IFA Enhanced Use Lease Bond Transactions for Federal Agencies

1
IFA Enhanced Use Lease Bond Transactions for
Federal Agencies

• Department of Veterans Affairs
• Department of Energy

2
Enhanced Lease Bond Transactions

• The availability of this source of low-cost
  financing for project finance
• results in significant savings for the borrower
  and
• provides efficient and mutually advantageous
  ventures with local and state entities, which
  advance the Departments mission and benefits
  local communities through job creation and
  economic benefit.
• The Departments obligation to make payments is
  subject of annual appropriations by the United
  States Congress.
• Bonds are taxable.

3
Project Financing

• 50 million VA Chicago West Side Benefits
  Building and Parking Garage.
• The Trust was set up by the Developer for the
  sole purpose of developing, financing,
  maintaining, and operating an office building and
  parking garage.
• Upon creation of the Trust, the Developer will
  have no further involvement in the special
  purpose entity.
• The DVA is the sole beneficiary of the Trust.
• The Department of the Navy has used an LLC
  structure.

4

• 20 million Co-Generation Energy Center for the
  DVA Benefits Building and the DVA Medical Center
  on the Illinois Medical Campus.
• North Chicago Energy Trust for Co-Generation
  facilities at the DVA Medical Center in North
  Chicago.
• 23,000,000 Facility serves the DVA Medical
  Center. Power is sold to the Department of the
  Navy to heat and cool barracks at the Great Lakes
  Naval Training Center, and to Finch School of
  Medicine.
• In 2003 another Energy Trust was formed to
  finance the 20,000,000 expansion of the
  Co-generating plant to accommodate the growing
  needs at Great Lakes.

5

• 35,000,000 Future Financing of the Department of
  Energys Computer and Technical Center at Argonne
  National Laboratory.
• Will use the same Enhanced Use Lease Structure.