An amended STAR bond project for the American Royal was approved unanimously on Thursday night by the Unified Government Commission.
The commission approved the amended STAR bond project plan, issuance of sales tax special obligation revenue bonds for the project of up to $95 million, and an amendment to the American Royal development agreement.
The project was previously approved in October 2017, and some details were changed on Thursday. It is an approximately $160 million project in a STAR bond district of 550 acres near 110th and Parallel. The American Royal site plan is on about 112 acres in the district.
UG Administrator Doug Bach said the changes to the project are routine in nature.
Katherine Carttar, UG interim economic development director, said the STAR bond project had a requirement for a 50 percent private match. There would be an $80 million STAR bond issue plus an $80 million private match. The bond issue is expected to be about $95 million when all fees are added.
“The likelihood is that the project will get bigger,” Carttar said, adding that fundraising is continuing for the American Royal. The capital campaign began this summer. At this time the American Royal is completing the design and programming, she added.
The STAR bond district approved in October 2017 would give the state and local sales taxes back to the project, except in the northeast corner of the district, Plaza at the Speedway, where there would be only state contribution of sales tax.
The American Royal project includes a 5.000-seat livestock expo arena, a warmup arena, a livestock exhibition hall with space for 2,000 animals, office space including the headquarters of the American Royal, and an agricultural education center to be used for exhibits, a museum, meeting space and training.
Carttar said one of the changes in the amended agreement will be a $10 million drawdown for first use, to be used for the purchase of the property and infrastructure. The final $70 million would remain in an escrow account until the match is completed, when construction would begin.
The bond issuance timing was changed from late December to early January, she said, a change of about two weeks.
Infrastructure construction would begin in spring 2019, with the American Royal Complex construction beginning in late 2019, Carttar said.
Steve Allison of New Hampshire, who is the great-grandson of J.W. Perry, the original owner of the property where the American Royal will be built, appeared at the public hearing in support of the bond issue.
He said about two years ago, he talked with Cliff Illig about the possibility of the American Royal moving to his property. They set up a contract. The project was in contract, went out of contract and is back in contract again, he said.
“The business terms that we had established with the American Royal haven’t changed,” Allison said. He said the property owners are a partner with the American Royal and the UG.
Allison said he has spent time talking to transportation officials about the vision of the American Royal, including the idea of an ag tech incubator.
“We’re spending a lot of time trying to figure out how to make this much more than the American Royal, but rather a centerpoint for the agribusiness sector of the economy. That’s why I’m personally very excited about it and hope to see it come to fruition,” Allison said.