Three Ring Stu­dios bond OK’d

The Covington News - - FRONT PAGE - DAR­RYL WELCH dwelch@cov­

The New­ton County In­dus­trial De­vel­op­ment Au­thor­ity (NCIDA) voted to ap­prove a res­o­lu­tion to is­sue $106,700,000 in in­dus­trial rev­enue bonds for the Three Ring Stu­dios project at its April 26 meet­ing.

IDA mem­ber Frank Turner, Jr. told the mem­bers that the bond val­i­da­tion with the New­ton County Su­pe­rior Court would be filed April 27 for a hear­ing be­fore Judge John Ott, sched­uled for May 15 at 9:30 a.m.

“We are very ex­cited about the fu­ture of Three Ring Stu­dios in New­ton County,” Three Ring Stu­dios, LLC President Rahim Cha­ra­nia, said in a state­ment pro­vided by Turner. “This fa­cil­ity is an­tic­i­pated to em­ploy over 3,000 peo­ple when it is com­pleted and many of them will be New­ton County res­i­dents.

“So far, over 60 per­cent of the ven­dors that have worked on the site de­vel­op­ment are New­ton County busi­nesses. We in­tend to con­tinue that trend so we can build a stronger com­mu­nity for us all. The growth in jobs and busi­ness op­por­tu­ni­ties, to­gether with the fact that nei­ther the County nor the City will ever have any li­a­bil­ity for the pay­ment of the bonds, makes this a great op­por­tu­nity for the County and its res­i­dents.”

The Cov­ing­ton News asked Turner ad­di­tional ques­tions re­gard­ing the bond is­suance and the Three Ring Stu­dios project. The ques­tions and an­swers are be­low:

The News: How much ini­tial fi­nan­cial in­vest­ment is Three Ring

mak­ing in the project?

Turner: Three Ring Stu­dios has com­mit­ted to in­vest $106,700,000 within 10 years. The pace of in­vest­ment will be de­ter­mined by the stu­dio and the tim­ing will be largely driven by mar­ket de­mand. Our un­der­stand­ing is that the stu­dio in­tends to ini­tially con­struct 7 sound stages (at over 36,000 sq. feet each) along with of­fice and ware­house space as part of its ini­tial cam­pus.

You may have al­ready seen this but Three Ring’s web­site is http://three­r­ingstu­

The News: Will the IDA be ba­si­cally the land­lord for the stu­dio?

Turner: Yes, a lease will be in place for up to 10 years un­der which the NCIDA will

re­main the owner of the prop­erty and lease it to Three Ring Stu­dios, LLC. The NCIDA will not have any li­a­bil­ity or re­spon­si­bil­ity with re­spect to the op­er­a­tion or main­te­nance of the stu­dio.

The News: Should Three Ring no longer re­quire the stu­dio, what would happen to it?

Turner: It can be con­verted to other in­dus­trial uses al­lowed by zon­ing and re­stric­tive covenants but Three Ring Stu­dios, LLC would re­main bound to the $106,700,000 in­vest­ment com­mit­ment.

The News: How are the bonds paid back?

Turner: The ten­ant makes ren­tal pay­ments to the NCIDA equal to the debt ser­vice on the bonds. The News: Would the tax­pay­ers of New­ton County be re­spon­si­ble for the bonds? Turner: No, th­ese are tax- able in­dus­trial rev­enue bonds re­payable solely from the rent paid to the NCIDA by Three Ring Stu­dios, LLC. Nei­ther New­ton County or any gov­ern­men­tal en­tity is li­able for pay­ment of the bonds.

The an­nounce­ment of the in­ten­tion to is­sue the bonds is pub­lished in the Pub­lic No­tice sec­tion of to­day’s pa­per.

Other IDA bond is­suances

The New­ton County In­dus­trial De­vel­op­ment Au­thor­ity (NCIDA) has is­sued in­dus­trial rev­enue bonds for other projects over the last ten years. NCIDA mem­ber Frank Turner, Jr. pro­vided this list:

Ves­tar (now El­met Tech­nolo­gies), $30MM bond is­sue in 2012. As of April 2016, when the bonds were re­tired, 28 jobs cre­ated and $38.8MM of pri­vate funds in­vested in the com­mu­nity.

SKC phase 2, $50MM bond is­suance in 2010 and $60MM in 2014. As of March 2017, when the 2010 bonds were re­tired, 75 jobs cre­ated and $109.9MM of pri­vate funds in­vested in the com­mu­nity.

Miche­lin/Tread Tech­nolo­gies, $18MM bond is­suance in 2010. Bonds to be re­tired in 2021. Com­pany com­mit­ted to in­vest $18MM and re­tain 173 lo­cal jobs.

Mer­ry­vale As­sisted Liv­ing, $645,000 tax ex­empt bond is­suance in 2008 for ex­pan­sion of fa­cil­ity.

Mer­ry­vale As­sisted Liv­ing, $7.35MM tax ex­empt bond is- suance in 2007 for ac­qui­si­tion of fa­cil­ity.

Turner said all bonds are backed solely by the ren­tal pay­ments from the in­dus­try/ com­pa­nies to the NCIDA and there is no li­a­bil­ity for re­pay­ment on the part of the NCIDA, New­ton County or any other gov­ern­men­tal body.

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