Renaissance on Schedule - EXCELLENT article!

[VF21]

The new downtown arena is on track for a 2016 opening

Already embraced by business and city leaders as a catalyst that will ultimately launch a regional renaissance, Sacramento’s long sought and hotly debated entertainment and sports complex is finally taking shape. Despite one recalcitrant property owner, a pesky signature gathering effort and the usual parking and traffic naysayers, the project long known as the downtown arena now has an ownership group, a strategic plan and — most importantly — a public/private funding mechanism. But it’s also coming to life under an ambitious timeline, and there are still question marks looming over a number of project elements, including public transportation, land procurement and the timing of the environmental impact report.

Rest here

 

[VF21]

It would be nice if STOP realized this part:

The owners will be paying $190 million plus any costs that drive the project over its $448 million budget. The city’s share is $258 million, and it will own the arena once it’s completed.

 

[Capt. Factorial]

It would be nice if STOP realized this part:

The owners will be paying $190 million plus any costs that drive the project over its $448 million budget. The city’s share is $258 million, and it will own the arena once it’s completed.

It would also be nice if STOP realized that of that $258M, $212.5M is in bonds which are going to be paid off using revenue that come directly from the arena and its users, and which don't exist if the arena isn't built. That makes the city contribution actually $45.5M (plus guarantee on the bonds in case of shortfall), and of that, $7.5M comes from redevelopment funds anyway. The city's "real" contribution is $38M, all in land sales.

 

[kennadog]

Well, technically, the bonds have to be backed by an existing revenue stream. So the $9 million in parking revenue that normally goes to the general fund is the revenue that the city can offer for issuance of the bond.

The revenue sources that will replace that amount to the general fund will come from the arena. The bond issuance will indicate the parking revenues as the backing source, however.I know that's a fine distinction and most people don't understand that fact.

Now Eye On Sacramento is claiming that the transient occupancy tax will be used to repay the bond. That would only happen if the other sources fail to be enough. It is part of the guarantee, however, for the bond.

I feel fairly confident, because the city's underwriting has used fairly conservative estimates of all revenue sources. Of course, that underwriting will be more detailed and refined by the time an actual binding deal is voted on.