SAFFORD — Another piece in the Safford police station’s expansion fell into place last Monday, as the City Council approved a bid to finance the project.
The bid was awarded to JP Morgan Chase Bank, which submitted the lowest figure among eight bidders. Chase offered a 2.098-percent interest rate on the $2.56 million loan, which carries a 15-year term with annual payments of approximately $200,000 — saving the city $10,000 a year. In June, City Finance Officer Alma Flores Valles had reported payments of around $210,000.
Interest rates from the eight bidders ranged from 2.112 to 3.64 percent. The two lowest were from Chase, 2.112 percent, and National Bank of Arizona-Zions, 2.34 percent. After receiving the initial bids, city staff asked placement agent Stifel, Nicolaus & Co. to seek a best and final offer. National Bank stood by its rate, but Chase responded by lowering its offer to 2.098 percent.
Valles told the council this was “one of the lowest rates (Stifel, Nicolaus & Co.) had seen in a long time.”
“We’re thrilled to have received this rate,” she added.
With council approval secured, city staff will now start processing the paperwork. Closing and funding was expected to take place on or before Aug. 20, 2019.