The Allen County Board of Commissioners announce the successful closing of $203,655,000 in revenue bonds for the new Allen County Jail project, which occurred yesterday afternoon, November 26, 2024.
Commissioners Close on Bonds for New Allen County Jail
Allen County, Indiana (November 27, 2024) – The Allen County Board of Commissioners announce the successful closing of $203,655,000 in revenue bonds for the new Allen County Jail project, which occurred yesterday afternoon, November 26, 2024. “After several years of planning and coordination with the Allen County Sheriff’s Department and Allen County Council, I am glad that we have finally gotten to this important step,” said Commissioner Nelson Peters, “It took us a few years to get here, and it will take a few more to reach the finish line. While this isn’t a glamorous project, it is a necessary one.”
Legally issued in the name of the Allen County Indiana Building Corporation, the bonds will be paid back via local income tax over the next 20 years. The Board of Commissioners opted for a public, competitive bond sale, which resulted in five bids from Wall Street investment banks. The winning bidder was Jefferies LLC who submitted a true interest rate offer of 3.845%. This rate is more than .25% lower than the final estimate provided by Allen County’s Financial Advisors.
Commissioner Therese Brown summarized the commissioners’ sentiments at receiving the offer, “We are thrilled at receiving such a low interest rate through the competitive sale process. It reflects well on our community and on Allen County as a government unit that these banks who invest all over the world saw us as a safe, stable investment. As a former Allen County Auditor, I know how much work goes on behind the scenes in issuing bonds and I am grateful to our legal and financial team for helping us get to today’s closing.”
Before bonds are issued, they are rated by a national ratings agency that assesses the creditworthiness of the government entity or corporation issuing bonds. It is an assessment of the financial health of the issuer. The bonds were rated Aa2 by Moody’s Ratings, one of their highest tiers, assuring investors they are of high quality and have a very low credit risk. According to Moody’s evaluation, Allen County’s “growing population and role as a regional economic center for northeast Indiana” was a key factor in their favorable rating.
The Allen County Jail project comes as the result of a lawsuit filed in Federal Court over issues related to jail overcrowding. “This project was on our radar before the lawsuit was filed, but the Federal Court order certainly sped up our timeline,” added Commissioner Rich Beck, “at the end of the day, our community needed a new jail facility. We have a legal and moral responsibility to provide a jail that is safe for inmates and confinement officers, while also being efficient to operate. This new facility will accomplish both of those goals.”
The new Allen County Jail is presently under construction at 3003 Meyer Road. Earthwork started October 7th and has been followed in November by work on the concrete foundation. March 2025 will see the project start moving upward off the ground with the installation of steel and prefabricated concrete walls. Construction is estimated to be completed by December 2027.
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