At a special meeting on June 18, the Derby City Council convened to consider the sale of the Series 2020 STAR Bonds— bonds being issued to finance a portion of construction and infrastructure costs in regards to two STAR bond project amendments.
The amendments would allow for the construction of the Derby Sports Zone (phase two), to include multiple indoor and outdoor sports courts as well as a restaurant facility on-site, and an Olympic-caliber rock climbing gym with an attached outdoor BMX course (phase three) in the STAR bond district.
Initially, the bonds were set to be sold separately, but complications related to COVID-19 postponed the bond sale for the second amendment (Derby Sports Zone) in March. That led to an amendment of the bond sale resolution in May, with the specification that the aggregate principal amount of the bonds not exceed $17.5 million or a six percent interest rate for the two amendments.
Combined, $12.6 million is being requested to help facilitate construction of the two STAR bond project amendments (with inflation and other factors taken into account). Bond counsel was able to secure $14,375,000 in bonds at a 4.637 percent interest rate.
Upon approval of the bond sale, council member Tom Keil asked who would approve expenditures, with it noted those would fall to city staff to review and City Manager Kathy Sexton to sign.
Mayor Randy White pointed out that the city council has been down this road before and it was good to have some familiarity with the process in trying to bring some unique amenities to the Derby community to fill out the STAR bond district.
“When we get there, God-willing, this is going to be an exciting place to be around,” White said.
The city council unanimously passed a motion adopting an ordinance issuing $14,375,000 in bonds for the phase two and phase three amendments to the STAR bond project.