Tonight in Glendale, city councilors will present to the public and vote on a plan to use City Hall as collateral to help pay down the various “interfund” loans the city took out to pay the NHL to manage Jobing.com Arena, the home of the Coyotes.
Got all that?
From the Arizona Republic:
The debt the city seeks to repay goes back to two $25 million commitments the city made to the National Hockey League to operate the arena in fiscal 2011 and 2012, said Diane Goke, the city’s chief financial officer.
Glendale borrowed $45 million largely from its own enterprise funds, which are self-sustaining funds for such services as water and sewer and are separate from the city’s general fund.
If the council approves the plan, city officials will seek outside investors to lease back the City Hall complex for 20 years by making a one-time, up-front payment of $30 million.
We won’t get into all the details here, because, you know, pretty boring. If you’re desperate for more information, here’s a PDF.
Bottom line: Glendale is in quite the financial predicament, and the cash-strapped city still has a huge decision to make on whether to enter into a long-term arena-management deal with prospective Coyotes owners Renaissance Sports and Entertainment.
Of note, the NHL may reportedly make it easier on the city if the sale does go through.