City officials had been concerned it would have to pay too highan interest rate on the debt it needed to build the new city hallbut its use of Build America Bonds authorized by the AmericanRecovery and Reinvestment Act prompted the major ratings agenciesto give the city's lease-purchase financing arrangement theirfourth-highest rating. As part of the stimulus package, the federalgovernment pays 35% of the interest expense on the bonds.

The city's chief redevelopment officer Scott Adams tellsGlobeSt.com that the bonds were underwritten by Stone &Youngblood LLC, as representative for itself and Citigroup GlobalMarkets Inc., and Siebert Bradford Shank & Co. LLC. The grouppurchased $174.5 million of Build America Bonds and $13.77 millionin City of Las Vegas Tax Exempt Certificates of Participation,according to city documents.

The new city hall would be built on a block surrounded by Lewisand Clark avenues and Main and First streets. Forest CityEnterprises would develop the property in exchange for propertywithin the Union Park redevelopment on which it would develop acasino hotel. Forest City also owns several blocks surrounding thenew city hall site. The latest cost estimate for the new city hallis $185 million, down from nearly $270 million prior to therecession.