Shoreline Community takes on $26.5 million in new debt | May 27, 2011 | Mountain View Voice | Mountain View Online |

Mountain View Voice

News - May 27, 2011

Shoreline Community takes on $26.5 million in new debt

by Daniel DeBolt

To pay for new Shoreline area ball fields, pedestrian overpasses and a fire station, the City Council approved the issuance of $26.5 million in new bonds Tuesday, extending Shoreline debt payments another 29 years.

Paying off the new bonds will cost the Shoreline Community, an authority headed by the City Council, an estimated $58.5 million over 29 years, said Patty Kong, finance director. Payments estimated at $2 million a year will add to Shoreline's $19 million in ongoing annual expenses used largely to maintain Shoreline Park and the surrounding business park that's home to Google.

Resident Steve Nelson spoke in opposition to the bonds and threatened a lawsuit sometime "in the next 25 years" over the Shoreline tax district's diversion of property tax revenue from local schools. The city reached an agreement with Mountain View school districts in February to give them a larger share of Shoreline's property tax revenue, $13.6 million over three years. Despite the fact that the new debt may make it harder to share the tax revenue with schools, city staff said school officials support the new bonds.

Nelson also pointed out that the city has already paid for much of the new Shoreline area fire station, the costs of which would be covered by the bond. City staff said that would allow the use of the funds previously allocated to the fire station for "other purposes."

The council did not respond to Nelson's request to reduce the bond amount in light of this and had little comment before the unanimous vote.

According to 2010 estimates, the bond will provide $9 million for new soccer and baseball fields on a former landfill along Garcia Avenue, $10 million for the new fire station under construction across the street from Shoreline Amphitheatre and $4 million for a crossing for the Permanente Creek Trail over Highway 101.

How quickly the bonds will be paid off depends on a fluctuating interest rate for municipal bonds, which will rise if investors are not interested in purchasing them and increase the city's payments, Kong said. City staff estimate that the average interest rate will not exceed 7 percent.

E-mail Daniel DeBolt at


There are no comments yet for this post

Post a comment

Posting an item on Town Square is simple and requires no registration. Just complete this form and hit "submit" and your topic will appear online. Please be respectful and truthful in your postings so Town Square will continue to be a thoughtful gathering place for sharing community information and opinion. All postings are subject to our TERMS OF USE, and may be deleted if deemed inappropriate by our staff.

We prefer that you use your real name, but you may use any "member" name you wish.

Name: *

Select your neighborhood or school community: * Not sure?

Choose a category: *

Since this is the first comment on this story a new topic will also be started in Town Square! Please choose a category that best describes this story.

Comment: *

Verification code: *
Enter the verification code exactly as shown, using capital and lowercase letters, in the multi-colored box.

*Required Fields


Top restaurants to check out

Mountain View Voice readers have officially decided. See which local restaurants and businesses can now claim the title — Best Of Mountain View 2017.

View Winners