Part XIII: Phoenix Coyotes - The Final Cut?
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10-12-2010, 05:08 AM
Join Date: Jul 2010
Originally Posted by
Either kdb or mouser broke down the various bond issues last summer. IIRC, only a small portion (if any) can be paid early without penalty. We can trust their estimates of $280M - $300M.
Convention is to typically to state debt in term of principal owed rather than principal and interest. Even if they're non-callable, they could still be purchased in the market or the city could pay somebody to cover their obligation. Neither would be cheap of course, since buying the bonds would likely move the market and the counterparty would likely charge a significant premium.
It's notable that their claim against Moyes is only $200 mm. They could just invest that to cover the future P&I
Originally Posted by
You'd have to implement a graduated parking fee structure over 3-5yrs in order to make it palatable, while simultaneously increasing ticket prices annually.. It would be foolish to try & ding the consumer for $15 to park when their holding a ticket with a face value of less. Their are all kinds of things that have to happen here, not least of which is ticket pricing. I would rather have an arena half full with people who are willing to pay comparable prices for NHL seating & parking & "tarp" the upper levels than continue to give away entertainment & product virtually for free. Create a buzz, demand (and prices) goes up.
Working from IEHs MOU, $7.5 mm of parking revenue would require between 325k and 750k car trips at $10 to $20 a pop. I'm also guessing that demand is very price elastic (I read the other day that 1 in 8 Arizona mortgages is over 90 days delinquent), so I don't see how that actually would get to the contemplated revenue number.
So what do the businesses in the CFD even contribute? All I remember is parking and ticket surcharges... if it's some sort of sales tax it would just be passed along to the consumer. Even if that tax is only applied on event days, it probably would affect demand to some extent.
All of this of course will make Jobing.com arena less attractive to non-hockey events.
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