ARLINGTON – The city signed an agreement with Sterling Bank to negotiate terms for a long-term bond to finance construction of a new Fire Station 48 at Smokey Point.

The agreement only allows talks to continue with the bank and enter the credit approval process. The City Council later would need to approve an ordinance to issue $5.5 million in general obligation bonds. Finance director Kristin Garcia said Sterling offered a 2.35% fixed interest rate for a 20-year bond, with no bank fees, $343,190 annual debt service and a total debt service of $6.8 million.

Garcia said she also liked the pre-payment terms and a provision enabling the city to “only draw the money down as we need it.”

The clock is ticking for the project. The city is leasing space in a shared warehouse on Smokey Point Boulevard and needs to be vacated by 2021 because the building owner has business expansion plans.

The new station will be built on airport property in the 18000 block of Airport Boulevard. Fire Station 47 at 6231 188th St. NE and its personnel and equipment would merge with the new station. The council also waived competitive bidding requirements to repair a Feb. 5 water main break near 207th Street NE and Burn Road that disrupted service to a few hillside homes.