Irving, Texas. July 14, 2012 –
Private investors are offering to underwrite $210 million of the $250 million cost of the Irving Entertainment Center (IEC) and guarantee the $40 million in special obligation bonds for the project. The offer is being made to keep momentum moving ahead for the project, which will create thousands of jobs and turn around the city’s eroding commercial tax base.
“We have made a good faith effort to address concerns some council members have had with this project,” said Bobby Page, TDI Managing Partner. “The $40 million in bonds can be issued at an investment grade rating based only on the 2 percent Hotel Occupancy Tax (HOT).”
Work on the first phase of the IEC could begin in the next couple of weeks because the investors are willing to begin construction on the site utilizing funds available from a portion of the 2 percent HOT that has already been collected. The investors have offered to share the costs of this work up to $2 million on a 50/50 basis.
“The investors have shown their good faith and commitment to the project,” said David S. Margulies, spokesperson for the investors. “The investors are offering to take on the risk of the project financing and take responsibility for any shortfall to cover the HOT bonds or any cost overruns.”
“It would be difficult to imagine what else they can do to demonstrate their commitment to investing in Irving for the good of the entire community,” said Page. “We expect the IEC will reduce the homeowner taxes by 10-15 percent."
“This economic engine is shovel-ready,” added Page. “We want to work closely with elected officials and city staff so that we can move forward on this project. We are hopeful the City is willing to meet with us to get going."
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