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Rehoboth commissioners debate City Hall landscaping

City to close on USDA loan Dec. 16
December 15, 2016

As a new City Hall rises in Rehoboth Beach, city officials have begun working on the land surrounding the $18 million complex.

With the new building facing east, the city commissioners are discussing landscaping an unused space leading to the complex from Baltimore Avenue.

Architect Mike Wigley presented plans Dec. 5 for a walkway surrounded by trees that would lead from Baltimore Avenue, through the parking lot to the new entrance of City Hall. Wigley said the Sandcastle and Breakers hotels - which sit on each side of the planned promenade - would be screened, as will the water tower.

The commissioners had their own ideas as to how the space should look. Wigley said the commissioners would have time to debate, because landscaping occurs at the end of the project. The new City Hall is scheduled to open in July.

Commissioner Stan Mills said the promenade should be open space with fewer trees, giving visitors a more open view to see the new building from Baltimore Avenue. It would also provide more security at night, he said.

Commissioner Lorraine Zellers questioned maintenance of the space, while Mayor Sam Cooper singled out lighting, pushing for lighting directed downward, unlike the lamps on Rehoboth Avenue, which spread light all around. Cooper said downward light is more useful and eliminates glare and light pollution.

Commissioner Toni Sharp said the promenade was an opportunity to showcase not only the new City Hall, but the kind of trees the city would like to promote, such as smaller decorative trees that are not crepe myrtles.

At this point, there is no cost for the landscaping, but Cooper said it will likely exceed $75,000. He said costs should be part of the discussion when the commissioners resume talks at their Monday, Jan. 9 workshop.

 

City gets break on loan interest

At their Friday, Dec. 16 regular meeting, the commissioners will close on the U.S. Department of Agriculture loan the city received for the new City Hall.

To build the new facility, the city has borrowed construction funds as needed from PNC Bank with the intention of using the USDA funds to pay back that loan and then make payments to the USDA.

When the city entered into its agreement with USDA, Cooper said, the interest rate was guaranteed at either 3.5 percent or, if the rates were lower, whatever the rate is on the date the loan closed. Cooper said that agreement had also specified the city could not draw down the funds until construction was completed.

However, he said, because rates have fallen to 2 ⅜ percent in this quarter and are likely to head higher, the USDA has agreed to close on the loan prior to Wednesday, Dec. 28, in order to lock in the lower interest rate.

Cooper said the new loan terms will save the city $120,000 per year on interest payments, amounting to about $3 million over the 25-year term of the loan.

“These folks didn’t have to do this. They are doing it because the people who work for this city have cultivated good relationships with federal and state agencies, and they know they can depend on what we say,” Cooper said.

Additional Dec. 16 agenda items

Besides closing on the USDA loan, the Rehoboth Beach commissioners will also consider accepting the city’s audit, prepared by Barbacane, Thornton and Co. for the fiscal year ending March 31, 2016.

The commissioners will also receive an update on the filter and pre-treatment building roof project at the city’s wastewater treatment plant.

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