Arizona Sports Park Bondholders Nearly Wiped Out
The Arizona Sports Park, a multi-sport complex located in Glendale, Arizona, has been sold to a private developer for $3.5 million. The sale of the park has left bondholders nearly wiped out, with only a fraction of their original investment being returned.
Background of the Arizona Sports Park
The Arizona Sports Park was built in 1998 and was intended to be a multi-sport complex for the city of Glendale. The park was funded by a $20 million bond issue, with the majority of the money coming from the city of Glendale. The park was designed to host a variety of sports, including soccer, baseball, softball, and lacrosse.
Decline of the Arizona Sports Park
The Arizona Sports Park was initially successful, but over time it began to struggle financially. The park was unable to attract enough visitors to cover its operating costs, and the city of Glendale was unable to provide additional funding. As a result, the park began to decline and eventually closed in 2019.
Sale of the Arizona Sports Park
In 2020, the city of Glendale put the Arizona Sports Park up for sale. After a lengthy bidding process, the park was sold to a private developer for $3.5 million. The sale of the park was seen as a victory for the city, as it was able to recoup some of its investment.
Impact on Bondholders
Unfortunately, the sale of the Arizona Sports Park had a devastating impact on bondholders. The $3.5 million sale price was far less than the $20 million bond issue, leaving bondholders with only a fraction of their original investment. Bondholders were left with little recourse, as the city of Glendale was not legally obligated to repay the bonds.
Future of the Arizona Sports Park
The private developer who purchased the Arizona Sports Park has not yet announced its plans for the property. It is possible that the developer will renovate the park and reopen it as a multi-sport complex, or it could be used for other purposes. Whatever the developer decides to do, it is clear that the Arizona Sports Park will never be the same as it once was.
Lessons Learned
The sale of the Arizona Sports Park serves as a cautionary tale for bondholders. It is important for investors to understand the risks associated with investing in municipal bonds, as there is no guarantee that the bonds will be repaid. Additionally, investors should be aware of the potential for a bond issuer to default on its obligations, as this could lead to a significant loss of capital.