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Council approves resolution to enable Arena Authority bond sale; principal increased, new purchaser lined up
Summary
The Alva City Council approved Resolution 2025-013 to authorize arena-authority bond financing tied to a TIF district; bond principal rose about 10% since June to add livestock handling and solar equipment, and a rural water finance agency will purchase the bonds after an earlier buyer withdrew.
The Alva City Council approved Resolution 2025-013 to ratify action by the Arena Authority authorizing issuance, sale and delivery of tax apportionment bonds, a related security agreement for tax increment revenues, and to waive competitive bidding and authorize sale at a discount.
Bond counsel Bode Bachelor told the council the request mirrors action the council took on June 16 but was necessary again because the initial purchaser, Axos Bank, withdrew after the June meeting. The placement agent subsequently found a different buyer, identified in the meeting as a rural water finance agency, which is set to purchase the bonds on Sept. 9. Counsel said the arena authority approved final documents and pricing and that city approval was required by statute to proceed with the sale.
Counsel said the principal amount of the bond issue has increased roughly 10% since June. That increase includes three primary elements: livestock handling equipment for the arena, solar equipment that may provide some or all of the arena’s power, and additional costs tied to the rural water finance agency purchasing the bonds. Counsel also said the Charles Warren shared trust provides primary credit support in the financing; the TIF district’s incremental tax revenues are the security tied to the city’s limited link to the bonds.
City staff and bond counsel emphasized the city has no direct obligation to repay the bonds. Counsel explained that if the arena authority were to fail, ownership could revert to the city and county jointly, which is why the council’s approval and statutorily required vote count were necessary. The council’s roll-call vote was recorded as Adair: Yes; Bowman: Yes; Farris: Yes; Parsons: Yes; Waller: Yes; Hart: Yes; Hoffman: Yes. The resolution passed by unanimous vote.
The council’s approval authorizes the Arena Authority to complete the bond sale and related security agreements. Details reported during the meeting: the sale closing is scheduled for Sept. 9; the initial purchaser (Axos Bank) withdrew; the placement agent located a rural water finance agency as buyer; the bond proceeds were expanded to fund livestock handling equipment, solar equipment, and related issuance costs. Counsel and staff answered questions about the financing but did not provide a final principal dollar amount in the transcript.
The council adjourned after the vote.
