Virginia Beach Arena Financing Proposal June 28, 2016 Andrea - - PowerPoint PPT Presentation
Virginia Beach Arena Financing Proposal June 28, 2016 Andrea Kilmer, USM Our Vision Create a flexible, state-of-the art venue that: Serves as an iconic symbol for the City, Region, & State Offers events for everyone Creates
June 28, 2016 Andrea Kilmer, USM
The time is now. The place is Virginia Beach.
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The time is now. The place is Virginia Beach.
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Construction Impact
New Jobs
New Spending
Salaries Materials/ Services
The time is now. The place is Virginia Beach.
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Annual Operations Impact
New Jobs
Net New Spending New Salaries
20-Year NPV
Room Nights
The time is now. The place is Virginia Beach.
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The time is now. The place is Virginia Beach.
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– Known Finance Structure
related Cost of Issuance, and required Reserves and Escrows
– 1% of Hotel Tax and “But For” Taxes – Payments from Arena Operations
– No obligation and no recourse to VBDA, City, or State – Same role it plays for other private entities, such as Westminster Canterbury – Annual fee revenue
The time is now. The place is Virginia Beach.
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4.3 Loan Commitment. Developer will use commercially reasonable efforts to obtain and deliver to City an executed copy of a loan commitment or bond purchase or placement agreement with the VBDA or other appropriate entity serving as a conduit issuer (the “Construction Loan Commitment”) from an Institutional Lender committing to provide construction and permanent financing (a “Construction Lender”) to Developer (the “Construction Loan”) adequate to construct the Arena Improvements and fulfill Developer’s other obligations under the Transaction Agreements, subject to customary lender requirements and conditions. City will have the right to approve the Construction Loan Commitment and the documents ultimately evidencing and securing the Construction Loan (the “Construction Loan Documents”) which approval right for purposes of this Section 4.3 shall be limited to the right to approve those terms and provisions of the Construction Loan Commitment and the Construction Loan Documents which concern (i) funding mechanisms and reasonable assurances that any overseas lender will fully fund the Construction Loan, (ii) protections and cure rights of City and the Construction Lender in the event of a Developer default under the Construction Loan and/or Transaction Agreements, (iii) City Credit Rating Concerns, and (iv) verification that the plan of finance will fund no more than (1) one-hundred percent (100%) of the fixed price of the Construction Contract and A & E Contract, (2) costs of the financing, and (3) required reserves and escrows, without inclusion of any reimbursement to Developer for other costs incurred or payment of any developer fee general consistency with the debt, equity and loan term structure outlined in Developer’s proposal and pro-forma submitted to the City and the Term Sheet. Such approval shall not be unreasonably withheld, conditioned, delayed or denied.
The time is now. The place is Virginia Beach.
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