LymeLine.com

Community News for Lyme and Old Lyme, CT

Old Lyme to Hold Special Town Meeting Tonight to Approve Issue of $820K Bonds by Point O’Woods

by

“Town Will Have No Financial Responsibility for the Bond” (Old Lyme First Selectman Griswold)

OLD LYME — The Old Lyme Board of Selectmen has called a Special Town Meeting tonight, Thursday, July 28, at 7:30 p.m. in the Meeting Hall at the Old Lyme Memorial Town Hall, 52 Lyme Street, Old Lyme, Conn.

The purpose of the meeting is for the Town of Old Lyme to discuss and vote on the request by the Point O’Woods Association, Inc. for the beach association to issue bonds up to $820,000. The beach association will then use the funds raised from the bond sale to restore and rebuild its boat basin bulkhead.

Old Lyme First Selectman Timothy Griswold explained to LymeLine.com via text yesterday that, “A State Statute (7-372) says a beach association with 50 percent or more of its property owners that are not residents of the town, that wishes to issue a bond pledging its assets as collateral, must have the consent of its town to issue said bond.”
Griswold noted, “I view it as an administrative process, as the Town will have no financial responsibility for the bond.”
Old Lyme residents attending the meeting will discuss the Resolution and then a vote will be taken to determine whether to approve it.

The wording of the resolution is as follows: Be it resolved that the Town of Old Lyme, CT grants the request by The Point O’Woods Association, Incorporated (POW) that the Town of Old Lyme (Town), for purposes of Connecticut General Statutes §7-372 only, consents to POW issuing bonds pledging the security of POW in the amount of up to $820,000.00 for the purpose of restoration and rebuilding of the boat basin bulkhead.

POW is a separate taxing district situated within the limits of the Town of Old Lyme. The Town is not liable at law for any debt of such a district, and its consent to this bond issue does not and cannot be interpreted to mean that the Town is now assuming or shall ever have any obligation to assume any or all of the obligations to be created by the bond issue.

Copies of a brief description of the project proposed by the Point O’Woods Beach Association are available in the Old Lyme Town Clerk’s office and online here.