Oktibbeha County supervisors on Monday rejected three bond bids associated with its upcoming $7 million issuance to fund a new industrial park and authorized its bond attorney to negotiate a new deal with the lowest bidder.
While Regions Bank supplied the lowest overall interest rate, a 3.71 percent offer across 15 years, bond attorney Sam Keyes said its bid needs to be adjusted because individual annual rates increased at larger increments than state statute allows for taxable bonds.
For example, the proposal’s maturity rate in 2017 was listed at 2.16 percent, he said, while the final year’s rate was set at 4.8 percent.
Keyes said state statute allows the county to approach Regions about adjusting the incremental annual rates, as long as the overall rate remains at or falls below the overall 3.71 percent interest rate offered in the bid.
Keyes is expected to come back to the supervisors with a negotiated rate at the board’s Dec. 19 meeting.
Trustmark Bank and underwriter Duncan Williams also submitted bids, with 4.4 percent and 4.56 percent interest rates, respectively.
Starkville aldermen are expected to address their portion of the overall $14 million financing package in January.
The combined money will help fund the property acquisition, cultural resource mitigation and infrastructure construction associated with an almost 400-acre, Golden Triangle Development LINK-backed industrial park located northeast of the Highway 82-Highway 25 bypass.
The investment marks Oktibbeha County’s first earnest attempt to gain a foothold in the world of industrial enticement, as Cornerstone Park does not have the electrical capacity to support larger manufacturing operations.
4-County Electric Power Association previously agreed to install a major substation to power the upcoming park, and Atmos Energy committed $13.3 million to install a 12-mile natural gas line to feed the site.
The LINK has also set aside $2 million toward clearing the land of possible cultural resources, a factor that forced it to abandon plans for the Innovation District in 2015.
Construction is expected to begin next year, and LINK Chief Executive Officer Joe Max Higgins previously said his staff could begin marketing efforts next fall in anticipation of a 2018 opening.
Carl Smith covers Starkville and Oktibbeha County for The Dispatch. Follow him on Twitter @StarkDispatch
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