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EDA sells $14.5 million in bonds

The Bemidji Economic Development Authority authorized the sale of $14.5 million in bonds at a 4.3244 percent true interest rate during its Monday meeting.

Myron Knutson of Public Financial Management told the EDA that the low bidder, of seven, was Northland Securities and Wells Fargo Brokerage Services L.L.C., which were bidding together as one group.

"I'm pleased to see where the bids came in instead of where they could have been," said Mayor Richard Lehmann.

Knutson earlier told the City Council that it could be looking at an interest rate around 5 percent.

The EDA is selling the bonds to cover the cost to buy 106.48 acres for $11.77 million, plus interest, from ShoreQuest L.L.C. along the south shore of Lake Bemidji.

The EDA has held a public hearing on the matter and voted to authorize the sale of the bonds in December.

The city received seven bids on the taxable bonds, Knutson said.

The high bid was at a true interest rate of 5.8265 percent, which represented a change of about $400,000 versus the low bid, Knutson explained.

The bonds are set up for two-year financing and include an option for full or partial payment after one year, he explained.