A loan of slightly more than $20 million from Bank United will finance the construction of the proposed Wesley Chapel Sports Park, at Wiregrass Ranch.
RADD Sports will operate and manage the complex. Pasco County will own the indoor sports facility, collect rent, and also share in the anticipated profits.
In addition to the 98,000- square-foot indoor facility, seven outdoor sports fields, an amphitheater with an event lawn, trails, pavilions and a playground are planned.
The county also has approved a ground lease for a 128-room Marriott Residence Inn to be built with private funds at the complex.
A 2 percent increase in Pasco County’s tourism tax will serve as collateral for the loan. The Pasco County Commission previously approved the increase, bringing the tourism tax to a total of 4 percent.
The tax is collected as an add-on to rent from hotel rooms. Revenues from the “heads on beds” tax supports tourism promotion in Pasco. How much, if any, of the additional tourism tax dollars would be spent to repay the loan depend on revenues generated by tournaments and other events at the complex.
County commissioners agreed to the loan terms at their Aug. 29 meeting in Dade City. A fixed interest rate of about 3.8 percent will be charged for the first 10 years of the 18-year loan.
No penalties would apply if the county was able to prepay the loan at any time.
Three bids to finance the loan were reviewed, but an evaluation committee recommended Bank United. The other bidders were City National Bank and BBVA Compass.
Pasco County Commissioner Jack Mariano voted against approving the loan. He has concerns about what would happen once the loan hits 10 years.
“This is not a good deal for us,” Mariano said. “If the rates go up, we’re going to get crushed in the end.”
He also objected to the county’s Tourist Development Council being bypassed in the decision-making. The council serves as an advisory board and makes recommendations to the County Commission.
Even Pasco County Commissioner Kathryn Starkey, who supported the loan and serves as the council’s chairwoman, had problems with the lack of the council’s role.
In recent months, she said the council hasn’t been able to operate at full strength due to vacancies.
“It’s unfortunate that this never went to the (Tourist Development Council), but when this all went down, we were down to one person on the council,” she said. “We really need to take them into consideration when scheduling next time.”
But, she said, “I think it’s time to move forward. I have faith that this is going to be a great addition to Pasco.”
Published September 6, 2017
