Mr. Davis' guaranteed the entire issue would be sold by three weeks after the date of the last Council meeting. The City Council, apparently appar-ently very anxious to get the bonds moving agreed to pay the additional two percentage percent-age points. The additional cost will be passed on to property owners own-ers who in the long run will finance the bond issue. Apparently the two additional ad-ditional percentage points is not the only factor which will increase the total cost of the three improvement districts. dis-tricts. The Lowell property owned by Howard Coleman as it turns out must be purchased pur-chased by the city. Originally Origin-ally the property in mention men-tion was thought to be a gift to the City by Mr. Coleman. Additional costs could be incurred by the City as a result re-sult of civil suit being brought against the City by another Mr. Coleman. Bill Coleman, another Lowell Avenue property owner had his property more or less taken by the City when Lowell Low-ell Avenue was built. He now claims there was never any transfer made and he is owed a compensation by the City. |
