NEW DRAIN COMMISSIONER TO REFINANCE BERRIEN COUNTY LOAN

PREVIOUS COMMISSIONER REFUSED TO LOOK AT REFINANCING; POTENTIAL SAVINGS OF $4.5 MIL

By DEBRA HAIGHT
BCR Correspondent
ST. JOSEPH – Berrien County Commissioners heard about two south county projects at their meeting last week. County Administrator Brian Dissette reported on an ongoing drain project in Chikaming Township as well as possible uses for the Three Oaks property the county bought in October.
The Streed Drain Project will bring improvements to land in Chikaming Township as well as a small part of New Buffalo Township. The project will cost $15.2 million to reduce flooding in the affected areas.
Dissette updated the county board on the project and his efforts to refinance the work at a lower interest rate. Current County Drain Commissioner Christopher Quattrin obtained a private 20 year loan with a 5.7 percent interest rate.
Dissette said he’s not questioning the need for the project to resolve flooding concerns in that area but how it’s being financed. He wants the county board to take a look at a possible refinance in the new year in order to save money.
“The importance of the project is not in question,” he said. “It is needed, in no way am I arguing that it’s not needed, there is flooding. It’s being partially funded by Chikaming and New Buffalo Township. The argument is the use of a 5.7 percent loan over a 20 year period.”
“We think there is an opportunity to bring down the costs of the project for everyone by a substantial amount,” he added. “I have talked to the new Drain Commissioner Elect and we are in alignment.”
“If we would refinance, I think a 3.5 percent loan is very feasible or even lower,” he said. “The total savings could be $4.5 million or more. It makes perfect sense to refinance this as soon as possible. It takes 90 days from start to finish to refinance it. We could finalize by July and get off this 5.7 percent loan. It’s a no brainer, it needs to be done.”
The debate about the Streed Drain Project is the latest issue the county board has had with Quattrin. Quattrin has been invited several times to attend the county board meetings to present information and address concerns. Just as was the case last week, he has declined to attend.
Quattrin lost his bid for re-election in the August Republican primary. The primary winner, George McManus, then went on to win the November general election.
Commissioner Jon Hinkelman said he’d like to see the loan refinanced. “I would like to see this done so it can have a real impact on the property owners being assessed,” he said. “That’s why we have worked so hard to maintain our credit rating so we can offer lower rates.”
Dissette said the bulk of the costs associated with the project and the loan will be recovered through assessments on property owners. “If we bring down the project costs, it brings down the costs for everyone,” he said.
Commissioner Teri Freehling said she attended a financing meeting about the drain project a few weeks ago. “Brian (Dissette) asked the drain commissioner to consider this financing and the drain commissioner said he would get back with him and he never did,” she said. “This has been going on for five years; I’m very frustrated.” Quattrin has been accused of being uncooperative before.
Commissioner Robert Harrison asked Dissette to look at other drain commission projects that carry a high interest rate to see if they can be refinanced. “We’ll take a look at all of the existing notes and see what we can roll into refinancing,” Dissette said in response.
Dissette also reported on the Three Oaks area property the county board purchased in October. That acreage totals around 36 acres. Dissette said environmental reviews have been completed on the property, which is in the Schwark Drainage District but is no longer needed by the district.
The land had once been slated to be a residential development but that project failed and the county bought it for $551,000 when it was foreclosed on.
Dissette said part of the land is adjacent to the village of Three Oaks’ Watkins Memorial Park and the village has expressed interest in it. Other potential buyers include Chikaming Open Lands or a residential developer. He predicted that the land could be sold sometime next year.