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Bastrop EDC to issue $1.25 million bond for road extension

The roadway will connect Agnes Street and Home Depot Way

The Bastrop Economic Development Corp. will issue a $1.25 million bond to finance a roadway expansion that would parallel Texas 71.

On Tuesday, the Bastrop City Council approved BEDC’s bond issuance, which will be issued by Houston-based Amegy Bank of Texas with a fixed 3.39 percent interest rate.

The bond will fund nearly a mile of roadway that would connect Agnes Street and Home Depot Way, south of Texas 71, and would serve as an access point to Bastrop’s future Seton Hospital, which is expected to be completed by Spring 2019. The financing will also address drainage issues in the area.

The BEDC, under the guidance of its financial advisor, Jason Hughes of Hilltop Securities, received five bids from banks interested in issuing the bond. Amegy Bank provided the lowest interest rate, which was two-tenths of a percent lower than the second-lowest bid.

“If you look at our master transportation plan, this road is a part of that,” said Bastrop Mayor Connie Schroeder on Tuesday. “It allows other options besides Highway 71.”

The BEDC, which annually receives about $2.2 million of city sales tax revenue, will pay back the debt every year for up to a 15-year period, beginning in August 2019. Interest payments would begin at $60,000 annually and would rise to about $105,000 in the bond’s 15th year.

The Agnes Street extension was part of an incentive agreement the city struck with Seton Healthcare Family for the health organization to build its $30 million, 40,000-square-foot neighborhood hospital in Bastrop, which will be located near the Texas 71 and Texas 304 intersection.

Similarly, last fall the BEDC board approved $1.6 million to fund the extension of Technology Drive from the Bastrop Business and Industrial Park to Martin Luther King Drive under Texas 71, which will create a second roadway into and out of the park, as well as open up 10.5 acres for businesses looking to open up shop in the city.

Read the full article at Statesman.com