Office Space for Sale in Sioux Falls
Sioux Falls is having a bond sale for the new City Administration Building. It will happen in quick fashion on Thursday.
The City Council approved the sale then had to survive numerous attempts aimed at halting the process. October 1 was the day the City was able to sell the municipal bonds, but Tracy Turbak, the City Finance Director, says picking October 20 was the optimum date to follow through.
“The City does engage experts in the field. We have a financial advisory firm that we work with. They know what other bond issues are coming out and what day of the week they may be scheduled for sale. When ours come out we know it’s going to get attention in the marketplace and investors are going to be interested in buying our bonds on that day.”
Bonds will be sold to an underwriting firm that will net out the lowest interest cost to the city. Turbak expects the next step in the process to happen quickly.
“Once that underwriting firm buys that bond issue, they turn around and resell it to actual ultimate investors who will actually buy the bonds. That may include insurance companies or other banks that are interested in investing in those bonds. It can also include individual investors that might be interested in buying some and holding them in their own personal investment portfolio.”
Turbak further explains that the bonds will be paid off by using sales tax revenues for 19 years and the final payment from a debt service reserve fund. The project is anticipated to cost $21.9 million with the City authorized to sell up to $25 million worth of bonds.