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[QUOTE="dollarbill44, post: 1044326, member: 686"]
I am having trouble with the $1 - $1.5MM in annual carrying costs you're citing. For simplicity's sake, amortization alone on a 20 year $200MM bond is going to be $10MM per year, then you have to add interest to that. The City of Syracuse is rated A-/A1 (S&P/Moodys). It's latest bond issuance (2014 Public Improvement bonds) carries a 5% rate and that is on a small amount of principal, so I would expect a higher rate on $200MM. Granted, this is a general obligation bond so it isn't entirely applicable. Another example is the Arizona Cardinals stadium whose muni bonds (A rated by Fitch, which falls between the split ratings of Syracuse) carry interest rates of 4% for the first 10 years and 5% for the remaining 13 years. The amortization is tailored and heavily back-ended.

A public-private partnership is probably a better way to go for several reasons, but I think you will still be looking at interest rates in the range of 4% over a 20-25 year concession period.

I'm not a muni-bond guy, so I'm sure there's something I'm missing.
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