The Community Enhancement and Development Corporation (CEDC) Board of Directors and City Council have approved the Bank of America (BOA) bid for bonds needed to construct Phase 2 of The Marq Southlake at a true interest rate of 2.54%.
The bid reflects favorable market conditions and a strong bond rating of AA+ for the City’s CEDC. The bond sale was for $24.2 million needed to continue the construction of the second phase of the new facility.
“The bids we received were much better than anticipated,” said the City’s Chief Financial Officer Sharen Jackson. “We budgeted a 4.25% interest rate, which means that we are reducing the debt service requirements by over $6 million with the favorable bid from BOA.”
Phase 2, Champions Club, includes many recreational features, including an aquatic center, fitness area, gymnasium, jog/walk track, indoor playground and an indoor and outdoor turf area.
It will complement Phase 1, known as Legends Hall, a premier activity and event venue featuring a ballroom, meeting rooms, a catering kitchen, a Club Lounge and a senior activity center. Phase 1 also includes Aria, an outdoor amphitheater. No debt was incurred for the cash-funded $15 million Phase 1, which opened in December 2015.
The bonds needed for Phase 2 will be repaid from revenue generated through a special sales tax approved by Southlake voters in May 2015.
The final total construction cost of Phase 2 will be $37.4 million. Final action on the selection of the construction manager at risk contract for Phase 2 will occur in September. It is anticipated that construction on Phase 2 will begin in the Fall.