It comes as no surprise that the Sports and Exhibition Authority (SEA) would ask the RAD board to guarantee the bond it plans to issue for Heinz Field expansion. The RAD board should refuse.
The new stadiums already receive considerable RAD support in the form of repayment of bonds issued for their original construction. The SEA should not be asking for further assistance from RAD. Instead, it needs to look at is own sources of revenues and pledge those to cover the unlikely event that Steelers ticket surcharges are inadequate to pay bond interest and principal. If it needs to divert funds intended for other capital improvements at Heinz Field to cover bond service, then that is what it should do. The Steelers can make good their part of this new financing with increases in other contributions if it becomes necessary.
Having already diverted RAD funds for mass transit use, it is time for the RAD board to say we cannot become the go-to financial partner for organizations needing money outside out RAD’s stated purposes. Guaranteeing loans for other entities is not something RAD should be involved in. It is a door they should not open.
