Competitive bids help finance Yellow Medicine County building
GRANITE FALLS -- Competitive bids to finance the Yellow Medicine County Justice Center project will help the county manage higher-than-expected costs for its construction.
GRANITE FALLS - Competitive bids to finance the Yellow Medicine County Justice Center project will help the county manage higher-than-expected costs for its construction.
The Yellow Medicine County Board of Commissioners at its meeting Tuesday awarded the low bid of Piper Jaffray & Company, Minneapolis, for $5,955,000 in general obligation capital improvement bonds. The financing carries a true interest rate of 2.948 percent, according to information presented by Nick Anhut, of Ehlers and Associates.
There were six bids submitted, and bidding was very competitive, according to Anhut. The difference in total interest payments between the high and low bid amounted to $46,823 over a payment schedule through 2036.
The awarded bid was offered as a premium package. It allows the county to obtain $187,000 more for construction costs than was originally expected, he said. The commissioners have awarded $6,065,810.75 in bids for construction of the Justice Center, which is above the target budget of $5.8 million.
The county will build a two-story structure on the grounds of the existing courthouse in Granite Falls. The existing courthouse will eventually be demolished, and the 2002 building housing the jail and other offices will remain. Prior to the sale of bonds, the county had received an Aa3 rating by Moody’s Investor’s Service. The analysis indicated that the county’s financial situation was “in good hands,’’ according to Anhut.