The Berrien County Board of Commissioners will soon seek to refinance a loan paying for a drainage project in Chikaming and New Buffalo townships.
Speaking at a Thursday meeting, County Administrator Brian Dissette said the Streed Drain project, which is mostly in Chikaming Township, is a $15.2 million effort to reduce flooding. However, he said the Berrien County Drain Commissioner’s office obtained a private 20-year loan with a 5.7% interest rate to pay for it. This caught Dissette’s attention.
“Our residents are dealing with flooding, county administration is no way arguing that there’s not a need for the project,” Dissette said. “The argument is on the use of that 5.72% loan over a 20-year period.”
Dissette said the county should be able to refinance the loan, with its full faith and credit, and get a lower rate, perhaps around 3.5%. He said as things stand right now, once the loan payments start to be made next year, Berrien County’s share of the project cost will amount to $3.6 million over the 20 years. It’s estimated with a lower rate, the project’s total cost could be reduced by $4.5 million.
County Commissioner Bob Harrison had a question regarding the drain commissioner’s office.
“Are there other high interest rate debt that he’s procured for projects? And do we have a sense if he’s done that…are there others that might be suitable for refinancing?”
Dissette said that will be studied once new Drain Commissioner George McManus takes office in January. He said he invited current Drain Commissioner Christopher Quattrin to Thursday’s meeting, but Quattrin declined.
Also Thursday, Dissette told commissioners environmental reviews have been completed on a 36-acre parcel in Three Oaks the county purchased back in October. That’s land in the Schwark Drainage District that had once been slated for a residential development. When the development failed, the land was foreclosed and the county had to buy it for $551,000.
Dissette said with the environmental review done, potential buyers could include the village of Three Oaks, Chikaming Open Lands, or a residential developer. The land could be sold next year.
