The details
Sales tax revenue bonds allow the corporation to borrow money to fund projects, which it will pay for using revenue generated by PCDC"s portion of the sales tax in the city. These bonds have a 5.49% interest rate, amounting to an annual debt service of $1.78 million over the next 15 years.
"That ended up being about $20,000 per yer less than we originally budgeted when we set out to sell these particular bonds," Dustin Traylor, a financial advisor with RBC Capital Markets, said at the meeting.
This is the first time PCDC has gone out to the public debt market to issue their own bonds. The full price of the land purchase is $24.5 million, and PCDC will pay for the remaining $6 million with its fund balance. This limits the amount of debt issued for the purchase, Traylor said.
What else?
City Council first approved the land purchase at a meeting in October 2024. The 52-acre tract is a part of Project Greenfield. Though neither council or PCDC released concrete plans for the project, city officials discussed a possible mixed-use area with retail, residential and entertainment features at a work session Jan. 28.
