Bonds sold by the city of Elk River to finance construction of the city-owned Westbound Liquor store at 13484 185th St. are being paid off early. The move will save the city $41,737 in interest.
The city had authorized the $1.2 million bond sale in 2005. The bonds have a final maturity of Feb. 1, 2015, and an interest rate of 4.5 percent.
The amount needed to pay the bonds off early on July 1, 2012, is $570,000 plus accrued interest. The money will come from liquor store profits. The city owns Westbound and Northbound stores. Northbound has been in business for years.
Dave Potvin, manager of the city’s liquor operations, told the Elk River City Council on Monday, May 7, that the addition of Westbound has worked out well.
“Ninety percent of Westbound’s business is new business,” Potvin said. “Northbound has largely been unaffected.”
With the bonds being paid off in 2012, there is no debt on either building, he said.
Mayor John Dietz told Potvin and Assistant Operations Manager Steve Tillmann that they “run a top-shelf operation.”
Meanwhile, a second city bond issue is also being paid off early. That $800,000 bond issue was authorized in 2000 to finance a portion of the East Elk River Improvement Project. The bonds come due on Feb. 1, 2015, but will be paid off on June 7, 2012, saving the city about $21,000 in interest.