According to Gandhi's new assessment, the stadium's development will cost $589 million to complete due to new costs that exceed the original $535 million in necessary funding to build the 41,000-seat sports facility. The extra $54 million includes $13 million in issuance costs, $7 million for insurance, $20 million in debt service reserve funding and $14 million in interest paid during construction.
Financing plans are currently at a standstill pending the execution of the lease agreement for the baseball park with Major League Baseball, which would make approximately $6 million in annual lease payments to the District over the next three decades. "In order to finance the stadium, the District must pledge these lease payments, along with the Ballpark Fee, utility gross receipts taxes on non-residential customers, and stadium-related taxes, to pay debt service on the baseball bonds," Gandhi told the Council during the hearing.
Gandhi added that the rating agencies and bondholders need assurance that the rent payments will be made every year on time. "Major League Baseball understands why the District is requiring the lease to be adequately secured, and we are currently negotiating this term. However, we will not go to market until the lease is executed and approved by Council."
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