Following the recent recession, banks have tightened their lending requirements. This tightening has, in turn, limited the number of projects meeting LGC’s financial feasibility standards. Our staff, as well as the staff of the TRAC, has received requests from legislators, bond lawyers, and economic developers to loosen the feasibility standards regarding the types of institutions that can purchase the facility bonds in a private placement...
The new, new hotel plan is a curious thing. Where's the parking? How does the valuation of Elm Street Center compare to the old new plan? How much of the tax-advantaged funding ends up as cash in developers' pockets?
Another poser is this: what's really changed enough to get this thing approved?
The answer may lie less with the new, new plan itself, and more with the rules of the Local Government Commission. The passage above comes from this document (PDF), which suggests "a 'trial' implementation of these lowered credit requirements" for facilities projects; the suggestion was approved at a subsequent meeting.
UPDATE, per a question in the comments: If you open things up to buyers of junky debt, you can approve junky debt.