By Sharon Barbosa-Crain
Irving appears near the end of the long journey to make possible the building of the Las Colinas Entertainment Center. At the Dec. 12 the Irving City Council meeting several items were approved. Those items authorized the sale of the City’s bonds for construction of the venue. The agenda items were as follows:
- Accept the private funding commitment of Ark (the developer) – This is a two-part commitment consisting of an irrevocable loan commitment of $107,650,000 and a pledge of funds in the amount of $14,750,000
- Approve a revised economic development agreement – This is to correct a mistaken reference in the original document
- Approving amended lease agreement – This is to change certain lease provisions that will allow a market value lease rate for the renewals enabling the City to potentially be able to sell all or part of the new money bonds as tax-exempt bonds
- Providing for the sale of bonds to refinance the City’s debt for work done on the first entertainment center proposal – This amount is $25,000,000 and are hotel occupancy revenue bonds
- Providing for the issuance and sale of bonds for the City’s portion of the cost of construction on the entertainment center – This is in an amount not to exceed $40,000,000 and is expected to be closer to $28,000,000. These are hotel occupancy revenue bonds. This is what is known as the “new money.”
The City’s bond team will be going out for the ratings next week. Following that the City’s underwriting team will negotiate the sale of the bonds in a parameter sale. Providing the sale is within the parameter of their instructions from the City as concerns rate and rating, the underwriters will negotiate the sale and those agreements will be signed by the City Manager and CFO without any further approval of the Council being required.
A few items remain to be done, but they do not affect the financing process. They include a zoning case allowing for the sale of alcohol, an agreement between the developer and the major promoter, an agreement on signage with the City of Irving and the LC Association. Ark is looking at engaging the construction contractor shortly and that too will be brought back to the City Council. The architect, Gensler, has already been approved, and is working on design documents. Construction documents are expected in the Spring of 2014.
