“There are no potential lenders at this time,” Hite said.

She and City Manager Joseph Scherer will be meeting with Davenport & Company, a brokerage company, to discuss the situation on October 29 where they plan to assess additional options that may include looking beyond banks.

Scherer said following the meeting he could not immediately explain why no banks have taken Davenport and the city up on looking at refinancing the debt on the venue.

He expects to have more definitive answers following the October 29 meeting.

While refinancing the theater debt would essentially mean the same $1.9 million annual payments on the venue, which is being leased to HSV Entertainment LLC, it would end a confusing variable interest rate included in the original 2007 bond issue to finance the building, Davenport and Company told council during a meeting this summer.

Davenport at the time explained refinancing the theater at what then was a 3.5 percent taxable private bank placement would also free up the theater to secure a loan.

That means rather than the building being used as a collateral, the collateral is assumed to be a pledge of sales tax revenue, tax incremental financing revenue and the debt service reserve fund.

Scherer said following this evening's meeting he has not talked to HSV representatives about what they intend to do when their lease expires on the building this coming August.