Less than a day after officials broke ground on the new Downtown North development in Hartford, the stadium authority has secured financing to support the construction.
According to the executive director of the Hartford Stadium Authority, the agency created to allocate money to the development, bonds have already been sold to private investors.
“The success of the bond sale and the implementation of this revised structure provides additional protection for the City, its taxpayers and is more cost effective in the long run,” Hartford Mayor Pedro Segarra and City Council President Shawn Wooden said in a joint statement Wednesday.
The stadium authority plans to borrow $62.4 million, including $39 million stemming from the sale of tax-exempt bonds and $23.4 million in taxable bonds.
According to the stadium authority, $56 million will pay developer DoNo Hartford LLC, $4.35 million will cover interest during construction and operating costs before the ballpark generates enough revenue to support itself, $2 million will go into a reserve fund for the final payment in 2024, $512,000 will cover legal and financial services and $317,000 will be paid to underwriters.
“The entire Downtown North project clearly indicates private investors are again looking at the City of Hartford to invest their dollars,” Hartford Stadium Authority Chairman I. Charles Mathews said in a statement. “This development project is a great opportunity for the residents of the city by creating more jobs, economic activity and opportunities for our youth.”
The mayor's office said last month, when the stadium authority was created, that the agency is expected to save the city at least $10 million.