News Talk 94.1/AM 1600 Where The Upper Cumberland Talks
The Crossville City Council approved an official statement of the bonds for the proposed $34.8 million recreation center Tuesday.
Crossville Bond Attorney Ben Regan said the underwriter insisted that the city execute an official statement certifying the accuracy of the bond statement as it pertains to the city. The council had concerns that the city would be taking on obligations of the sports authority or the Putnam County YMCA. Crossville Financial Advisor Larry Kidwell said signing the official statement would not be detrimental to the city. Regan said he believes the city could sign the document in good conscious.
“If push comes to shove I don’t think the city would be incurring any obligation that it will not already have,” Regan said. “Somebody could pretend to misunderstand the implication of that signature but then again people pretend to misunderstand things all the time.”
Kidwell said the next step is for the sports authority to approve the marketing of the bonds in the meeting that followed the council which the sports authority did approve shortly after. Kidwell said citizens of Cumberland County can purchase bonds by contacting local brokers or the city to reach the underwriter directly.
“If citizens or residents of Crossville or Cumberland County who are interested in purchasing bonds which I have heard directly and indirectly there are,” Kidwell said. “They may contact their brokers.”
Kidwell said he suggested if there are any issues with the official statement and documents about the city’s obligations that it should be brought up during the sports authority meeting.
“Before we establish the interest rates the initial rates and yields where the bonds will be marketed to the public,” Kidwell said. “We require approval from the chair of the authority and mayor acting on behalf of the city for the marketing of the bonds to take place. At that point in time if there is an open issue regarding a matter such as the one we are discussing it would be an appropriate time to also cover that issue as part of the approval process.”
The official statement for the bond will be sent back to the underwriter. Regan the city will have to go through a similar process again when it comes time to close the bonds.
