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TALLMADGE -- Local investors will have the opportunity to purchase long-term Tallmadge City School District bonds "likely April 19 or 20," according to Jeffery Hostetler, district treasurer. The sale will include approximately $31 million of funds to finance two new school buildings and $7.2 million for athletic facilities improvements. Hostetler says giving residents an opportunity to purchase bonds is important to allow them to have a vested interest in the project. The bond sale will generate funds to cover construction costs and allow residents to see their investment at work.
School district officials have chosen underwriter, Stifel Nicolaus & Co. Inc., to market the bonds. Hostetler says the bonds will carry ratings from the financial services company Standard and Poor's (rating to be determined) and will be sold with maturities from 2017 to 2053 in minimum denominations of $5,000. The school district's bonds are being offered by Stifel, Nicolaus & Co., Inc. and PNC Investments LLC.
On Nov. 8, voters approved two bond issues proposed by the school district: a 3.9-mill bond issue to consolidate the district's primary, elementary and middle schools into a K-5 building and a 6-8 building on the current middle school campus; and a 0.9-mill bond issue which will pay for the relocation of high school athletic facilities, including the football team room and softball complex.
Construction of the new school buildings is anticipated to cost $45 million. The Ohio School Facilities Commission has agreed to pay 31 percent or $14 million of that $45 million cost. The school district will raise its share of the expense -- $31 million -- through the bond issue.
The athletic bond issue, which does not involve the OSFC, will cover a portion of the cost of moving the outdoor athletic facilities for high school sports from the middle school campus to the high school campus. What's eyed is a new stadium and baseball and softball complexes at an estimated cost between $10 million and $12 million. The bond issue will generate $7 million, which the superintendent says is enough to move all varsity athletics to the high school campus. Funding also would be sought from private donors.
The bond sale process included the preparation of a district Official Statement booklet, securing an updated bond rating from Standard and Poor's and selection of an underwriter.
Those interested in purchasing the bonds should contact Jim Bear in Stifel, Nicolaus & Co.'s, Kent office at 330-678-2151 or Irene Garber at PNC Investments's Cleveland office at 800-624-6450.
For more information regarding the offering, contact Hostetler at 330-633-3291.