City of Crawfordsville
Strategic financing supports Crawfordsville’s redevelopment initiatives through strong market execution
Background
The City of Crawfordsville (the City), through its Redevelopment Commission, has prioritized targeted investment in infrastructure and key development areas to support long-term economic growth and strengthen its tax base. As part of these efforts, the City sought to advance critical projects that would enhance community development and position Crawfordsville for continued stability and expansion.
Opportunity
To move forward with these initiatives, the City needed to access capital markets in a way that balanced cost efficiency with a well-timed market entry. The bonds were structured to be secured by tax increment revenues generated within designated redevelopment areas, with a special benefits tax providing an additional layer of security in the event of revenue shortfalls.
The financing coincided with a period of strengthening municipal market conditions leading into pricing. Investor demand for high-grade municipal bonds was building, particularly for insured structures, while buyers showed a clear preference for short- to intermediate-duration securities. This environment created favorable conditions to achieve efficient pricing.
Solution
Baird partnered with the City as sole manager to deliver a financing strategy aligned with its redevelopment objectives. The $5,910,000 Tax Increment Revenue Bonds of 2026 (Ad Valorem Special Benefits Tax) were structured to support key infrastructure and economic development projects within designated allocation areas.
The inclusion of Assured Guaranty insurance elevated the credit profile and broadened investor appeal, positioning the bonds to achieve strong participation. The transaction was timed to take advantage of improving market conditions, supporting strong investor engagement during the order period. During pricing, demand built quickly across the curve, with particularly strong interest in the front end.
As the order book developed, pricing was actively managed in response to investor interest, resulting in spread reductions of approximately 5 to 7 basis points in most maturities while maintaining balanced allocations and broad distribution. This approach ensured efficient execution while aligning pricing with real-time market conditions.
Results & Impact
The bond issuance achieved strong demand and efficient pricing. Final yields ranged from 2.70% in 2027 to 3.44% in 2036, with only the 2028 maturity holding at preliminary levels.
The transaction was significantly oversubscribed, with orders ranging from approximately two times to more than six times across maturities. This level of demand supported improved pricing and reduced borrowing costs for the City, providing cost-effective financing for its redevelopment initiatives.