The Port of Skagit took advantage of historically low interest rates this week by issuing bonds to refinance existing debt and provide funding for future capital projects.
Three series of limited tax general obligation and refunding bonds, totaling $6.44 million, were issued. Proceeds from the first series, totaling $2.2 million, will be used to refinance a portion of the port’s 2004 LTGO bonds, saving the port about $170,000 in interest payments over the next 10 years, said Patsy Martin, executive director. The port will utilize the $2.03 million in proceeds from the second series for the purpose of constructing a new building and $2.21 million from the third series for acquiring land and making improvements at the La Conner Marina, she added.
The port commission authorized the bond sale at its monthly meeting on Tuesday, and the bonds were sold today at an interest rate of 2.74 percent.
“ It’s a very good time for us to do this ,” Commission President Bill Shuler noted at the Tuesday meeting. “ Interest rates are about as low as they are going to get, and we have pressing capital needs to address. ”
The port’s mission is to help private-sector businesses grow jobs. Currently, the port is experiencing continuing demand for building spaces to lease, while its existing facilities at Bayview Business Park, Skagit Regional Airport and the marina are essentially full. The only practical way to meet the demand is to build more space at the business park, Martin said.
Improvements planned at the marina include the dredging of both boat basins and the replacement of certain aging docks. The port commissioners also would like to acquire additional properties that could be used for industrial growth at some point in the future.
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Press Release, December 14, 2012