Spanish Fork OKs terms for $22 million bond

SPANISH FORK — A quorum of the Spanish Fork City Council concluded a yearlong process by voting 3-0 to agree to terms on a $22 million revenue bond that will be used for, among other things, the city's new police and courts building.

The council first discussed issuing the bond last May and had hoped to have the process complete by fall. However, problems acquiring the land for the new building delayed the process until earlier this year.

The council voted last month to authorize the bond, and Tuesday morning, the city received eight bids from banks around the nation. Chicago-based Harris Bank had the lowest bid, offering an interest rate of 4.3375 percent — a rate that one financial adviser to the city called "phenomenal." It was also well below the interest rate limit of 6.25 percent the council established last year.

Advisers told the city its credit rating had improved two grades to AA minus since the city's last bond, issued in 2002. That also allowed the city a low rate on bond insurance, which will be just under $65,000.

Of the $22 million, $18 million will be used for construction of the city's new Justice Center, which will house the Spanish Fork Police Department and offices for 4th District Court. Construction crews broke ground on that project last week.

The remaining $4 million will go to infrastructure upgrades near North Park in anticipation of a large proposed commercial development.