Work can begin in earnest on several key capital projects in Yukon now that the city has approved a $10 million bond issue.
Officials with BOK Finanical Securities attended Tuesday’s city council meeting to announce bids for the bond issue.
BB&T had the best interest rate at 2.56 percent, and the issue can be repaid in full without additional costs any time Jan. 1, 2025, said Chris Gander with BOK.
The city also received a bid from BancFirst. Their bid was with an interest rate of 3.30 percent.
Gander said bid packets were delivered to a variety of local, regional and national banks.
The money from the money will be used, according to city officials, to pay for the city’s share of several projects, including the relocation of Vandament Avenue, the expansion of Frisco Road, several street projects and the construction of a maintenance and transportation building.
Another major project is the replacement of three bridges on State Highway 4 with a single bridge.
The section of road is considered one of the most dangerous stretches of road in Canadian County.
The city plans to construct a new bridge to span the area and move the road to the west. The city is in the process of obtaining the property needed. However, one section of the land contains an expensive fence as well as high-priced livestock.
City Manager Jim Crosby said Tuesday that just over $2 million has been set aside for the project.
Right-of-way acquisition is budgeted at $450,000.
The city has three projects planned for the Frisco Road area. The work coincides with the construction of an interchange allowing access to Interstate 40. The first phase is $351,800. The second phase is expected to be $225,000. Both are the city’s portion of the design costs for the interchange project.
A third project will cost about $3.1 million and includes the expansion of the road to five lanes up to State Highway 66 and south to where a hotel with a water park is planned.
The Vandament Avenue project also coincides with the interchange work. Vandament will be widened and also will be relocated to the north, officials have said.
The other major project is the construction of a storage and maintenance facility. That project is underway and is needed so the city can construct a new animal shelter.
There also are funds set aside for other road projects in the city, as well as almost $1 million for contingencies.
The city will pay for these projects through the $10 million bond issue.
Under the expected payment schedule, Yukon will pay about $300,000 per year until 2022 when other bond issues begin to pay off. At that point, the payments will increase incrementally.
City Councilman Richard Russell voiced some concerns about the city’s ability to make the payments.
However, Crosby assured him that money for the payments had been included in the budget.
Gander said the bond money should be available to the city within a few days.
“We were looking for the best money, the lowest rates and best terms,” he said.