Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Marion council approves STAR bonds to finance large development, authorizes issuance up to $125 million
Summary
The Marion City Council approved Ordinance 4,005 to issue Series 2025 STAR bonds, a financing tool that pledges sales tax revenue within a designated project area to repay bonds. Officials said proceeds will support a multi-component development and benefit local school construction funds.
The Marion City Council on a unanimous vote approved Ordinance 4,005 authorizing the issuance of Series 2025 STAR bonds to help finance a multi-component private development in and around Marion.
Mayor Absher framed the vote as the start of a long-planned ‘‘moonshot’’ for Marion and introduced the bond counsel (Gilmore Bell), underwriter (Stifel) and members of the master developer team before asking Chief of Staff Cody Moke, the city’s STAR bond administrator, to explain how the financing works. "STAR bonds is short for sales tax alternative revenue bonds," Moke said, adding that the district's sales tax receipts — including the state's 5% sales tax within the project area — would be pledged to repay the debt so that the city's general fund is not responsible.
Moke and developer representatives showed renderings and a project video and said the developer will invest roughly $98.1 million in existing and new components. The ordinance authorizes a par amount not to exceed $125,000,000; Moke said an anticipated par amount is about $115,000,000 and that proceeds are expected to net approximately $88–$92 million for the project. Jim Lehi, a Stifel representative, told the council the numbers in the offering document are estimates until bond pricing is finalized; pricing was described as expected to be set at the day of sale, with a target pricing date mentioned in the presentation.
Council members asked about pedestrian safety between the sports complex, field house and hotel; Moke said the city will construct substantial crosswalks and pursue traffic studies to evaluate future overpass or underpass options if warranted. Lehi described the marketing timetable for the bonds and said local investors will have the opportunity to participate but that institutional buyers from larger markets are also expected.
After a brief discussion the mayor moved to approve Ordinance 4,005; the council voted and the measure passed with all present voting in favor. Officials said, if approved by bond purchasers as expected, marketing and pricing work will follow immediately and closing would occur a few weeks after pricing.
The vote authorizes the city to proceed with the STAR bond issuance and directs staff and the city’s bond counsel and underwriter to move forward with offering documents, marketing and pricing. The council heard thanks from developers and bond team members before the meeting continued with other agenda items.
