Goodyear, Ariz., to Sell $36.75 of GOs for Spring Training Stadium

DALLAS — Goodyear, Ariz., will get its effort under way to build a spring training complex for the Cleveland Indians baseball team with a competitive sale of $36.75 million of general obligation bonds. The city has allocated $10 million of the proceeds for infrastructure and other work at the site. The sale is set for June 18. The bond sale will also raise $14.4 million for water system improvements, $5.8 million for street projects, $4.9 million for parks and recreation, and $1.7 million for upgrades to the sewer system. Goodyear expects to issue $75 million of sales tax bonds late in 2007 to complete the financing for the spring training facility, which will include a 10,000-seat stadium. The complex is to be completed in time for spring training in 2009. Gust Rosenfeld PLC is the city’s bond counsel. Peacock, Hislop, Staley & Given Inc. is Goodyear’s financial adviser. Goodyear’s GOs carry underlying ratings of A from Standard & Poor’s and A2 from Moody’s Investors Service. With the sale, Goodyear will have $56.3 million of outstanding debt. The city’s authorized but unissued debt will be $218 million. Located some 16 miles west of downtown Phoenix, Goodyear has about 50,000 residents, according to the latest population estimate. The city has seen rapid growth over the past 20 years, increasing from slightly more than 6,000 residents in 1990 to some 19,000 in the 2000 census. Goodyear recently annexed 67 square miles on its southern edge, bringing the total area inside the city limits to 172 square miles. “Goodyear rests on the cutting edge of development in Maricopa County,” said Scott Ruby, an attorney with Gust Rosenfeld. “The whole west side of Phoenix is booming. There’s a lot going on in Goodyear.” Ruby said the $10 million earmarked for the baseball complex will finance infrastructure and other site preparation costs. “That money will be primarily used for infrastructure because the water lines and roads have to go in first, but it can be spent on any number of appropriate site projects,” he said. “It could be used for building streets on the site or for putting in grass fields.” An intergovernmental agreement between the city and the Arizona Sports & Tourism Authority signed in January 2007 calls for AZSTA to provide up to half the financing for the $75 million spring training complex from the revenue it receives from a tax on hotel rooms and car rentals in Maricopa County. However, Ruby said the money from AZSTA is currently dedicated to debt service on existing sports facility bonds, and won’t be available until 2019. The city will own the baseball spring training complex and lease it to the Indians for $100,000 a year for 20 years. Goodyear will give the Indians half of the advertising revenue at the stadium in return for half the money generated through souvenir sales. The stadium will feature 8,000 seats, lawn seating for 2,000 fans, and parking for up to 3,000 vehicles, said Paula Ilardo, the city’s public information director. “This facility will have amenities usually found only in major league ballparks, including suites and scoreboards with large video displays,” she said. “It will be the centerpiece for the 240-acre Ballpark Village development that will include hotels, retail space, a conference center, restaurants, and residential.” The complex being built for the Cleveland Indians also includes a 38,000-square foot clubhouse, six full practice fields, two half practice fields, and an agility field. The team will use the Goodyear complex as a year-round center for rehabilitation and training when it moves from its current training site in Winter Haven, Fla. The city paid $6.3 million for the 75-acre sports complex site, and has an option to purchase additional land for $3.8 million if it can attract a second team to town. “We’re still seeking a second team,” Ilardo said. “That was the original intention and it is still being pursued.”

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