Cold Spring Readies Debt Sale To Fund Construction of New Fire Hall

(KNSI) – The City of Cold Spring will award contracts to bidders for constructing the new fire hall this week.

The City Council is scheduled to meet Wednesday at 5:00 p.m. They’ll review over 100 submissions for 16 items needed for the approximately 16,000-square-foot facility that will be built at the former Cold Spring Granite Company site on Main Street.

The city has retained Donlar Construction as the project manager. They are still reviewing the bids. Donlar says the earlier the bids are approved, the easier it will be to get contracts signed and be ready to start the early phases of construction in October.

The council will also hear from Northland Securities on financing the fire hall. The city will likely use general obligation capital improvement plan bonds with a term of 29 years. The total principal is estimated to be $8,780,000.

Annual payments of a little over $535,000 would gradually retire the debt. That assumes an interest rate of 4.38%, which is consistent with Cold Spring’s current “A” general obligation bond rating. Staff and credit rating agencies will meet next week to evaluate the proposed debt sale. The bonds would then be priced on September 25th and sold by the end of October.

Cold Spring currently houses its volunteer fire department in a wing of the municipal complex. When the department moves out, city hall will be renovated to expand space for government staff and the police department.

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