New USOC H.Q. Still Waiting On Money: City Waits For Low Interest Rate

By Josh Simeone J.Simeone@krdo.com

COLORADO SPRINGS – More money from the city’s budget may be needed to pay interest rates in the construction of the new U.S.O.C. building.

Last year, Colorado Springs City Council members approved a $53 million package to keep the United States Olympic Training Center in the area for at least another 25 years.

City council still has not borrowed the money – members tell NEWSCHANNEL 13 the city is waiting to find the lowest interest rates. A low interest rate saves the city thousands, as interest on the money borrowed comes out of the city’s budget. However, high interest rates mean the city spends more from the budget than originally planned.

In 2008, the city set aside around $1 million to pay interest – city council members say it was a conservative estimate as to how high interest rates would be.

This year, city council says that money was spent to help reduce the 2009 budget shortfall.

City leaders are trying to get the most bang for their buck and save you money. However, as the city waits longer, it risks paying higher interest.

“It’s difficult to know exactly when or how the city is going to be able to float these bonds,” former city council member John Hazlehurst says.

Hazlehurst says it’s to act now because the city is running out of time.

The city was supposed to have made the deal in November of last year. The city is expected to borrow the money within the next four weeks – it’s unclear just how high or low interest rates will be at that time.

Many wonder if it will be worth it.

The U.S.O.C. in Colorado Springs is expected to generate millions of dollars in revenue into the local economy – not to mention the opportunity to recruit new companies.

Hazlehurst says the possibility of paying more in interest is worth it for the city and the community. “It’s one of the major contributors to our city being such a great place to live.”