Bond buyers confident in our future

Reacting quickly to a safe, long-term investment opportunity, residents of Southwest Nebraska snapped up nearly $2 million worth of the bonds for McCook's $5.8 million grade school project.

That's good news for the school, the community and the area, because, over the next 20 years, the bond purchases will pump close to $2 million in interest income into this area.

"We sold a number of the bonds for the longest term possible," said Ron Friehe of Edward Jones. It was Friehe, along with Ken Wellman of Edward Jones, who handled bond sales in the McCook area.

Investors opted for the long term bonds because they pay the best interest rate: 5.15 percent. When added to the tax-free advantage of the McCook school bonds, that can produce a return equal to an interest rate of 8.7 percent on taxable investments, Friehe said.

The McCook school bonds were placed on the market Monday, June 7th, and by noon Tuesday, June 8th, they were all gone. "We tried to let everyone know in advance that the bond sale was coming," Friehe said. "We advertised in the Gazette and area newspapers, and sent out letters June 1st to those who expressed interest."

The reason the bonds were so much in demand is the soundness and solidarity of McCook School District 17. "The district has no other debt, and McCook has an excellent rating for bond retirement," the investment representative said.

While Edward Jones representatives handled the sales locally, the bonds were being offered to the wider market by Kirkpatrick Pettis, a bonding firm based in Omaha.

Paul Grieger, a public finance banker with the firm, was also highly pleased, saying investors were attracted by the 4.8 percent interest rate. "This is a pretty fantastic interest rate," he said at Monday night's board meeting.

Now that the bonds are sold, attention turns to the design and construction of the new, expanded school, which will be located at the North Ward site at 1500 West Third Street.

The architect -- Bahr, Vermeer Haecker of Lincoln -- was selected Monday night to work with Sampson Construction of Kearney, which was chosen earlier to be the construction management firm for the project.

While both the architect and construction firm are based out of town, they have local ties. The construction manager for Sampson, Larry Weaver, used to live in McCook, as did Gary Loop and Marty Kasl, the engineers who will assist the architects with the project.

It took a considerable amount of time for the school project to win approval, but -- now that it's a go -- McCook is well served by local connections to bond purchases, planning and construction.