DALLAS -- Wayne County, Michigan is taking the next step toward reviving its bond-financed downtown Detroit jail project.
The county will issue a design-build request for proposals on Feb. 10, County Executive Warren Evans said on Friday. The county expects to issue about $200 million in bonds once a bidder is selected, which the county expects to happen by May.
Evans green-lighted the resumption of construction in November following some speculation that the site might be moved to make room for a soccer stadium.
In May, Evans said the county would be open to moving the jail to another site to make way for a soccer stadium promoted by Quicken Loans founder and chairman Dan Gilbert, a major player in the downtown Detroit real estate market, but only if it didn't increase the cost for Wayne County taxpayers and didn't delay the timeline for completing the project.
The county remains open to considering alternatives as long as they are proposed before the RFP deadline date, said Wayne County spokesman James Martinez.
"Finishing the jail at the Gratiot site is the quickest and most cost-effective solution to this long-standing challenge facing Wayne County," Evans said in a statement. "The county will not consider any alternative proposals after issuing the request for proposal."
The county government, which was released from state oversight in October, halted construction of the jail in 2013 after spending $151 million on construction, acquisition and design.
On Sept. 29, Moody's Investors Service upgraded the county one notch to Ba2, two notches away from an investment grade, and signaled more positive action could be forthcoming by assigning a positive outlook. In June, Fitch Ratings raised the county four notches to BB-plus, one notch below investment grade, in recognition of its progress toward structurally balancing its books.
Also in June, S&P Global Ratings revised its outlook on Wayne County's BB-plus rating to positive from negative. A one-notch upgrade would restore its investment grade.
The county has $510 million of long-term limited tax general obligation bonds and limited tax general obligation supported lease bonds. It also has $287 million of short-term limited tax general obligation delinquent tax anticipation notes. Moody's rates $300 million of the county's long-term debt and does not rate the county's short-term debt.
The county's exit from state oversight followed its elimination of a nearly $100 million accumulated deficit and a yearly structural deficit of approximately $52 million. It had entered a consent agreement with the state in August 2015 as it struggled with growing red ink. The pact allowed the county to work with the state to renegotiate contracts, improve its cash position, and reduce pension underfunding under a recovery plan.
