Quote:
Originally Posted by Bouw N Arrow
The bonds have buyers... at a higher rate. Which has been the entire issue. Glendale is trying to find itself the best deal but may have no choice but to move forward at the higher interest rate.
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Sure - that's because its a riskier investment opportunity, so no one is going into this one without a return that is higher than some more stable (like a longterm GIC for example).
However, the bond rate still needs to be paid out. And if those investors believe that the parking fees are going to be able to generate enough revenue to pay out that higher rate, they are kidding themselves. The 'yotes have what >10K season ticket holders?
I am assuming the City itself would be on the hook if the bond went into default, which is hilarious in itself. Imagine selling that to the taxpayers here:
1) we are going give away all the city parking downtown to a private investor.
2) we are going to buy back those parking rights for 100 million dollars
3) that 100 million is based on a city bond, where the interest is paid by the parking fees
4) if we don't get enough fees, then the city will have to cover the losses
5) btw, all that parking? it was the taxpayers to begin with.
laughable.