Bonds timing considered for Mizzou arena

JEFFERSON CITY, Mo. -- State-backed bonds could be on sale before the end of this year to help finance a new $75 million basketball arena for the Tigers at the University of Missouri at Columbia.

Although the state does not intend to begin repaying the bonds until the 2005 fiscal year, the university has asked the state to issue bonds now as a condition for a private donor to follow through on a $25 million pledge toward the arena.

Issuing the bonds sooner, rather than later, may also be to the state's advantage, Office of Administration Commissioner Mike Hartmann said Tuesday.

"Right now, bonds are at historic lows in terms of the cost to the state," Hartmann said. "From a financial perspective, locking in a low rate ... would make some sense."

A legislative resolution signed earlier this year by Gov. Bob Holden authorizes the state to issue up to $35 million in bonds for the 16,000-seat arena. The $15 million not covered by the state or big donor would be paid by the university or other contributors.

Hartmann said private donations and university funds would pay for the initial planning and construction costs, allowing the state to stick to its plans of appropriating money no sooner than the 2005 fiscal year.