The Washington Convention and Sports Authority (WCSA) announced it has settled the sale of approximately $250 million in dedicated tax revenue bonds at an interest rate of approximately five percent with final maturity of the bonds in 2040.
The tax-exempt portion was $66 million of the total and the balance was taxable. The bonds will be used to finance a portion of the construction costs of the new Washington Marriott Marquis hotel across from the Walter E. Washington Convention Center, and to fund a $2 million training program for hotel jobs, as well as refinance WCSA’s 2007 purchase of a portion of the hotel site.
“The success of the WCSA’s bond offering reflects a high degree of investor confidence in the District’s financial health,” said Greg O’Dell, president and CEO of the WCSA. “We are happy we can move forward on this historic project and continue to compete as a premier convention destination, completing the city’s original vision for its new Convention Center.”
“The Authority is pleased with all financial aspects of this bond sale. The interest rates and conditions of the sale will allow us a great deal of flexibility in the future,” said Henry Mosley, chief financial officer, WCSA.
“We are excited that the convention center sale was successful and that we achieved an attractive rate on the bonds,” said Natwar Gandhi, DC chief financial officer. “It is our expectation that the hotel when complete will further strengthen the financial position of the convention center.”
The hotel site is bounded by Massachusetts Avenue, 9th, 10th and L Streets, Northwest. The 1,175- room headquarters hotel, which includes more than 100,000 square feet of meeting areas, is slated to open in 2014.
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