Funds from liquor store sale, construction to be used for debt service
MARSHALL — A total of more than $400,000 left in a city fund for the construction of the Tall Grass Liquor store will be used to help repay bonds on the liquor store project, Marshall City Council members decided Tuesday.
At their regular meeting, council members got a recommendation to close out the city’s construction fund for Tall Grass Liquor. The new liquor store, located on Boyer Drive, was built in 2015. Marshall city finance director Karla Drown said there was about $406,000 left in the construction fund, which could be transferred to a debt service fund for bonds on the liquor store project. A revenue lease bond on the project will be callable in 2022, Drown said.
The debt service fund already has around $241,000 in it, Drown said. Those funds came from the sale of the old liquor store building on East College Drive, she said. Together with the money from the construction fund, it will be used when the bond is callable. At the same time, city staff said, revenue generated by Tall Grass Liquor will also be used to help pay for the bond.
By the time the bond can be called in 2022, it will have about $1.9 million in principal and interest outstanding, city staff said.
Council members voted to approve closing out the liquor store construction fund, and transferring the money into the debt service fund for the project.