To cover most of the estimated $59.1 million cost of construction, the Vancouver Public Facilities District and the Vancouver Downtown Redevelopment Authority are recommending the city sell $50 million in bonds to the Seattle-based investment bank Piper Jaffray, which would market them to individual investors.

The two boards chose Piper Jaffray's package over one from Bank of America in part because it consumes only $4.2 million of the city's $ 43.7 million in non-voted-approved debt capacity while the Bank of America package tied up nearly all of it.

The district would pay back bondholders over 25 years using project revenues and a 2% hotel-motel tax and a sales tax credit approved in 1999 by the state legislature. The interest rate is expected to be about 5%.

Before the bonds are sold and construction can begin, however, Renaissance Resources Group, the city's chosen developer, must sell naming rights for the events center for no less than $7.1 million. The bar was raised from an initially quoted figure of $5.8 million because Row Marketing, a company hired to find a buyer for the events center's naming rights, has told the city that naming rights for the structure are worth as much as $12 million.

Renaissance Resources also has committed to spend approximately $20 million to build a seven-story hotel and bring minor-league sports teams to Vancouver. Finally, the company must lease no less than 21 luxury suites at the events center for $42,000 a year. It reportedly has three sales to go, and is expected to make them. The suites are expected to generate a quarter of the arena's annual revenue.