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Financial advisor: New Markets Tax Credits for Xtream Arena have ended; some ArenaCo loans may be forgiven
Summary
Piper Sandler reviewed Coralville's three TIF districts and reported that New Markets Tax Credits tied to Xtream Arena have concluded; staff said certain City loans to ArenaCo that were not intended to be repaid could be forgiven and hotel projections will be presented later.
Tim Oswald, financial advisor with Piper Sandler, told the Coralville City Council at its Feb. 24 work session that the New Markets Tax Credits linked to Xtream Arena have "run their course" and the underlying tax-credit transaction no longer exists.
Oswald reviewed the city’s three tax-increment financing (TIF) areas — Oakdale, 12th Avenue and Mall/Highway 6 — and summarized obligations, current receipts and estimated future income, expenses and balances for each district. He said some of the loans the city made to ArenaCo were structured so they were not intended to be repaid and could be forgiven; loans tied to naming rights and charitable-contribution commitments remain repayable.
City Administrator Kelly Hayworth said hotel-projection figures that were discussed will be provided to the council at a future meeting. No formal action was taken on the TIF report during the work session.
Oswald and Human Resources/Risk Manager Lynn Knight left the meeting after the presentation.
