Madison County taxpayers will save millions of dollars through purchasing rather than continuing to lease the Madison Family Court building through a transaction structured by Ross, Sinclaire & Associates, LLC (RSA).
RSA served as municipal advisor to the Madison County Fiscal Court on the $6.1 million Madison County General Obligation Bonds, Series 2017, which were sold on June 1. The County will use proceeds generated by the bond sale to purchase the $6.31 million building in downtown Richmond.
For the past seven years, the county leased the property from a private owner, then leased two floors to the Kentucky Administrative Office of the Courts for operation of the Madison Family Court.
RSA advised the Madison County Fiscal Court to take advantage of low interests rates and buy the building through the 15-year bond issue. The bonds, rated Aa2 by Moody’s, have a Total Interest Cost of 2.225%.
“By purchasing the building and locking in the interest rate, the county will save money over the current structure while also building equity in a county-owned asset ,” said RSA Financial Advisor Joe Lakofka, who works in RSA’s Lexington office.
At the urging of Madison County Judge-Executive Reagan Taylor – who originally came up with the plan to use bonds to finance the purchase – the bond issue received unanimous support from the Madison County Fiscal Court.
Judge-executive Taylor explained that rather than paying $7 million in rent payments on the building over the next 14 years, the County purchased the property for $6.31 million. In addition, the county now owns a desirable asset that will appreciate in value, he said.
“It was a good deal for the County and it is a good deal for the public,” said Magistrate Roger Barger.
About Ross, Sinclaire & Associates, LLC
Ross, Sinclaire & Associates, LLC (RSA), is a full-service investment banking, securities brokerage and asset management firm dedicated to providing long-term superior results. Along with our Cincinnati headquarters, RSA has offices in Ohio, Kentucky, California, Illinois, Indiana, Massachusetts, New Jersey, Pennsylvania, and Tennessee. RSA specializes in multiple disciplines within investment banking and financial services, including: Municipal Finance, Corporate Finance and Institutional Sales and Trading. RSA is registered with the U.S. Securities & Exchange Commission (S.E.C.) and a member of FINRA, the MSRB and SIPC.