Types of Fixed-Rate Bond Funding
Tax Increment Financing (TIF)
As a public entity, SCPA can secure Fixed-Rate Tax Increment Financing (TIF) for qualifying projects, resulting in more favorable financing terms.
Qualifying Public Works
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Benefits of TIF
- Part or all of project funded without tax-rate increase
- GO bond issue reduced or avoided
- More favorable financing terms 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 fixed-rate bond funding as well as other approaches.
Benefits of SCPA involvement in community development
- Preserve municipality borrowing capacity
- Reduce or eliminate need for tax hikes
- Seize investment opportunities with timely closing
Case Studies
Capital Leases
Some fixed-rate 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 fixed-rate 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
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Fixed-Rate Overview Tax-Increment Financing Community Development Capital Leases Operating Leases Back to Financing Overview
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