There are plenty of things we won’t miss about 2020 – toilet paper shortages, dire warnings of murder hornets, the presidential candidate debates, the Harry and Meghan Brexit. In all seriousness, it was a difficult year for many reasons. We hope that this post finds you and yours healthy and safe. We are humbled by the grit and grace communities throughout our great State of Georgia have shown in responding to COVID-19, dealing with economic disruptions, and building for the future even during current uncertainty. Local healthcare providers and local governments truly stood as the thousand points of light amid the darkness of 2020.
At Murray Barnes Finister, we are grateful to have had the opportunity to work on interesting and innovative projects this year. Below are some highlights.
ESG Bonds. ESG (Environmental, Social, Governance) bonds have steadily gained traction, although the criteria for identifying ESG bonds and disclosure practices continue to evolve. In 2020, MBF served as underwriter’s counsel on the issuance of “Social” bonds, the proceeds of which were used to refund bonds that financed the construction of certain student housing facilities, a student center and related amenities on the campus of Albany State University.
By serving students from lower income backgrounds and underserved communities, the facilities promote social development, sustainability and socioeconomic advancement and empowerment. The bonds were determined by an independent Second Party Opinion to conform with the four pillars of the International Capital Market Association’s Social Bond Principles (2020). MBF has prior experience in the issuance of “Green” bonds for the construction of LEED-certified higher education facilities.
Douglas Square Tax Allocation District. In 2019, MBF assisted a developer in obtaining tax incentives through the City of Douglas, Georgia using the tools provided by the Redevelopment Powers Law to develop and construct a retail shopping center providing much needed amenities to the community, including potentially the first national chain grocery store in the City and the first Chick-fil-A in the county, which is open and operating successfully.
MBF assistance included preparing documentation to establish the tax allocation district (the “Douglas Square TAD”), including a redevelopment plan for the Douglas Square TAD and a development agreement and working with Coffee County and the Coffee County School District to successfully obtain their consent to participate in the City’s Douglas Square TAD. In 2020, MBF assisted with an amendment to the Redevelopment Plan to clarify funding strategies for the first two phases of the Douglas Square commercial development and to add personal property taxes to the ad valorem tax increment pledged to the Douglas Square TAD. The Redevelopment Powers Law authorizes ad valorem tax revenues (and any other tax revenues so pledged, like personal property taxes and local option sales tax) generated by growth in property values in a tax allocation district resulting from redevelopment (the “Tax Increments”) to be segregated and used to fund redevelopment costs within the tax allocation district. Local governments may directly use Tax Increments to fund redevelopment costs or issue and secure bonds by Tax Increments. As redevelopment and private investment take place, Tax Increments increase providing additional capital for redevelopment (growth pays for growth). It is very satisfying to see the State’s redevelopment framework be instrumental in providing much needed services to a local community!
Water & Sewer Bonds. With so many people working from home this year, residential water and sewer use has made us all more aware than ever of the importance of our local utility systems. MBF represented the Douglasville-Douglas County Water & Sewer Authority in its public sale and issuance of over $80 million of water and sewerage revenue bonds for the purpose of raising the existing water elevation of the Dog River Reservoir to expand its water storage capacity. The bonds were sold in a competitive offering and the Authority was able to obtain excellent pricing.
The Douglasville-Douglas County Water & Sewer Authority wasn’t alone in taking advantage of the low interest rate environment – MBF assisted several cities/counties, including the City of Monroe and Rockdale County, with their new money and refunding bonds for their water and sewer systems during 2020 to prepare for future growth.
To close out the year, we headed out (literally) for a socially distanced holiday lunch to say goodbye to 2020. We donned our best (ugliest?) holiday sweaters.
