Adviser: Hotel deal won’t hurt Jackson’s bond rating

A financial adviser reassured Jackson City Council members Monday that the proposed convention center hotel deal shouldn’t affect the city’s ability to issue bonds for other projects.

Under the proposed terms, the city would be asked to back some $90 million in bonds to finance the hotel. The Jackson Redevelopment Authority is insisting that the developer be on the hook to repay the full bond amount, but the city ultimately would have to cover them in full if the development goes south.

Council members Frank Bluntson and Charles Tillman at a Monday project briefing worried aloud that the bonds might impair the city’s borrowing capacity, or worse — lead to a downgrade of its Aa2 Moody’s credit rating.

Clarion Ledger
12/12/11