Odessa council approves notice to issue up to $40.5M in certificates of obligation for sports complex project

The Odessa City Council on May 20 authorized publication of a notice of intent to issue certificates of obligation up to $40,500,000 to help fund a proposed Odessa Sports Complex, a large multi-field tournament venue planned for the Parksville Ranch area.

Hilltop Securities financial adviser George Williford presented the proposed financing timetable and terms, describing a direct placement structure with Frost Bank. Williford said the lender placement would carry a stated final maturity in 2036 with a financing structure that includes two interest-only years during construction (2026–2027) and principal amortization beginning March 1, 2028; prepayment at par would be permitted beginning March 1, 2028. He described the estimated cost of issuance at roughly $225,000 and outlined possible annual debt-service effects under different amortization scenarios.

City staff described the project's total budget at $130 million and identified about $90 million in proposed city reserves and hotel-occupancy (hot) funds to be applied; the requested certificates would cover the remaining construction financing needs. City Manager Morton and council members said the city has received private donations and commitments in support of the project and is actively soliciting naming-rights and sponsorship revenue. The council also heard financial modeling showing the venue's projected operating revenues and the possibility of refinancing the certificates later under more favorable market conditions.

Questions from council members and residents focused on long-term fiscal risk, refunding assumptions and whether voters should be asked to approve the debt. Financial advisers and staff explained that publishing the notice triggers a 45-day period during which residents may petition for an election; staff said the council could still be petitioned if voters prefer a bond election. The council voted to publish the notice and begin the legal timeline that would allow the city to close on the financing and begin construction this year if approvals proceed.

The action does not itself issue debt but starts the statutory process that would allow the city to proceed with certificates of obligation. Council members emphasized protections in the financing structure — including early prepayment and a short call feature — intended to allow refinancing once the city restores rating access. Council directed staff to continue negotiations, finalize terms and return to council for authorization to sell the certificates after the required notice period.