The Arizona Industrial Development Authority Board last week approved a lifeline, of sorts, to Bell Bank Park operator Legacy Cares as it tries to avoid defaulting on its $280M loan and keep the park operating.
Legacy Cares requested authorization to use its last $22M in cash reserves. The funds are in an account dedicated to making loan payments. With the Board’s approval, Legacy Cares may now use the money for operations, consultants and other expenses incurred as it tries to raise new funding.
Legacy is pursuing new re-funding bonds from the AIDA.
Loan payments were missed in October, and it was revealed the park has never made enough in monthly revenues to cover its loan payments. Approximately $30M in liens have been filed by contractors who have not been paid for their work on the facilities, and at least one has begun foreclosure actions.
Legacy officials and their representatives have blamed the park’s problems on a combination of supply chain and inflation-related difficulties impacting income and cash flow.
The project’s bondholders have extended forbearance on payments and are working with the park so it can continue operations and finalize debt restructuring plans.
Late last month, a Superior Court judge imposed a stay on contractor lien litigation until Jan. 31.
It is unknown how long the $22M would enable operations, but representatives say Bell Bank Park is currently in the busy season of the year, that many of its previous issues have been worked out and that park appears to be sustaining itself at the moment. (Source)