Erie County, N.Y., is giving Buffalo Bills fans the chance to become private investors in the construction of the team's new Highmark Stadium through so-called "Bills Bonds."
As reported by local CBS affiliate WIVB, Erie County has so far paid half of the $250 million it promised to contribute toward construction. The remaining $125 million of that obligation will be covered through AA-rated Bills Bonds, a rare chance for fans to buy municipal bonds before institutional investors can. That window of opportunity will open Sept. 23 and close Oct. 8.
Erie County, N.Y., is giving Buffalo Bills fans the chance to become private investors in the construction of the team's new Highmark Stadium through so-called "Bills Bonds."
As reported by local CBS affiliate WIVB, Erie County has so far paid half of the $250 million it promised to contribute toward construction. The remaining $125 million of that obligation will be covered through AA-rated Bills Bonds, a rare chance for fans to buy municipal bonds before institutional investors can. That window of opportunity will open Sept. 23 and close Oct. 8.
Fans would have to invest a minimum of $5,000, according to WIVB. The interest payments are exempt from federal tax and state tax, if the purchaser is a New York resident.
As spelled out at buybillsbonds.com, "Pursuant to the Stadium Development and Construction Coordinating Agreement (“SDCCA”) between the County, the Erie County Stadium Corporation (“ECSC”) and the Buffalo Bills (operating through Bills Stadium and Events Company, LLC) and the initial Memorandum of Understanding, the County is responsible for contributing $250.0 million for the new Buffalo Bills Stadium. $125.0 million of that contribution will be made from proceeds of the Series 2024B Bonds."
Erie County comptroller Kevin Hardwick said this is not an average investment opportunity.
“It’s a once-in-a-generation, maybe once-in-two-generations opportunity, and it’s the Buffalo Bills and it means something to people and I think it’s worth it,” Hardwick said.
“It’s just not like institutional investors in China or Japan or Texas that are buying our bonds, it’s individuals that live in our community and they get money back and they make interest off of it,” said Erie County executive Mark Poloncarz. “Not only you’re helping to contribute for the construction of the stadium, but you’re going to make some money off of it over the life of the bond and it’s something we’ve never offered before.”
WIVB reporter Patrick Ryan encouraged interested fans to talk over the benefits and risks with a financial professional.
Hardwick said it’s still up in the air whether it will take 25 or 30 years for the bonds to mature, and final interest rates will not be decided until after the end of the order period.
