New arena won't open until Fall '18

[forgetful]

This was kind of expected. They obviously wanted the JS building originally and needed to push the arena through using the NBA's deadline of '17. Now that they have the money, the league will be more lenient about the timeline. The average citizen wouldn't have understood the why the NBA deadline of '17 was important if all the plans were going for a stadium in '18. Now that they have the money, they can push back the timeline and make sure this is done right.

I'm ok with it as a citizen and a fan. Another year of useful life squeezed out of the BC, cheap seats the next 2 years, and an arena that isn't rushed.

I'm just curious on how the funding is impacted if the stadium is delayed. I assume it was primarily connected to revenue from player's income versus revenue from the stadium. I would think 8 months of debt service would be saved as well unless loans were already taken out.

Very well said.

[Dr. Blackheart]

The DePaul arena has no bearing on the Illinois budget.

Except that the Govenor has equal say on the Board with the Mayor but not Madigan who controls the unions who are building it (and the state budget).  Rauner knows this is his pinch point with Mikey. He will delay this for as long as he can.
http://www.mpea.com

[🏀]

Except that the Govenor has equal say on the Board with the Mayor but not Madigan who controls the unions who are building it (and the state budget).  Rauner knows this is his pinch point with Mikey. He will delay this for as long as he can.
http://www.mpea.com

Except it has no bearing on the Illinois budget.

It may be a bargaining chip for Bruce, but it has no bearing on the Illinois budget.

[Dr. Blackheart]

Except it has no bearing on the Illinois budget.

It may be a bargaining chip for Bruce, but it has no bearing on the Illinois budget.

But it does as the state secures the McPier bonds, which due to the budget impasse just led to a downgrade after a missed $21 million bond payment.

The revelation that McPier's debt was so closely tied to the state appropriations process led Standard & Poor's and Fitch Ratings to reduce the agency's bond rating by seven and four notches, respectively. The downgrade killed the deal with Citibank, although the financial institution was willing to issue a new loan with less advantageous terms to McPier. Instead, the agency opted to sell the bonds immediately to secure financing for the hotel.

A McPier spokeswoman issued a statement noting that the agency "is pleased with the results" of today's sale, citing demand for the securities. "The $153 million raised in the transaction completes the funding for our hotel project," the statement said.

But ratings agencies are unlikely to restore McPier's pristine rating for its long-term debt, which stands at nearly $3.5 billion. While the state fixed this year's problem through a bill that appropriated the funding, the move covers only the current fiscal year.

"Although the statutory construct and bond document provisions historically have insulated these monthly payments to the authority—and ultimately debt service payments—from the budget and liquidity pressures occurring at the state level, we now believe this structure is vulnerable to those pressures as they play out in the state budget and appropriations process," S&P wrote in a ratings report earlier this week.

http://www.chicagobusiness.com/article/20150916/NEWS09/150919890/mcpier-pays-a-premium-on-bond-sale-after-credit-ratings-downgrade

[🏀]

But it does as the state secures the McPier bonds, which due to the budget impasse just led to a downgrade after a missed $21 million bond payment.
http://www.chicagobusiness.com/article/20150916/NEWS09/150919890/mcpier-pays-a-premium-on-bond-sale-after-credit-ratings-downgrade

Grasping at straws. This arena has nothing to do with the Illinois budget.

[Dr. Blackheart]

Grasping at straws. This arena has nothing to do with the Illinois budget.

Except for the bond trust lack of payment and the downgraded S&P bond rating, yes, grasping.  Dec. 15 is the next deadline.  While McPier has the $$, they don't have authority to hit their long term financing obligations that, by law, requires the state to back financially.  Like you, I think this issue will get remediated, but unlike you it seems, I think that it will be with politics and delays.

http://www.chicagotribune.com/news/local/politics/ct-mcpier-debt-downgrade-met-0805-20150805-story.html