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CJC project moves forward, bonds to be sold Sept. 29
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By Charlie Warner
Argus News Editor
With only one interested Houston Country resident attending the public hearing (former county commissioner Larry Graf) the county board listened to a 30-minute presentation made by Ehlers senior financial advisor Bruce Kimmel on the route the county should take in financing the criminal justice center (CJC).
At the Aug. 25 meeting, the board agreed to advertise for $2,865,000 in general obligation capital improvement (CIP) bonds and $7,250,000 in general obligation jail bonds. A special board meeting was scheduled for the fifth Tuesday in September at 11 a.m. where the bonds will be sold.
The $2.865 million GO CIP bonds will fund two purposes: $2.375 million will go towards 25 percent of the estimated construction costs for court-related portion of the CJC, and $430,000 in costs incurred in the former Meyer Building remodeling project.
The $7.250 million GO jail bonds will fund 75 percent of the estimated construction costs for the jail and law enforcement center portion of the CJC.
Kimmel recommended the construction costs of the CJC be separated between the court services portion of the project and the jail/law enforcement portion. The county is able to utilize a AAA bond rating for the jail/law enforcement portion due to a state-supported program designed to aid in the construction of new jails. For the court services side of the project, Kimmel felt the county would either be at an “A+” or a “AA-” bond rating. The AAA bond rating will garner a lower interest rate than the A+ or AA- bond rating.
Because interest rates are at an historic low right now, Kimmel felt the county needed to take advantage of the situation and bond for approximately half of the project. The CJC court services portion of the CIP bonds will be paid off over 10 years, while the County Community Services portion will be paid off in three years. The county plans to finance all the remaining CJC costs with a second set GO CIP and GO jail bonds issued in 2011.
“We’re trying to take advantage of the low interest rates right now,” County Financial Director Casey Bradley noted. “Even though we don’t have the actual construction bids, we felt now was the time to move forward. Once we do have the actual costs, we will issue the bonds for the remainder of the project.”
“The $19 million figure we’re using as an estimate is a pie in the sky figure,”” Commissioner Dave Corcoran said. “Construction costs have been coming in 20 to 30 percent below engineer’s estimates. And with interest rates about as low as they’ve ever been, now is the time to get this off the ground.”
The tentative schedule once the bonds are sold Sept. 29 will be to get the bids out later this year, award the bids at the beginning of 2010 and begin construction next spring.
You can contact Charlie Warner at
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