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LAVON ECONOMIC DEVELOPMENT CORPORATION PURCHASES LAND FOR “PROJECT MAIN STREET”

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Lavon, Texas (July 2021) – The Lavon Economic Development Corporation (LEDC) has acquired a 0.6-acre retail site at 619 Main Street and Lake Road for a “Project Main Street” development. This area will be developed as a retail and/or office building for various small businesses. The LEDC will use this development as a demonstration of the commercial development potential for Lavon. The Lavon EDC has begun the design of the “Main Street Project” and is considering a 2-story, 6,000 square foot facility. Construction is expected to begin in early 2022. Financing was provided by Government Capital Corporation, Southlake, Texas.

“The finance structure provided by Government Capital Corporation was the perfect solution for our project. I appreciate the financial analysis and projections GCC provided for this phase and the construction phase of the project,” commented Kay Wright, President, Lavon EDC. “The finance solution provided by Government Capital Corporation was a complete win for LEDC.”

“I would like to congratulate Kay Wright and LEDC for their work and foresight,” stated Lisa Hott, Municipal Finance Specialist, Government Capital Corporation. “This is a great example of dedicated leaders being responsible with their resources and diligently assessing the needs of and opportunities for the community.”

About Lavon Economic Development Corporation

Lavon Economic Development Corporation is located in Lavon, Texas and serves a population of more than 4,000 residents. The Lavon City Council adopted the Articles of Incorporation for the LEDC following the approval of the voters, on December 20, 2004. The motto of the LEDC is “We Cultivate Investment and Growth” with their purpose being to develop and market retail, commercial, technology, and manufacturing investments which will benefit Lavon for years to come. To learn more visit www.lavonedc.com

About Government Capital Corporation

Government Capital Corporation is a leading public finance firm providing professional financial services to all local governmental entities. Since its founding in 1992, the company has successfully completed thousands of municipal financings exceeding $4.5 billion in Texas and across the country. For more information, visit www.govcap.com

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MONTGOMERY COUNTY EMERGENCY SERVICES DISTRICT NO.4 ANNOUNCES THE BUILDING OF A NEW STATION

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Montgomery County, Texas (July 2021) – The Montgomery County Emergency Services District No. 4 announces construction of a new station. The facility will include two floors and the square footage will roughly be 23,000 square feet. The first floor will include five double stacked bays, a decon room, seven dorm rooms, a lieutenant room, and a chief room. The second floor will include a meeting room and office space. With construction beginning the end of this year, the anticipated completion date is December 2022. Architectural design and construction is being provided by Grossman Design Build, Mansfield, Texas. Government Capital Corporation, Southlake, Texas provided financing for the project.

“Having completed multiple projects with Government Capital Corporation since 2010, their experience and expertise always provides value.” commented Fire Chief Kevin Hosler. “They also attended our Board meetings to fully explain the financing options available and provided assistance throughout the closing process.”

“I want to congratulate Chief Hosler and Montgomery County Emergency Services District No. 4 on this project,” stated Landon Newton, Government Capital Corporation Vice President. “We take great pride in being able to provide financings that enable first responders to better serve their communities.”

About Montgomery County Emergency Services District No. 4

Montgomery County Emergency Services District No. 4, founded in 1973 is located about 30 miles north of Houston, Texas and now serves a rapidly growing population of over 48,000. Since August 2020, the ESD has responded to over 1,800 calls, averaging around 100 calls per month. To learn more visit www.mcesd4.com.

About Government Capital Corporation

Government Capital Corporation is a leading public finance firm providing professional financial services to all local governmental entities. Since its founding in 1992, the company has successfully completed thousands of municipal financings exceeding $4.5 Billion in Texas and across the nation. For more information, visit www.govcap.com

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LITTLE ELM ECONOMIC DEVELOPMENT CORPORATION BREAKS GROUND ON TINMAN SOCIAL ENTERTAINMENT VENUE

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  Little Elm, Texas (July 2021) – The Little Elm Economic Development Corporation announces the groundbreaking
of, “Tinman Social.” This social entertainment venue is made possible through a Public-Private Partnership. The
facility will include ping pong, cornhole, axe throwing, shuffleboard, bowling, and a full-service restaurant and bar
with indoor and outdoor seating. The square footage of the facility will be 36,000 square feet. Financing for the
project was provided by Government Capital Corporation, Southlake, Texas.

“We have completed multiple projects with Government Capital Corporation over the past ten years and we know
we can always count on their experience,” stated Jennette Espinosa, Executive Director, “The finance structure
Government Capital Corporation provided was a complete success for us.”

“We are excited to work with Little Elm EDC to finance this entertainment venue,” said Kevin Lerner, Senior Vice
President of Government Capital Corporation. “The venue provides a win-win project for the City of Little Elm. It
not only provides entertainment for residents but, will also generate revenue for the City.”

About Little Elm Economic Development Corporation

Little Elm Economic Development Corporation’s mission is to advance economic development in Little Elm by
creating new commercial businesses, new tourism opportunities, and new jobs to Little Elm. The EDC partners with
the Town to facilitate the vision and manage the progression of the Town Center development. To learn more visit www.littleelmedc.com

About Government Capital Corporation

Government Capital Corporation is a leading public finance firm providing professional financial services to all local
governmental entities. Since its founding in 1992, the company has successfully completed thousands of municipal
financings exceeding $4.5 billion in Texas and across the country. For more information, visit www.govcap.com

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VILLAGE OF GREENUP TO UPGRADE ELECTRIC, GAS AND WATER METERS

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  Village of Greenup, Illinois (July 2021) – The Village of Greenup announces the upgrade of electric, gas and water meters and the related Automatic Meter Infrastructure. “This upgrade will allow meters to be read and monitored in real time by the user and the city,” stated Kay Hornbeck, Village of Greenup Treasurer. “These meters will allow for more efficiency and conservation while improving service to our customers.” Project design and installation was provided by Honeywell International, Inc. Government Capital Corporation, Southlake, Texas was selected as the most cost-effective financing solution for the project.

