Council moves jail project forward
May 15—ANDERSON — Another step during the construction of a new Madison County jail has been approved by the Madison County Council.
The Madison County Council Tuesday approved two ordinances required for the financing of the 528-bed facility at a cost of $103 million.
The council voted to appropriate the proceeds of the sale of the Madison County Government Center, Work Release and existing jail to the building corporation.
Adam Steuerwald with the Indianapolis law firm of Barnes Thornburg said the county can't make lease payments to the building corporation to pay off the bonds until construction of the jail and Madison County Sheriff's Department administrative building is completed.
"You're transferring the assets to the building corporation," he said. "There is no new money being approved."
Steuerwald said the action will lower the bond cost and that lease agreements with a building corporation are outside of the debt limit for the county.
He said the appraisals of the three properties have not been completed but are expected to be more than $30 million.
"All the funds go back into the project," Steuerwald said.
The council passed an ordinance pledging the funds from the jail construction, local income tax and property taxes to pay off the bonds for the new jail.
The jail tax is expected to raise $5 million per year.
The bond to pay for the construction of the jail is not to exceed $95 million for a term of 20 years at a maximum interest rate of 5.5%.
The county is scheduled to receive bids for construction in June and sale bonds in July. Construction could start in August and will take two years to complete. The jail should be operational by the end of 2026.
Follow Ken de la Bastide on Twitter @KendelaBastide, or call 765-640-4863.
