SALINAS — A “rushed” Fort Ord Reuse Authority bond proposal aimed at paying for blight removal on the former military base even as the authority is poised to dissolve next summer has prompted Monterey County officials to express concerns about the potential impact on the county.

On Tuesday, the Board of Supervisors agreed to hire a financial consultant to consider the implications for the county of such a bond, as well as potential options for the county to issue its own blight removal bond or pursue blight removal through some other means. The board agreed to pay consultant firm Fieldman Rolapp & Associates $25,000 for the work while holding off on hiring a bond consultant to analyze the proposed FORA bond until authority officials provide all relevant bond documents.

According to a county staff report, FORA is considering issuing a 30-year bond for up to $56 million to cover the estimated $55 million cost of removing blight, including old military barracks and other buildings that remain a quarter century after the base closure, mostly located in the Seaside and Marina portions of the former base, with a much smaller amount estimated at about $2.2 million in the county’s jurisdiction.

The report indicated that FORA consultants have advised that the bond should be issued by the end of the year or early next year to take advantage of a favorable bond market. The bond would be repaid by tapping FORA’s current property tax share on the base instead of that revenue being distributed to the land use jurisdictions.

But the report warned that the county should fully analyze all the ramifications of such a bond issuance by an authority on the verge of dissolution, including administration of the bond and distribution of the proceeds after the authority dissolves, as well as potential protections for the county. Acting County Counsel Les Girard said there is “significant risk” in issuing a bond through an entity to be dissolved.

Board chairman John Phillips said he initially supported a FORA-issued blight removal bond but only when it appeared the authority would be extended beyond its June 30 sunset date through proposed legislation backed by State Sen. Bill Monning, which has since stalled.

“I’m concerned about the speed that this is moving,” Phillips said. “This is a recipe for litigation.”

According to the staff report, the bond issuance “feels rushed” and the county “needs time to resolve basic questions related to the bond, including: who will administer the bond and assume responsibility to bond holders after the issuer FORA is dissolved; the structure of the distribution of the bond proceeds; justification for FORA’s “accelerated timeline” for the bond issuance since county staff has received information indicating interest rates are not in jeopardy; how the county would be “insulated” from any potential bond issues; if sufficient bond proceeds would be set aside to cover related claims; how bond issuance would affect the county financially; and the county’s level of participation.

Marina city officials have indicated a willingness to serve as bond administrator but no final decision has yet been made, according to the county staff report.

After a FORA consultant told the board only the authority still had the ability to issue blight removal bonds, Supervisor Luis Alejo argued there are other potential methods for the county to pursue that could allow it to fund removal of its own blight and suggested the county look into those.

County property administrator Melanie Beretti called the proposed bond issuance “highly irregular,” but also noted there were “social equity” issues involved for communities most affected by the base closure. Beretti added that while the base land use jurisdictions including the county would initially lose property tax revenue under a bond issuance and repayment plan that blight removal could also spur economic development and could result in additional benefits including tax revenue.

FORA assistant executive director Josh Metz said it could take 3-5 years to remove all the remaining blight on the former base if the bond was issued.

Most blight removal has been tied to new development on the former base.

Also Tuesday, the county board agreed to spend $173,000 on a portable, six-shower facility to be located at the Salinas emergency homeless shelter at 111 West Alisal St. The shower will cost about $214,000 per year to operate and would be in use until a proposed East Laurel Drive permanent homeless shelter is built and operating, probably in 2021.