City basking in better bond rating

Erin Neff

Tuesday, May 23, 2000 | 12:37 p.m.

Rising interest rates and tanking markets won't mean as much to the city of Las Vegas when it sells bonds today.

Standard & Poor's last week assigned its AA- rating to the city's medium-term parking garage bonds series.

The increase from the city's A+ rating is exactly what officials wanted before selling $7.5 million in bonds to build a garage at Fourth Street and Lewis Avenue.

"It means lower interest costs to us," said Finance Director Mark Vincent. "Higher bond ratings mean lower rates on our debt."

The S&P news was the second financial boost to the city in less than a week.

On May 12 Moody's Investors Service also raised the city's bond rating.

"We're on fire," Mayor Oscar Goodman said. "A lot better than the Nasdaq," which hit its low point of the year on Monday.

The parking garage at Fourth and Lewis will be built under terms of a public-private partnership the city has with the Pauls Corp.

The city will build the 600-space parking garage, estimated to cost $7.5 million. Pauls will build a 111,495-square-foot class A office tower next to it.

Under terms of the city's contract with the developer, Pauls will lease 440 parking spaces from the city at market rate. The remaining 160 spaces will be retained by the city.

Construction is tentatively scheduled to begin this summer. The building and garage should take about 12 months to complete.

In a statement, S&P said the bond upgrade "reflect(s) the area's enduring and broadening appeal as one of the nation's premier tourism destinations and the city's continued adherence to strong financial policies."

The rating reflects a "moderate and manageable debt burden" and "strong financial performance coupled with strong reserve policies," S&P reported.

"If I had to use an analogy, we'd be the Lakers," Goodman said about the city's recent spate of good financial news. "And I'm the Shaq."