Standard & Poor's Ratings Service has given an 'A' rating on the city's Economic Development Revenue Bonds for the downtown convention hotel project. The 'A' rating means the city has 'very strong capacity to meet financial commitments,' according to a release.
The city plans to issue $14.59 million in bonds and $5.41 million in taxable economic development revenue bonds in conjunction with the new $74 million downtown hotel and ancillary projects.
"The rating from Standard and Poor's is confirmation that the city remains financially stable and has the financial strength to meet its debt obligations," said Evansville Mayor Lloyd Winnecke.
The city secured the bonds using a portion of its share of future Food and Beverage tax revenues and a pledge to use the city's share of Vanderburgh County Option Income Tax revenues, according to a release. City Controller Russ Lloyd said the city does not plan to use COIT revenues. Instead, Lloyd said the city will use a combination of Food and Beverage taxes, riverboat gaming revenues and TIF property tax funds.
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