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House narrows Olympic financing and authorizes bond to aid University housing
Summary
The House passed SJR 14 narrowing a previously authorized line of credit for Olympic financing to $170 million, set a $40 million legacy fund repayment deadline unless collateral is provided, and authorized a $28 million state bond to allow the University of Utah to begin Olympic housing construction.
The Utah House on March 4 voted to approve Senate Joint Resolution 14, which narrows the legislature’s previous authorization for Olympic financing and sets conditions intended to allow early construction of Olympic housing at the University of Utah.
Sponsor remarks explain that SJR 14 reduces a previously authorized line of credit from $200 million to $170 million and requires the $40 million legacy fund be repaid by March 7, 2002, unless the Salt Lake Organizing Committee provides collateral to extend that date. The resolution also authorizes the state building authority to issue a $28 million bond now for the University of Utah to begin construction of an Olympic Village; the State would be repaid after the games, and the bond would be secured by OPUS sponsorship revenues (contracts between the organizing committee and corporate sponsors).
Supporters said the change enables necessary up-front financing so the University can move forward with construction; members noted the state would take a first position on OPUS revenues to secure repayment. Representative questions confirmed the repayment figure includes interest on the bond.
Passage of SJR 14 places an early financing framework in place for Olympic-related capital needs and links repayment to sponsorship revenues and either the organizing committee’s collateral or a fixed legacy repayment date.
The resolution passed the House and will be returned to the Senate for further action.
