What criteria does the LGC use when reviewing applications for project development bonds?
According to G.S. 159-105(a), the LGC may consider any matters it deems relevant to whether the bond issuance should be approved, including: • Whether the projects to be financed from the bonds are necessary to secure significant new project development for the district; • Whether the proposed projects are feasible; • The county’s or municipality’s debt management procedures and policies; • Whether the county or municipality is in default in any debt service obligation; • Whether the private development forecast in the development financing plan is likely to occur without the public project or projects to be financed by the bonds; • Whether taxes on the incremental valuation accruing to the development financing district, together with any other allowable revenue sources, will be sufficient to service the proposed project development financing debt instruments; • Whether the LGC can market the proposed project development financing debt instruments at reasonable rates of interest.
Related Questions
- Is a local government required to seek Local Government Commission (LGC) approval before issuing project development bonds?
- May a local government refund project development bonds with revenue bonds or general obligation bonds?
- What criteria does Stevens Institute of Technology consider when reviewing applications?
