Pottstown council moves money to finance project in Memorial Park

POTTSTOWN — A recent Borough Council meeting was marked by passionate pleas to allow people to have as many pets as they want, or to help solve problems in a particular neighborhood.
But after those exclamations were made, and the people who made them had left, Borough Council quietly took two votes authorizing the spending of more than $1.2 million.The first vote authorized Finance Director Robert Armelin to take out a "lease-installment loan" for $674,130.The money is not debt, Armelin said, and will be used to buy new equipment for Pottstown Community Television and a number of "general fund" expenses including new police cars.The second vote was to incur debt, $620,000 of it to be exact.This money is to pay for a new snack bar and miniature golf course on "the island" portion of Memorial Park.The money would be borrowed for 10 years and an interest rate of 5.438 percent would be paid upon the borrowing.However property taxpayers are not expected to be on the hook for the payments.Under the plan, the payments will be generated by the fees to play miniature golf as well as the profit generated by the snack bar, which will also be patronized by those who use the splash park now under construction in the park."This expense will be offset by the revenue from these projects and right now we're looking pretty good with that," Armelin said.Another vote will be necessary to finalize the borrowing he said.Both financing deals were made through a company called Municipal Services Group.Financing on another major project, building new hangars at Pottstown Municipal Airport, part of the borough's strategic economic plan, did not go through however.Armelin said the borough received only one financial bid on that project and he was attempting to get more bidders involved in order to drive down the price.Councilman Stephen Toroney expressed concern that holding up the project would hold up the economic revitalization the project is supposed to encourage.However, Council President David Garner urged caution, and said waiting one more month to get the best deal, would be financially prudent.Like the parks and recreation project, the revenue from renting the hangars is expected to cover the cost of the financing the project.

Pottstown Mercury - 08/18/08 - http://www.pottsmerc.com/site/news.cfm?newsid=20021686&BRD=1674&PAG=461&dept_id=18041&rfi=6