Financial Specialist Chris Mickelson of Ehlers & Associates said there was significant competitive bidding on the bond. Thirteen firms submitted bids.

 

“Any time we receive more than six or seven bids we consider that a very good result,” he said.

 

Mickelson said all 13 firms were within 10 points of each other, indicating a true desire to win the bond purchase.

 

“It was incredibly competitive bidding. There’s no what we would call “bottom feeding” going on with this transaction,” he said. “All underwriters that placed a bid seemed to want to win this purchase.”

 

Morgan Stanley & Co. from New York was the low bidder at 3.099%. Mickelson said the firm offered a premium bid, which reduced the bond par amount from $47,890,000 to $45,465,000. 

 

“The winning bidder bid a purchase price for the bonds above par - or above 100%,” said Mickelson.

 

What that means for county taxpayers is a lower annual debt service payment. Mickelson said the original pre-bid estimated interest rate was 3.25%. Morgan Stanley’s adjusted true interest cost is set at 3.1124%, almost 15 points lower.

 

Mickelson said that may not seem like much, but it translates to $81,000 a year in interest savings over the life of the 20-year bond.

 

The first interest payment of $1,705,321 is due June 1, 2019. Subsequent payments will be approximately $3.2 million annually.

 

Commissioner Darek Vetsch said that’s a big difference from a forecast of about $3.6 million in debt service payments the county forecast earlier in the discussion process when they were making decisions on the scope of the project.

“That’s pretty substantial,” he said.

 

The closing date for the sale is June 7. That’s the date county will receive the proceeds.

 

The new 145,000 sq. ft. facility will be located next to the county’s law enforcement center. It will feature nine technologically advanced courtrooms and will house Court Administration, Court Services/Probation, a Law Library, County Attorney and space for jury assembly.