West Greeley catalyst project advances design; city and developer set 30% bond‑market milestone

The council received an update on the West Greeley catalyst project (the proposed arena/hotel development) and a revised schedule that moves the city and project team toward a 30% construction‑document milestone as the point to access bond market financing. Presenters said that after vendor and lender due diligence they agreed that the bond issuance will be pursued once the design reaches the milestone commonly described for this project as 30% construction documents (characterized in the presentation as roughly 75% of design work). Why it matters: moving to market earlier allows the project team to lock a financing plan in time and enables the design‑build contractor to begin cost certainty work toward a guaranteed maximum price (GMP). Presenters stressed the city will seek independent cost estimates and that design and cost work will continue past bond marketing into 100% construction documents. Key details: presenters told council they had to shift a schematic‑design milestone by one week to accommodate discovery of an abandoned gas well cap on the site. They also described a project governance matrix that will provide a public dashboard of spend, schedule and performance metrics; the team plans to publish an online project dashboard before the end of the month. Financial and schedule mechanics: presenters said Provident Resources (the conduit borrower) and PCL Construction (the design‑build contractor) confirmed the approach that the contractor will accept required risk elements once financing is in place and the GMP is negotiated. The schedule shown in the briefing sets a bond market outreach date and an expected bond issuance/moral‑obligation date in spring 2026 and an initial bond draw for June 2026, subject to lender terms and final approvals. Council questions: councilors asked who holds cost risk after the market and how additional draws would be handled; presenters said the contractor will assume the construction‑phase cost risk once the GMP is set and that the city’s independent cost estimator will review the budget for the city’s protection. Councilors also discussed the earlier‑approved COP authorization and whether drawing the full authorized amount immediately would affect financing costs; presenters said some loan terms could make an earlier full draw more expensive because interest and reserves would be funded sooner. Next steps: staff said they will provide independent cost estimating, publish the project dashboard and continue to coordinate with lenders and the design‑build contractor as the design progresses; council requested updates and said they expect a future work session when the 30%/75% milestones and associated cost estimates are available.