Missoula County approves $17,000,006.75 bond anticipation note for fairgrounds projects

Missoula County commissioners voted to approve a bond anticipation note (BAN) for $17,000,006.75 to finance work at the fairgrounds, including the Gerald Marks Rocky Mountain Exploration Center and rodeo grandstands.

County finance staff (presenter identified in the transcript as Detorney) described the financial plan: the rodeo grandstands bid came in at about $5.2 million and the Gerald Marks Center at about $19 million; other contributions and earlier debt service funds reduced the net issuance. Detorney said he negotiated a one-year note with Stockman’s Bank and Ron O’Donnell (chief investment officer, Billings) at 5.5% with no origination fee and no prepayment penalty, allowing the county to keep the issuance tax-exempt while it prepares a public offering.

"I'm asking you to approve a bond anticipation note today for the amount of $17,000,006.75," Detorney said during his presentation. He told commissioners the BAN will close next week and that the county expects to issue permanent financing in about six months; the short-term interest on the BAN is estimated at roughly $400,000 and will be rolled into the subsequent debt issuance.

Detorney said the debt structure keeps most principal toward the back end of the schedule to lower near-term interest costs and fits within the six mills the county previously allocated to fairgrounds debt service. A commissioner asked about taxpayer impact; county staff replied the six mills were established previously (starting 2020) and that no new tax increase is required for this issuance.

A board member moved approval of the resolution and related BAN documents; another seconded and the commissioners voted in favor.

Why it matters: the BAN enables the county to proceed with contracted construction work while preserving tax-exempt financing status; permanent financing and a public offering are expected within months.