Vancouver to start selling mini bonds

Clark County residents will have the chance to invest in preserving local history starting next week, when the city of Vancouver begins selling $1.5 million in mini bonds to finance part of an $8.3 million Fort Vancouver West Barracks renovation project near Officers Row.

The “Vancouver Heritage Bonds” will be sold from May 26 through June 5 in denominations of $500, up to a $10,000 maximum per household. They are expected to reach maturity within six to 13 years, after which they can be cashed in with interest. The bonds will be fully backed by the city.

As soon as the city hits the $1.5 million mark, the sale is over.

“We expect the bonds to sell very quickly,” said Lloyd Tyler, the city’s financial and management services director. “We encourage interested buyers to make their purchases as soon as possible after they go on sale to avoid missing out.”

Similar to savings bonds, the value of the bonds will grow over several years. Interest rates are established at the time they’re sold. The longer they mature, the higher the interest rate. Eight maturity dates are available ranging from Dec. 1, 2021, to Dec. 1, 2028. The interest rates are higher than many other investments due to no secondary market and no early redemption.

• The city will send the purchaser a confirmation letter. U.S. Bank, the bond registrar, will mail the bond certificate to the purchaser with instructions for cashing in the bond at maturity. The certificate should be kept in a safe place, but if it’s lost, stolen or destroyed, U.S. Bank can replace it, Tyler said.

• The amount of bonds sold will be updated daily on the city’s website.

A yearlong adaptive-reuse renovation of four historic wooden buildings in the West Barracks that begins this summer will convert the Artillery Barracks, Infantry Barracks, Quartermaster Storehouse and Dental Surgeon’s Building into residential apartments and space for office, retail and hospitality use. The city is funding the project with a combination of state grants, revenue generated from operation of Fort Vancouver property and city-issued bonds. Bassetti Architects of Portland is designing the project.

The West Barracks are among city-owned properties in the Vancouver National Historic Reserve and are managed for the city by the Fort Vancouver National Trust.

The city’s work coincides with an effort led by the National Park Service to restore other historic barracks buildings for the Gifford Pinchot National Forest headquarters and other office use.

“We’re happy there’s an opportunity for history to be celebrated, as well as interest for the bonds to remain in our community,” Tyler said.