The Firm has significant public finance experience, serving in the capacities of bond counsel, underwriter’s counsel, and issuer’s counsel for various transactions. The Firm is listed in the Bond Buyer’s Municipal Marketplace Directory (the “Red Book”).
In serving as Co-Bond counsel, the Firm has conducted due diligence, prepared resolutions and documentation related to the authorization, execution and delivery and sale of certificates of participation, attended pre-closings and closings to assist in the supervision of the execution and delivery of certificates of participation and financing documents, and delivered legal opinions. In 2008, the served as co-special bond counsel, partnering with Parker Poe Adams & Bernstein, L.L.P., in connection with the $22,000,000 City of Durham, North Carolina Installment Financing Contract. The Firm has served as bond counsel and special counsel, in partnership with Parker Poe Adams and Bernstein, L.L.P., in connection with roughly $116,000,000 of financings involving the City of Durham. Recently, in 2011, served as Co-Bond Counsel in connection with the $57,465,000 City of Durham, North Carolina Utility System Revenue and Refunding Bonds, Series 2011. The firm draft drafted series resolutions, reviewed bond orders and other documentation required to issue the bonds and delivered a legal opinion. The bonds were issued for the purpose of providing funds to finance the costs of various improvements to the City of Durham’s Utility system and refund certain maturing bonds.
Since 2008, the Firm has served as Co-Bond Counsel to the State of North Carolina in connection with the issuance of General Obligation financings. We have closed on nearly $860,000,000 of financings involving public improvement bonds and refundings. The Firm has prepared authorization resolutions, drafted escrow agreements, assisted in the preparation of all other documents required as a condition precedent to the execution and delivery of the bonds, and delivered legal opinions as to the validity of the bonds and the federal and state tax treatment of the interest on the bonds.
In addition, in 2010, the Firm served as Co-Bond Counsel in connection with $39,145,000 Limited Obligation Bonds, Series 2010A Evidencing Proportionate Undivided Interests in Rights to Receive Certain Revenues Pursuant to an Installment Purchase Contract Between New Durham Corporation and the City of Durham, North Carolina, and $17,885,000 Taxable Limited Obligation Bonds, Series 2010B Evidencing Proportionate Undivided Interests in Rights to Receive Certain Revenues Pursuant to an Installment Purchase Contract Between New Durham Corporation and the City of Durham, North Carolina.
The Firm assisted in the preparation of resolutions relating to the authorization, execution and delivery of the bonds; drafted the supplemental indenture and installment contract amendment; assisted the City with respect to matters before the Local Government Commission and rating agencies; and delivered an opinion as to the validity of the bonds and the federal and state tax treatment of the interest on the bonds. We have also served the City as Co-Special Counsel in a similar transaction in connection with the 2008 $22,000,000 City of Durham, North Carolina Installment Financing Contract bond financing.
We have also served as underwriter’s counsel. Attorneys in our firm have conducted due diligence and reviewed financing documents, advised underwriters with respect to the structure of the financing and sale of bonds, and drafted disclosure documents. For example, the Firm was underwriter’s counsel in connection with the $47,095,000 County of Durham, North Carolina General Obligation Refunding Bonds, Series 2009A; the $16,075,000 The University of North Carolina System Pool Revenue Bonds, Series 2004; the $24,515,000 County of Durham, North Carolina Enterprise System Revenue Bonds, Series 2002 (Phase II of the Triangle Wastewater Treatment Plant); and the $14,950,000 North Carolina Capital Finance Agency Student Housing Facilities Revenue Bonds, Series 2001 (Fayetteville State University Housing Foundation, LLC Project).
With respect to issuer’s counsel, the Firm has represented several North Carolina public housing authorities in multiple transactions over the years in which public housing authorities have issued private activity multifamily housing revenue bonds and loaned the proceeds to owner entities that either develop affordable housing or rehabilitate existing affordable housing.
In 2011, the Firm served as issuer’s counsel to the Charlotte Housing Authority (“CHA”) in connection with the Strawn Parktowne 2011 Bonds, 19,900,000.00 Multifamily Housing Revenue Bonds (CFFP Collateralized) transaction. The proceeds of the multifamily housing revenue bonds were utilized to acquire and modernize two exiting apartment communities for the elderly, Strawn Tower and Parktowne Terrace, located in Charlotte, N.C. The proposed modernization of both properties will result in 170 apartments for Strawn Tower and 163 apartments for Parktowne Terrace. The first floors of each apartment complex will include outdoor sitting areas, offices, multi-purpose rooms, a commercial kitchen and a dining hall. The second floor of Strawn Tower will be converted into amenity areas, supportive service areas and offices. The residential units of both apartment communities will be completely renovated to include new energy efficient HVAC systems, kitchens, bathrooms, flooring, painting, and Energy Star appliances and fixtures. The renovated buildings will be LEED-certified.
This project was made possible when CHA was approved by HUD to use a portion of its annual Capital Fund allocation as debt service for affordable housing bonds. Thereafter, CHA issued $19,900,000.00 in tax exempt bonds and loaned the bond proceeds to a newly formed Strawn Parktowne, LLC, which will own, modernize and operate the two properties. Strawn Parktowne, LLC has equity commitments of $13,161,401 from the syndication of low income housing tax credits. CHA has leased the land and sold the buildings to Strawn Parktowne, LLC for $1,000,000 in cash, with a $5,190,000 promissory note for the balance of the sales price. CHA and the City of Charlotte are using other resources to provide favorable loans to Strawn Parktowne, LLC totaling $2,444,395. An affiliate of CHA is the Managing Member of Strawn Parktowne, LLC, and CHA is the property manager.