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

Laredo Entertainment Center
The Laredo Entertainment Center opened in 2002 and was constructed at a cost of $35.5 million.
A private entity known as Arena Ventures originally considered building a privately funded
arena and bringing a tenant hockey franchise to Laredo. However, they lacked the capital to
build the arena, so a public/private partnership was established to build the facility.
The land for the arena was donated to the City by the land owners in exchange for the City
building some additional roads in the area. The City then issued bonds backed by a 0.25% City
sales tax to fund arena construction. The tax was implemented solely for arena construction and
was approved through a City-wide referendum. The total bond issue approximated $40.0
million, with additional funds used on street improvements and other such projects.
Ten percent of all parking revenue as well as revenue generated by a 25-cent seat use fee for all
paid tickets goes to an account shared by the City and Arena Ventures. Arena Ventures must
match any revenues raised by these sources up to $125,000 per year and deposit it in the same
fund. This fund can only be used for capital repairs and other such expenses at the arena. Both
the City and Arena Ventures must agree to any withdrawals from this account.
Sovereign Bank Arena
Sovereign Bank Arena in Trenton, New Jersey opened in 1999 and was built at a cost of $47
million, which included $38 million for arena construction, $3.0 million for land acquisition and
site preparation, including the demolition and removal of several buildings, and $6.0 million for
engineering and other soft costs.
The Mercer County Improvement Authority issued $52 million in tax exempt, County-backed
general obligation bonds to fund arena construction. The bonds are not backed by a specific
revenue stream. The bonds paid the entire cost of arena construction, as well as $3.0 million in
capitalized interest and $2.0 million for renovation of a building located near the arena site. A
separate bond issue of approximately $7.0 million was also issued to cover the costs of acquiring
and creating surface parking lots in the area. While the State did not contribute capital toward
the project, it provided some relief on the bonding guarantees through the New Jersey
Redevelopment Authority.
Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene
Funding Analysis
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