Greenville County Council advances arena-related bond measures, approves hospitality tax revenue ordinance at second reading

Greenville County Council on Feb. 3 advanced several financing measures tied to the Greenville Arena District, approving a second-reading ordinance that finds the Arena District may issue up to $40,000,000 in general obligation bonds and approving related amendments to intergovernmental and escrow agreements.

Vice Chairman Bradley moved for approval at second reading of the bonds and described the Arena District as a county-owned asset that returns revenue to the county. "This is an asset that is owned by you, the taxpayer," a councilor supporting the measure said during debate. Another councilor noted the Arena contributes to local economic activity and called the measure an investment in nearby small businesses.

Council requested and held roll call on the $40 million finding. The roll call was recorded as 9 in favor and 2 opposed, and the motion passed. Council also approved a related amendment to the intergovernmental escrow agreement between Greenville County, the City of Greenville and an escrow agent at second reading.

Council then considered a second supplemental ordinance to provide for the issuance and sale of hospitality tax revenue bonds not exceeding $100,000,000. County staff explained that "the county is not at risk for any of the debt" and that hospitality and accommodations taxes — restricted to tourism-related uses — are pledged to pay the bonds and related debt service. A county official summarized that the Arena operations and hospitality-tax revenues are expected to cover the obligations.

After questions from council members about risk and revenue sources, the roll call was recorded (9 in favor, 2 opposed) and the motion passed.

The council set the Arena District items for third reading and public hearing on the 17th. The council also discussed improving outreach about the Arena District to correct public misconceptions about its ownership and funding.