With the new jail poised to open next year, San Mateo County is ready to issue up to $215 million of lease revenue bonds to finance the project east of Highway 101 in Redwood City.
The total includes approximately $165 million for the overall construction costs of design, construction, installing equipment and site remediation, $16.3 million to finance reimbursement of the $17 million already spent purchasing the 4.95-acre Maple Street location and roughly $19.6 million for interest payments to investors during construction.
The Board of Supervisors at its Tuesday morning meeting will consider signing off on the bond proposal by County Manager John Maltbie.
Based on current market conditions, the total debt service will be approximately $284 million over the term of the bonds with the highest annual debt estimated at $27.1 million in fiscal year 2016-17, Maltbie stated in a report to the board.
After that point, the debt will drop each year from approximately $15.3 million by fiscal year 2021-22 down to $1.8 million by fiscal year 2036-37.
The maximum term of the bonds is 33 years with a true interest cost of 5.5 percent yearly. Changing the terms for any reason in the future requires board approval.
The Maple Street Correctional Center is scheduled to open in mid-2015 with 576 beds for both men and women on three stories and 40 feet of unfinished space known as a warm shell which can be developed in the future if the need arises. Future buildout can be up to 832 beds.
Operations costs of the new facility are estimated at $40 million annually.
The Board of Supervisors meets 9 a.m. Tuesday, March 25 in Board Chambers, 400 County Government Center, Redwood City.