CHATTANOOGA, Tenn. (WDEF)- The Chattanooga Sports Authority Board has approved a 80 million dollar bond issuance for the South Broad Stadium.
This is effectively a loan, which will go towards the construction cost of the stadium, which is expected to be $112 million.
This is planned to be repaid by tax revenue generated by the stadium, but the city and county taxes would have to cover any shortfalls.
The average annual payment will roughly be five million dollars by the Sports Authority Board, but payments are not scheduled to start until 2027.
There could also be further changes to the loan down the road.
Marquita Jackson, an executive director with JP Morgan in Atlanta, said, “There is a feature here that is pretty traditional here for municipal obligations and it’s called a ten year redemption feature. So the bonds can be refinanced after ten years, potentially at a lower rate. It’s similar to how you would do with a home mortgage, you could refinance at a lower rate at that time.”
Groundbreaking was held for the South Broad Stadium last month.
This bond will also have to be approved by the Industrial Development Board.