GRAND RAPIDS, Mich. — There's an update to the funding process of the major development that's got everyone's attention: a massive outdoor amphitheater planned for downtown Grand Rapids.
There are a lot of moving parts to the project. Tuesday, it was the city of Grand Rapids' turn to take action. The city put out the notice of intent to bonds up to $20.5 million for the project.
The city wouldn't be paying those bonds back, however. The Grand Rapids DDA, also known as Downtown Grand Rapids Inc., would pay the city back the bond money on an annual basis.
It's all in the name of a better interest rate, the city's chief financial officer explained.
“If the DDA was going to issue the debt on their own, they’d be paying a higher interest rate,” Chief Financial Officer for the City of Grand Rapids Molly Clarin explained.
“They can take advantage of our AA stable rating, which is good in the market,” Clarin said.
It's all in the name of partnership for progress in Grand Rapids, something leaders have repeatedly said is essential to getting large projects like the amphitheater done.
“Look up and down Monroe Avenue: a lot of that is partnerships that the city and county have made with the DDA and other organizations,” Clarin said.
Technically the city hasn't issued a single bond yet. They have 45 days before they officially do so, and are going to gather public feedback during that time. After that, it becomes the City Commission's decision whether or not to issue the bonds. City leaders explained Tuesday that if a group of people petition the city and get 15,000 signatures, the bond could come to a vote. No such group has organized to make a petition at this time.
