The City of Wenatchee is moving forward with a new debt service plan for the Town Toyota Center that could head off a default on the short term interest loan that falls due December first. The City Council has asked mayor Dennis Johnson to work with the city's bond officials to issue 18 to 20 million dollars in municipal bonds for the Center. The money would be loaned to the Public Facilities District to help paydown the debt. City Councilman Mark Kulaas says the bond amount is well below the city's bonded debt limit of about 25 million dollars. The bonds, if they go forward, won't be enough to fully retire the 42 million dollar short term loan that's expiring. The next step would be for the Public Facilities District, which owns the Town Toyota Center to sell six million dollar in bonds to go toward bond repayment. The PFD had originally planned to sell bonds to refinance the entire debt with the backing of Wenatchee, but Chelan County Superior Court Judge John Bridges last month ruled the city could not legally back the bond as it exceeded the city's legal debt limit. The PFD has been attempting to track down the bondholders in efforts to seek an extension of the current loan.
|
|
E-Mail
Print
KPQ Midday Update