Developers who are redoing one of downtown Dallas' largest buildings have sold the promised city financial incentives for the project.
Commerce Statler Development LLC — the company created by developer Mehrdad Moayedi to redevelop the landmark hotel — sold the tax increment finance grant the city of Dallas provided for the huge downtown deal.
The Statler developer used the almost $46.5 million in city incentives that helped fund the project to back a unique $26.5 million public bond offering, filings with the Securities and Exchange Commission show.
Securities firm Jefferies LLC underwrote the public debt offering, which was made through the Wisconsin Public Finance Authority.
The sale of the tax-free bonds allowed the Statler developer to access funds that wouldn't be provided from the city's tax increment financing for years.
"This is an innovative funding tool that will allow Dallas taxpayers to realize immediate benefit of the TIF money the city of Dallas is investing,” Moayedi said in a statement. “It made sense to us to be able to utilize funds now to enhance the quality of the project.
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