Prison bond sales delayed

The Borough has delayed the sale of the Goose Creek Correctional facility bonds after a miserable showing this week. The Mat Su Borough expected to move forward with the Point MacKenzie prison project this week, but with a delay.

$270 million in lease revenue bonds were to be sold this week but the sale was called off after a very weak opening. The bonds were to help pay for construction of the medium-security Goose Creek Correctional facility.

If built, the facility will be the state’s largest prison. Borough Manager John Duffy said in earlier interviews that the construction and the operation will mean over 1,000 jobs for those in the Mat-Su.

Duffy was out of the office for comment, but in an email said he is confident investors will turn around. He said there are many cities, counties and authorities having a tough time selling bonds and it doesn’t matter how good their credit rating is. He feels that institutional investors were holding back funds to pay end-of-the-year redemptions.

Duffy said buyers who might have bought up to $20 million in bonds last year at this time only bought $1 or $2 million on Monday.

He said the Borough hopes to try bond sales again the second or third week of January 2009.