Arvest Bank was chosen by the Jasper County Commissioners on Wednesday to finance approximately half of the conversion of the former Bank of America building on the Carthage Square to the headquarters for the Jasper County Sheriff's Office.
Jasper County Auditor Richard Webster said he had looked over the bids received from eight different banks and recommended the Arvest proposal.
The commissioners approved the proposal unanimously at a special meeting on Wednesday.
Webster said the county will borrow $322,500 in principal from Arvest for the project, which is estimated to cost $620,000.
The project includes remodeling the bank and adding a second floor mezzanine level over the current lobby so the Sheriff's office can move from its current headquarters on County Road 180. Cost of that remodeling is estimated at $495,000.
It also includes building a garage at the Jasper County Road District's road barn on River Street for the Sheriff's mechanic. Cost of the garage is expected to be about $125,000.
Webster estimated the total interest cost to the county of borrowing $322,500 over four years at 1.8 percent interest would be $11,991. He said there were no closing costs in the contract with Arvest.
The other banks bidding on the project included closing costs that drove up the total cost for borrowing from them, according to Webster.
The remaining $297,500 of the $620,000 will come from the county's reserve fund.
Webster said the Law Enforcement Sales Tax Trust Fund will pay back both the bank and the reserve fund in payments of $7,000 per month