Otsego EDA approves $16.9 million lease revenue bonds to fund fire station; 4-1 vote

The City of Otsego Economic Development Authority voted 4–1 on Dec. 9 to adopt a resolution authorizing the issuance and sale of $16,900,000 in lease revenue bonds, Series 2024A, to finance a new fire and emergency services building.

Jessica Green of Northland Securities, who reviewed the competitive bond sale, said the EDA received five bids at a 10 a.m. sale and the low bid came from Baird (Milwaukee). Green said the sale produced a reoffering premium that reduced the par amount issued to $16,900,000 while leaving roughly $18,000,007 in proceeds available for the construction fund. She said the bonds were structured for 20 years, carry a final maturity of Feb. 1, 2046, and an optional call date of Feb. 1, 2033. Green reported a rounded true interest cost of about 3.83 percent and estimated total principal-and-interest savings of about $828,480 over the life of the issue compared with…