Mayor Richard Daley of Chicago has proposed building a new police headquarters that may be financed with general obligation bonds.

Paul Vallas, Chicago's budget director, said it is "likely" that the city will issue up to $70 million of GO bonds for the project.

"GOs make all the sense in the world," Vallas said. "But there could be some other options out there."

Vallas has mentioned revenue or lease-backed bonds as alternatives. No bond issuance is anticipated until next year, Vallas said, noting that any bond issue would have to be approved by the city council.

A large share of debt service on the bonds would be covered by the $2.3 million that the city spends annually on repairing and maintaining the existing 66-year-old headquarters just south of Chicago's Loop, according to a press release from Daley's office. The release also stated that no new taxes would be needed to support the debt.

The new headquarters is scheduled to be completed by late 1996.

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