CLOQUET — The sale of a 13-year, $2.715 million capital facilities bond designated for the Cloquet School District’s athletic facilities renovation project was approved unanimously by the board at its Monday, May 22, meeting at Garfield School.
The bond was awarded to the Chicago, Illinois, office of Piper Sandler & Co., whose interest rate offer of 4.77% was the lowest among the six bidders. The highest bid came in at 5.41%.
According to the board-provided report by Ehlers, a municipal advisory firm, the actual interest rate came in lower than the original estimate of 5.34%. The lower interest rate accounts for a savings of $142,682 on the principal and interest totals.
The district will make its initial interest payment of $88,777.19 in fiscal year 2024. The following year, the total payment owed will grow to $231,415 to cover the cost of interest and the $90,000 principal. Operating capital revenue funds will be used to make the payments.
The bond will officially begin accruing interest on June 15. Payments for the bond will conclude in fiscal year 2036.
The remainder of the $4.57 million price tag of the project will be covered by $1 million in approved federal grant funds, in addition to the $1.25 corporate sponsorship agreement with Members Cooperative Credit Union, which also includes up to $300,000 in additional funds to go towards the purchase of a new scoreboard/video board.
Jake Przytarski is a reporter for the Cloquet Pine Journal covering a mix of news and sports.