College OKs sale of first round of bonds

A cheer rang out Thursday after Flathead Valley Community College trustees voted unanimously to accept the bid from Suntrust Capital Markets for $9.9 million in bonds.

The bond sale marks the beginning of $15.8 million in campus upgrades and expansion approved by voters in December 2002.

No one protested when board chairman Bob Nystuen invited comments prior to the vote.

Competitive bids were due at the college at 11 a.m. At noon, the board had a list of the eight bidders with Suntrust Capital Markets submitting the low bid at 3.86 percent interest.

Financial adviser Aaron Rudio of D.A. Davidson & Co. called the interest rate really good news.

He pointed out that voters approved an interest rate up to 7 percent on the general obligation bonds. Rudio said the winning bid saved about $4 million over the highest potential interest rate.

Most of the eight bids came in electronically.

"You have all types of institutions represented," Rudio said. "All you can say is it's a successful sale."

Prior to the bidding, trustees had approved allowing D. A. Davidson & Co. to submit a bid while also acting as financial adviser on the sale. Davidson's bid of 3.92 percent ranked sixth on the list.

The interest rates offered ranged from 3.86 to 3.97 percent.

"They were all within a few basis points of each other," Nystuen said.

College President Jane Karas said the bonds will be issued sometime in March. The college expects to sell the remaining $5.9 million in bonds later.

"We will be moving forward with having the architects back on campus," she said.

Because of two years of legal delays after the disputed election, increased construction costs and other inflation may require about $2 million in reductions from the work originally planned. Architects will make that determination in upcoming visits.

Karas said she expects construction to begin this summer or fall. She joked that she would go out with a shovel and break ground herself.

The work planned at the time of the election included:

. A general classroom building with a 250-seat black-box theater and large lecture room.

. An occupational trade building.

. A child development center for training child-care workers as well as providing day care services.

. Renovations to the Science and Technology Building to add lab and clinical education space.

. Miscellaneous renovations to other buildings, roads, parking areas and other infrastructure improvements.

Reporter Candace Chase may be reached at 758-4436 or by e-mail at cchase@dailyinterlake.com.