The City of Savannah has committed to the development of a New Savannah Arena to be located on the west side of downtown. The budget for this arena has been set at $165 million. It is anticipated that $120 million of the necessary funding will be provided from SPLOST 6 proceeds. In order to move the project forward, staff is asking Council to approve a funding plan that will provide $45 million in funding from a Downtown Savannah Authority bond issue with the debt service on these bonds to be repaid from proceeds from the City’s rental motor vehicle tax. It is anticipated the bonds would be issued in late 2019 so that the proceeds would be available when the guaranteed maximum price for the arena’s construction is set in the first half of 2020.

Currently, the City uses the rental motor vehicle tax proceeds to help fund the Savannah Civic Center and Johnny Mercer Theater operations budget. They also help fund maintenance and repairs to downtown monuments, squares and other historic features. Once the rental motor vehicle tax proceeds are dedicated to paying the debt service on the bonds, other funding sources will need to be identified if these efforts are to be continued.

Approval

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