Commerce – The City of Commerce has taken the next step in its obligation to relocate utility lines along a portion of Highway 11 just east of the city.
Council members Tuesday approved the issuance and sale of tax and revenue certificates of obligation for the project.
Alliance Bank in Sulphur Springs was the low bidder, offering the city an interest rate of 5.24 percent. That's a good bid, according to Financial Advisor with First Southwest Jim Sabanis, who presented the report to council members Tuesday.
The $1,600,000 project with a 5.24 percent interest rate over 20 years is projected to cost the city $1,896,000.
The relocation of utility lines is a mandate by the Texas Department of Transportation, who plans to rebuild the intersection at SH 11 and Loop 178 in the fall.
The city is now working to obtain easements for the project. Commerce City Manager Dion Miller says the city is on target to complete the utility line project before TxDot begin work.
The city will not make its first payment on the project until February, 2010.