Polar Park: Still Do Not Own The Land

Auditor's Report On Madison Properties Bonds Last Council Meeting



Link to PDF



Take a look at our post the other day regarding projected revenues to pay bonds that are due Fiscal 22.    Our point in that post is that there is alot of developments listed in these projections need to be on line by start of of Fiscal 22 (July 1, 2021).    That is less then 24 months away.....

Here was the question posed to the auditor:  Whether the passage of time taken to develop the Madison Properties will have an impact on the solvency in terms if any payment on any loans or bonds? 



key lines:  

1) The $70 M Series A bonds are to be repaid from new city revenue generated from the Madison property developments.    

 Our comment:  It is not the ballpark
  


2)  The letter of intent between the city and Madison is non binding and to serve as a guideline for the negotiations to final agreement the parties in the "Development Agreement.", currently in progress.     The letter of intent set a schedule for several properties with an occupancy date of not later than January 1, 2021.

Our comment:  We have broker ground on a ballpark, whereby a majority of the revenues is based on Madison Property developments and we have no "Development Agreement".




3)  The Change in debt strategy with respect to Series A bonds ($70m) will provide the city with some flexibility when the first bond payment would be due, likely extending it out one year to fiscal 2023.

Our comment:   Looks like we realize that Madison properties will not occupancy by January 1, 2021





Bottom Line

This in progress Development Agreement is pretty important and it is "in progress".



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