NEW FINANCING PLAN FOR DC ARENA COULD SAVE MILLIONS

     Officials of DC's Redevelopment Land Agency board today will
announce an agreement on a new financing plan for the city's $56M
share of a new downtown sports arena, which backers say "could
save taxpayers $7 million off the cost of an earlier plan,"
according to Lorraine Woellert of the WASHINGTON TIMES.  Under
the new plan, the city will borrow the $56M from a coalition of
banks led by Crestar and NationsBank so they can begin work next
month.  While the city pays expenses from the loan, it will work
out "arrangements for a tax-exempt bond issue through Wall Street
underwriters."  Once the arena bonds are sold, the city will
repay the banks (WASHINGTON TIMES, 7/27).  Under the original
plan, the city would have had to pay $1.2M to the bank consortium
to set a "ceiling" on the interest rate.  With the new plan, the
banks waive requirement until October 31, allowing the city to
treat the money as a "temporary bridge loan" (Maryann Haggerty,
WASHINGTON POST, 7/27).