A rendering of the new Oak Ridge Preschool at Scarboro Park. (Image courtesy City of Oak Ridge/Studio Four Design)
Bonds sold Tuesday morning for three construction projects: Oak Ridge Preschool, Oak Ridge Senior Center, and Scarboro Park renovations.
The bonds sold at 10:15 a.m. Tuesday, Oak Ridge City Manager Mark Watson said.
There were six competitors. Fidelity Capital Markets had the low bid, with an interest rate of 3.613651 percent.
It’s considered a good interest rate. Anything below 4 percent is good, Watson said.
There wasn’t a large spread between the six bidders. The highest bidder had an interest rate of 3.720288.
There is a 25-year repayment schedule on the bonds, and the city, which raised the tax rate two cents this year for the projects, has pledged property tax revenues.
Some money has already been advanced to allow the contractor to start working on the projects. The preschool will be built at Scarboro Park, and the senior center will be built at Alvin K. Bissell Park, just west of the Oak Ridge Civic Center.
The Oak Ridge City Council considered a bond resolution for the projects in October. Council had approved an earlier, higher initial bond resolution of up to $16.5 million in September. But some savings were found, compared to original estimates, Watson told Council members in a memo last month.
Council approved construction contracts for the preschool and senior center projects during a special meeting on Thursday, October 11.
The general obligation bonds that the city has issued are a type of debt, and they could be paid off by 2043, or 25 years from now.
The City Council raised the property tax rate two cents this year to help fund the projects, which have been discussed for years, and Watson said the future tax impact could be equivalent to eight cents. The current tax rate is $2.54 per $100 of assessed value.
The construction contracts approved in October were worth $11.1 million total for the two projects. Both contracts were awarded to Jenkins and Stiles LLC of Knoxville. The preschool and Scarboro Park contract is worth up to about $8.4 million. The Oak Ridge Preschool is expected to be complete by November 30, 2019. The Oak Ridge Senior Center contract is worth up to roughly $2.68 million. It is expected to be complete by October 1, 2019.
More information will be added as it becomes available.
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