Park districts face unique challenges when they attempt to use a revenue source to finance the cost of recreational facilities. Competition from the private sector, the inability to point to historical debt service coverage and uncertainties about weather, facility usage and operation and maintenance costs are among the obstacles in the sale and issuance of recreational facility revenue bonds.
Despite such obstacles, the firm's public finance attorneys have worked on a number of highly successful bond issues utilizing revenue pledges.
For example, the firm served as bond counsel to an Illinois park district in connection with the issuance of one of the largest recreational harbor boat revenue bond issues. We have also acted as bond counsel on numerous alternate bond issues supported by recreational facility revenue pledges. In fact, one park district pledged revenues from three different types of facilities to secure such bonds.
Intergovernmental cooperation has been shown to play a key role in financing certain park district facilities. Baseball stadiums, athletic fields and fitness centers have been built to serve the needs of, or have been financed with the assistance of, more than one governmental unit.
In addition, the firm was instrumental in drafting legislation that now enables park districts to issue installment contracts, debt certificates, alternate bonds and limited bonds. These borrowing techniques allow districts to enhance their park and recreation facilities and thereby offer the public some of the most expansive and outstanding facilities in the country.
(For a copy of any of following publications, please call or e-mail any of the attorneys in the Public Finance Group.)
- Borrowing Alternatives for Illinois Park Districts
- Local Government Debt Reform Act and Bond Issue Notification Act