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Minnesota Sells $454 Mln in Bonds

By Munichain News Desk

Minnesota issued $454.2 million in certificates to finance the renovation of an office building used by the State House of Representatives.

The certificates mature between 2024 and 2043, yielding between 3.61% and 4.63%. They pay interest at 5%. The securities received a rating of AA+ from S&P Global Ratings.

The bond proceeds will finance upgrades to the so-called State Office Building, which houses the offices of the 134 members of the Minnesota House and the Minnesota secretary of state. 

“The State Office Building expansion is designed for two functions,” House Majority Leader Jamie Long said earlier this year. “One is for public access, improving the ability of the public to interact with the legislature. And the second is safety, because our existing building is outdated.”

Advocates of renovation have long criticized the building, which also houses hearing rooms, the Legislative Reference Office, and other offices. They argue that it has poor ventilation, low safety standards, and not enough space to accommodate people with disabilities and increasing interest in participation in public hearings. 

House Republicans have criticized the plan, arguing that it costs too much taxpayer money. “Spending this kind of money on a building for ourselves is something I would describe as egregious,” former House Minority Leader Kurt Daudt said last year.

The certificates are payable by appropriations from the Minnesota legislature and state rental income.

Jefferies LLC served as underwriter on the issuance, purchasing the bonds for $478.9 million. 

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