Over the past 19 years, the Town of Century has served an integral role in the tax-exempt financing of over $1.5 billion worth of projects, including affordable housing projects, airport facilities, hotel and convention developments promoting tourism, health care projects, and K-12 educational buildings.
This week, the Century Town Council approved another $460 million funding this week for “public purpose” projects in Florida that will net up to $161,000 in fees for the town.
It’s a role that has provided hundreds of thousands of dollars 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 three-quarters of a million dollars in fees since the inception of CTA.
Funding approved this week included:
Antares of Ormond Beach will a new senior living and memory care facility located in Ormond Beach. It will include 87 assisted living units and 37 memory care units. A bond issue of up to $35 million would mean a bond fee of $12,250 for Century. But it is more likely $30.675 million in bonds will be issued for fee of $10,850 for Century. The Rockledge Senior Housing Project Premium Edge, LLC, will include 55 independent living units, 58 assisted living units and 27 memory care units. A bond issue of up to $35 million would mean a bond fee of $12,250 for Century. But it is more likely $31.4 million in bonds will be issued for fee of $10,850 for Century. H-Bay Ministries of Texas plans to construct over 300 assisted living and memory care units in Hillsborough County, Lake County, Citrus County, Marion County and Niceville in Okaloosa County. A bond issue of up to $90 million would mean a bond fee of $31,500 for Century. But it is more likely $86.3 million in bonds will be issued for fee of $30,450 for Century. The University Bridge LLC Housing Project will be 886 rental units with 1,244 beds for students at Florida Atlantic University in Sweetwater. A bond issue of up to $300 million would mean a bond fee of $105,000 for Century. But it is more likely $210 million in bonds will be issued for fee of $73,500 for Century.