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Cleveland County approves up to $75M installment financing for new Justice Center
Summary
The Board unanimously approved installment financing for a new Justice Center and related solid waste projects, authorizing a limited-obligation bond structure with TD Bank at a 3.8% interest rate and next steps including Local Government Commission review on Nov. 4 and closing Nov. 13.
Cleveland County commissioners on Oct. 21 voted unanimously to authorize installment financing to fund part of the construction and equipping of a new Justice Center, approving a financing package that officials estimated would include up to $75 million in principal for the courthouse and detention center.
Mitch Brigulio, financial advisor with Davenport Public Finance, presented the structure as a limited-obligation bond to be arranged directly with TD Bank. He described the security as a deed of trust on the Justice Center site and said the financing package includes $14 million for solid waste infrastructure and equipment in addition to the Justice Center amount. "Essentially, it's a mortgage on the Justice Center," Brigulio said, explaining that the structure allows the county to amend and finance additional projects or refinance existing projects against the mortgaged property. The package as presented assumes a 3.8% interest rate, a 20-year term for the Justice Center portion, and prepayment allowed after the first ten years.
County staff noted the county has already received $103.15 million from the State of North Carolina toward the project and has set aside $19 million in capital reserves; the installment financing would cover a portion of remaining capital needs. County Manager David Cotton told commissioners the financing "will have no financial impact on county residents" as structured. Commissioners were told the Local Government Commission review is scheduled for Nov. 4, 2025, with a closing anticipated on Nov. 13, 2025 when funds would be available for project expenditures.
The Board adopted a resolution approving the installment financing and related matters on a motion by Commissioner Johnny Hutchins, seconded by Commissioner Doug Bridges; the resolution and contract documents are on file in the Finance Department. The financing decision follows several years of planning and prior evaluations that determined the existing facility could not be practically renovated and that new construction was necessary to meet modern judicial and detention standards.
