On Monday, the Brentwood City Commission unanimously approved two resolutions that authorized the city to borrow up to $15 million in bonds towards funding a new police station, located at 910 Heritage Way.
City Manager Kirk Bednar explained the original projected bond estimate was around $13 million; however, he cited the current competitive construction market as a reason the city may need additional funds for the project.
“The reason we’re asking for a little flexibility there is simply because, one, we don’t have full bids on this project, and as we know, in this environment in Middle Tennessee, construction costs go up the longer we wait,” Bednar said.
Rick Delaney, with the Nashville firm Raymond James, explained the city’s triple-A credit rating. He said the market’s “favorable” conditions were factors that will help them get the best interest rate possible.
“The triple-A credit rating of this community will bring the very best rating, and the very best rates to you and this community,” he said.
Based on market conditions, Delaney estimated a 2.5% cost of funds interest rate on the loan.
“As a borrower or issuer of bonds going forward, this is a great time to do this if you have to,” he said.
Mayor Rhea Little and commissioner Regina Smithson both voiced their continued support towards moving forward with funding the project.
“It just makes it easier and more advantageous for us to borrow money when we need to for a project like this,” Smithson said.
Little pointed to past city commissioners and staff over the last 30 years as reasons the city is able to invest in a new police station.
“Fifteen million is a lot of money ...,” Little said. “But, a great centrally-located police station is vital to our community.”
At the commission’s July 23 meeting, approximately $2 million was approved for site work subcontractors. The Parent Company was hired as the construction manager to oversee the project.
Included in this year’s fiscal year budget is a total of $17.7 million of the General Facilities Fund going towards the completion of architectural design services, pre-construction management services and initial construction of the police headquarters.
The city started initial work on the project in October of 2017, and funding will continue through fiscal year 2021.