Sports Authority Approves Issuance Of $80 Million In Bonds For Southside Stadium

  • Thursday, August 8, 2024

The Sports Authority on Thursday morning approved the issuance of $80 million in bonds for the Southside Stadium.

Officials said it will be a negotiated bond sale rather than the traditional bond issue by the city and the county.

J.P. Morgan will buy the bonds at a negotiated rate, and later remarket them, the authority was told.

Officials said $65 million of the bonds will be tax exempt and the remaining $15 million will be taxable.

Annual payments are projected to be around $5.3 million on the  30-year obligation.

The payments are to be covered by sales tax collections from the stadium, Lookouts lease payments of over $1 million per year, and tax increment financing collection from the district around the stadium.

Officials said the payments would not begin until 2027 to allow the stadium to get up and running.

A groundbreaking was held earlier at the site at the former Wheland Foundry/U.S. Pipe site.

AAA ratings are expected on the bonds, it was stated.

The bonds are to be priced on Sept. 4 and the closing is set for Sept. 18.

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