BJCC sells $300 million in bonds: What happens next?

The Birmingham-Jefferson County, Ala., Convention Complex received a blended interest rate of 3.91% on the series of bonds it sold on Tuesday to fund the construction of the downtown stadium and renovation of Legacy Arena.

"The final yield to the BJCC was on the higher end of expectations," said Tad Snider, BJCC president and chief executive officer. "Rates for municipal bonds change daily, and sometimes change multiple times per day based on economic and political factors. Rates also differ based on length of maturity, with long term rates currently in favor of sellers and shorter term rates still attractive to sellers."

The Birmingham-Jefferson County Convention Complex

This interest rate is the yield for investors who bought the bonds as well as the interest rate to be paid on the bonds by the BJCC and other partners on the project.

The five series of bonds were priced and sold on Tuesday for nearly $300 million, which will finance the $175 million stadium and $125 million in major upgrades to the Legacy Arena.

Snider didn't immediately have a blended interest rate for each series of bonds. Each bond also has a different maturity date, ranging from one year to 30 years.

Site work on the downtown stadium is expected to start before the end of the year, Snider said.

The stadium is expected to be completed in 2021, and the arena upgrades are expected to be finished in 2022.

The bond sale closes Aug. 7.

Until they are ready to be spent, the bond proceeds will be invested, Snider said.

The $300 million BJCC expansion project is being funded by the BJCC, Birmingham, Jefferson County, UAB and corporate partners and a 3-percent tax on car rentals in Jefferson County.

What happens next?
Snider said the design phase of the downtown stadium will begin soon. The development of the schematic design, design development and construction drawings could take up to a year, he said.

Populous, a Kansas City, Mo. design and architecture firm, is the lead architectural firm on the stadium and Legacy Arena renovations.

Populous developed the conceptual plans for the conceptual plans for an up to 55,000-seat stadium and additional exhibition space.

The Legacy Arena improvements include adding new luxury suites, a club lounge, upgraded concession stands, expansion of the concourse and exterior updates. The loading docks will also be improved and the locker and dressing rooms modernized.

A team of local firms to assist in the design phase of the stadium haven't been selected yet, Snider said. The timing of advertising for and selecting local team participation hasn't been determined yet.

Local design and professional firms to assist in the design of the Legacy Arena renovations have been selected and notified, Snider said. Contracts haven't been signed, and the names of the firms weren't available for public release.

Snider said the BJCC is also working to relocate the utilities at the stadium site. He said the relocation could cost $5 million to $6 million.

The stadium will be built on four blocks adjacent to the existing BJCC complex. The site is bordered by Richard Arrington Jr. Boulevard to the south, 12th Avenue North to the north, 22nd Street to the west and 24th Street to the east.

The BJCC is in the process of requesting the vacation of streets and right of ways to make the stadium site one contiguous lot.

Tribune Content Agency
Infrastructure Alabama
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