Title
Resolution Approving Changes to the Financing Plan for the Steven B. Tanger Center for the Performing Arts
Body
Department: Coliseum
Council District: 3
Public Hearing: N/A
Advertising Date/By: N/A
Contact 1 and Phone: Matt Brown, Coliseum Director, 373-7406
Contact 2 and Phone: Rick Lusk, Finance Director, 373-2031
PURPOSE: The City of Greensboro and The Community Foundation of Greater Greensboro have determined that cost estimates for the current design scope of the Steven B. Tanger Center for the Performing Arts will require additional construction funding support of $3.5 million from private donors and $9.6 million from patrons of the Center via user fees. Those user fees include an increase in ticket service fees and additional parking fees available from an increase of 53 VIP/Prime parking spaces (41 spaces on the Chamber of Commerce site and 12 additional spaces identified in the site plan). The City would increase its construction loan from $30 million to $39.6 million and repay the additional debt from an increase in the proposed ticket service fee from $2.00 to $3.00 and by repurposing the proposed $1.00 ticket service fee for Arts Stabilization Funding to debt repayment, resulting in a total ticket service fee of $4.00 to fund debt repayment. Parking revenue from the additional VIP parking spaces will also be applied to debt repayment.
BACKGROUND: On November 3, 2014 the City Council authorized funding in the amount of $30 million for the Steven B. Tanger Center for the Performing Arts, via a short-term installment financing agreement with PNC Bank, under a construction draw program. The project financing plan calls for the agreement to be paid off with long-term bonds issued by the City in 2017.
BUDGET IMPACT: Repayment of the additional debt from increasing the City's construction loan for the Tanger Center from $30 million to $39.6 million will be funded from additional ticket service fees and parking fee...
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