Sevierville may refinance $75M in bonds

Apr. 19, 2014 @ 11:44 PM

The Board of Mayor and Aldermen will consider refinancing $75 million in bonds issued as part of its Central Business Improvement District.

The board will review the proposed new loan agreements during a workshop set for 5:15 p.m. Monday at the Civic Center, and vote on the matter during its regular meeting at 6 p.m.

The bonds were set to mature June 1; the proposed new agreements would delay the city’s required payments on the principal for some time and would reduce the city’s payments on some of the bonds, according to memos issued to the board.

Sevierville used the bonds to fiance construction of the Sevierville Convention Center and other improvements in the Central Business Improvement District.

Sales tax revenues from the district, including much of the revenues that would ordinarily go to the county and the state, are devoted to paying the bonds. The city had hoped to get a boost in those revenues through a commercial development slated for property across the street from the convention center, but work on that and other large commercial developments in the area stopped during the recession.

Also Monday, the board will consider:

  • Final reading of rezoning of property on Henderson Avenue from high density residential use to intermediate commercial use
  • Purchase of a heart monitor/defibrillator for the fire department
  • A new contract with Safe Harbor Child Advocacy Center