Hamburg First has learned some small tid bits of the proposal for the new Hamburg Ice Facility coming up for a referendum next month. Tomorrow evening the full deal will be revealed at the Immaculata Academy Auditorium on South Park Avenue.
The deal is set to be financed through the Hamburg Development Corporation. The HDC will arrange financing and any bonds necessary for the facility to be built. The HDC will also consider taking out insurance to cover the full cost of the facility if Leaping Sports defaults on the loan from the HDC.
The Hamburg Development Corporation isn’t a town financed organization. So no town funds are being used to build this facility as was feared by many in the community. The HDC has its own Board of Directors who mainly sit as presidents or high ranking members of several area banks. These people are able to help local businesses get the start up money they need at very reasonable interest rates.
It has been further revealed that Leaping Sports will also guarantee the first seven years of the money financed with options for the second and third terms of the agreement. What hasn’t been revealed is who then becomes responsible for the second and third terms if Leaping Sports defaults on the deal. Does the town pick up any of the costs or does the HDC get hit with the costs? That will be revealed tomorrow night.
I highly advise all who read this site to come to the meeting and ask the questions they need to make an informed decision on this very important referendum.
