09 September 2005
SB 4 dies on the vine
The legislature ended its short session last night without SB 4 coming to a vote, which means any proponents will have to try again next year. As I noted earlier, the bill went through some major changes in terms of the bond approval mechanism, effectively neutering it. This effectively keeps the status quo, where groups looking for tax-free bond financing will have to go strictly through municipalities and joint powers authorities, and if public sources are required such as taxes, votes will be required.
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Not really sure. None of the mainstream media picked up on the amendments. I had speculated when it happened that it might die in the process, which is pretty much what happened.
The original bill would've helped Wolff quite a bit. The amended bill wouldn't have changed to the de facto methods of getting funding, at least not much. The I-Bank even said so. I imagine that if the original bill were introduced again, it would meet the same fate.
How this affects Wolff is unknown because he hasn't said one thing about funding. If he were to pay for the project using proceeds from the sales of condos and commercial leases, then he doesn't need the bill. The JPA can get bonds issued with those future proceeds as "security." If he were to go somewhere else and use a different financing structure, that's a different story.
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