Commerce : $44.6-Million Bond Issue OKd to Refinance Outstanding Debt

The Commerce City Council has approved a $44.6-million bond issue to refinance nearly $27 million in outstanding bond debt and to fund public works projects, which could include improvements to a congested intersection, officials said.

The city has $26.8 million in outstanding debt on bonds issued in 1985 to finance its 800-acre redevelopment Project Area 1 in the southeast part of the city, Finance Director John Mitsuuchi said. The interest rate for the 1985 issue is 9.7%, while the new bonds carry a 7.8% rate, he said.

The city plans to pay off the $44.6-million issue with increased property tax revenue from Project Area 1, Mitsuuchi said. Commerce has three redevelopment areas.

The city may use a portion of the bond money to improve the “mix-master” intersection of Atlantic Boulevard and Telegraph Road beside the Santa Ana Freeway, officials said. The city estimates it will cost about $20 million to build a bridge on Atlantic Boulevard over the freeway and into East Los Angeles to alleviate congestion at the intersection. The city is seeking county, state and federal aid for the project.