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Article: Ballpark Bonds Will Carry Heavy Interest: Higher Risk Boosts Rate to About 7.8%.(San Diego Padres stadium)(Statistical Data Included)
- Article from:
- San Diego Business Journal
- Article date:
- December 17, 2001
- Author:
CopyrightCOPYRIGHT 2001 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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When San Diego finally issues $166 million in bonds to pay for its share of the Padres ballpark, the price paid on the funds will be much higher than usual.
To offset the higher risks to bond investors while litigation is pending, the city was forced to offer a much higher interest rate, and spend more for its bond insurance, officials said.
"We've never issued bonds before with litigation pending," said Assistant City Attorney Les Girard.
Because of the lawsuits, the city's bond attorneys could not issue an "unqualified opinion" or full endorsement that the bonds are both valid and exempt from state and federal income taxes.
Instead, ...