More Debt for Indian Center

The Oklahoma House Appropriations and Budget Committee last week approved a plan to issue an additional $40 million of bonds over three years to support construction of the American Indian Cultural Center and Museum in Oklahoma City.

The state has issued $66 million of bonds for the $177 million project. The museum has also received $14.5 million in federal grants.

Committee chairman Earl Sears, R-Bartlesville, said none of the state bonds could be issued until private donors contribute an equal amount.

SB 980 would authorize three bond issue over the three years by the Oklahoma Capitol Improvement Authority. The first tranche would be $12 million, followed by a second tranche of $8 million with a final $20 million sale in the third year.

The issuance could not occur until museum sponsors raise $13 million in the first year, $9 million in the second, and $20 million in the final year.

Debt service appropriations could not occur until fiscal 2017 or five years after the first bond sale.

Bonds already issued for the project are rated A1 by Moody’s Investors Service, and AA by Fitch Ratings and Standard & Poor’s.

The bonds would be issued on behalf of the Native American Cultural and Educational Authority, which was created by the state in 1994 to design, establish, and finance construction of a facility on land donated by Oklahoma City.

The museum complex will include lodging and art galleries.

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