Barry-Lawrence Library moving ahead with new Monett Branch
Monett is one step closer to construction of a new, modern library.
The Barry-Lawrence Regional Library District Board of Trustees approved the sale of $6 million lease certificates of participation to its municipal bond underwriter, L.J. Hart & Company of St. Louis during its Thursday, May 20 meeting.
These certificates are for the purpose of constructing, improving and furnishing the new Monett Branch Library.
The revenue source for repayment of the certificates is a portion of the seven cent operating levy approved by voters during the June 2, 2020, election.
Many of the lease certificates were quickly purchased by local businesses and individuals.
According to Courtney B. Wegman, vice president of L.J. Hart & company, the Security Bank of Southwest Missouri purchased $495,000, First State Bank of Purdy acquired $1,090,000, Mid-Missouri Bank committed to $240,000, Central Trust Bank bought $250,000 and individuals assumed more than $2 million worth of certificates.
It is great that our marketing procedures facilitated this local involvement while still receiving attractive reoffered yields that reflect the strongest municipal bond markets the last 60-plus years, said Gina Milburn, executive director of the Barry-Lawrence Regional Library district. Having the informational meeting last week to introduce the financing to the local banking community proved to be a worthwhile endeavor since over 68 percent of the certificates stayed local.
The Board of Trustees said it selected the negotiated sale of the certificates in order to capture current market conditions, to be certain that local individual investors and banks received an opportunity to purchase the certificates, and because the proposed reoffered yields were fair based on current conditions in the municipal bond market.
Regina McIlrath, president of the board of trustees, said the district did compare proposed interest rates with the national bond indexes and other comparable Missouri issues and those of other states with a similar rating quality sold at negotiated sales to be certain that interest rates and yields for the districts certificates were favorable.
Based upon pricing of these other financings on May 20, 2021, the date firm rates were proposed to the district and the national indexes for A-rated revenue bond, our rates were fair compared to other negotiated sales for similar quality level of bond issues, McIlrath said.
According to L.J. Hart & Company, the certificates are scheduled to mature on April 15, 2023 through April 15, 2041 with reoffered yields ranging from 0.60 percent to 2.65 percent.
The certificates carry an A-rating from S&P Global based on evaluation of its overall credit worthiness.
The certificates maturing April 15, 2027 through April 15, 2029 contain an optional redemption feature of April 15, 2023, whereas the certificates maturing April 15, 2030 and thereafter are callable at no penalty on April 15, 2026. This can facilitate the reduction of future interest expense in the event of prepayment or a future refunding to lower rates if market conditions make it economically feasible.
The location of the new library will put it in the educational corridor of Monett, within two blocks of the Scott Tech Center, Monett High School, the Performing Arts Center and the location of the new middle school.
While designing the new facility, library officials polled community members to find out what kinds of amenities the new facility could include that would make the library a social and cultural hub for Monett.
Those efforts resulted in a number of design decisions, including the four study rooms that will provide students and researchers a quiet, closed off space to work.
The new 20,400-square-foot library will also feature an 800-square-foot concession/coffee bar area that will double as a lounge-type area similar to what can be found in book retail stores.
Another new feature is a meeting space he is calling the Inspiration Kitchen.
Libraries are often asked to produce culinary programs to teach canning or healthy cooking, and the new kitchen area will allow the Monett Library to host those programs in a professional setting.
The current plan is to break ground on the library mid-August, with a 12-month construction period. From there, it is expected to take two to three months to move in and finish furnishing the building in time for a fall 2022 grand opening.
