Levy Court establishes reserve account for sports complex loans

 

DOVER— Kent County Levy Court voted 7-0 Tuesday to establish a reserve account up to $1.4 million for potential loan requests in connection with the Kent County Regional Sports Complex.

The facility, to be known as “DE Turf,” is an 85-acre, 12-field artificial turf facility to be located in Frederica next to Del. 1.

Last year, Levy Court adopted an ordinance that authorized the issuance of Kent County Revenue Bonds for the purpose of financing the construction of the facility.

The bond was in the amount of up to $22 million. The reserve account provides that if and when a draw is made from the Debt Service Reserve Fund, Kent County could consider the issuance of a loan to replenish the Debt Service Reserve Fund in an amount not to exceed $1.4 million.

It’s for the purpose of covering payment of debt service in the event that operating revenues from the facility are insufficient, said Bradley Eaby, vice president of Kent County Levy Court.

In preparation for the initial bond offering, rating agencies urged the county consider the establishment of a segregated reserve account in the amount of $1.4 million as a special source reserve from which any potential loan may be funded.

“When you buy a bond you get interest,” Mr. Eaby said. “The estimate interest to pay it back is 1.4 million. When they buy this bond the Greater Kent Committee is going to take $1.4 million and they’re going to have a reserve.

“Then we (Kent County Levy Court) will have a second reserve fund of 1.4 million. If there isn’t enough money to pay the bonds back then Greater Kent Committee has to kick in money to pay back the bonds.

“We’ll already have this money set aside,” he added. “We then can vote if we want to loan the money that’s needed. We’re just putting that money there as a potential source of loan funds.

E-mail comments to newsroom@newszap.com.

You are encouraged to leave relevant comments but engaging in personal attacks, threats, online bullying or commercial spam will not be allowed. All comments should remain within the bounds of fair play and civility. (You can disagree with others courteously, without being disagreeable.) Feel free to express yourself but keep an open mind toward finding value in what others say. To report abuse or spam, click the X in the upper right corner of the comment box.