Baird Completes $5.6M Bond Issue for Grand Haven

First Recovery Zone Economic Development Bond Offering in Michigan

Baird, an employee-owned, international wealth management, capital markets, private equity and asset management firm, today announced that it has assisted the City of Grand Haven, Mich. with the sale of a $5.6 million bond issue to finance various infrastructure improvements within the City's downtown. The taxable bonds were issued by the City as Recovery Zone Economic Development Bonds (RZEDBs) pursuant to the American Recovery and Reinvestment Act of 2009 and have an effective interest rate of 3.18%. By issuing RZEDBs, it is estimated that the City will save approximately $1.5 million in interest expense over the life of the Bonds.

Funds raised by the offering will be used to pay for several capital projects, including upgrades to the City’s water supply, sanitary and storm sewer systems; street repairs including lighting, sidewalk and streetscape enhancements; and improvements contained in the Grand Haven Main Street Downtown Development Authority’s Tax Increment Financing and Development Plan.

“Baird is pleased to have helped the City of Grand Haven complete this bond issue,” said Warren Creamer, Director in Baird’s Public Finance group and lead advisor on the financing. “By using these bonds provided under the stimulus plan, the City can pursue their capital improvement projects at a lower cost to taxpayers.”

The City's Finance Director Jim Bonamy notes, “This new bonding tool will greatly assist the downtown development and infrastructure replacement goals of the project area, especially in the reduction of interest cost over the life of the bonds. Thanks to some quick, insightful thinking on the part of our financial consultants and the bond attorney, the City will be able to re-task some future revenue for additional developments.”

Grand Haven is the first to issue RZEDBs in Michigan since the stimulus plan was enacted in February. Baird serves as Financial Advisor to the City. Clark Hill PLC served as Bond Counsel.

Under the American Recovery and Reinvestment Act of 2009, certain municipal issuers are eligible to issue RZEDBs, through 2010, for improvements within a “recovery zone.” The recovery zone designation is determined by the governing body and is based on findings of significant poverty, unemployment, rate of home foreclosures or general distress. When issuing RZEDBs the issuer receives a Federal subsidy of 45% of the interest cost. This subsidy provides lower cost financing than traditional borrowing.

About Baird’s Public Finance Group
Baird is a major underwriter and financial advisor to municipalities, schools, government agencies and corporations. During the past five years, Baird has served as senior manager, co-manager or financial advisor for debt issues totaling $79 billion. Ipreo MuniAnalytics ranks Baird as the number one national managing underwriter for small issues and the number one national managing underwriter for competitive issues of $100 million or less for the first half of 2009. Baird was honored as advisor of the “Midwest Regional Deal of the Year” by The Bond Buyer in 2007.

About Baird
Baird is an employee-owned, international wealth management, capital markets, private equity and asset management firm with offices in the United States, Europe and Asia. Established in 1919, Baird has more than 2,400 associates serving the needs of individual, corporate, institutional and municipal clients. Baird oversees and manages client assets of more than $66 billion. Committed to being a great place to work, Baird ranked number 14 on the FORTUNE’s “100 Best Companies to Work For” in 2009 -- its sixth consecutive year on the list. Baird’s principal operating subsidiaries are Robert W. Baird & Co. in the United States and Robert W. Baird Group Ltd. in Europe. Baird also has an operating subsidiary in Asia supporting Baird’s private equity operations. For more information, please visit Baird’s Web site at www.rwbaird.com.