RAD backs $25 million bond for Heinz Field expansion
The Allegheny Regional Asset District's board of directors voted on Wednesday to guarantee a $25 million bond that will help pay for Heinz Field improvements, ending more than a year of wrangling over who would pay for upgrades to the North Shore home of the Steelers.
“We are excited moving forward to have this project complete for the 2015 season,” Steelers spokesman Burt Lauten said.
The Steelers plan to spend $37.4 million on improvements that include installing 3,000 new seats in the stadium's south end and a new video scoreboard on the opposite end. The bond will cover $18 million of those expenses. Seat licensing fees and other team revenue will cover the rest.
Remaining bond money will be placed into a reserve fund for stadium improvements.
The Steelers will pay off the bond by 2030, using ticket sale revenue. No public money will be used. Heinz Field, which opened in 2001, was built for $281 million largely with public money.
The stadium's owner, the city-county Sports & Exhibition Authority, voted last month to issue the $25 million bond. The guarantee from RAD, a public agency with a dedicated source of tax revenue, will help it “to be favorably received in the market,” lowering borrowing costs, RAD Executive Director David Donahoe said.
RAD receives half of the proceeds from a 1 percent sales tax in Allegheny County.
The Steelers sued the SEA in late 2012 when a deal to finance the stadium improvements fell apart. Ultimately, out-of-court negotiations produced a deal.
Tom Fontaine is a staff writer for Trib Total Media. He can be reached at 412-320-7847 or firstname.lastname@example.org.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Foreign influx in Allegheny County at ‘tipping point’
- Steelers hope group of low-budget cornerbacks can deliver
- Elizabeth’s Riverfest is a family oriented event
- Pleasant Hills Night Out event marks 21 years
- Century Town Homes residents, Clairton officials frustrated
- Steelers notebook: Ben believes rookie WR Bryant can contribute
- Construction of $500M power plant in South Huntingdon stalled
- Steelers WR Wheaton wants to produce after injury-plagued rookie year
- McKeesport home invasion sends people to hospital
- Inside the ropes: Roethlisberger may have his big receiver
- Observers mixed on grid backup amid carbon rules, natural gas uncertainty