RAD Approves SEA Refinancing of 1999 Stadium Bond

At Tuesday’s board meeting, the Allegheny Regional Asset District approved a request from the city-county Sports & Exhibition Authority to refinance a 1999 bond issue totaling $176.5 million.

The SEA also plans to refinance a separate bond issue of $186 million.

RAD Executive Director David Donahoe says the SEA will refinance the bonds next month to take advantage of lower rates.

Donahoe says the bonds were originally issued to fund the renovation of the David L. Lawrence Convention Center and the construction of Heinz Field and PNC Park.

He says the proceeds, estimated at $5 million, will be used to buy out the lease on the Convention Center’s air conditioning system and pay for other renovation costs.

“Once they do that, they will be able to lower their operating budget and therefore decrease the amount of subsidy that is required for the Convention Center,” says Donahoe. “So the District Board agreed to do that, and they hope to achieve that by a sale of about $177 million in bonds in July.”

Donahoe says if the SEA can sell more bonds, they will use the additional proceeds to pay for routine capital maintenance at the Convention Center.

Unless positive revenue trends reverse, the RAD Board of Directors also plans to release funds they are withholding from the region’s “major assets.” Donahoe says every year, the District holds back 10% of the funding for some recipients until it’s sure that it can cover all of its commitments.

Donahoe says the withheld money will be disbursed in July if a review of June and July revenue proves favorable, which he says has been the trend for the first five months of the year.

RAD Board Approves Funding For County Libraries

The Regional Asset District Board has approved a $5.175 million allocation of funds for the Allegheny County Library Association. The RAD board did however tell the ACLA that it needed to come up with a better revised funding formula for its member libraries within 6 months. The RAD board wants to see a plan that includes funding allocations that take into consideration local support, library circulation statistics and local population. ACLA Executive Director Marilyn Jenkins says they are working with the RAD board to create a plan that will work for everyone but the 44 members of the ACLA have their own local interests in mind. Jenkins says that makes it difficult to reach a plan that everyone can agree upon but says she is confident that a plan will be reached within six months.

RAD suspends Discretionary Capital Grants for 2010

The Allegheny Regional Asset District, which bases it revenue primarily on a portion of the county sales tax, is facing cutbacks. The RAD provides operating money for parks, libraries and regional attractions. RAD Executive Director David Donahoe says that is currently their priority. He says they also provide money for the discretionary capital fund, which assists with renovations and improvements. But since there is going to be almost an 8 percent drop in sales tax revenue from last June, the program will have to be suspended. Donahoe says he hopes they will be able to restore the program for the following year. However, he says those who are funded through the operating grant are still able to spend their money on renovations. It's just that the Regional Asset District will not be able to provide additional money for improvement projects.