Press release from the Allen County Board of Commissioners:
Maplecrest Extension Bond Awarded
Low bid expected to save County up to $3.6 million on interest
A competitive bond market coupled with Allen County’s strong credit rating will lead to big savings in interest costs on the County’s Maplecrest Road extension project.
City Securities Corporation today was awarded the right to purchase the $25 million bond, which will help finance construction of the project. The Indianapolis firm submitted the low bid of 4.32% interest, which was a full percentage point below projections. The lower rate means the County could save as much as $3.6 million on interest costs depending on the construction bids
received next month, according to Phil Gutman, the County’s Financial Advisor for the bond.
“This is great news, considering the uncertainty of today’s bond market,” said Allen County Commissioner Linda Bloom. “If the Maplecrest construction bids mirror what we’ve seen for other road projects, then the savings should be even greater.”
BMO Capital of Chicago submitted the second lowest bid of 4.47%. RW Baird of Milwaukee submitted a bid of 4.51% and Hutchinson Shockey, also of Milwaukee, bid 4.58%.
“There was very strong bidding in a very competitive market, which reflects favorably on Allen County’s credit rating,” said Gutman. Earlier this month, Moody’s Investors Service announced it had assigned an A1 rating to the Maplecrest Road bond.
The project will extend Maplecrest from Lake Avenue to Adams Center Road at Indiana 930 in New Haven. It features construction of 1.5 miles of new 4-lane roadway section with curb and gutter and four new bridges. Additionally, the project includes design of new storm sewers, sidewalks, traffic signing, and three at-grade intersections, including two traffic signal designs. The entire project is expected to be finished by fall of 2012.