Arlington Refinances AT&T Stadium Debt,
Expects to Save $138 Million
T
he City of Arlington
refinanced its remaining
AT&T Stadium debt this
month as part of a financial
strategy that will allow it to
simultaneously pay for its $500
million contribution to the
Rangers ballpark.
Even though the debt will now
be repaid by the original 2034
maturity date instead of an
accelerated pace, Arlington
still expects to save about $138
million in interest and fees over
the original debt projections in
2004. The principal and interest
currently owed on the City’s
12
portion of the AT&T stadium debt
is approximately $171 million.
Arlington’s portion of the stadium
debt is repaid with revenue
generated by three existing venue
taxes – a half-cent sales tax, a 2
percent hotel occupancy tax and
a 5 percent vehicle rental tax. For
years, Arlington has been making
larger than required payments
toward that debt because of
healthy tax revenue. As of this
year, the City was on pace to pay
off its portion of stadium costs
at least 14 years earlier than the
bonds’ 2034 maturity date.
Then last November, Arlington
residents authorized the City
to make up to a $500 million
contribution to build a climate-
controlled, retractable roof
ballpark for the Texas Rangers.
Taking on the additional debt
will require the City to slow down
repayment on the stadium bonds
so revenue being collected from
the existing venue taxes can
also pay for Arlington’s ballpark
contribution.
Arlington anticipates issuing
bonds for its portion of the
ballpark early next year.