The Wright County Board of Commissioners awarded the sale of $56,085 in two bonds to finance the construction of a new Government Center and law enforcement training center to Wells Fargo during its last meeting in June.

 

The sale was held June 20, and Wells Fargo was the low bidder on the two separate bonds.

 

Wells Fargo set their interest rate at 2.9729% for the $50,085,000 government center bond, which had been decreased by $3,130,000 prior to bid opening.

 

Chris Mickelson, Financial Specialist with Ehlers & Associates, said the high bid came in at a 3.1265% interest rate. That is an interest difference of $2,528,717.

 

Of the $50,085 Series 2019A issue amount, $368,265 is the underwriter’s discount. The cost of issuance is $162,065 and the reoffering premium is $3,966,810. Total net principal and interest over the life of the bond is $80,748,320.

 

There were only three bids for the bond. The other bidders were Baird (Red Bank, NJ) and J.P Morgan Securities, (New York NY). Generally there is more participation for the type of bond. Mickelson said since some bidders might not have been able to take on a $50 million transaction independently, bidders joined together to form a syndicate. That resulted in consolidation and fewer bidders.

 

The Series 2019B $6 million bond for the law enforcement training facility has a 2.5303% interest rate. The high bid came in with a 2.9772% interest rate, an interest difference of $167,867. Total net principal and interest for that bond is $6,860,203.

 

The county will make its first payment of $688,219.58 (all interest) on the Government Center bond Dec. 1 of this year. The first principal and interest payment of $2,407,850 is due Dec. 1, 2020 and payments will remain at about that figure until the end of 2029. Then debt service payments increase to an average of $3.495 million until the final payment Dec. 1 2045.

 

Debt service on the $6 million bond begins with a $50,183.49 interest payment Dec. 1, 2019. Principal and interest payments will average about $681,000 a year, with the final payment due Dec. 1, 2029.