Staff reviews STAR bond financing plan for Blue Hawk Phase 2 sports park; underwriting and leasing risks discussed

Staff provided a technical refresher on STAR bonds and a Phase 2 financing plan for the Blue Hawk complex. STAR bonds are special‑revenue sales‑tax bonds that pledge sales tax generated within a designated district (including the state's portion) and have a statutory maximum 20‑year term. Staff recapped the 2022 issuance and said Phase 2 will finance an additional ice sheet, a "Mammoth Fieldhouse" (indoor/outdoor pickleball and other courts), entertainment/food service areas and a parking structure; the anticipated par range discussed was roughly $48–$53 million and staff said the state has authorized net proceeds up to $40,000,002.77.

Committee members raised questions about leasing risk for retail components, the extent of completed retail versus spaces marketed under letters of intent, and the extent to which the parking structure drives the size of the financing. Staff and bond counsel explained underwriting conventions (credit for open sales-history retailers, graded credit for leases under construction or conditional LOIs) and described layers of related documents (development‑agreement amendments, pilot payment agreements and potential EDRB issuance to support property‑tax abatements). Staff emphasized that the bonds are payable only from district revenues and that the city is not obligated to repay them from general funds. No formal committee action was required; staff will bring the proposed bond ordinance and related agreements back to council with detailed underwriting and structuring materials in October or November.