Types of Conduit Financing

Tax-Increment Financing (TIF)

As a public entity, SCPA can secure tax-increment financing for qualifying projects, resulting in more favorable financing terms.

Qualifying Public Works

  • Streets
  • Parking
  • Water
  • Sewer
  • Land Acquisition
  • Lighting
  • Utilities

Benefits of TIF

  • Low-cost financing of infrastructure improvements
  • More favorable financing based on projected TIF revenues
  • Infrastructure improvements drive long-term economic development
  • Early project start with swift closing and interim financing
  • No sales tax on hard construction costs

Case Studies


Community Development

SCPA supports the efforts of municipalities to improve quality of life in their communities. The Port Authority can aid community development projects through conduit funding as well as other approaches.

Benefits of SCPA involvement in community development

  • Lower interest rates than private debt
  • Public-private partnership to attract donors and investors
  • Timely closing to capture investment opportunities

Case Studies

  • Lake Anna YMCA Community Center

Capital Leases

Some projects may benefit from leasing rather than buying property or equipment. SCPA can take ownership of the property and structure a capital lease for the borrower.

Lessee Benefits of Capital Leasing

  • Full authority to develop the property
  • Option to take ownership at the end of the lease
  • Ability to take depreciation on the property
  • Flexibility to adapt to changing needs

Case Studies


Operating Leases

Some projects may benefit from leasing rather than buying property or equipment. SCPA can take ownership of the property and structure an operating lease for the borrower.

Lessee Benefits of Operational Leasing

  • Flexibility to adapt to changing needs
  • Off-balance-sheet accounting
  • Small upfront costs

Case Studies


Synthetic Leases

Some projects may benefit from leasing rather than buying property or equipment. SCPA can take ownership of the property and structure a synthetic lease for the borrower.

Lessee Benefits of Synthetic Leasing

  • Interest only payments
  • Flexibility to adapt to changing needs
  • Up to 100% financing
  • Ability to take depreciation on the property
  • Sales tax exemption on construction-related hard costs
  • Share in project appreciation at end of lease
  • Enhanced cash flow with rent comprising only interest payments
  • Capital and debt management flexibility with fixed or floating rates

Case Studies

IN THIS SECTION:

Conduit Overview Tax-Increment Financing Community Development Capital Leases Operating Leases Synthetic Leases Back to Financing Overview

ASC Industries