The City of Hampton embarked on an exciting project in 2002 when it issued bonds to fund construction of the Hampton Roads Convention Center, as part of the vibrant Crossroads development initiative. This politically and economically important project has provided a tremendous benefit to the City, including generating significant value for its tax base. The Convention Center, which opened in 2005, is a world-class facility located at the heart of Hampton's beautiful waterfront Coliseum Central shopping and entertainment district.
The Convention Center, with 344,000 square feet of versatile exhibit space, has been instrumental in luring business and tourist traffic to Hampton Roads, benefiting not only the City but also the entire region. The facility's success should come as no surprise given that Hampton, the site of America's first continuous English-speaking settlement, has been attracting visitors for several hundred years now!
Hampton approached VRA to request funding from the VPFP to refinance a portion of the City's 2002 Convention Center Revenue Bonds. VRA was able to work with the City to refund $61,395,000 of the Bonds for a healthy net present value savings of $4.6 million, or 7.57% of the refunded bonds. In addition to the considerable debt service savings, the City also will gain additional flexibility by eliminating certain restrictive covenants, thereby allowing it to use half of the Operating Reserve to reduce principal and keep the remainder as an internal reserve fund.
VRA's partnership with the City of Hampton on the Hampton Roads Convention Center project is just another example of how VRA can serve the diverse needs of local governments throughout the Commonwealth.
- Net Present Value Savings: $4.6 million, or 7.57% of the refunded bonds