Bond sale authorized for third Howard Commons apartment
By Kevin Boneske
HOWARD – The village board approved a resolution Monday, June 10, to authorize the sale of bonds to finance the third building for the Howard Commons apartment complex.
Board members were informed about the financial details from Justin Fischer, senior vice president from Baird.
He said the results of the bond sale have been “very favorable.”
Fischer said $9.71 million in note anticipation notes (NAN) will close July 1, 2019, and mature Dec. 1, 2023, with the first interest payment Dec. 1, 2019, and the first call date on the bonds being Dec. 1, 2021.
He said Standard & Poor’s bond rating was an AA- with the true interest rate being 2.46 percent.
“Our planning (interest) estimate was 2.75 percent, so much better than we anticipated,” he said. “It ends up in resulting in about $150,000 debt service savings when it’s all said and done.”
Fischer said the bond rating the village was able to receive is “a testament to the strong financials of the village – very good management policies.”
He informed the board last month about rent being used to make the debt payments with NAN being used for interim financing and general obligation promissory notes used to refinance debt for the long term with the debt projected to be paid off by 2043.
In 2017, the board approved borrowing for and bids on the construction of the Howard Commons apartment complex for Buildings A and B, which have 84 and 39 units, respectively.
The village issued NAN in 2017 for approximately $10 million and NAN had been approved in 2018 for approximately $16 million, prior to authorizing NAN this year for Apartment C, now under construction.
Building A was available for occupancy last September with Building B opening in December.
The 45-unit Building C is scheduled to be completed in the spring of 2020.
Alliance Management has an agreement with the village to manage and market the Howard Commons apartment complex.