Plan to use fire stations as collateral voted down in Poplar Bluff

POPLAR BLUFF, Mo. -- The city of Poplar Bluff will not move forward with a proposal that would have used its three fire stations as collateral to secure $3 million in financing for technology and capital improvements.

A motion to continue negotiations with Commerce Bank of Kansas City, Missouri, the sole bidder for the financing, failed 3-3 on Wednesday.

Mayor Angela Pearson and city council members Ed DeGaris and Betty Absheer voted against the measure. Mayor pro tem Jack Rushin and council members Peter Tinsley and David Johnson voted in support of it.

This means the city will do no capital improvements in 2015, city manager Heath Kaplan said.

The 2015 capital plan included replacing police vehicles, repairs to a roof at Fire Station 3 and funding for street repairs, overlay and paving, among other equipment needs citywide.

The city also will be unable to reimburse its cash reserves for the $1.5 million already spent on technology for a 911 center, he said. These funds were spent in December, before the city had attempted to secure financing to pay for the project.

Kaplan said he will wait until August to rebid the project, when he has been with the city for one year.

The city also cannot fund years 2016 and 2017 of its capital improvement plan without the financing, Kaplan said.

Pearson suggested Kaplan bring the proposal back to the council.

"I voted 'no' for the same reason (DeGaris and Absheer) voted 'no,'" Pearson said. "It's because that, to me, it is too risky, putting our fire departments out there."

City finance director Mark Massingham said city hall, the Black River Coliseum and library were used as collateral when bonds were sought to construct the coliseum, library and golf course.

The city failed twice in February in its attempt to secure bids for the $3 million in financing for the current projects. The sole bid was received the day before the third scheduled closing of the request for proposals.

In addition to asking for the fire departments, the bid required repayment in 12 years. The city originally asked for a 15-to-20-year repayment schedule.