I just attended the press conference about the sale of the EC bonds. They will take place next Tuesday, and they hope to be at 22 years repayment and 4% or under, they will make an announcement on Wednesday morning.
During the press conference, Ellis asked about spending sponsorship/naming rights money on construction instead of operational. I guess there has been talk of this. During the presentations last fall, we were told by the Mayor and his directors that naming rights money would go towards operating expenses, not construction. Turbak pretty much blamed the change on IRS/Tax Exempt bond rules. Which I partially believe.
BUT,
• Didn’t they have that information before the vote? And why wasn’t it shared with the voters?
• If the naming rights money goes towards construction, does that mean we will be able to pay off the facility faster? Or is it going to cost us more?
• Where will the operating money come from if we can’t use all of the naming rights money for operating expenses (The IRS allows partial use of operational subsidies coming from sponsorships)?
After the press conference was over, the mayor asked if I understood what Turbak was saying, and I said I did. I told him, “Just as long as you are not naming things at the new EC after dead people (ex: Pavilion Great Hall), I’m cool with it.” and Mike replied, “If they give us money, I don’t care.”