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Century Earns $723K For Role In Financing $1.5 Billion In Projects
March 23, 2017
Over the past 18 years, the Town of Century has served an integral role in the tax-exempt financing of $1.5 billion worth of projects, including affordable housing projects, airport facilities, hotel and convention developments promoting tourism, health care projects, and K-12 educational buildings.
It’s a role that has provided hundreds of thousands of dollars for Century.
On the surface it might seem unlikely that Century, the poorest small city in the state, could play a part in the financing of dozens of multi-million projects including the Community Maritime Park in Pensacola, $439 million in hotel and convention centers for the Seminole Nation, airport cargo terminals, schools and apartment complexes.
The approvals were granted by Century and Gulf Breeze as members of the Capital Trust Agency, an independent public body for the purpose of financing or otherwise accomplishing development programs. Century entered into the Capital Trust Agency with Gulf Breeze in 1999 with Century essentially serving as the “second signature” for CTA, certifying that the projects meet a public purpose under IRS rules and regulations.
“Your responsibility is simply to look at these to decide if they do in fact look like a legitimate public purpose,” CTA Executive Director Ed Gray, III told the Century Town Council recently. “You are not deciding on the financial viability of them; you are not taking any liability. You are simply looking at them from the standpoint of a common sense approach that these look reasonable and therefore move forward.
The CTA is structured in such a way to indemnify Century from any financial risk, whether it be from a company that defaults on repayment or any other legal liabilities, according to Michael Stebbins, CTA attorney. The funds used for the bonds are from the CTA’s coffers, not from Century or Gulf Breeze.
Century has received $723,430.47 in fees since the inception of CTA.
“It’s a been a good relationship that should continue indefinitely,” Gray said.
Pictured: Capital Trust Agency Executive Director Ed Gray, III addresses the Century Town Council. NorthEscambia.com photos, click to enlarge.
Comments
13 Responses to “Century Earns $723K For Role In Financing $1.5 Billion In Projects”
Century should negotiate a bigger cut. CTA can’t operate without Century’s signature, Grey makes millions off this set up. Work it.
How much did ed grey make off the deal?
https://www.bloomberg.com/news/articles/2015-04-15/ex-mayor-reaps-millions-as-florida-city-issues-bonds-for-others
As I stated before, “Socialism sure is popular these days.”
For some ODD reason people tend to banter upon things they do not understand entirely or even at all. Possibly to gather more information on the subject at hand or just to complain. Here is mine. Everyone PAYS TAXES!!! Working or not…when you work, you pay….when you don’t work…you pay. When you purchase an item, most likely….YOU PAID TAXES! Furthermore if you plan on living as a human, in society, you will pay taxes. Welcome to LIFE, Think about it.
Two questions, has this Capital Trust Agency ever in it’s existence, denied a government project because it was not in the citizens best interest? And I wonder how long the Century town government would last if they had to exist without grants and outside funds coming in, just operate within the amount of money collected in taxes and fees, my guess is not long. This is funny, Century has a side hustle, for earning extra spend money.
REGARDING:
“Socialism would be you getting your services free and everyone paying high rates of taxes to cover it. ”
Not necessarily.
Socialism. any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods.
Notice taxes aren’t mentioned but government ownership and/or control is.
City-provided services fall under that definition.
David for dictionaries
Gotta love it when people make comments on things they have no clue about.
Southerner,
Your comments about the sewer rates and socialism are somewhat contradictory. Socialism would be you getting your services free and everyone paying high rates of taxes to cover it. You paying for services you have received is capitalism and the American way. If you don’t like the rates Century charges MOVE!!
The projects typically financed via the Capital Trust Agency are private ventures and doesnt have the taxpayers footing the bills. There are some “public projects” that do where local governments have sought the financing. The only reason for using this type of financing is to provided lower financing cost supported by private investors to obtain “tax-free” income. It can be a win/win/win for the Project, the investors and for Gulf Breeze and Century.
Some folks see that Century earned $723,430.47 and think that was a bunch of money. Well, that was total over the past 18 years – which equates to about $40,000 a year in additional revenue for Century that didnt come at the expense of any resident of Century.
Projects funded by the CTA can be found at the following link:
http://ctafl.org/projects.php
And Century may raise sewer, water and garbage rates? Socialism sure is popular these days.
An instance of the less fortunate paying and voting for something that will never benefit them.Politics never cease to amaze me,maybe Miami can decide Century needs some help up here.
And at the end, the taxpayers foot the bill for the over inflated government project, when that money could actually go in the project itself, instead of paying other municipalities for not really doing anything!!!