The Allen County Commissioners announced the closure of the more than $203.5 million in bonds for the new Allen County Jail.
The bonds are legally issued in the name of the Allen County Building Corporation and will be paid back by local income taxes over the next 20 years, according to a release.
Five Wall Street investment banks bid on the public bond sale, and the winning bank was Jeffreries LLC with an interest rate of 3.845 percent.
That rate is lower than the estimate provided by the county’s financial advisors, and demonstrates that banks see the county’s project as a safe and stable investment, says Commissioner Therese (the “e” is silent at the end) Brown.
The bonds were given one of the highest tier ratings from Moody Ratings, according to the release.
The sale of the bonds comes after more than a year of wrangling over the $300-million jail project.
The county committed to building a new jail on the site of the old International Harvester factory as the solution to a federal court order addressing issues of safety and overcrowding at the aging downtown jail.
The project has drawn repeated opposition from those arguing against its necessity in general and those concerned about the new location and the cost.
Earlier this year, the project got held up by a lawsuit in the Indiana Tax Court, attacking the funding mechanism for the project, which includes leasing the historic Allen County Courthouse to the Building Corporation. In September, a tax court judge upheld the project financing package, and with no appeal, that ruling became final and the project moved forward.
Construction is estimated to be completed by December 2027. Prisons will begin occupying the new jail as soon as it is certified for use, according to federal court documents.
As of earlier this month, the population of the old jail hovers around 700 inmates. Allen County Sheriff Troy Hershberger continues to hire additional confinement officers, as well as seek additional housing alternatives for inmates, according to court documents.
