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Monday, March 28, 2011

Sports Stadium bonds in trouble?

by Calculated Risk on 3/28/2011 10:43:00 PM

Small and large ...

From Michelle McNiel at the Wenatchee World The debt dilemma (ht Ken)

Ask any public official and they’ll say default is simply not an option when it comes to the Town Toyota Center’s $42 million debt.

But the “D” word is creeping into conversations around the community, fueled by uncertainty over just how the massive debt is going to be paid on the 4,300-seat events center.
And from Darrell Preston and Aaron Kuriloff at Bloomberg: Texans’ NFL Stadium Bonds Fall Amid Default Talk (ht Brian)
Harris County-Houston Sports Authority bonds that financed venues for the Houston Texans and two other sports teams have fallen as much as 34 percent amid speculation the agency may default on payments.
The authority financed the building of Minute Maid Park, home to the Houston Astros Major League Baseball team; Reliant Stadium, for the Texans; and Toyota Center, for the Houston Rockets National Basketball Association team.
the authority sold $509.7 million in bonds between 1998 and 2000 [for Reliant Stadium], along with $461.6 million the following year.