SIOUX FALLS, SD -
The first bond issue for the new Sioux Falls events center will happen in a week.
Next Tuesday, the first bond will raise $102 million for the $115 million dollar project.
The city is holding off on financing the rest of the events center project until they find out more details about naming rights for the facility.
"A majority of the bonds will be in this first issue and that will provide us an opportunity to minimize the risks of interest rates going up in the future," Sioux Falls Finance Director Tracy Turbak said.
The city will finish work on naming rights for the building before the second bond issue. The naming rights could bring in some extra cash that could be used to pay for part of the construction costs left over after the first bond issue.
"To the extent that cash becomes available early on before construction is completed from that naming rights sale that offers some important opportunities for us that we could potentially use dollars to reduce the amount of bonds sold," Turbak said.
The city still plans to pay for the ongoing operating costs through private sponsorships, but if there is money from naming rights that can be used to pay for construction too, the city wants to leave its options open so it doesn't have to borrow as much money.
"Time will tell what the final deal will look like on naming rights, but we will be very, very mindful of our desire to have this facility operate in the black," Turbak said.
The city also has $4 million left over from last year's budget, and with the council's approval, they could put that money toward the remaining construction costs before the second bond issue.
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