Hanover Select Board Approves $9.9M Bond Sale, New Restaurant Licenses
First Watch restaurant receives approval for alcohol and entertainment licenses while town maintains strong credit rating for short-term borrowing
HANOVER - February 18 - The Hanover Select Board has approved the sale of $9.9 million in bond anticipation notes, maintaining the town's strong AA2 credit rating and securing the highest possible short-term rating from Moody's Investors Service.
The one-year notes, sold to TD Securities LLC at a 4% coupon rate with a net interest cost of 2.9%, will fund various municipal projects including water infrastructure improvements and equipment purchases.
Town Manager Joe Colangelo notes the town received Moody's MIG1 rating for the short-term issuance, representing the highest rating available for municipal short-term borrowing.
"We retained our AA2 rating that we've had for quite some time, and as an additional bonus, because these are just short-term issuances, we received the MIG1 rating from Moody's," Colangelo says.
The borrowing includes approximately $5.8 million in existing debt being rolled over, plus $4.2 million for newly authorized projects approved at the May 2024 annual town meeting.
New projects include police cruisers, portable radios, a large area mower, wood chipper, and water enterprise projects. The King Street water main project, originally approved for $2 million, came in under budget at $1.8 million.
The bond sale process demonstrated the town's commitment to transparency, with detailed documentation provided to the Select Board including a preliminary official statement dated Feb. 6 and final official statement dated Feb. 13.
The board established post-issuance federal tax compliance procedures and continuing disclosure procedures to monitor and maintain the tax-exempt status of the notes and comply with relevant securities laws.
Town officials opted for short-term borrowing given uncertainty around future budgets. "We thought it was most prudent to do a short-term issuance and then wait until next year to decide whether or not to do a long-term issuance once the dust settles," Colangelo explains.
The notes will mature on Feb. 20, 2026. The sale includes a premium of $106,654.27, which will be credited against closing costs.
Board member Steve Louko emphasized the importance of careful financial management, requesting detailed cost schedules for purchased items to ensure borrowing aligns with actual expenses.
"I'd hate for the town to be borrowing additional funding that we don't need to borrow and then just paying interest on it and not paying down the principal," Louko says.
Officials confirmed they only borrow based on actual costs incurred, not maximum authorized amounts. The bond anticipation notes were sold in accordance with Massachusetts state law and SEC regulations.
In other business, the Select Board approved multiple licenses for First Watch restaurant's new location at Hanover Crossing shopping center. The breakfast and lunch chain received approval for an all-alcoholic beverages license - their first location in Massachusetts.
The restaurant plans to serve alcohol Monday through Saturday from 8 a.m. to 3:30 p.m., and Sundays from 10 a.m. to 3:30 p.m.
First Watch also secured approval for entertainment and Sunday entertainment licenses, allowing recorded ambient music through an amplification system during operating hours from 7 a.m. to 2:30 p.m. daily.
Select Board Chair Vanessa O'Connor expressed enthusiasm about the new establishment, noting "I've been to First Watch, and I'm looking forward to be there with music and maybe a drink."