Wilmette approves $40 million in bonds for police station; project budget, timing remain on target

Wilmette officials in September checked another item off the list for the town’s $41-million police-station rebuild.

The Village Board on Sept. 22 unanimously approved the issuance of up to $40.47 million in bonds to support the project. The ordinance to approve the bonds was not debated, but officials spent time discussing the options of how exactly to structure the pending bond agreement.

The bonds issuance will cover a majority of the project, which officials estimated in February will cost $41.52 million. The new station is currently under construction on the site of the previous station, 710 Ridge Road, while the Wilmette Police Department operates out of 3220 Big Tree Lane, the former Beth Hillel Bnai Emunah site that is now owned by the Wilmette Park District.

Prior to the Sept. 22 vote, Wilmette trustees heard a presentation from Jason Pinkerton, a contractor with PMA Securities, and an advisor to the Village on the bonds, about how they could structure the bond sale. Village Manager Mike Braiman said the Village hopes to finalize a bond agreement by year’s end.

Pinkerton provided an overview of the current economic landscape, including interest rates that have risen since February, when Wilmette last provided a cost estimate for the project.

Helping to offset the potential higher interest costs, the Village also on Sept. 22 celebrated $400,000 in state funding for the police-station project, giving thanks to State Sen. Laura Fine for securing the award.

The Village was presented with two main scenarios for the bonds: issue bonds for the full $40.47 million that trustees approved or issue approximately $32 million in bonds and chip in $8 million out of the Village coffers.

Braiman said the $8 million figure is an amount the Village could contribute while still maintaining its target level of reserves.

On a 30-year repayment plan and no reserve spending, the Village could be looking at repaying $82.9 million, or $3.07 per year. If the Village contributed $8 million in reserves, it could have to repay $67.2 million, or $2.54 annually, according to Pinkerton’s presentation.

Pinkerton also explained that the Village could split the bond issuance in two, with one issue in 2026 and another in 2027, a strategy that would alter the repayment terms, including amount and timing.

The board on Sept. 22 only approved the fund amount for the bond sale. The structure of the bond agreement, Braiman said, will be discussed at the committee level over the coming months. He said the Village intends to make a decision in the fourth quarter and close the bond deal before the end of the year.

Braiman added that construction of the new police station is well underway and while recent rains have “added some timeline risk,” the Village still believes the new station can open in the fall of 2027.

As previously reported by The Record, Wilmette officials renewed conversations around a new police station in May of 2023 when the board of trustees approved a needs assessment and land use study.

The new station, according to project planners, will feature a 44-person multi-person room; dedicated spaces for social services; modern training and fitness areas, including defensive tactics space and a basement firing range; a digital forensics lab and evidence processing; storage; and more.

Costs strictly related to the building process make up nearly $35 million of its $41.52 million budget. Bond and temporary facility costs total nearly $1 million while professional service costs ($3.78 million), furniture, fixtures and equipment ($1.28 million) and additional contingencies ($613,674) make up the rest of the latest estimate.

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