All future real estate tax revenue within the district, either from new construction or natural assessment growth, would go to pay down the project’s bonds. A smaller zone would mean less city real estate tax revenue would be obligated to paying off debt for the project. Those dollars would otherwise flow to the city’s general fund, used to pay for basic services like schools and road maintenance.

Over the course of 30 years, the city would owe bondholders $600 million for the arena. NH District Corp. has said it would privately source $900 million for the first phase of construction.

The size of the tax increment financing district, or TIF, has become a major sticking point for some on the City Council. A council-appointed citizen commission that reviewed the plan suggested reducing the district’s size in a report issued last month.

Jeff Kelley, an NH District Corp. spokesman, said the development group viewed Bourne’s bill as a “viable” option for addressing concerns about the size of the TIF zone. New financial projections would be provided to the council that reflected how Bourne’s bill would affect the project’s financing, he added.