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troutman · 06-25-2013, 10:04 AM

Glendale may leverage City Hall

http://www.azcentral.com/community/g...city-hall.html

Glendale leaders are considering using City Hall as collateral to borrow $30 million to help pay off other loans the city gave itself to cover sports-related debt.

The City Council is expected to vote on the matter today.

The proposed loan is separate from discussions city officials are having with the potential new Phoenix Coyotes owners to manage Jobing.com Arena.

The debt the city seeks to repay goes back to two $25 million commitments the city made to the National Hockey League to operate the arena in fiscal 2011 and 2012, said Diane Goke, the city’s chief financial officer.

Glendale borrowed $45 million largely from its own enterprise funds, which are self-sustaining funds for such services as water and sewer and are separate from the city’s general fund.

If the council approves the plan, city officials will seek outside investors to lease back the City Hall complex for 20 years by making a one-time, up-front payment of $30 million.

“It’s a sad thing to have a city hall that’s paid for and we have to use it as collateral to pay the money that we’ve given the NHL, because that’s where it’s going,” Hugh said.

06-25-2013, 10:04 AM	#3185
troutman Unfrozen Caveman Lawyer Join Date: Oct 2002 Location: Crowsnest Pass Exp:	Glendale may leverage City Hall http://www.azcentral.com/community/g...city-hall.html Glendale leaders are considering using City Hall as collateral to borrow $30 million to help pay off other loans the city gave itself to cover sports-related debt. The City Council is expected to vote on the matter today. The proposed loan is separate from discussions city officials are having with the potential new Phoenix Coyotes owners to manage Jobing.com Arena. The debt the city seeks to repay goes back to two $25 million commitments the city made to the National Hockey League to operate the arena in fiscal 2011 and 2012, said Diane Goke, the city’s chief financial officer. Glendale borrowed $45 million largely from its own enterprise funds, which are self-sustaining funds for such services as water and sewer and are separate from the city’s general fund. If the council approves the plan, city officials will seek outside investors to lease back the City Hall complex for 20 years by making a one-time, up-front payment of $30 million. “It’s a sad thing to have a city hall that’s paid for and we have to use it as collateral to pay the money that we’ve given the NHL, because that’s where it’s going,” Hugh said. Last edited by troutman; 06-25-2013 at 11:15 AM.