The Detroit/Wayne County Port Authority, due to its status as a state-enabled special purpose authority, has the ability to issue revenue bonds that can help finance capital assets for public or private entities.  These financings are not a debt of the taxpayers, nor are they limited by a specific dollar amount.  Port Authorities are commonly used development finance partners throughout the country and can offer highly specialized structures.  Some benefits and features of this program are outlined below: 

 

- Facilitates public and private capital investment projects

 

- Synthetic leasing (off-balance sheet financing) allows publicly traded companies, or constituent units of government, to strengthen their balance sheets and financial ratios

 

- Capital operating and synthetic lease options available with renewable option/balloon

 

- DWCPA can enter into contracts as lessee or lessor

 

- Rates can be tied very closely to debt service, preventing typical developer “mark up”

 

- Client maintains control of construction decisions and operations

 

- 100% debt financing available

 

- Possible for the “private partner” to capture depreciation through the asset

 

- Not a debt of any constituent unit (City of Detroit, Wayne County or State of Michigan), nor a pledge of credit

 

- Help corporations incorporate favorable financial ratios, maintain good credit, borrowing capacities

 

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