Wichita’s City Council on Tuesday voted to authorize the issuance of $40 million in STAR bond monies for the development of an area along the Arkansas River that will include the construction of a new sports stadium.
The series 2018 STAR (sales tax special obligation revenue) bonds, which were marketed beginning on November 1, will be in the principal amount of just over $42.1 million (including financing costs).
STAR bonds capture sales tax revenue in a development area and funnel it to project costs. The sales tax rate does not increase in those districts, but the portion of sales tax paid to the state, county and city would be used to pay debt service on the project.
A STAR bond district requires Kansas Department of Commerce approval, which was granted, according to city documents. The move essentially paves the way for the city to build a new multi-purpose sports stadium that is expected to cost around $70 million.
(Read more: Wichita Business Journal)