Latrobe bond refinancing could help repair parking garage, replace trash compactor
Latrobe is considering refinancing a 2016 bond issue to take advantage of low interest rates and possibly help pay for capital projects at the city’s parking garage and solid waste transfer station.
City council is expected to begin the refinancing process by selecting a bond counsel and underwriter at a special Feb. 22 meeting.
Those consultants will assess the city’s bond rating, City Manager Michael Gray said, to help council determine whether to add two years to the term of the bonds and whether to increase the amount of the issue from its current $2.7 million total.
“The interest rates are pretty low and favorable for us to consider refinancing,” he said.
The bonds were issued to cover costs at the parking garage. If the amount is increased, it could help complete repairs to the structure.
Concrete has deteriorated on cantilevers of the garage that overlook Weldon and Spring streets. “They were wrapped in a protective coating to prevent further deterioration from the elements and to protect anything from falling to the ground,” Gray said.
The cost for a final repair has yet to be determined. “We’re having our engineers look at it and see our options,” Gray said.
While acknowledging that city revenues have taken a hit because of the ongoing covid-19 pandemic, Councilman Jim Kelley said, “It’s always been a strong point in downtown to have that garage. I don’t think we can just give up on it.”
“It has the potential to deteriorate worse if we don’t fix it,” said Mayor Rosie Wolford.
An expanded bond refinancing also might help the city replace an aging compactor that is used to process bulk trash before it is trucked to a local landfill.
“I think we have that thing put together with duct tape,” Wolford said of the compactor. “It’s an essential part of the transfer station. Without it, we’re out of business there.”
Gray said the refinancing also could be used to reimburse the cost of a new excavator the city recently purchased after a boom broke on a previous machine. The new unit itself cost $105,300 and an hydraulic shear attachment cost an additional $18,746.
Jeff Himler is a TribLive reporter covering Greater Latrobe, Ligonier Valley, Mt. Pleasant Area and Derry Area school districts and their communities. He also reports on transportation issues. A journalist for more than three decades, he enjoys delving into local history. He can be reached at jhimler@triblive.com.
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