At this month’s meeting of the Downtown Arena Committee, we learn that the bestest, smartest way to insure the $360 million in bonds needed to build the arena is to hire a company from Bermuda to do it.
I don’t feel so reassured with the quote from Jim King, a banker who ought to know what he’s talking about: “I’m fairly confident that we’re going to end up with an agreement that makes sense,” he told the C-J’s Marcus Green.
The plan was changed from last month, and emphasizes variable-rate bonds rather than fixed-rate bonds. I don’t know much about finance, but I’m pretty sure variables are riskier than fixed. But dammit, we’re going to have an arena. Construction costs stand at $249 million.
4 responses so far ↓
1 Ed Springston // May 12, 2008 at 8:26 pm
As I stated when running for Mayor in 2006 the arena is not needed nor affordable at this time. To use variable rate bonds is just one more ingredient for failure.
We proved how great variable rates are with mortgage loans which led to the current housing crisis.
We can do better than this.
Ed Springston
Democratic candidate Metro Council District 14
www.myviewmatters.org
myviewmatters@aol.com
2 The Survey Says..... // May 13, 2008 at 9:43 am
Perhaps it’s time for another series of studies, surveys and polls. Since it seems that is what we do best!
3 Charlie Springer // May 13, 2008 at 11:21 am
Can think of a better use of my tax money than for a much-deserved U of L basketball arena. The library tax got defeated so taxes aren’t going up anytime soon. Variable rates go down, too, you know.
4 Charlie Springer // May 13, 2008 at 11:22 am
Make that: CAN’T think of a better of use of my tax money.
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