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Commission authorizes engagement letter with Baird for underwriting services on jail bonds
Summary
The county engaged Baird as underwriter for planned jail project bonds and approved an engagement letter with a fee of $7.97 per $1,000 bond; county adviser said design and bidding are progressing with a two-phase bid approach and potential July ground-breaking.
Codington County commissioners on May 13 authorized the chair to sign an engagement letter with Baird to underwrite bonds for the county jail project, moving the financing process forward.
Toby (municipal adviser) advised the commission that engaging a larger underwriter like Baird provides market coverage and syndication capacity. He reviewed terms in the engagement, noting the underwriter fee at $7.97 per $1,000 of bonds, which he said is competitive and slightly lower than typical market levels.
Toby provided a project update: design development is nearing completion, construction documents are being prepared, and the team expects the first bid packages to be released around May with a possible July ground breaking. He said the project will likely use a two-phase bid process to allow early site-work packages to proceed while other documents are finalized.
Commissioners asked about how the underwriting fee is paid; Toby said the fee is paid from bond proceeds when the bonds are issued. Commissioner Gable moved to approve the engagement letter; Commissioner McElhaney seconded. The motion carried.
Presenters said several firms are showing interest in construction bids and that market conditions should draw competitive bids. County staff will complete the engagement paperwork and continue coordinating bond sale logistics with the adviser and underwriter.
