Presented by: Proposed Sports and Event Complex in Coeur d ...

VII. Funding Analysis
The purpose of this section is to summarize the typical funding sources that have been used to
fund public assembly facilities in other communities as well as quantify potential sources of
funds that could be used for a new event facility in Coeur d’Alene. This chapter has been
divided into the following sections:
• Financing Techniques and Vehicles;
• Comparable Facility Funding;
• Analysis of Potential Coeur d’Alene-Specific Funding Sources
• Summary
Financing Techniques and Vehicles
The development and financing of sports and entertainment facilities throughout the country in
recent years has largely relied on a combination of both public and private sector financing.
With the enhanced revenue-generating capabilities of new sports and entertainment facilities, the
expanding facility operating and tenant revenue streams have encouraged public/private
partnerships whereby public sector financing vehicles are supplemented with private sector
revenue streams. In many cases, a public entity will issue some form of bond to wholly or
partially finance the construction of the facility. In professional sports facilities, the revenue
streams generated by the facility are often allocated towards the professional sports tenant, with
the public sector often retaining only a portion of the revenues generated by a facility to be used
for facility operation, maintenance and debt service. In these instances, the annual debt service
required to retire the bonds is often sourced from a general fund and/or various tax revenues
including sales, hotel/motel, restaurant, entertainment and other taxes, and to the extent
available, any excess operating revenues generated by the facility. Financing mechanisms
typically used in funding public assembly facilities are summarized below.
Revenue Bonds
A frequently used method of sports and event facility financing is the issuance of revenue bonds.
Revenue bonds are special obligations issued by municipalities, counties and states for which
payment is dependent upon a particular source of funds, such as revenues generated by the
project, to provide the amount needed for bond repayment. The issuer of the bonds pledges to
the bondholders the revenues generated by the project being financed. No pledge of state or
local ad valorem tax revenues is required; however, other taxes may be assessed and/or pledged
in whole or in part by a municipality or by the state, often with legislative approval, to provide
funds necessary to pay off the revenue bond offering. It may be the case, however, that any
change in tax rates or allocation would have to be approved by public referendum.
Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene
Funding Analysis
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