The Hamburg School District received nearly $150,000 as a good faith deposit on the bonds that were recently sold to an investment firm.
Jason Holsclaw with Stephens Public Finance Department presented a resolution to the Hamburg School Board Aug. 12 to approve bonds that were recently sold to finance the upcoming projects at HSD.
Holsclaw said that Robert Bayer is the investment company who won the bid with an interest rate of 2.94 percent. The bonds sold for nearly $7.5 million with an additional premium of about $126,000.
Holsclaw said interest rates are low and there is a high demand for bonds, so Hamburg was able to receive a little more money than originally anticipated.
Hamburg will receive approximately $7,626,000 less the estimated $150,000 in underwriting and other professional fees.
Holsclow told the board that because of the tax exemption that comes with the bonds, the projects built with the money would have certain stipulations including “no private activity.” One of the board members questioned if this would prevent the district from selling sponsorships to the football field as one of the projects is building a turf football field.
Holsclow said that there will be some restrictions but that it could be done and that his firm could review any advertising contracts to make sure they didn’t violate any of those restrictions.
The sale of the bonds is expected to close on Aug. 28 and Holsclow said the money would be wired into the district’s account.
The projects to be funded include $1.5 million for two classrooms; an alternative learning environment classroom; an art room; and restrooms on the Hamburg High School campus; as well as $1.15 million to build a baseball field, soccer field, bathrooms, concessions and a parking lot
It also includes $1.1 million to expand and remodel the auditorium on the Hamburg High School campus; $800,000 to convert the grass football field to an artificial turf field; $600,000 to remodel the gym, including roof, interior, exterior, HVAC and electrical; $446,000 to refurbish the track; $300,000 to add plumbing, restrooms, dressing rooms, storage, and water fountains in the indoor facility for female athletes; and $174,370 for new HVAC for the cafeteria, kitchen, dressing rooms and concession area.
Other remodeling will include the concession area on the Portland campus and building a covered walkway to the main building on Portland campus; $344,500 to remodel the restrooms on the Nobel/Allbritton campus; $65,000 to connect the Marilyn Chambers Building to the main building on the Nobel/Allbritton campus; $197,600 to remodel bathrooms on the Hamburg Middle School campus.
Approximately $150,000 of the funds will be set aside for professional fees associated with the project, the cost of the bond issue, and potential project cost overages.