The next major order of business is for the developer, who is financing approximately 80 percent of the cost of the project, to bring in his letter of financial commitment, after which the City will go into the bond market to sell bonds for the City’s portion of development costs. In anticipation of that sale, the City Council will vote this week on contracting with three underwriting services in order “to combine their marketing resources to maximize the selling distribution of the bonds” (City Council Agenda Packet).
According to the information provided City Council, this experienced group will purchase the Entertainment Center bonds and distribute the bonds to investors. This group consists of Citigroup Global Markets, Inc., lead underwriter with a full-service Dallas office and a presence in Irving; RBC Capital Markets LLC, with over 1900 retail sales representatives; and Loop Capital Markets LLC, a Chicago investment bank with a Principal in the San Antonio office, and a MBE certification.
According to reports, the developer anticipates having his letter of financial commitment within days. The developer financing will be repaid over time from economic incentives generated by the project, and the City’s bonds will be repaid by the already approved Brimer tax which is a hotel tax dedicated to this project.
Following on the heels of these actions will be a zoning case which will allow the sale of alcohol on the premises, according to Irving’s unique ordinance. Design work has begun on the facility and is expected to take up to six months to complete. During the design phase there will be attention to architectural details to address noise, as well as collaboration with the Las Colinas Association on the exterior features and signage. Although this remains City property, and, as a government the City does not have to comply with LCA requirements, the City and the LCA worked successfully together on the Convention Center, and that compatible effort is expected to continue into this project.
