The music center is funded with a projected payment plan consisting of only Tax Increment Financing (TIF) revenues, and no general fund revenues. The music center is currently being built using short-term notes (less than 1% interest) to finance the construction which will save the city money on interest charges as opposed to obtaining bonds at the current time. Once the construction is finished, and the total costs are verified, long-term financing will be sought. The payments on the music center will then be made from the TIF funds. TIF funds can only be used on infrastructure and public facilities, not on safety or city services, personnel, or operational expenses (i.e. they can be used to build a building, but not used to pay for staffing or operating the building). Again, no general fund money is being used to build the music center. A separate fund will be created to operate the music center. The operational expenses are expected to be covered through a variety of projections to include: sponsorship's, naming rights, operating revenue, and the terms of the operations agreement. In our estimates, there is no projected loss when including all the revenues available generated by the music center. Again, this includes naming rights deal, sponsorship's, etc. The operating revenue is difficult to project at this time; however, it is proportioned based on the number of events held. In other words, the sales of tickets, concessions, etc. for the events held are projected to financially support the cost of operating the facility.
An independent feasibility validation study conducted by the nationally recognized Conventions Sports & Leisure details all projected revenue and economic development impacts, view the Feasibility Validation Study March 14, 2013 (PDF).