The city of Arlington is finding that they fumbled the financing for the new Cowboys stadium in Arlington. The stadium, which was jointly financed by Jerry Jones and the city of Arlington is finding itself in the same predicament of many homeowners around the state as they have suffered the sting from a variable rate on the bonds that they used to finance the stadium.
Certainly you would think a city like Arlington would not take a risk on variable rate bonds. The city had already taken a hit on the way they used eminent domain just to secure the land needed for the new stadium. However, at the time they were advised that the savings associated with a variable rate bond would be tremendous. I’d imagine they won’t be using that financial adviser again any time soon.
In order for Arlington to terminate the current agreement and put in place a new agreements with a locked rate it is estimated to cost the city $23 to $28 million dollars. If you break that down per citizen of Arlington, a city of about 330,000, that is $84 per person. That is a valuable tank of gas. If you were to look even further and break that cost down per tax payer the number would be astronomical.
While I am all for progress and bringing that business and tourism to this part of the metroplex, it should not be done by wasteful and mismanaged spending on part of the city of Arlington. I’d venture to say that when the voters of Arlington approved those bonds for the stadium they didn’t do so with the undertanding that $28 million would be thrown away. Clearly Arlington has fumbled the financing of its soon to be moneymaker.
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