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.