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Several financing options available for new Boyceville fire station

By LeAnn R. Ralph

BOYCEVILLE  —  Financing $1 million to build a new fire station for the Boyceville fire department could occur in several ways.

Brice Medin, a commercial loan officer with Bremer Bank, presented information about financing options at the Boyceville Community Fire District’s June 10 meeting.

Obtaining general information about financing options for a new fire station from Bremer Bank does not mean that Bremer would actually do the loan, noted Rich Monn, representative for the Town of Stanton and acting chair in the absence of Gilbert Krueger, representative for the Village of Boyceville.

After the exact loan amount has been determined, then the fire district could ask a variety of lending institutions to provide proposals for the loan, and fire district members could then select the best option.

The Boyceville fire district is made up of seven municipalities, so each of the municipalities would have to agree to the loan, Medin said.

Design Built Structures has submitted an estimate of $992,000 for a turn-key fire station.

One option for financing would be for the fire district to be the borrower, and the municipalities are the guarantors of the loan, Medin said.

Another option is that all seven municipalities are co-borrowers, but setting up the municipalities as co-borrowers is perhaps the most complicated of the options, he said.

One municipality also could act as the borrower with the other municipalities as the guarantors, Medin said.

Each of the seven municipalities also could do their own borrowing as separate entities, but that would also be more complicated, he said.

No matter which option is used, all of the municipalities must agree to the proposal, and a series of compromises will be required, Medin said.

If, for example, $1 million was borrowed for 20 years at 3.25 percent interest, the payment would be $5,675 per month or $68,000 annually, he said.

The total loan would be $1.361 million, with $361,000 of the total being interest, Medin said.

With the fire district as the borrower, the municipalities could levy a tax for their portions of the loan, he said.

Medin said he recommended a cooperative agreement, so that if one municipality left the fire district, the municipality would still be responsible for that part of the loan.

One fire district member wondered how it would affect the total if one municipality paid off its share early.

The remaining balance would be adjusted and pro-rated for the others, Medin said.

Ambulance district

Matt Feeney, director of the Boyceville ambulance district, was not able to attend the ambulance district meeting that was held immediately after the fire district meeting so there was no director’s report.

The only items of business the ambulance district acted on was to pay the monthly bills and schedule the next meeting.

The Boyceville Community Ambulance District meets next on July 15 at 7 p.m. or immediately after the fire district meeting is adjourned.