Interest rate below previous projections, saving $149,000 a tear
In a sign of investor confidence in Hillsboro's financial condition, on Wednesday the city sold the Full Faith and Credit Bond for the new minor baseball stadium for 2.74 percent well below the 4.52 percent that had been predicted.
As a result, debt service on the $12 million sale will average around $768,000 a year which is $149,000 less than projections.
The city received two competitive bids and the bond was sold as a taxable sale because of the percentage of time the facility will be utilized for private use. Closing is scheduled for the end of the month which is also when the city will receive proceeds from the sale.
Seattle NW, the citys financial advisor, assisted in the sale of the bonds.
The 4,500-seat stadium will be the home of the Hillsboro Hops Single A baseball team. Ground breaking for the new stadium took place on September 21 and the city has so far been using funds from the sale of land to cover the construction costs.
The cost of the project is estimated at $15.2 million and the bonds will cover $11.8 million of the total cost. The stadium is scheduled to be ready for play by the Hops in June of 2013.