Case Studies

In 2003, the City of Perth Amboy financed the construction of its Public Safety/Court/Recreational and Community Center and its Fire/Emergency Medical Services Facility through the Middlesex County Improvement Authority’s issuance of $43,100,000 Lease Revenue Bonds, Series 2003. McManimon & Scotland, L.L.C. represented the City in crafting a financing structure that included the acquisition of necessary land by the City, ground lease of the land by the City to the Middlesex County Improvement Authority, sub-lease of the land by the Middlesex County Improvement Authority to the City and a converting lease-to-fee ownership by the City of property originally owned by Conrail. The City pays debt service on the bonds through lease payments it makes to the Middlesex County Improvement Authority pursuant to the sub-lease. For more information on this project, please contact Edward J. McManimon, III, Member.

The City of Perth Amboy entered into a 20-year public-private partnership with Middlesex Water Company in 1999 for the efficient operation and maintenance of the City’s water and wastewater treatment and distribution facilities. Pursuant to the New Jersey water and wastewater privatization acts, the City leased the systems and sold a franchise in the systems to the Middlesex County Improvement Authority. The Middlesex County Improvement Authority issued $67,974,076.20 Utility System Revenue Bonds, Series 1999, a portion of which were capital appreciation bonds, to finance the leasehold/franchise acquisition, provide for capital improvements to the systems and refund outstanding City-system debt. The City and the Middlesex County Improvement Authority then entered into various operating and revenue agreements with Middlesex Water Company to run the systems. In 2004, the City, the Middlesex County Improvement Authority and Middlesex Water Company agreed to extend the public-private partnership for an additional 5 years through the issuance by the Middlesex County Improvement Authority of additional utility system revenue bonds that were subordinate to the original 1999 bonds issued. For more information on this project, please contact Edward J. McManimon, III, Member.

In April, 2010, McManimon & Scotland, L.L.C. represented the City of Millville, New Jersey, in connection with a redevelopment project to refurbish and restore a historic theater in the City. The City leveraged Urban Enterprise Zone and other redevelopment grants and funds into the project, resulting in a $6,810,301 loan to the borrower. The financing included a combination of loans, grants, equity and conventional bank financing from various sources. For more information on this project, please contact Glenn Scotland, Member.