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Pittsfield Sells $28M Bond, Rates High For Bond Credit

By Brittany PolitoiBerkshires Staff
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PITTSFIELD, Mass. — The city of Pittsfield sold a large bond for financial health and scored the highest possible rating by a municipal bond credit rating agency.

Last week, the city sold a $28,420,000 bond. The transaction includes refinancing of $10 million of older bonds that will provide gross budget savings of $1,049,382 for the city over 10 years and support various municipal projects.

Projects in the borrowing include the Tyler Street Streetscape Design for $200,000, Clapp Park improvements for $355,000, Springside House exterior renovation for $400,000, and the Tyler Street and Woodlawn Avenue intersection design at $185,000.  

In a press release, Finance Director and Treasurer Matthew Kerwood said taking advantage of these refinancing opportunities are key components in controlling the city's debt. Bond proceeds will refinance city bonds originally issued March 1, 2008, Oct. 1, 2010, and Jan. 15, 2011.

This type of refinancing is a common occurrence and supports the city's debt management strategy.  The bids for the bonds and notes were accepted in Boston at the offices of the city’s Financial Advisor.

Kerwood explained that the city also issued $7 million in bond anticipation notes along the way in separate transactions that are a part of the larger bond. These are short term, interest-bearing security issues in advance of a larger, future bond issue.


"We do this as a regular thing, sell bonds and bond anticipation notes in a cycle doing an issuance in February and then an issuance in June," Kerwood said. "When we do bond anticipation notes, those are like short-term loans, and then when those loans mature we either roll them or we ultimately then take out a long-term loan which again is through the sale of a bond."

In addition, the city is scoring high in bond credit ratings.  

Municipal bond credit rating agency S&P Global Ratings cited the city's "strong budgetary flexibility, very strong liquidity, and strong institutional framework" as positive credit factors. Because of this, Pittsfield was rated an "A-plus" underlying bond rating by the agency and assigned the highest short-term rating: Standards & Poor's plus-1 to the notes.  

S&P Global Ratings also assigned the "AA" enhanced rating to the bonds as debt service is secured by the State Qualified Bond Act local state aid intercept program.

This confirms the city's sound financial stance, Kerwood said, and is reportedly why the city is able to attract quality buyers to the bond issuances.  


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Lanesborough Looks to Dissolve Baker Hill Road District

By Breanna SteeleiBerkshires Staff

LANESBOROUGH, Mass. — The Select Board is looking to move forward with dissolving the Baker Hill Road District, which is hindering the Berkshire Mall sale.

On Friday, the Select Board heard from Vice Chair Juli Baker and Chair Deborah Maynard on how Tuesday negotiations went with Cypress Equities, JMJ Holdings, town counsel, the town administrator, and state Rep. John Barrett III. 

Baker said that during Tuesday's meeting, everyone agreed the goal was to have a successful sale of the mall for redevelopment as it’s in the best interest of the town.

Baker said Barrett assured them the state is willing to take the Connector Road and that the state is willing to provide grants to the town to renovate the water and sewer infrastructure, with an estimated total of $4.5 million, to facilitate the property's redevelopment.

"We have received assurances from Representative Barrett that the Commonwealth will provide the monies and will take the Connector," Baker said.

While buyer Cypress Equities saw some benefit in keeping the district, it now doesn't since the state is willing to provide the funds and renovate the infrastructure, according to Baker. 

Baker said that in the meeting, Cypress Equities prefers to enter into a tax increment financing (TIF) and will add to the agreement an amount of funding for public safety services, which would have come from the district. She said Cypress said it would rather enter into one agreement with the town than two agreements with the town and the district.

Mall owner JMJ Holdings is willing to pay $350,000 to the town upon closing, Baker said. 

The meeting Friday was to consider moving forward with a dissolution of the district.

"But the decision that it hinges on tonight is whether to move forward to the dissolution of the Baker Hill Road District in some manner," she said.

Baker said she has worked long and hard to see if there was another alternative to this, working closely with the district which has been "very cooperative and very helpful" in making changes.

The district had agreed to make changes to its governance and taxation; agreeing to have a cap for Cypress as well as agreeing to work to have the state take over the road, sending letters of support.

"What changed this for me is that I've always said it's important to have the special district because we get the public safety funding, and it's also important for the economic district to bring the features that an economic district brings because of what we're up against with the infrastructure problems, and the change at this point is that we have a buyer who is willing to supply that public safety money and commit to it over time, along with the TIF that the town would do, which is essential," she said.

"At this point, I feel like it's in the best interest of the town and protects the town the best in terms of a future where we can develop a mall and bring that economic benefit in. You definitely need to reduce taxes, and you cannot do that without a fully developed retail operation right there. So it's been, you know, deeply difficult decision making," Baker said.

Board members Jason Breault and Jeffery Walters agreed it was the best decision to move forward.

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