Colleyville City Council discussed the $10.065 million certificates of obligation at its Nov. 1 meeting. Council members voted unanimously at a Sept. 6 meeting to purchase the former Covenant Church and the surrounding 15 acres at 3508 Glade Road.
The $10.065 million certificates of obligation will cover $8.5 million for purchasing the church and its land, $1.5 million of renovations and $65,000 for costs related to issuing the bond, according to the meeting’s presentation.
“This facility will provide all necessary space and infrastructure, for a fraction of the cost, to construct a new recreation center,” Colleyville Finance Director Kyle Lester said in the meeting.
Unlike general obligation bonds that must be voter approved, certificates of obligation involve debt incurred on flexible expenses and do not require voter approval, according to the Texas comptroller’s office website.
The city anticipates 4.6% interest rate on the debt, but Lester said this could change with a fluctuating market.
City Manager Jerry Ducay said the planned renovations will take place most of next year, and the city hopes to open the facility in late fall 2023.
Council will hold a second public hearing on the item at its Nov. 15 meeting. Lester said if the certificates of obligation are approved by council during the meeting, then the debt will be issued the next day.
