Upper Makefield Township

Open Space Loan Refinancing Saves $1.6 Million

 As part of continuing efforts to streamline costs and cut spending, the Upper Makefield Township Board of Supervisors recently moved forward in authorizing a $2.2 million payment toward principal on an existing $8 million Open Space Loan. The Board further authorized refinancing the remaining loan balance with First Savings Bank of Perkasie. Both actions will save the township more than $400,000 in 2011 and in excess of $1.6 million during the first five years of the loan. The term of the loan will stay the same, with final payment in 2027.

The Board of Supervisors made the decision to take the remaining $2.2 million to pay down the debt in light of current economic conditions. As a result, any future potential open space purchase and funding for that purchase will need to be considered on a case by case basis.

Open Space Succes

Since 1996, voters in Upper Makefield Township have approved 3 referenda supporting borrowing $31 million for preservation of open space. Since that time, the Township’s Environmental Advisory Council has successfully used these funds to place conservation easements on more than 2,000 acres of land in Upper Makefield Township. When combined with other protected properties, including those protected through other programs and land designated as local and state parks, more than 4,700 acres of Upper Makefield Township land is safeguarded from future development. This represents more than 37% of Upper Makefield Township’s land mass.

Return on Investment

The Delaware Valley Regional Planning Commission and the Greenspace Alliance recently issued a report that highlights the significant economic value of protected open space in our region. The report, “Economic Value of Protected Open Space in Southeastern Pennsylvania,” shows that preservation of open space actually saves us money and supports our economy by:

• Increasing our property values by being close to protected open space;
• Avoiding spending money to artificially replicate the vital environmental functions provided
• by protected open space;
• Saving money from free or low-cost recreational activities on protected open space;
• Creating  jobs related to the open space.

Download a full copy of the report at www.dvrpc/openspace/value/.

Other Open Space Debt

The township also issued $18,030,000 General Obligation Bonds in 2006 for open space acquisition.  This debt is not able to be restructured or refinanced until 2016.