Borough Rolls Over Bond Notes at 3.25 Percent Interest Rate

Commissioners authorized funding of $5,992,246 Monday night, to purchase and lease-out the remaining LumberYard Condominium units.

“Since we introduced this ordinance (last month), we received a downgrade by Moody’s,” said Mayor James Maley during Monday’s second reading and public hearing of the ordinance. “Moody’s said we wouldn’t be able to accomplish the extension of our (Oct. 7 LumberYard) construction loan, and we did get it extended, by 60 days.

"They said we wouldn’t be able to roll over our (bond) notes, and we have, at a 3.25 percent interest rate. It’s almost as if everyone in the marketplace doesn’t believe Moody’s got it right.”

According to Maley, since it was made public, the borough has been fighting to have Moody’s upgraded.

“We still very firmly believe that Moody’s has it wrong. They have a great amount of inaccurate, false information,” said Maley. “We met with them for four hours this past Friday afternoon, and went over our issues with them. They are currently undergoing a review and a re-rating analysis, and we should have the results of that in some time—because Moody’s doesn’t work on deadlines.”

Monday, Maley reviewed the borough’s next step in the .

“This is our plan. The borough has, as part of keeping this project moving. It’s a $4.5 million guarantee. We would be paying that money to the banks, and in return, (buying the remaining) 13 condo units, and to generate funds that will cover our debt service.”

According to Maley, of the remaining 13 units, the borough has secured a single lease-with-option-to-purchase agreement.

Maley said borough officials will meet with the banks Tuesday to work out the other half of the LumberYard Project, which was originally meant to be residential, but is being converted to commercial use.