Cities Save Hotels, Arenas From Bond Defaults After Pandemic Hit
Public Finance attorney Allison Dyer was cited in a Bloomberg article about cities offering financial support to civic projects that risk defaulting on bonds because of the decreased revenue as a result of the pandemic. In one example, a suburb of St. Louis transferred funds to a reserve account for an ice skating rink and concert venue that had to cancel all shows for 2020. Ms. Dyer said bond guarantees are essential not only for supporting existing venues but also for ensuring other projects such as expansions are completed.
"Without those, these projects do not get built," she explained.