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March 6, 2013

Skagit County and the Regional Public Facilities District save $1.5 million with bond refinance for McIntyre Hall

SKAGIT COUNTY - The Skagit Regional Public Facilities District, owner of McIntyre Hall Performing Arts Center, in partnership with Skagit County, successfully refinanced bonds to save $1.5 million over the remaining 14 year term.

“The bonds were originally issued in 2003 to finance a part of the construction cost for the facility,” according to Skagit County Budget and Finance Director Trisha Logue. “In 2003, the County Board of Commissioners agreed in an interlocal agreement to provide credit support for the District’s bonds, which allowed us to achieve favorable financing terms at that time.”

The County agreed this year to renew its commitment to the facility, by entering into a new interlocal agreement to issue bonds directly on the District’s behalf, allowing the district to pay its dedicated sales and use tax for payment of debt service through the County.

As a result of the interlocal cooperation, the District achieved $111,850 of average annual savings over the next fourteen years, exceeding $1.5 million over the remaining bond term. The principal amount of bonds refinanced was $7,985,000. The average interest rate received on the refinancing bonds, which pay principal in 2013 through 2026, is 1.89%.

At the same time, the County was able to combine refinancing of a $990,000 bond issue with maturities in 2013 through 2017, and achieve average annual savings of $13,797 per year. The average interest rate on the County’s refinancing bonds is 0.99%.

The bonds were offered on a competitive basis, with the County receiving bids from eight firms, ranging from the winning bid at 1.83% to a high bid of 2.23%. Susan Musselman of SDM Advisors, served as financial advisor to the County relative to the bonds, which were rated Aa3 by Moody’s Investors Service.

McIntyre Hall was financed with proceeds of tax-exempt bonds, together with $8.6 million of grants and contributions, including a $6 million gift from the Jack and Shirley McIntyre Foundation. The facility was named in honor of the McIntyre family, in recognition of their gift to the local arts community.