Loudoun Hounds (independent; Atlantic League) ownership wants to see Loudoun County’s Economic Development Authority support $55 million in taxable bonds for ballpark construction.
Bob Farren, CEO of VIP Sports and Entertainment, says his firm has a financing plan in place to build the facility, which would also house NASL soccer. But getting the EDA to issue an inducement resolution, which indicates support for issuing taxable bonds for a project, could lower the costs of borrowing the money needed to build the ballpark. From the Loudoun Times:
According to Farren, construction of the stadium does not hinge on the taxable bonds he hopes would result from a future inducement.
If he doesn’t receive the taxable bonds, Farren has to move on with the other financing plan he currently has in place. He hopes he can utilize the bond process to refinance the construction loan in the future.
Farren and VIP don’t know whether they have a financial structure where taxable bonds make sense, but they want to open themselves to every possibility.
Whether or not this matters remains to be seen: taxable bonds backed by the EDA tend to have the same rates as those issued by commercial banks. You can usually save on tax-exempt bonds, which is why they’re sought in many similar situations.
RELATED STORIES: New Hounds ballpark approved; Local residents: Loudoun Hounds, stay off our lawns!; Loudoun Hounds: We have deal for 2014 ballpark; Pro soccer could revive Loudoun Hounds ballpark plan; New Loudoun ballpark delayed; New for 2012: Loudoun Hounds; Three finalists announced for new Loudoun team name; On tap for new Loudoun ballpark: microbrewery; Loudoun supervisors OK new Atlantic League ballpark; Baseball advisory board formed in Loudoun County; New Loudoun ballpark close to go?
Share your news with the baseball community. Send it to us at firstname.lastname@example.org.
Are you a subscriber to the weekly Ballpark Digest newsletter? You can sign up for a free subscription at the Newsletter Signup Page.