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AHH 24-Hr. News

Road Construction on West Front Street in Middletown Until Aug. 8
Wednesday, 30 July 2014
Wall, NJ – New Jersey Natural Gas (NJNG) today announced that it is installing 1,500 feet of main on West Front Street in Middletown, between... Read More...
Matawan Contractor Admits Failing to Perform Work for Post-Sandy Victims
Wednesday, 30 July 2014
Admits He Took Deposits for Work He Never Did FREEHOLD, NJ - A Matawan-based contractor pleaded guilty to accusations of theft admitting he accepted... Read More...
IMAGE Telling Their Story Through the Power of Art
Wednesday, 30 July 2014
PHOTO: Amanda's Easel Program Coordinator Cindi Westendorf (second from left) and Canterbury Art Show volunteers in the 2013 art show gallery of... Read More...
IMAGE The Community YMCA Kicks Off ‘Togetherhood’ Initiative with School Supply Drive to Benefit Kids Near and Far
Wednesday, 30 July 2014
PHOTO: Sahar Akbarzai of Old Bridge helps Y campers create a mural that will travel to Afghanistan along with school supplies being collected at... Read More...
IMAGE Assistance Available for Organic Certification Costs
Wednesday, 30 July 2014
TRENTON, NJ  – The New Jersey Department of Agriculture announced a partnership with the federal government to reduce organic certification... Read More...

Columns

IMAGE Not the Kind of Anchovy You Put on Pizza
by Joe Reynolds
Wednesday, 30 July 2014
If someone were to ask you the question what’s the most abundant and frequently found fish in Lower New York Bay, including Raritan Bay and Sandy... Read More...
IMAGE Review - Lucy
by David Prown
Wednesday, 30 July 2014
I saw the new movie, "Lucy" the other day starring Scarlett Johansson and Morgan Freeman and this movie is going to do well in the box office. Not... Read More...
IMAGE Adoption Involving Fetal Alcohol Syndrome
by Daniel J. Vance
Saturday, 26 July 2014
Laura Bloch adored his picture. “My husband and I had just been approved through an adoption agency and the agency sent out a letter with a picture... Read More...
IMAGE Is It The Shadow?
by Woody Zimmerman
Friday, 25 July 2014
“Who knows what evil lurks in the heart of man? (Hoo-hoo-hoo-ha-ha-ha-ha-ha-ha!) The Shadow...” Starting in the 1930s, and extending well into... Read More...
IMAGE Spectator’s Observations
by George Hancock-Stefan
Thursday, 24 July 2014
During the World Cup, I watched as many games as possible. I watched them here at home, I watched a couple of games in Turkey where they were... Read More...

Upcoming Events

Mon Aug 04 @ 8:00PM -
Middletown Township Committee Workshop Meeting
Tue Aug 05 @ 3:00PM - 04:30PM
Free Summer Mini-Camp
Wed Aug 06 @ 3:00PM - 04:30PM
Free Summer Mini-Camp
Thu Aug 07 @ 7:00PM - 09:00PM
Prostate Cancer Network- US TOO meets
Fri Aug 08 @ 7:30AM -
“Half Day Fluke Fishing” Cruise

jack_archibald_120The rebuilding of the Atlantic Highlands harbor is one of the largest public works projects in Atlantic Highlands history.  On a financial scale, only the rebuild after the Nor’easter of 1992 and the building of borough hall can compare.  Not only is the scale of the project enormous, but the boating season deadline adds to the challenge.

Those loyal readers of this column have been well versed in the timeline and scope of the project.  Finally, the means to fund the clean up and rebuild have come into greater focus. With a price tag of in the neighborhood of twenty million dollars including the cleanup, the financing is a not insignificant factor throughout the story.

This past Wednesday, the borough of Atlantic Highlands sold Bond Anticipation Notes in the amount of $8 million as the first leg of the project.  (The amount of BANS earmarked for the Harbor was $7 million with the additional $1 million BAN a rollover of sewer BANS)  Due to state requirements regarding timing, the borough could not sell an additional $9.7 million BANS for the project, but the interest rate that the borough received for our notes was the best possible scenario.  Unlike bonds, a Bond Anticipation Note is a one year maturity that can be rolled over for several years until a decision is made regarding permanent financing – either pay off the BANS or sell long term bonds.

Atlantic Highlands received an interest rate of 0.75% from Wells Fargo Bank.  Similar issues in the market had come at higher interest rates, and by all accounts, Wells Fargo stepped up to the plate with their rate.  The key issue for most investors, is how secure is the source of repayment for the notes.  Due to the amazing effort of our borough and harbor professional staff, the project work sheet submitted to FEMA is close to $20 million dollars.  We have received verbal assurances from FEMA officials that our project will be funded at 75%, if not 90%- and that will account for the majority of the repayment. 

Additionally, the borough has a business interruption policy for the Harbor as well. In a great piece of foresight attributable to former Mayor Mike Harmon, the borough has had this policy in place since the Nor’easter of 1992.  Until Sandy, the borough has never had to utilize this policy, and it will also be used to repay the Bond Anticipation Notes.  It is safe to say that most municipalities do not carry this type of insurance, and Atlantic Highlands is fortunate to have funded this policy over the years.

Finally, the Mayor and Council always have the ability to raise the rates on the leases in the Harbor.  While that is not currently contemplated, bond investors like to see an additional means of covering debt service, and this certainly gave investors further comfort when bidding our notes.   Next month, the borough will sell our second and final leg of notes for the Harbor.  If Wednesday’s sale can be replicated, the initial financing of the harbor rebuild will be considered a success.