“Our partnership with Government Capital Corporation provided real value to our project’s success,” remarked Kay Hornbeck, Treasurer. “Their experience allowed the project to proceed with great efficiency.”

“I want to congratulate the Village of Greenup on this important infrastructure improvement,” stated Ed King, Government Capital Corporation Senior Vice President, “Government Capital is proud to have partnered with the Village of Greenup on a project which will deliver tremendous benefits.”

About Village of Greenup

The Village of Greenup, also known as the Village of Porches, is home to over 1,500 residents and nestled between Interstate 70, IL RT 40 and IL RT 130. Main Street is known for its attractive old architecture, with beautiful overhanging porches, lining many of the downtown buildings. In these buildings are quaint antique stores and some restaurants. To learn more visit www.villageofgreenup.com

About Government Capital Corporation

Government Capital Corporation is a leading public finance firm providing professional financial services to all local governmental entities. Since its founding in 1992, the company has successfully completed thousands of municipal financings exceeding $4.5 billion in Illinois and across the country. For more information, visit www.govcap.com

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BAY CITY COMMUNITY DEVELOPMENT CORPORATION ANNOUNCES REFUNDING SAVINGS

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Bay City, Texas (July 2021) – The Bay City Community Development Corporation announces the recent refunding of two separate debt obligations, one for a training facility and another for land acquisition. “Combining the two into one obligation maximized the savings for Bay City Community Development Corporation,” stated Jessica Russell, Executive Director. With the restructuring, Bay City is able to achieve significant interest savings via today’s low market rates. Government Capital Corporation, Southlake, Texas provided the refunding structure and refinancing.

“The financing provided by Government Capital Corporation, will allow us optimum budget flexibility. Their experience allowed the refunding to proceed very efficiently,” Ms. Russell commented.

“The current economic environment has development corporations searching for alternative funding options,” stated Jana Jay, Municipal Finance Specialist, Government Capital Corporation. “Our ability to customize this financing was integral to meeting the needs and budget of this client. It was a pleasure to work with Bay City Community Development Corporation on this transaction.”

About Bay City Community Development Corporation 

Bay City Community Development Corporation creates welcoming opportunities for residents and businesses in the city of Bay City. Their goals include providing opportunities for education expansion in their community, developing and encouraging entrepreneurship and leadership in their community, and encouraging new and current businesses to invest in Bay City. To learn more visit www.visitbaycity.org

 About Government Capital Corporation 

Government Capital Corporation is a leading public finance firm providing professional financial services to all local governmental entities. Since its founding in 1992, the company has successfully completed thousands of municipal financings exceeding $4.5 Billion in Texas and across the nation. For more information, visit www.govcap.com

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EFFICIENT FINANCING AVAILABLE FOR PRIVATE & PAROCHIAL SCHOOLS

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Surprisingly, many qualified 501(c)(3) private and parochial schools are not aware they may issue debt at lower, tax-exempt interest rates. Additionally, many don’t realize how substantial the interest savings may be on a tax-exempt obligation, especially in the case of longer (e.g. 10 to 25-year) terms. Although tax-exempt debt has traditionally been issued most frequently by state and local governmental units for traditional government functions, certain “private” organizations, including private and parochial 501(c)(3) schools can take advantage of the same tax-exempt benefits. These benefits include not only the lower tax-exempt interest rates, but also longer financing terms, generally less and more flexible loan covenants, and in most instances, access to more competitive capital market participants.

Pursuant to applicable state and federal regulations, qualified nonprofit organizations (including private and parochial schools) can borrow on a tax-exempt basis by involving a state or local government unit which serves as a conduit issuing the debt on behalf of the nonprofit borrower. Using this structure to finance a new school construction or remodeling project, the conduit enters into a separate loan with the school, where the loan terms substantially mirror the terms of the conduit issuer’s tax-exempt obligation. Traditionally, the conduit’s debt is secured by the underlying real property and/or revenues generated by the school’s facility. At the end of the finance term, ownership of the real property being financed is transferred to the private school.

As an example, a preparatory academy in Keller, Texas recently completed a 25-year, $3.7 million conduit financing for a new facility. The conduit structure saved the school over $400,000 in interest costs over 25 years as compared to the cost of a taxable financing. In another situation, a charter school in Beaumont, Texas completed a similar tax-exempt conduit financing to include not only the $3.6 million construction cost of a new middle school, but also the refinancing of an existing $2.3 million taxable loan obligation. The combined $5.9 million conduit financing saved the school over $700,000 in interest costs over the 20-year term. These schools along with many other private, parochial and charter schools as well as private universities, have been taking advantage of the tax-exempt conduit debt market since 1986. It is worth emphasizing the flexibility of the conduit structure to provide “new money” to fund new construction projects and/or refinance existing debt at more favorable terms.

While the fact private and parochial schools can borrow at lower, tax-exempt rates is great news, the structure of the financings can be complex. Accordingly, issuers wanting to take advantage of these tax-exempt financings should consult Municipal Advisors or bond attorneys who are intimately familiar with the conduit borrowing authorities and Internal Revenue Code rules.

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