Gabriella Olivieri Publications Portfolio Annual Report - 2011 | Page 32

LEG A L DIVISIONS 2011 Bond Program In 2011, the City issued nearly $2.5 billion of general obligation bonds, and the New York City Transitional Finance Authority (TFA) issued $4 billion of Future Tax Secured Bonds and $650 million of Building Aid Revenue Bonds (BARBs). The bonds were issued for both capital and refunding purposes, in ?xed rate and adjustable rate form, and with taxexempt and taxable status. The BARBs—as well as $100 million of TFA Future Tax Secured Quali?ed School Construction Bonds (QSCBs)—were issued exclusively for education-related purposes. QSCBs are taxable bonds for which the federal government pays a subsidy directly to the issuer. These bonds were authorized under the American Recovery and Reinvestment Act of 2009 (ARRA), and although the applicable provisions of ARRA expired in 2010, QSCBs can be issued to the extent that prior allocations of bonding authority have not been utilized. PHOTO: HUDSON YARDS The Division participated in the issuance of $2 billion in New York City Municipal Water Finance Authority bonds and $679 million in New York State Environmental Facilities Corporation bonds in connection with the City’s water and sewer system. MUNICIPAL FINANCE CHIEF Alber t Moncure, Jr. D E P U T Y O l i v i a O’ N e i l l The Municipal Finance Division serves as counsel to the City on all bond transactions. New York City is one of the largest issuers of municipal bonds in the country. The proceeds of its debt issuances finance capital projects that impact virtually every aspect of City life. The City issues debt through its general obligation bonds, and through authorities and local development corporations. Additionally, State agencies issue debt on behalf of the City. Each year, the Division oversees billions of dollars in financial transactions. The Division also performs corporate governance work for the City’s debt issuing authorities and local development corporations. 29 In addition, due to the expiration of numerous liquidity and credit facilities backing City and TFA adjustable rate bonds (a nationwide phenomenon), the Division oversaw the closing of approximately $2 billion in transactions to convert the bonds to ?xed or other rates—or to substitute or extend the facilities. Bonds to Finance Manhattan West Side Development The Division, together with the Economic Development Division, represented the Hudson Yards Infrastructure Corporation (HYIC) in connection with the October 2011 issuance and sale of the HYIC’s $1 billion Senior Revenue Bonds, Fiscal 2012 Series A. These bonds were issued to ?nance additional costs of the extension of the Number 7 subway line from its current terminus at Times Square to a new terminal station at West 34th Street and 11th Avenue. The subway extension is intended to help facilitate a mixed-use development in the Hudson Yards Financing District on the far west side of Midtown Manhattan. Debt service on the bonds is anticipated to be paid from revenues received in connection with development in the Hudson Yards Financing District, with the City paying the interest component of the bonds until development generates suf?cient revenues. The HYIC previously issued $2 billion of Senior Revenue Bonds, Fiscal 2007 Series A, in December 2006 to ?nance the ?rst phase of the subway extension. Funding Agreement for the Next Phase of a Biotechnology Incubator In conjunction with the Economic Development Division, the Division participated in creating a funding agreement by which New York City Economic Development Corporation granted funds to be used for a substantial expansion of the State University of New York Downstate’s Advanced Biotechnology Incubator, Phase III. The Incubator provides affordable space for start-up and earlystage companies in the biotechnology research, development, and manufacturing ?elds. At full occupancy, the Incubator will accommodate up to 30 companies and employ approximately 200 people. $4 BILLION IN TFA FUTURE TAX SECURED BONDS $2.5 BILLION IN GENERAL OBLIGATION BONDS $2 BILLION IN NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY BONDS $1 BILLION IN HYIC SENIOR REVENUE BONDS 30