Rio Nuevo Takes Next Steps to Refinance $80M Bond
At its August 25th meeting the Rio Nuevo Board unanimously agreed to move toward refinancing the last bond issued by the city controlled District in 2008. The District’s financial advisors indicated that the refinancing could save $5,400,000 of interest over the next ten years. Attorneys for the District were authorized to seek the required bond insurance and credit ratings and prepare a resolution for a future board meeting. Assuming interest rates hold the Board could quickly authorize the bonds once all the pieces are in place.
In other action the Board agreed to explore its possible participation in a new multi-use development proposed by The Gadsen Company, LLC, developers of the west side Mercado. The proposed development would be at the corner of Cushing and Avenida del Convento along the street car line south of the Mercado. The $3 million project is expected to generate over $400,000 a year in new sales tax, activate the vacant property along the street car and expand the success Gadsen has enjoyed with the very popular Mercado. Hopefully a presentation will be ready for the Board in their September meeting.
The District Board also granted Nor-Gen an extension through the end of September to close on its $5.6M agreement to purchase the Arena Lot. Attorneys for Nor-Gen indicated they are ready to close, have satisfied all the Rio Nuevo pre-closing requirements but are negotiating with the city on the relocation of the temporary greyhound passenger terminal located in the middle of the lot.
The Board also unanimously renewed Jonathan Paton’s $65,000 annual contract to provide legislative and government relations for the District.