SALISBURY — After already approving financial terms for the upcoming Fire Station 3, the Salisbury City Council formally agreed to execute a contract with KMD Construction, LLC in the amount of $8,078,000 at Tuesday night’s meeting. Out of the nine bids the city received, the local construction company was the one who provided the lowest one.

“I have built buildings with KMD Construction of this size and I’m very comfortable and confident that we will have a good job and a good building when this is over,” William Burgin, architect of the station, said.

The Local Government Commission requires that the city have an installment financing agreement in order to borrow the funds to finance the station. Council approved the resolution of intent last month, stating that the city has the means to borrow the money. Salisbury previously chose to partner with JP Morgan for a loan amount of $6.5 million with a 15-year-term at a rate of 3.29 percent. This provides Salisbury prepayment flexibility in case interest rates change or if the city decides to pay off some of the loan earlier than expected.

The proposed fire station located at 150 Mahaley Avenue is expected to begin construction in July.