Chesterfield’s SportsQuest gets $15 million more in federal stimulus bonds

SportsQuest -- the 250-acre, $250 million sports mega-complex slated for groundbreaking in weeks in Chesterfield County -- has gotten another significant financial boost courtesy of federal stimulus funds.

The county today announced plans to allocate an additional $15 million in recovery-zone bonds to the project through American Recovery and Reinvestment Act of 2009.

SportsQuest received its first $15 million allocation in December as the only private economic development project in the county that qualified.

Earlier this month, unused bonds from across the state went into a pool. Then-Gov. Timothy M. Kaine last week allocated the additional money to Chesterfield for SportsQuest.

"He gave me a parting gift," said SportsQuest CEO Steve Burton.

The federally subsidized recovery-zone borrowing program establishes a financing mechanism to lower the cost of borrowing for economic development projects, providing a 45 percent rebate on the interest from the U.S. Treasury. SportsQuest, not the county, will carry the debt.

Burton called the allocation a "huge step forward for the campus development," saying the bonds will be used to fund the field house, aquatics center, fitness center and the family entertainment center.

He hopes work on that portion of the project can begin by fall, while construction on the eastern portion -- including the 100-acre tournament complex -- is slated to start in the next few weeks pending site plan approval from the county.

"I think our whole board recognizes the economic development opportunity represented by SportsQuest," said Board of Supervisors Chairman Daniel A. Gecker. "For us to get a first-class venue for sporting events to run tournaments, et cetera, would be a great thing for the county. We are focused right now on sports tourism, and this complements that quite well."

While the county has not made financial commitments to the project, there is talk of coordinating field use and improvements in the area with the county's parks and recreation department for tournament use.

The recovery-zone bonds were specifically earmarked for shovel-ready projects that would create revenue and jobs. Burton said SportsQuest would generate immediate construction work and ultimately bring 500 jobs to the county.

"The fact that we had the spunk, excitement, enthusiasm and vision to keep this project going while everyone else in the world was shutting down development was what gave us this opportunity," he said.

Burton doesn't foresee problems selling the bonds and plans to issue them in the second quarter as high yield, or "junk bonds."

"Everyone is looking to the junk bond market now because you can get better returns," he said. "We won't need a letter of credit behind our bonds and that's allowing us faster access to more capital."

Contact Wesley P. Hester at (804) 649-6976 or .