GREENFIELD — Hancock County is considering moving ahead with building a new sheriff’s department administration building at the same time as its new jail, rather than waiting until after the first project has concluded.
The county could spend an extra $5 million to $6 million on the construction of an administration building, county commissioners said, with part of that money coming from an unexpected windfall from the sale of its revenue bond.
The county is planning to spend approximately $38 million on the new jail, which will be funded by local income tax revenue. The facility, which will have 440 beds, is intended to combat overcrowding at the existing jail. It could open by March 2021.
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At their meeting on Tuesday, Jan. 21, the commissioners voted to pay $150,000 to architecture and engineering firm RQAW to create a design for the building, after which more precise cost estimates will be available.
Plans to build a new sheriff’s department administration building were not included in the funding for the jail. However, Hancock County Commissioner John Jessup said, county officials are rethinking that after receiving extra funds from the sale of the county’s $40 million revenue bond, which will pay for the construction of the jail.
The bond was purchased at a $2 million premium, meaning the county received more money in the bond sale than what they set out to borrow. Investors sometimes buy such debt at a premium — paying more than the bond’s face value — because they believe its interest rate will be profitable. Jessup said investors were eager to purchase the debt because it is insured by taxpayers.
The bond was for $40 million and will be paid for with an increase in the local income tax rate from 1.74% to 1.94%.
“Investors wanted it so much, they paid a $2 million premium to hold that debt for the next 20 years,” Jessup said.
The general obligation bond will pay for utilities and road construction at the jail site. The new sheriff’s office would be constructed at the jail site along U.S. 40 between County Roads 400E and 500E.
Work on the jail has begun.
The county would need more than the $2 million it currently has on hand, however. Jessup said the administration building could cost up to $6 million. He said the remaining money could be pulled from the county’s economic development fund, cumulative capital fund, or its “rainy day” fund. The decision on where to pull the money from is up to the county council.
The commissioners voted on a resolution of need at their Jan. 7 meeting, signaling willingness to move forward with constructing the administration building simultaneously with the jail. A change order to the approved project could add on the new costs.
“It makes sense to do it,” Hancock County Council President Bill Bolander said. “We could incorporate it with the current building, and it would probably cost quite a bit less.”
Hancock County Sheriff Brad Burkhart said the news that a new administration building might be constructed sooner rather than later was unexpected but welcome. Plans for the building would need to include everything the department’s current office space has, he said. That would include meeting rooms, offices, evidence vaults, interrogation rooms, lobby space and a space where visitors could speak with their loved ones via videoconferencing.
Burkhart said he would also like the building to include a larger area where the department could conduct training.
“I don’t want to lose what we have; we need to gain,” Burkhart said.
Burkhart said it would benefit the sheriff’s department and cut down on travel time to have both the jail and the administration building in the same space as soon as possible.
“That’s always been the goal, to make sure it was all together. It’s just happening a little faster than we thought that it would,” he said.
County officials said they would move forward with specific plans for how to pay for the construction after receiving costs estimates from RQAW, which is designing and building the jail project.
Bolander said there are several county funds that could be used to pay for construction costs without taking on more debt. Both Bolander and Jessup emphasized that another tax increase is not under consideration.
“We’re excited about seeing this continue to get done,” Bolander said.