Rendering of the Library proposed designs on display at the Pasadena Black History Festival (File Photo – ColoradoBlvd.net)
The City of Pasadena has sold $195 million in General Obligation Bonds to fund the Central Library Renovation Project, overcoming challenging market conditions and receiving robust investor interest.
By News Desk
The Series 2025 Bonds attracted 10 competitive bids from underwriting firms, with BofA Securities submitting the winning offer at a true interest cost (TIC) of 4.34%. Following final adjustments, the TIC was reduced to 4.33%, undercutting the City’s prior estimate of 4.42%.
The competitive sale was carefully timed by Pasadena’s Director of Finance and Interim Assistant City Manager Matthew Hawkesworth and the City’s financing team. The team monitored economic indicators and the forward municipal bond calendar to optimize market timing. On April 14, Standard & Poor’s assigned the bonds a AAA rating, reflecting the City’s strong creditworthiness. Key offering documents were released on April 22, and Pasadena’s municipal advisor worked actively to promote the bonds to ensure wide participation.
Voter approval for the bonds came in November 2024 under Measure PL. Proceeds will fund a portion of the seismic retrofit and renovation of the historic Central Library, which is currently in the design phase. Led by Gruen Associates and supported by a historic preservation consultant, the project aims to strengthen the structure while preserving its architectural integrity.
The City issued a request for proposals for a construction manager/general contractor on April 16, with a contract for initial demolition and development of a Guaranteed Maximum Price (GMP) expected in July 2025. Final GMP award and full construction are slated to begin in early 2026, with project completion anticipated by late 2028.
The bond transaction is scheduled to close on May 13, 2025.
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