The Launch Bond™ – Astro Land (Starwood Land)
We are pleased to announce the successful closing of a 5.5%, non-recourse, tax exempt Municipal Utility District (“MUD”) Forward Funding Special Revenue Bond (“Launch Bond”).
The Launch Bond™ is collateralized by the assignment of future MUD bond proceeds from ten (10) MUDs contained within four (4) master planned communities. Once the Bond is retired, net MUD proceeds flow back to the developer.
The Launch Bond™ proceeds will be utilized to reimburse the developer for $150 million in eligible MUD improvements. The transaction also includes a $9.1 million reserve fund. As the MUD bonds pay down the outstanding Launch Bond balance, to the extent that the reserve fund exceeds one year’s estimated interest payment, such excess reserve fund balance will be used to call Launch Bonds.
The Launch Bond™ – Candela (JDS)
We are pleased to announce the successful closing of the 6.125%, non-recourse, tax-exempt MUD Forward Funding Special Revenue Bond (“Launch Bond”).
The non-recourse, tax-exempt Launch Bond is collateralized by the assignment of future MUD bond proceeds until the principal and accrued interest is retired.
The Launch Bond™ proceeds in this transaction will be utilized to reimburse the developer for $32 million in eligible MUD improvements and $4.2 million will be set aside to complete the construction of a major roadway and other MUD eligible utilities. The transaction also includes a $2.5 million reserve fund. As the MUD bonds pay down the outstanding Launch Bond balance, to the extent that the reserve fund exceeds one year’s estimated interest payment, such excess proceeds will be used to call Launch Bond.
The Launch Bond™ – Lariat (Randolph Texas)
New Launch Financing Innovation – The Launch Bond™
Forward Funding MUD Capital Appreciation Bond
After multiple years of effort, Launch working with other professionals created a means by which Texas developers can accelerate the receipt of anticipated future Municipal Utility District (“MUD”) anticipated bond proceeds through the utilization of a non-recourse, tax exempt capital appreciation bond. We call this financing tool The Launch Bond™.
In this transaction, when the MUD had not yet issued any bonds, the developer was able to receive $33.2 million to reimburse them for a portion of the MUD eligible infrastructure constructed to date. If they had had to wait for the MUD to issue bonds, it would have taken 3 to 4 years for this amount of funding to be received. Through the issuance of the bond, the developer was able to accelerate the receipt of bond proceeds into their proforma and dramatically increase their IRR.
For more information on the background of the The Launch Bond™ listen to Episode 30 of the Land to Lots™ Podcast.
Valley Vista
Working with DR Horton, Forestar and Lennar, Launch established a special improvement district on 425 net developable acres of this residential master planned community located in North Las Vegas, Nevada and assisted in the issuance of $33.9 million in special assessment bonds to finance water, sewer, storm drainage and roadway improvements. Valley Vista is one of the top selling master planned communities in the United States.
Novus Innovation Corridor
We are assisting Catellus and Arizona State University(“ASU”) with the University Athletic Facilities District and the imposition and collection of “in lieu” property tax payments to support ASU’s athletic facilities.
Avimor
Prepared and passed legislation allowing for Community Infrastructure Districts (“CID”) and established the CID for Avimor, a 23,000 acre master planned community located in Ada County, Idaho. To date we have been issuing special assessment and general obligations bonds every year as build out of the project continues.
Harris Ranch
Established the first Community Infrastructure District in the state of Idaho for Harris Ranch, a 1,300 acre new urbanist community located minutes from downtown Boise, Idaho along the Boise River. To date we have issued all of the special assessment bonds utilized for funding roadway improvements.
Verrado
Verrado is an approximate 7,300 acre walkable master planned community located in Buckeye, Arizona. We assisted the developer prepare the pre-annexation and development agreement by inserting favorable special district financing language. We also created two Community Facilities Districts for the project and assisted in various bond issuances.
Lake Las Vegas
For our initial involvement in Lake Las Vegas, we were asked to restructure existing local improvement district bonds issued prior to the Great Recession. We are now in the process of issuing additional local improvement district bonds to finance the construction of infrastructure serving Phase I of Rainbow Canyon.
Texas
We assisted in the revision to the public improvement district statute and were instrumental in issuing the first public improvement district bond in Austin in which our client was able to fund engineering and construction costs out of bond proceeds.
Camana Bay
Assisted the developer in preparing the market driven land use plan, formulating a design competition; assembling the development team and entitling the project. Camana Bay is located in Georgetown, Grand Cayman, BWI.
Cadence
We established the community facilities district at Cadence and assisted our client in the issuance of both general obligation and special assessment bonds.
Skye Canyon
To date we’ve created two special improvement districts on Phase II and III of Skye Canyon and issued approximately $25 million in bonds to finance regional improvements. We’re now working with 3 national home builders to establish a third special improvement district to finance the improvements related to 640 acres of the project.
Summerlin
Over the years we’ve established multiple special improvement districts at Summerlin issuing in excess of $75 million in special assessment bonds. We are now working to issue bonds to fund regional improvements related to Summerlin’s Town Center.
