Commissioners save taxpayers $9M

TOLEDO, Ohio - In a time of dwindling resources, the Lucas County Commissioners board said it has made a significant reduction in debt on Fifth Third Field.

Given the tremendous success of the ballpark since its opening in 2002, the commissioners recently refinanced the outstanding debt on the facility.

Thanks to $4.3 million of additional rent paid to Lucas County by the Toledo Mud Hens, the commissioners were able to shorten the repayment period on the ballpark by five years, from 2011-16.

"This refinancing is proof that we’ve made the right fiscal decisions over the last two years, protecting our rainy day fund and saving millions of dollars as a result," said Commissioner Pete Gerken.

In addition, because of the county’s solid budget management practices, the debt was refinanced at roughly 3-percent, half of the average interest rate of 6-percent in 2001.

"Thanks to our tremendous Mud Hens fans and our prudent fiscal management, Fifth Third Field is now five years closer to being fully paid off," said Commissioner Tina Skeldon Wozniak. "In a tough economy, this public-private partnership is truly paying dividends for county taxpayers."

As a result, taxpayers will see a gross savings of over $9 million and a net present value savings of $2.8 million. These savings will be realized in 2016 when the refinanced debt on the ballpark is fully paid off, allowing the commissioners to prioritize those dollars at that time.

"Ten years ago, when the downtown baseball stadium project began, there were many skeptics," said Commissioner Konop. "Thanks to visionary leadership at that time, today Fifth Third Field is the crown jewel of downtown Toledo, and is part of the fabric of Northwest Ohio. The bottom line doesn't lie. Fifth Third Field is a success. It is my hope that the savings from the refinancing can be reinvested in public safety, rehiring laid off Sheriff's deputies, and putting our community back to work through education initiatives."

The commissioners were also pleased to see their credit ratings affirmed by the major ratings agencies, especially as all municipal debt is currently undergoing rigorous scrutiny by potential buyers. According to Standard and Poor’s, "the county’s firm commitment to maintaining reserves" consistent with the county’s rainy day fund policy helped achieve the positive rating.

Standard & Poor rated the Fifth Third Field refinancing debt at A+, while Moody’s Investor Service rated the debt at Aa3.