The Athens-Clarke County Commission prepares to vote on the next borrowing plan for the Classic Center Arena, a project that now lacks a master developer.
The event center expansion will include a 5,500-seat multi-use arena that can accommodate sports and concerts, using funds from municipal bonds and SPLOST 2020.
At the beginning of his presentation, Classic Center Executive Director Paul Cramer announced that the master developer has pulled out of their contract due to financial concerns.
The commissioners asked how this would affect the city’s bond rating — a figure that anticipates the county’s risk and determines its interest rate. According to the city attorney, the financial department does not expect the rate to change.
Cramer says the project missing a master developer might not be a bad thing.
“You're no longer dependent on the developer that had phases that might come true in the future. What you’re dependent upon is a 28-year-old Classic Center that has been in this town doing what it does, having the revenue to back it up to be able to pay those bonds back,” Cramer said.
The commission also discussed the Classic Center’s request to borrow money to continue developing the arena. Following an unexpected expenditure to eliminate an environmental obstacle, commissioners such as Dexter Fisher of District 5 raised concerns about the impact of such spending on their budget.
“I know we want all the bells and whistles, maybe one thing we need to really consider, is maybe we need to cut back on some stuff,” Fischer said.
The commission will vote on the Classic Center’s borrowing plan at their August 1 meeting.
