Century Signs Off On $742 Million Bond Issue; Town Could Earn $260K

November 21, 2013

The town of Century has approved 14 separate financing proposals totaling nearly three-quarters of a billion dollars, potentially earning about $260,000 for the town as a member of 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.

To date — before any fees are received from the latest round of bonds — Century has earned $605,223.47 since the inception of CTA.

Within the 14 financing approvals granted this week, there are 26 separate housing projects across the state in cities that include St. Augustine, Ft. Lauderdale, Melbourne, New Smyrna Beach and Jacksonsville.  The projects include a total of 2,668 housing units for which $742,500,000 worth of bonds were authorized. If all of the bonds were to to be issued, the fees for the Town of Century would be $259,925.

But Matt Dannheisser, attorney for CTA, Century and Gulf Breeze, said it is unlikely that all of the bonds would be issued.

“It is too early in the process to have a good idea of the exact financial needs for each project.  Remember, that all but one are contingent upon receiving private activity bond allocations,” Dannheisser said.

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.  None of the bond funds actually originate from the coffers of Century or Gulf Breeze.

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

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Written by William Reynolds · Filed Under News