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After Approving $2 Billion In Projects For Bond Agency, Century Wants A Larger Fee
March 8, 2019
Over the past 20 years, the Town of Century has served an integral role in the tax-exempt financing about $2 billion worth of projects, including affordable housing projects, airport facilities, hotel and convention developments promoting tourism, health care projects, and K-12 educational buildings.
It’s a role that has provided significant income for Century.
On the surface it might seem unlikely that Century, the poorest small city in the state, could play a part in the financing of dozens of multi-million projects including the Community Maritime Park in Pensacola, $439 million in hotel and convention centers for the Seminole Nation, airport cargo terminals, schools and apartment complexes.
The approvals were 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, certifying that the projects meet a public purpose under IRS rules and regulations.
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, according to Michael Stebbins, CTA attorney. The funds used for the bonds are from the CTA’s funds, not from Century or Gulf Breeze.
Century has received over $1 million dollars in fees since signing on to CTA.
This week, Mayor Henry Hawkins said Century should have received a fee increase at some point during the past two decades, and he wants more for the town.
Since the inception of the agreement, Century has been paid $350 after closing for each million dollars of bonds issued, with a minimum of $2,500.
After discussions with Hawkins, the CTA has proposed:
- Increasing the minimum fee to $3,500.
- $400 per million for transactions of $50 million or less, a 14 percent increase
- For transactions exceeding $50 million – $400 per million up to $50 million, then $325 for each additional million
During the last three fiscal years, Century received $323,873.75 in fees from CTA. Under the proposed new fee schedule, the town would have received $351,711.80, which would have been a $27,838.05 or 5.9 percent increase.
“I am hopeful this more than fulfills the expectations of the Century officials in realizing an increase in income for the town. Far more important to realizing greater income than some percentage fee increase is the need to maintain the market reputation enjoyed by CTA for being responsive,” CTA Executive Director Ed Gray said in a February 22 email to Hawkins.
The town council was set to hear two CTA bond proposals at their February 18 meeting for up to $25.5 million for charter schools in Holleywood and St. Cloud, FL. Those proposals were pulled from the council’s agenda without explanation and not heard.
But they were addressed in Gray’s February 22 emailed correspondence to Hawkins.
“I urge you and the Town Council to immediately reinstate for action the financing now submitted for the council agenda. With this proposal now before you, I am demonstrating my good intentions to work positively with you. Removing the item previously scheduled for consideration isn’t the type action one would expect from its partner and can be damaging to CTA’s reputation. Your help in addressing this situation will be appreciated,” Gray said.
The council did sign off on both bond issues at their March 4 meeting, during which the new fee schedule was proposed. Council members expressed concern that they had not been provided a copy of Gray’s letter letter in a time fashion because it had been sent a week and a half earlier by the mayor.
Pictured above: Capital Trust Agency attorney Michael Stebbins (far left) and Denis McKinnon III, CTA senior analyst and compliance officer (second from left), address the Century Town Council. NorthEscambia.com photo, click to enlarge.
Comments
11 Responses to “After Approving $2 Billion In Projects For Bond Agency, Century Wants A Larger Fee”
When they ask the State of Florida for assistance they need to make them aware of this problem also.
http://www.northescambia.com/2018/02/2century-tornado-two-years-later-county-town-cant-afford-to-clean-up-damaged-sawmill
HOW CAN THEY CONTINUE TO IGNORE THIS?
Chickens are coming home to roost.
The whole crew needs replacing how does the mayor go from a vehicle that was always breaking down and mostly walking go to a 50-60 thousand dollar truck,and the counsel needs to be ousred as well they all dirty
Have long time wondered if the Town of Century wasn’t just the concrete lid covering years and years of “mess” going into and through the waste lines and out into the hands of the downtown planners and movers and shakers.
Thinking this business is a conduit of TAXPAYER Monies to fund special interest groups under the cover of Public Interest.
Something in all of this stinks to high Heaven and maybe a good purging will reveal who is actually pulling the strings.
Sad times and much going on under the surface.
WOW, NOW THERE A NEW PROGRAM WILL SOON BEING AIR ON CENTURY CHANNEL. ” WHO ” WONT TO THE NEXT MILLIONAIRE OF CENTURY STAY TURN IN !!!!!!!!!
So a town that cannot manage itself financially, is a accused of gross mismanagement, has borrowed illegally, made loans to now council members that don’t appear on the books for a decade or more, makes a $300 month payment for 750 years to pay back money used illegally, does not have the money in the bank to cover payroll and is generally failing –all by a grand jury report — decides for the Capital Trust Agency that a $250+ million bond issue is legal and in the public interest? If I were a capital trust agency client I would run away fast before the IRS got me.
Management of the money aside……
I don’t see this as bad for Century.
The smile on the Mayors face in that picture says it all.
Please dont give Century any more money to make disapear.
In review of Century Mayor and City Council practices the Grand Jury stated”The current administration and Council have failed to prepare and approve a budget that is realistic or financially solvent” These people are voting members of “Capital Trust Agency, an independent public body for the purpose of financing or otherwise accomplishing development programs”. This is a clear conflict of interest perpetrated by a dysfunctional body of PROVEN incompetence. But they get away with it No accountability or liability! Their role ” certifying that the projects meet a public purpose under IRS rules and regulations.” The same rules they themselves fail to follow or understand. They should immediately be removed from the CTA Board. Or CTA will risk their reputation ………
Century isn’t in a position of power and how could it possibly demand and increase. And if anything, those seeking bond should demand less of a fee due to the poor position of the town, which might not exist much longer. LOL!!!
Does Century report this income on their audits?
How is it used for the town? Did the Grand Jury look at this, or will the state auditors check into this also? Or will the council vote to NOT have an audit?
The Town attorney was the Gulf Breeze mayor and they sent in Buzz Eddy to tell them how to run the town.
Isn’t the State auditing Gulf Breeze also?
TOC you need to know if you don’t vote to have the state conduct the operational forensic audit, the citizens are going over your head to get it.
The citizens of the town, county and state deserve to know what is going on and whether the entity is viable or not.
The tax payers money is our money. Many eyes are watching what happens Monday March 18, 2019