Thursday, October 4, 2007

HARRISON SQUARE BOND GETS NOD FROM STATE

Harrison bond wins state's OK
Liked city's commitment; support cuts interest rate
Link

"Deputy Mayor Mark Becker said the state approval was the final OK needed to move forward with the project, and he said he was glad to get the support from the state. To get the state approval, the city had to prove it would never have to use general property taxes.

Becker said the city proved it had plenty of financial coverage for the development. The project is using a number of revenue streams, including economic development income taxes, property taxes from the project and property taxes from the Jefferson Pointe area."

"Richard said the city could move forward with the project regardless of the state’s approval. While this would force the city to pay more interest, he said the city would save money by preventing delays in an already tight construction schedule. The city plans for the Fort Wayne Wizards to play opening day 2009 in the new downtown stadium."

"The mayor’s pledge to move forward was one of the reasons Musgrave approved the financing, according to Mary Jane Michalak, state spokeswoman. She said because the city was going to move forward regardless of the state approval, Musgrave signed off on the financing to ensure taxpayers get a lower interest rate."

"With the financing secured, the city must complete negotiations to build an elevated walkway from the Courtyard hotel to Grand Wayne Center. The city hopes to do this indirectly by building a walkway from the hotel across Harrison Street to the Embassy Theatre building. This would allow people to use the walkway from the Embassy to the convention center.

Progress is going well on the walkway, Becker said, and he is confident a resolution will be reached that is satisfactory to all sides. Preliminary city estimates put the cost of the walkway at $900,000.

Becker said the city had just begun discussions on when a groundbreaking ceremony would be scheduled."

Harrison Square bond OK'd
The state's approval was the last needed for the project's funding
Link

"A much-awaited approval of a $45.9 million bond to help fund the $125-million-to-$160-million downtown revitalization project cleared its last financial hurdle Wednesday during a meeting of Indiana Department of Local Government Finance Commissioner Cheryl Musgrave, Allen County Commissioner Nelson Peters and Mayor Graham Richard.

“The approval by the state confirms the revenue streams are strong enough,” said Deputy Mayor Mark Becker, who said he was optimistic of a positive outcome."

"Greg Leatherman, deputy director for community development and instrumental in the purchase of the land allowing the project to move forward, said the city could have met with Musgrave before Wednesday. The county, however, had not yet provided data the Department of Local Government Finance had requested that could have affected Musgrave’s decision."

State OKs Harrison Square $49 million bond
Link

"Harrison Square cleared its final major financing hurdle Wednesday as the state approved the city’s $45.9 million bond for the development.

Fort Wayne Mayor Graham Richard and Allen County Commissioner Nelson Peters received the state’s approval for the bond’s financing in a meeting with Department of Local Government Finance Commissioner Cheryl Musgrave."

State endorses Harrison Square bond
Link

"Almost $46 million in bond financing for Harrison Square earned the approval of the state Wednesday.

The endorsement from the Indiana Department of Local Government Finance should enable the city to secure a lower interest rate for the life of the bond."

"In September, City Council approved issuing $18 million in anticipatory bonds so Harrison Square work could continue while the state considered whether to approve the $45.9 million bond.

In August, the state's Local Government Tax Control Board recommended approval of the bond with a property-tax backer. The city has said it has no intention of using property taxes to repay the bond, but the backer will provide a lower interest rate, giving the city a $4.1 rebate off the original $50 million projection."

3 comments:

Joe said...

Awesome! Does this mean the $18 million is no longer needed then?

Scott said...

The 18mm bond is repaid from the issuance of the 46mm bond. The 18mm was needed as a stop gap measure so the project could being.

R. Mike said...

Great new banner for the site.