The massive Arista development in Broomfield made significant progress on Wednesday, securing more than $90 million in financing from a pair of bond sales.
The progress of the publicly and privately financed project includes:
The Broomfield Urban Renewal Authority’s sale of $59.8 million in municipal bonds to finance a new sports arena that will anchor the 200-acre Arista project. The bonds will be serviced with property taxes and sales taxes from the rest of the Arista project, which is being privately developed by Wiens Real Estate Ventures.
BURA’s issuing of a $2 million subordinate note to purchase from Wiens the sports arena’s 10-acre parcel. While owned by Broomfield, the arena will be leased back to Wiens under a 20-year agreement.
Wiens’ sale of $31 million in metro district bonds to pay for infrastructure improvements for Arista.
The Arista development, located along U.S. 36 between West 108th and 120th avenues, will include 700,000 square feet of retail space and a 1,200-unit residential community.
The Broomfield Event Center is the centerpiece of the development. The 6,000-seat arena will be home to a Central Hockey League team and a Continental Basketball Association team. It is expected to open late next year.
BURA sold 25-year municipal bonds at 3.9 percent interest, which is equivalent to a rate of about 5.5 percent for taxable bonds, said Rus Heise, senior vice president for RBC Dain Rauscher, which handled the sale.
“It was well-received in the marketplace,” Heise said.
The bonds were snatched up by five money-market funds about an hour after they hit the market, Heise said.
The bonds are backed by a letter of credit from BNP Paribas Bank.
Arista is expected to be substantially built out by 2010 or 2011, said Greg Demko, Broomfield’s finance director. By then, Arista is projected to produce $12 million in sales and property taxes annually.
The $2 million note for the 10- acre arena parcel will be paid back with property taxes from Arista, but only after the project produces enough revenue to service the $59.8 million in municipal bonds.
The metro district bonds were sold at 6.75 percent interest, said Tim Wiens, who is developing Arista. The underwriters were KirkPatrick Pettis.
“We don’t celebrate often, but this is a day that we’ll celebrate,” said John Frew of Wiens Frew Management Group, which will manage the arena and owns the two minor-league teams that will play in the facility.
Staff writer Andy Vuong can be reached at 303-820-1209 or avuong@denverpost.com.
