On September 30, 2010, Gray & Pannell gave the approving opinion as bond counsel on the issuance of $41,455,000 of water and sewer refunding revenue bonds issued by the Camden County Public Service Authority for the benefit of the City of St. Marys, Georgia. Payment of the bonds is secured by an intergovernmental contract between the Authority and the City.  The bonds were issued to refund outstanding variable rate demand revenue bonds issued in 2007 to fund expansions and improvements to the water and sewer system of the City, prepay outstanding Georgia Environmental Facilities Authority loans and to pay a swap termination fee relating to the Series 2007 bonds.  The refunding resulted in debt service savings to the City over the life of the bonds. 

On July 22, 2010, Gray & Pannell LLP gave the approving opinion as bond counsel on the first Qualified School Construction Bond (QSCB) issued in the State of Georgia since the passage of the Hiring Incentives to Restore Employment (HIRE) Act by Congress.  The QSCB program, originally created by Congress in 2009 as a part of the American Recovery and Reinvestment Act (ARRA), was modified in March of 2010 to allow issuers of QSCBs to receive a direct subsidy payment in lieu of the bonds being issued as a tax credit bonds.  The QSCB bond was issued by the South Georgia Governmental Services Authority on behalf of the City of Thomasville School System and is secured by an intergovernmental contract.  Because the bond was priced equal to the Qualified Tax Credit Bond Rate established by the U.S. Treasury, the net yield to the School System will be zero percent (0%) over the life of the bond.  Please contact our office for more information about this unique tax credit program and how other Georgia school districts may be eligible to apply for QSCB allocations.

On April 29, 2010, the Dalton Building Authority issued $5,600,000 of Recovery Zone Economic Development Bonds (RZEDBs) on behalf of the City of Dalton, Georgia for the construction of a new community center and renovations to recreation facilities in the City.  Gray & Pannell acted as bond counsel to the Authority on the issue.  The RZEDB allocation was made to Whitfield County as a part of the American Recovery and Reinvestment Act of 2009 passed by Congress in February of 2009.  With the assistance of Gray & Pannell, Whitfield County transferred a portion of its RZEDB allocation to the Authority and the City to finance the City’s projects at a much lower interest rate than traditional tax-exempt bonds.

One March 25, 2010, Gray & Pannell acted as bond counsel to the Brunswick-Glynn County Joint Water and Sewer Commission in the issuance of $13,000,000 of refunding revenue bonds.  The bonds were issued for the purpose of constructing water and sewer improvements in Glynn County in the vicinity of Exit 29 and Interstate 95.  The bonds were issued as short term obligations to refund existing debt and in anticipation of the acquisition of the water and sewer systems of Glynn County and the City of Brunswick by the Commission.  It is anticipated that the upon the acquisition of the water and sewer systems of the County and City by the Commission in June of 2010, the $13,000,000 revenue bonds will be redeemed along with all other obligations of the County and City relating to their respective water and sewer systems.  Gray & Pannell has been working with the County, City, and Commission since early 2008 on the acquisition of the water and sewer systems by the Joint Water and Sewer Commission.

On January 28, 2010, Gray & Pannell gave the approving opinion as bond counsel on the issuance of $96,590,000 of bonds for the City of Columbus, Georgia.  The bonds were issued in three series through the Columbus Building Authority and were issued in the form of traditional tax-exempt bonds, Build America Bonds (BABs), and as Recovery Zone Economic Development Bonds (RZEDBs).  The over $95 million in proceeds will be used by Columbus for various capital improvement projects including road improvements, stormwater infrastructure, a city service center and parking deck, a natatorium swimming facility, a recycling center, and an ice rink.

On December 2, 2009, Bulloch County School District issued $23,525,000 of general obligation sales tax bonds.  Gray & Pannell served as bond counsel on the issue.  The bonds were authorized by the voters in Bulloch County upon the renewal of the special local optional sales and use tax for educational purposes (“ESPLOST”).  Proceeds will be used by the School District for new facilites and improvements to existing facilities of the school system.  Gray & Pannell has worked with Bulloch County Schools on the issuance of seven (7) seperate bond issues since 1995 for capital improvements for its school facilities.

On November 10, 2009, Gray & Pannell LLP acted as bond counsel to the City of West Point, Georgia on the issuance of $9,463,000 of water and sewer bonds.  The issue was delivered and purchased by Rural Development, United States Department of Agriculture (USDA).  Proceeds of the bonds will be used to make water and sewer system upgrades throughout the City in anticipation of future growth from the Kia Automotive facility recently constructed in the County.

On September 17, 2009, Gray & Pannell served as bond counsel to the City of Savannah on the issuance of four seperate bond issues, including the first Recovery Zone Economic Development Bonds issued in the State of Georgia.  The City of Savannah issued two series of water and sewer bonds, $12,725,000 of refunding revenue bonds and $16,175,000 of improvement revenue bonds issued as Taxable Build America Bonds.  Also issued for the City of Savannah through the Downtown Savannah Authority were two series of stormwater capital improvement revenue bonds.  $16,845,000 were issued as refunding bonds and $20,155,000 were issued as Taxable Build America Bonds.  A portion of the Build America Bonds were also designated as Recovery Zone Economic Development Bonds (RZEDBs), the first to be issued in the State of Georgia since their creation by Congress in the American Recovery and Reinvestment Act of 2009 (the “Stimulus Act”).  Build America Bonds were created by the Stimulus Act and are subsidy bonds where the federal government subsidizes 35% of the interest payable on the bonds.  Recovery Zone Economic Development Bonds were also a creature of the Stimulus Act and qualify for a 45% interest subsidy.

The Meriwether County Water and Sewerage Authority issued $15,345,000 of its water and sewerage revenue bonds on July 9, 2009. Gray & Pannell LLP acted as bond counsel to the Authority. The revenue bonds were issued to help finance a new water and sewerage system for the Authority. Because of growth in the north end of Meriwether County near I-85 and the Kia Automotive Plant, the County has taken a proactive approach to accomodate this growth and expand and improve water and sewerage service for all of the County. Gray & Pannell LLP began working with Meriwether County and the Authority in mid-2008 to structure and deliver the issue and was proud to be hired as bond counsel to the Authority for its first ever bond issue.

On June 30, 2009, Gray & Pannell LLP acted as bond counsel to Bibb County on the closing of a $11,500,000 refunding and improvement revenue bond through the Macon-Bibb County Industrial Authority. The financing was unique in that the Authority issued variable rate bonds backed by the self liquidity of Bibb County instead of a financial institution’s letter of credit.
On June 30, 2009, Gray & Pannell LLP also acted as bond counsel to the Macon Water Authority on the closing of $17,995,000 of refunding revenue bonds. As with the County financing the debt was issued as variable rate bonds but backed by the self-liquidity of the Water Authority.
This type of self-liquidity structure is more common with large issuers such as private universities and infrastructure banks, but uncommon for a governmental entity such as the County or Water Authority. If you would like more information about details of this financing option, please contact Jim Pannell or Jon Pannell.