Township of Twinsburg
Twinsburg, Ohio
Twinsburg Township needed to expand and update their municipal services facilities. The Township planned to acquire and renovate an existing building. Administrative, service, and zoning operations are conducted from the building. It also houses a command center for the Summit County Sheriff.
The Challenge:
Finance project without general obligation bond issue.
Finance purely public project without tax increases
Benefits of Working with SCPA
The SCPA has extensive experience with capital leases.
SCPA fixed rate bonds eliminated need for GO bonds or tax increases.
Project Cost: $6.24 million
Source Funds:
$5,590,000 - SCPA Bonds
$550,000 - Equity
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$6,140,000 - Total
Interest Rate:
SCPA Fixed Rate Bonds 5.125%
The SCPA bought the project assets using the proceeds from the bond sale. The bonds are secured by a first mortgage and assignment of rents and leases on the Townships administrative building & services center. The SCPA structured a 20-year capital lease with the Township. The Township has full development authority over the assets and can claim depreciation for tax purposes. At the end of the lease term the Township can buy the project for $1.00. Lease payments are subject to annual appropriation by the Township.
