This is Dan McRae’s White Paper on financing projects (“Financing Projects with Acronyms”. ) It informs concerning the nature of revenue bonds, what bodies may issue them and when they are tax-exempt, who the participants are and how much time a bond issue takes and what it costs. The White Paper also covers special types of bonds such as PILOT bonds. It is rare these days that a project is financed with just one kind of equity and just one kind of debt. So, this White Paper explains what a capital stack is and what the sources are other than revenue bonds for obtaining all of the capital that the project needs. Dan uses this White Paper to teach financing to groups as various as investment bankers and commercial bankers, bond issuers and borrowers, real estate developers and corporate users, and elected and appointed officials.
As of August 14, 2015, seven non-elected members of a component of a private sector, nonprofit organization, the Governmental Accounting Standards Board (“GASB”), unilaterally took a controversial action that will force changes in economic development across the nation.
GASB as of that date adopted its Statement No. 77- Tax Abatement Disclosures (the “Abatement Statement”). The Abatement Statement is effective for reporting periods beginning after December 15, 2015, but GASB encourages earlier application of it.
This White Paper examines the Abatement Statement in detail and compares its requirements to actual practices in economic development. The different abatement mechanisms that are used in Georgia and in other states are very relevant to the disclosure that has to be made, and this White Paper addresses that issue, as well.
For now, a heavy burden of interpretation rests on state and local public bodies. We can expect a great deal of activity on their part as they work to find out what is required. This White Paper “fills the gap” with its presentation on the Abatement Statement as it is now understood.
- Sidebar Agenda
- The Economic Development Community in Georgia
- Development Authorities and Their Cousins (PFAs, URAs, and ETCs), Part 1
- Development Authorities and Their Cousins (PFAs, URAs, and ETCs), Part 2
- A House United: Unified Economic Development
- Financing Projects with Acronyms: IDBs, NMTC, EB-5 …and More!, Part 1
- Financing Projects with Acronyms: IDBs, NMTC, EB-5 …and More!, Part 2
- Financing Projects with Acronyms: IDBs, NMTC, EB-5 …and More!, Part 3
- Ethics, Liabilities, Conflict of Interest
- NMTC Carver State Bank Presentation, Robert James
- Unified Economic Development Export Highway Presentation, Lanier Boatright
- Financing Projects With Acronyms, Dan McRae
- EB-5 Program, Gate Industries
- Development Authorities Open Meetings, Ethics, Kevin Brown
- Development Authorities: Their Pecking Order, Their Cousins, and Their Projects, Dan McRae