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.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
