Pease And Gustafson LLP

Municipality Financings

Posted on: July 8th, 2016 No Comments

Town of Louisville
Eric Gustafson, attorney for the Town of Louisville, assisted with the sale and issuance of a $7,145,000.00 E.F.C. Drinking Water Statutory Installment Bond in early February.

The funding will allow the Town to finance work that was completed as part of its Water District 3 project, which included the design and installation of a new distribution system and storage tank, as well as system consolidation.  The water district project, which began in 2013, encompassed certain areas of the Town that lacked access to public water.  The new district also stretched into a small portion of the Town of Norfolk requiring the drafting and negotiation of an Inter-Municipal Cooperation Agreement between the two Towns.

Town of Malone
Also in February, Eric Gustafson, as attorney for the Town of Malone, assisted with the closing of a $330,733 E.F.C. Clean Water Statutory Installment Bond for the Town’s sewer upgrade project.  The project, begun in 2013, included improvements to the Route 11 West Sewer District 2.

Town of Clifton-Fine
Eric is also counseling both the Town of Clifton and the Town of Fine as they work to resolve their issues with an aging water filtration system that has caused service disruptions for the Towns’ residents, especially during peak summer seasons.  The $7.4 million water project is expected to be complete by 2017, and involved the creation of new water districts for each Town.

The project is being funded by a $2 million grant through the state Environmental Facilities Corp., and an interest-free 30-year loan obtained through the Drinking Water State Revolving Fund.  In April, the Towns closed on a 5-year Bond Anticipation Note (“BAN”) in the amount of $5,308,000 to finance work for the project.

Eric Gustafson regularly counsels municipalities with respect to their infrastructure financings, from the structuring phase through the closing of permanent financing. In doing so, he works with financial advisors, engineers, architects, and other professionals retained by the client, as well as representatives of the Rural Development Administration and the Environmental Facilities Corporation.

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