San Angelo council authorizes up to $41.6 million in bonds for coliseum renovation; program set for long‑term lease

The San Angelo City Council on July 15 approved an ordinance authorizing the issuance and sale of up to $41,600,000 in City of San Angelo general obligation taxable bonds to finance renovations at the Coliseum on the San Angelo Fairgrounds and voted to establish the Coliseum renovation project as a program under Chapter 380 of the Texas Local Government Code to enable a long‑term lease to the Stock Show and Rodeo Association.

The bond sale was conducted as a negotiated transaction, Finance Director Tina Dierski told the council, and the city received a confirmed S&P double‑A rating and a Fitch double‑A plus rating. Vince Vial of Specialized Public Finance, the city’s financial adviser, said the effective interest rate for the taxable issue is 5.418 percent and that the sale will close Aug. 14, when the city will receive the proceeds. Vial said, “I was very pleased with the interest rate that we got.”

Council members and staff said the Chapter 380 arrangement will give the Stock Show and Rodeo Association an exclusive long‑term lease and make the association responsible for day‑to‑day operations, maintenance sharing and a capital investment plan; the association will also pay rent tied to ticket sales. Interim City Attorney Brandon Dyson described the agreement as allowing the city to “work with the Stock Show and Rodeo, who will have an exclusive lease of the Coliseum.” Dyson told council that cost overruns above the bond amount would be the association’s responsibility under the draft agreement.

Why it matters: The bond proceeds and the lease arrangement together reshape how the Coliseum will be operated and funded. The redevelopment was approved by voters at a May 3, 2025 bond election and the financing and lease structure determine who oversees events, maintenance and exposure to cost overruns.

Details of the financing and approvals: Vial presented the sale results and investor orders, noting local retail participation in the underwriting. The bond issuance is structured for a 20‑year term with a 10‑year call feature. Tina Dierski said the bonds were taken to market the day before the council meeting in a negotiated sale; she and Vial said the negotiated route helped secure local investor participation and the final interest rate. Council discussion included confirmation that city staff followed required steps for rating, market solicitation and structuring the taxable issue for the Coliseum’s business model.

The Council took three related actions on the Coliseum matters: it approved the ordinance authorizing the bond issuance (motion: first from Harry; second from Tommy Hebert; vote: 7‑0), approved a Chapter 380 resolution (motion: first from Tommy; second from Harry; vote: 7‑0), and approved a major planned‑development concept amendment to accommodate the Coliseum expansion and renovations (motion: first from Joe Self; second from Patrick Teeling; vote: 7‑0). The planned development amendment does not change permitted uses but updates the site/concept plan to reflect the renovation work described to voters.

What the agreements do not yet decide: The Chapter 380 agreement will be negotiated further to define event reservation rights, any reserved dates for city‑initiated events, maintenance responsibilities and detailed revenue sharing. Dyson told council those details “can definitely be negotiated” and that staff will include provisions about reserved events and city input on the number of events the city may want to reserve.

Next steps: If the council’s ordinance stands, closing on the bond sale is scheduled for Aug. 14, after which construction and contractual steps under the Chapter 380 arrangement and the agreed project design will move forward. The city will bring back the draft Chapter 380 agreement for the city manager to negotiate and execute with the Stock Show and Rodeo Association as the parties finalize terms.