Atlantic City Council approves issue of bonds & purchase of property

News

May 16th, 2013 by Ric Hanson

The Atlantic City Council, Wednesday, approved the first reading of a 5.5-percent rate increase for sewer service. Two more readings are necessary before the increase is passed. City Administrator Doug Harris says if approved on the third and final reading, the monthly base fee for usage up to 3,000 gallons will increase $1.50 per month, from $27.00 to $28.50. Additional usage above 3,000 gallons will increase 30-cents, from $5.50 to $5.80 per thousand gallons over 3,000.Harris said the increase is needed to fund Debt Service and Operating costs of the new wastewater treatment plant.

The Council also held a public hearing on the sale of a lot at 314 Walnut Street. After receiving no written or oral comments on the matter, the Council gave its permission to sell the property for $30,000 to Jacob Weitzel, who plans to build a restaurant/sports bar on the site, with office space and luxury condominiums possible in the future, for the structure’s upper floors. The sale was contingent on the City having the first right of refusal to buy back the property, if a building is no erected on the site within a reasonable time frame.

And, the Atlantic City Council approved the issuance of General Obligation Bonds for $2.7-million. The G-O bonds will fund the cost of construction for various infrastructure improvements and a grant to Iowa Western Community College for building improvements. The Council tabled action pertaining to a purchase agreement for just over $7-million in Sewer Revenue Bonds, until their June 5th meeting.