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Letter to the editor

Township needs generous lender

January 19, 2011 - Dear Editor,

How can Independence Township get a loan on an upside down Township Hall ("State steps in on hall plan," page 1A, Jan. 12)?

Did it cost $6,500 to have Plante Moran figure out that the way to eliminate the Water and Sewer deficit is to get a new loan from a different source? What budget did it come from?

Are there costs associated with the new loan, like loan fee origination points or mortgage insurance? Is the loan for 100 percent of the cost, or is there some level of equity required? Where will that equity come from?

Won't there be a real appraisal, not just an estimate of costs plus 35-37 percent price inflation tacked on, which will show that the supervisor and clerk paid a non-market rate for the building? Since the township paid far more than market value for the building two years ago, and the market has not improved over the last two years, how is the township going to pay off Water and Sewer with the new loan proceeds? Has the township found a lender who will loan 200 percent or so of market value?

It seems to me that the Township Board is worried about not being involved with this issue because the township supervisor is inept in dealing with financial issues or their consequences, like buying the Township Hall in the first place.

Jeff Gibbs

Independence Township

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