Colleyville approves $10M in certificates of obligation for new recreation center

The city of Colleyville will issue certificates of obligation to purchase and renovate the former Covenant Church Building that will become a new recreation center.

Colleyville City Council unanimously approved nearly $10.07 million in certificates of obligation at its Nov. 15 meeting. Council held its first discussion on issuing the debt at its Nov. 1 meeting.

The principle cost will cover $8.5 million to purchase the building and its land, $1.5 million in renovations and $65,000 for costs related to issuing the bond.

Unlike general obligation bonds that must be voter approved, certificates of obligation involve debt incurred on flexible expenses and do not require voter approval, per the Texas comptroller’s office website.

According to Jim Sabonis, the city’s financial advisor from Hilltop Securities, Colleyville’s interest rate on the property will be close to 4.04%.

Colleyville Finance Director Kyle Lester said the city anticipates closing on the property in December.

“Now we can move forward and get [the recreation center] closed up,” Mayor Bobby Lindamood said.