In unusual move, Fifth + Broadway developer seeks $25M in tax-exempt bonds from MDHA
"This development is so important to Nashville for a number of reasons, including the fact that it's the future home of the National Museum of African American Music, so we wanted to at least consider the developer’s options," said MDHA's Jamie Berry.
But a municipal finance expert said the move may portend problems for the developer.
“It could be that the tax-exempt market is cheaper,” said Matt Fabian, a partner at Massachusetts-based Municipal Market Analytics. "But that may not be the whole story.
“The developer may be struggling," Fabian said. "You have to be concerned that the developer has tried and failed to get financing on their own. Either they can’t get it, or it’s coming in at a very high rate."