KANSAS CITY, MO – Jackson County Executive Mike Sanders has announced that the County and AMBAC Assurance Corporation have reached a resolution regarding a key requirement that provides insurance to the 2006 bonds issued to fund improvements and construction at the Truman Sports Complex.
Jackson County has reached an agreement with AMBAC that resolves the issue and saves money. This was a necessary step after AMBAC suffered financial difficulties and lost their “AAA” credit rating, an original requirement of the County’s financing agreement with AMBAC.
“This is an attractive solution for all the parties involved. The challenge we faced was significant, but through hard work and creativity, we are now in a better financial position at the beginning of 2011 than we were in 2010,” said Sanders. “Jackson County looks forward to continuing our work with all of our partners on the Truman Sports Complex.”
The cost of the new agreement with AMBAC provides significant savings for Jackson County. The agreement will cost an additional $200,000 per year. Additionally, the County has refinanced the 1998 bonds on the Truman Sports Complex which will cover a portion of the additional debt by generating a savings of $300,000.
Had the County been forced to issue additional bonds, the cost would have been an estimated $550,000 annually.