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Mayor's Office

2010 Media Releases


Date:
November 18, 2010
For More Information Contact:
Diane Gonzolas, Citizen Information Center, 402-441-7831
Don Herz, City Finance Director, 402-441-7412

Low Interest Rate On Second Arena Bond Sale Saves More For Taxpayers

Mayor Chris Beutler today announced that the West Haymarket Joint Public Agency (JPA) sold the second $100 million in bonds for the new arena in two series at a combined interest rate of 3.757 percent. The difference between the conservative 5-percent estimate the City used for planning and the actual rate will result in a savings of about $1.25 million per year during the first 10-year period. Over the 35-year life of the bonds, the savings is $32 million.

The first series was $67.965 million of Build America Bonds which are sold on a taxable basis, with the federal government providing a 35-percent subsidy. The City received five bids, and the buyer of the bonds was Robert W. Baird & Co.

The second series was $32.035 million of Economic Recovery Zone Bonds, which have a federal subsidy of 45 percent. The City received one bid from Wells Fargo.

The bids are posted online at aicauction.com (click on "results"). The City's financial advisor, Scott Keene from Ameritas Investment Corp., facilitated the transaction.

The first $100 million in bonds for the new arena were sold in August at an interest rate of 3.2 percent, resulting in a savings of about $1.8 million per year during the first 10-year period. Over the 35-year life of the bonds, the savings is $50 million.

Information on the West Haymarket JPA is available at lincoln.ne.gov (keyword: jpa).


Mayor's Office
Media Releases