For Immediate Release:
“Highlights from 12/16/2013 Rio Nuevo Meeting”
The Board unanimously approved hiring a Financial Underwriter to review the current bond reserves and work toward releasing those funds to District accounts. Wells Fargo maintains almost $15,000,000 in reserve which was established back when the city issued the bonds due to the District’s poor credit rating and credit history. Now with two unqualified audits and a well received performance audit the District should not be required to maintain the reserves in cash, and could replace the reserves with a surety bond. Underwriters are typically paid a small percentage of a successful transaction.
The Board also authorized legal counsel to continue to negotiate a settlement with Peach properties over their disputed title claim that came with the deed for the so called Arena Lot, the 8.5 acres at Congress and the freeway.
The District CFO reported that cash on hand is now over $15,000,000, as the result of improved TIF collections, with about half earmarked for the TCC Arena Remodel, which should start construction immediately after the Gem Show.