The Cleveland County Board of County Commissioners unanimously approved the sale of an up to $50 million bond anticipation note for OU\u2019s planned arena in the Rock Creek Entertainment District Monday.<\/p>\n
David Floyd, attorney and special counsel for the county\u2019s Recreational and Entertainment Facilities Authority \u2014 which met at 11:15 a.m. in a special meeting Monday to approve the sale \u2014 told commissioners the bond note was issued as interim financing to provide a portion of the costs in advance of permanent bond financing, which he said will happen later this year.<\/p>\n
\u201cThis will allow the proposed project to proceed on schedule,\u201d Floyd said during the meeting.<\/p>\n
The bond anticipation note \u2014 which was unanimously approved by the county\u2019s Recreational and Entertainment Facilities Authority in March<\/a>\u00a0 \u2014 allows the authority to incur debt for construction, design and other expenses through \u201cbonds, notes or other evidences of indebtedness.\u201d<\/p>\n The authority is a public trust created to oversee the development of the Rock Creek Entertainment District.<\/p>\n Read more:<\/strong><\/p>\n <\/p>\n
Floyd said the authority issued a request for proposals for quotes from 10 state, regional and national banks and received six bids. The bids were reviewed during the Monday morning meeting, where the authority\u2019s financial adviser Michael Newman recommended Clayton Holdings, LLC, a subsidiary of Commerce Bank, based on the interest rate quoted.<\/p>\n \u201cThey agreed to hold their interest rate quote until April 13, so that\u2019s why this item is on the agenda for approval today,\u201d Floyd said.<\/p>\n Floyd said the board of commissioners is the final governing body required to give approval for issuance of the note.\u00a0<\/p>\n The agenda for the authority\u2019s special meeting Monday<\/a> morning, where it authorized the bond to Clayton Holdings, was not available on the Cleveland County agenda center<\/a> where the commissioners agenda was attached. The agenda was available on a separate Cleveland County agenda center<\/a>. Cleveland County Director of Communications Alyse Moore said this was because the county is in the process of switching agenda systems.<\/p>\n Both agendas called for the authorization of Clayton Holdings as purchaser ahead of Monday\u2019s meetings. Moore wrote in an email to the Daily after the meeting that the authority saw the bids for the first time Monday morning and that no conversations were held outside of the meeting.\u00a0<\/p>\n Floyd told the Daily after the meeting that the bond would be used to start preliminary engineering and site work for the project.<\/p>\n On Dec. 17, the authority accepted proposals<\/a> to design, build and operate the project\u2019s arena and parking garage.\u00a0<\/p>\n After Monday\u2019s meeting, Floyd said negotiations with the bidders are still ongoing but \u201cgetting closer\u201d and will be presented at an open meeting.<\/p>\n \u201cI would expect construction sometime within the next 90 (to) 120 days, but that\u2019s just my guess,\u201d Floyd said.<\/p>\n Clayton Holdings<\/a> and Commerce Bank work with manufacturers, municipalities and non-profit organizations to provide privately placed tax-exempt financing for projects. This includes the construction and acquisition of new buildings, according to the bank\u2019s website.<\/a><\/p>\n On March 6, Oklahomans for Responsible Economic Development sent a letter to the city of Norman stating the organization\u2019s intent to sue the city and Cleveland County. The letter noted the Cleveland County Board of County Commissioners\u2019 March 2 meeting, where the board unanimously approved the bond anticipation note for the entertainment district.<\/p>\n
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\n <\/a><\/p><\/div>\n<\/figure>\n<\/div><\/div><\/div>\n<\/article>\n<\/div>\nLetter of intent to sue<\/h2>\n
\n Oklahomans for Responsible Economic Development’s letter of intent to sue sent to city officials.
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