Westhoff, Cone & Holmstedt

Cinerama Dome Parking

Success Stories
CRALA Cinerama Dome Public Parking Project

Westhoff, Cone & Holmstedt was integral in structuring a financing that provided funding for the Cinerama Dome Public Parking facility in Hollywood, the first "project financing" undertaken by the Community Redevelopment Agency of the City of Los Angeles ("CRALA"). Largely due to Mark Holmstedt's efforts, the issue qualified for bond insurance from American Capital Access and an underlying investment grade rating from Standard & Poor's. Key features of the Cinerama Dome financing structure include:

Multiple revenue sources: Parking Revenues from the project, Developer's Fees, and Property Tax Increment.
Letter of Credit from the developer of an associated project to provide added security until parking revenues could pay debt service.
Two years of capitalized interest in order to eliminate debt service requirements until parking revenues had a chance to stabilize.
Final maturity of 32 years and back loading of the Reserve Fund associated with the bonds in order to reduce annual debt service as much as possible, thus contributing to the favorable coverage ratios.

While clearly distinct from many other types of public improvement projects, the Cinerama Dome financing is exemplary because it highlights the firm's ability to structure a complicated revenue bond around multiple revenue sources. Clients will benefit from the firm's revenue bond expertise and flexible, patient approach to designing the optimal debt structure that best suits the needs of the client and achieves the lowest possible borrowing cost.

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