After a number of people testified at the public hearing at Monday night’s Maple Valley City Council meeting, one thing was clear – there was a lot of misunderstandings and possible confusion about the city potentially refinancing their $2.9 million in bonds.

After the meeting, Mayor Bill Allison commented about the hearing, saying that people were misunderstanding the issue.

He said refinancing, no matter which option the City Council chooses, is going to save the city at least $175,000.

The question then becomes which option does the city choose, refinancing with tax-exempt or taxable bonds.

Here are the differences between those options for each piece of land in question:

Legacy Site

Location: About 25700 Maple Valley Black Diamond Rd SE.

Size: Approximately 50 acres, half was purchased with part of the bond and half with the city’s money.

Tax-exempt (currently in place)

Approximate savings over the next five years: $223,000

Use restrictions: The half not purchased with the bonds can be used for either public or private purposes. Up to 5 percent of the other half (about 1.25 acres) can be used for private purposes.

Can the city use all of the land for public use? Yes.

Can the city use all of the land for private use? No.

Taxable

Approximate savings over the next five years: $175,000

Use restrictions: The entire property can be used for either private or public use.

Can the city use all of the land for public use? Yes.

Can the city use all of the land for private use? Yes.

Henry’s Switch was also purchased using the same tax-exempt bonds. However, as stated in a previous article, that piece of property was purchased from the county and has additional deed restrictions. Parks and Recreation Director Greg Brown said the entire property must be set aside for public use in perpetuity, even if the bonds are changed to taxable.

None of these options for refinancing affect the city’s ability to sell the property. However, at the previous City Council meeting none of the council members either suggested or recommended that the city sell either property.

Shawn Hunstock, the city’s finance director, said there is some risk to financing with tax-exempt bonds.

Hypothetically speaking, he said, if in the next two or three years someone comes to the city with a project idea for the legacy site and the city wants to sell more than the 27.25 acres that could be used for private purposes, the city would have to pay off the entire amount of the bonds. This would mean the city would have to sell that portion of the land for the outstanding bond amount.

The city is scheduled to make final action on the issue of refinancing the bonds at the next regular meeting scheduled at 7 p.m. on Feb. 23.