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.
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