The Leland Township board discussed how they will likely bond no more than $920,000 for the Sunset Shores Special Assessment District (SAD) at its regular meeting Monday evening.
While no action was taken, Leland Township Clerk Lisa Brookfield got board members up to speed on the current status of the Sunset Shore project. Last month, Brookfield said the bonds were set to be sold on March 20, adding that residents within the SAD will have the option to pre-pay their share of the cost, an estimated $40,000, in full until March 15 if they do not want to finance it for a period of 20 years.
At Monday’s meeting, Brookfield said they’ve had four parcel owners place appeals with the Michigan Tax Tribunal, explaining how that $160,000 cannot be bonded. In addition, the township has received $200,000 in prepayments from five parcel owners, making the total bonding amount $920,000.
“He’s (township attorney) very confident that those appeals will not be successful, but the process does take some time, anywhere from 6-12 months,” said township supervisor Clint Mitchell at the meeting. “So we can’t bond that amount, however, we do have the money that we will receive back from the bond that the township has already permitted to absorb for the fiscal year.”
Brookfield said because some parcel owners have already prepaid, it reduces the amount needed for bonding. The $160,000 amount from those that appealed the assessment and are in the tribunal system will not be bonded.
“If we are successful at the tribunal, we’ll recapture that money from them directly rather than through the bonds,” Brookfield said. “It’s (the project) going to go forward. The township is in a position to financially cover that amount until it comes to us a little bit later than expected.”
Leland Township unanimously approved a resolution in February to sell the 2025 bonds for the SAD in an amount not to exceed $1,280,000. According to the Sunset Shores SAD roll, there are 32 parcels that would benefit from the proposed community drain field project for the purpose of assessing a portion of the costs of construction. The cost per property owner is estimated at $40,000, and the township expects to reimburse itself for capital expenditures with proceeds of bonds issued to pay all or a portion of the cost of the project. The true interest cost of the bonds will not exceed 7.00% and the bonds will mature in not more than 20 annual installments until 2045.
