Discover

“The greatest thing about Farmers Branch is the people. They provide the heart of the city and foster that small town atmosphere even in the midst of the bustling metro area. People can have their cake and eat it, too - small town feel with big city amenities. Farmers Branch rocks!…”

– Sam Thomas, frequent Farmers Branch visitor
Search

StarCenter refi to save interest dollars

August 17, 2011

Photo for Stars players at Hockey 101 Class 4.jpg

FARMERS BRANCH ~ Seizing an opportunity to save more than $1.6 million in interest, the Farmers Branch City Council on Tuesday authorized the refinance of the 2004 combination bonds originally used to build the Dr Pepper StarCenter.

The action issues up to $7.25 million in refinance bonds that effectively lowers the interest rate to an average expected 4.22 percent. Current rates on the 2004 bonds ranges from 4.95 to 5.8 percent. After deducting issuance costs, the City’s total gross interest savings could total more than $1.6 million.

Farmers Branch Finance Director Charles Cox said rental income of $660,000 per year from the Dallas Stars, on the Dr Pepper StarCenter lease, pays the entire debt service on the bonds. The refinanced bonds will not only save in interest payments but reduce the maturity on the certificates from 2029 to 2027.

The Dr Pepper StarCenter in Farmers Branch opened to the public in November, 2004 and plays host to more than 750,000 visitors per year, due in part to its central location in the Metroplex and easy accessibility just south of the intersection of Stemmons Freeway and Valley View Lane.