In addition to the arena, the city hopes to build one other for-profit project and five nonprofit cultural projects. Consultant Doug Carter told city leaders that if the IRS believes the projects are intended to be part of a single effort, it may bestow tax-exempt status on the whole deal. Carter is managing director of public finance for the investment firm of Morgan Keegan. He served previously as the city's finance director.
If the city can finance the deal with tax-exempt bonds, it would get a lower interest rate, dropping the total cost of the deal, with principle and interest, to an estimated $805 million. If not, the arena and a new baseball stadium for the Charlotte Knights would have to be financed with taxable bonds, and an estimated cost of $952 million.
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