Central office financing bids come in lower than expected
SALISBURY – The proposed school central office will cost $2.7 million less than expected, thanks to low construction and financing bids, city officials said today.
“It would be a dereliction of our duty as community leaders to not go forward with this project,” Councilwoman Karen Alexander said during a called City Council meeting. “This economic environment is really unusual historically. To have all of that come together at one time is pretty amazing.”
After some construction bids came in last week more than $1 million under the $8.37 million budget, city officials were “ecstatic” at SunTrust Bank’s offer to finance the project at 3.12 percent interest. The city had expected a rate of 3.75 percent.
City Council voted to award the financing contract to STI Institutional and Government Inc., a subsidiary of SunTrust. The city plans to borrow the money on behalf of the Rowan-Salisbury School System, which hopes to lease the proposed office building as a central office for administration.
The state’s Local Government Commission has final say on whether the city can borrow the money and the school system can sign the lease.
Read more in Wednesday’s Post.