North Little Rock will extend a revolving credit agreement that was to expire Jan. 31 so it can develop a new 10-year debt financing plan for a city-owned baseball park.
City voters approved a two-year, 1% city sales tax in 2005 to build Dickey-Stephens Park, home for the Arkansas Travelers minor league baseball team. The tax expired Sept. 30, 2007, but the $40.4 million ballpark cost almost $6 million more than expected.
Finance director Bob Sisson said the city will roll over approximately $6.5 million of the current $12 million, two-year bank note with Bank of America until the end of 2008.
Sisson said the city will develop a bond issue of about $5 million, supported by the ballpark revenue, to finance the cost overruns as part of a 10-year financing plan. The baseball club is expected to contribute $1 million.
The expired sales tax provided $28 million for the stadium and $5 million to expand a senior citizens center. The ballpark’s total cost includes private contributions and the value of the 11.6-acre site donated to the city.