The Grafton Township Board in special meeting Tuesday night at the Huntley Congregational Church agreed to give back to the bank $3.5 million that was to pay for a new township office building.Under temporary injunction preventing construction, trustees unanimously voted to accept a Harris Bank offer to take back the money plus about $145,000 interest in exchange for debt certificates the township had issued.
With no prospect for quick resolution of a legal battle over whether new offices should be built at all the township found itself paying $430 interest per day on money for which it had no use. Township Attorney Joe Gottemoller commented, "This stops the bleeding, so to speak."
Interest was about to come due, he said, paying which might violate the injunction. A ruling on that couldn't be had because the presiding judge is on vacation. Gottemoller said Harris Bank officials offered to solve the problem by, essentially, cancelling the debt certificate sale altogether.
Trustee Rob Laporta said returning the money wasn't the end of plans for new township offices at Haligus Road and Grafton Farms Drive, though. "When the litigation's over we'll get a new loan," he said, adding he'd been assured the project was also in line for "new federal money" from the county's recently-approved stimulus bond program.
In an interview before the vote Supervisor Linda Moore said she still still sees no need for the new building. A group of similarly-minded township residents are seeking a permanent injunction arguing the board failed to follow proper procedure to authorize construction.
In the pic: It took only minutes for Grafton Township's board to return $3.5 million to the bank.
0 comments:
Post a Comment