Half Million Earned: Century Signs Off On $28 Million Bond Issue

December 8, 2010

The Town of Century has voted to approve the issuance of up to $28 million in revenue bonds for an apartment complex for the elderly and Goodwill Industries, bringing the town’s earnings over a half million dollars from a partnership with Gulf Breeze.

The approval was granted by Century and Gulf Breeze as members of the Capital Trust Agency, an independent public body for the purpose of financing or otherwise accomplishing development programs. Century entered into the Capital Trust Agency with Gulf Breeze in 1999 with Century essentially serving as the “second signature”  for CTA.

With the issuance of the most recent round of bonds, Century will have received over a half million dollars in fees since the inception of CTA.

Century and Gulf Breeze Attorney Matt Dannheisser said that the CTA is structured in such a way to indemnify Century from any financial risk, whether it be from a company that defaults on repayment or any other legal liabilities.

The first bond issue will be to Goodwill Industries of Southwest Florida for up to $20 million for the acquisition and renovation of donation and distribution centers and educational, job training, career development and mentoring facilities at several locations in the Ft. Myers and Naples areas. Dannheisser said he expects the actual bond issuance to be about $12.8 million. With $20 million in bonds, Century would be paid $7,000, while at $12.8 million Century would receive a $4,480 fee.

The second bond issue will be for up to $8 million for the 68-unit Cypress Cathedral Apartments for the elderly in Winter Haven, Florida. Dannheisser said he expects the actual bond issuance to be about $5.4 million. The Town of Century will receive a fee of $2,500 to $2,800 for their second signature.

For serving as the second signature for CTA, Century is paid $350 per $1 million financed with a$2,500 minimum fee.

“Century is blessed to be part of this to receive these funds for nothing, so to speak,” Century Councilman Gary Riley said.

Comments

One Response to “Half Million Earned: Century Signs Off On $28 Million Bond Issue”

  1. Julie Moran on December 11th, 2010 12:48 am

    Why doesn’t Century use it’s bond power for itself instead of other communities?

Written by William Reynolds · Filed Under News