News Saugatuck/Douglas Commercial Record

Douglas eyes bond to reset old hospital

By Scott Sullivan

Editor

Douglas City Council agreed Monday to hire Miller Canfield as legal counsel to help issue $4 million in improvement bonds to renovate 415 Wiley Road as a new city hall and police department.

The city Aug. 1 last year bought the 18,000-square foot Douglas Professional Center — known locally as “the old hospital” — on the corner of Wiley and Blue Star Highway for $1.5 million eyeing consolidating municipal services on that 7.8-acre commercially-zoned site.

Douglas braked plans to include public works there once cost estimates came in. On Feb. 6 this year council declined to hire Troy-based ABM Building Solutions for $7.8 million to design and build the project sooner and more comprehensively, but still pursued the city hall and police relocations via Grand Rapids-based Carbon 6 Construction.

Douglas now operates city hall in the 1875-built Dutcher’s Lodge at 86 Center St. Last year engineers estimated it needs $1.4 million in renovations to meet modern standards.

Police are housed in a more-recent one-story brick building at 47 W. Center that lacks garage space for cruisers and other vehicles.

Sale of those buildings might yield revenue to help pay off bonds but also may also leave them empty, returning nothing, while still needing maintenance.

Miller Canfield’s work will include rendering an approving opinion on the bonds’ legal validity, enforceability and and tax-exempt status, to be delivered upon exchange for their purchase price.

The firm will prepare all needed resolutions, notices agreements and other documents for bond authorization, issuance and delivery; ensure compliance with federal regulations concerning municipal tax-exempt bonds and more.

“This engagement,” said city manager Lisa Nocerini, “is essential for ensuring the proper legal framework is in place as we proceed with financing the renovation of 415 Wiley Road.”

Citizens can object. If a petition, signed by at least 10 percent of registered city voters seeking a referendum is filed within 45 days after publication of the bond issue notice, Douglas will not issue them absent a general or special election vote.

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