By CN Staff
VIGO COUNTY, Ind.— A new jail for Vigo County, Ind. will become a reality now that the final step for financing the project is complete.
Vigo County officials signed closing documents in December to allow a bond sale to finance construction of the 500-bed jail.
Vigo County Auditor Jim Bramble told the Commercial News that the county will issue $51.14 million in bonds, but will receive more than $56.11 million as bond buyers are paying a premium of more than $5.3 million.
The new jail will be built off the 500 block of West Honey Creek Drive in Terre Haute. Construction is expected to take two years.
According to local media, the new jail is part of the county’s efforts to resolve long-running litigation involving overcrowding and poor conditions at its current jail near Cherry and Third streets in Terre Haute.
The county conceded the existence of unconstitutional conditions and agreed on remedies. Those remedies include the federal court retaining jurisdiction, with Chief Judge Magnus-Stinson of the Southern District for Indiana monitoring Vigo County’s progress on a new jail.
The county is paying 4 and 5 percent interest on the 20-year bond issue. However, with the premium payment, that makes the amortized interest rate over the term of the bond issue about 2.48 percent, said Bramble, in a statement.
The first principal payment on the bond issue is due on January 1, 2023, with the final principle payment to be made on January 15, 2039.
The county’s annual payment will be about $4.11 million, which is “well below the $5 million that had been projected before,” said County Attorney Michael Wright.