Half the funding for a new $20M medical unit at the Coconino County Jail will be provided from the Jail District Fund, while the other $10M will be raised through a special obligation bond sale approved by the County Board of Supervisors last month.
County officials are optimistic about the bond offering’s attractiveness to investors, despite concerns about the overall market in the current economic and political climate.
The jail bonds received AA+ ratings—the second highest possible—from both Moody’s and S&P.
The bond sale is underwritten by Stifel, Nicolaus & Company, and Piper Sandler serves as the County’s financial advisor for the process.
The Jail District Fund is maintained through a half-cent excise tax that will remain in place through 2051.
The current jail medical unit is a six-cell facility, which officials say is insufficient. The new unit will be approximately 15KSF and include 24 beds, four safety cells and a recreation yard. The expansion will also allow for the effective separation of inmate booking, release and transfer areas. Those functions are currently performed in a single area, which officials say increases congestion and the risk of contraband coming into the facility.
Asked during the March County Supervisors meeting about potential cost increases due to construction materials price fluctuations under new national tariff policies and other economic circumstances, Commander of Detention Services Matt Figueroa said there is some flexibility in the budget and staff is coordinating with contractor Kinney Construction Services to monitor costs. If materials costs rise sharply, the expansion’s scope could be scaled back.
The financing timetable calls for the bonds to be priced during the week of April 21 or 28, with closing planned for the week of May 5 or 12. That timeline may be adjusted if County management feels market conditions are unfavorable. (Source)
