November 26, 2014 - City Council voted unanimously Tuesday night, Nov. 25, to approve a restructuring of a portion of the debt on the Knoxville Convention Center, potentially saving taxpayers more than $80,000 a year.
According to City Finance Director Jim York, the new arrangement with lender JP Morgan Chase will reduce the interest rates on two sets of bonds that helped finance the Convention Center.
The rates are pegged to a percentage of the monthly average of the London Interbank Offered Rate (LIBOR), so the exact savings over the life of the agreement are hard to calculate. But at current rates, the restructuring will save the City about $81,000 a year. Debt on the Convention Center is scheduled to be paid off in 2032.