As part of the company’s services, we procures BOTH construction financing and long-term financing for its projects.
Additionally, we assumes all risks during the construction phase of each project.
The BSG Developoment partners have pioneered a unique financing program that provides government agencies the opportunity to occupy premier facilities while providing the local municipality with an income stream sufficient to retire a mortgage debt.
Once the building site has been identified and a space plan is developed, lease negotiations begin. A financial package is developed to meet the budgetary parameters of the client.
At the end of the lease term, typically 20 years, the base rent reduces to maintenance in lieu of rent charge for the remaining life of the property which can range from 30 – 50 years. In our past experience with other State projects, this rent is less than half the original base rent.
Forum Services has been successful in arranging tax-exempt financing for many local municipalities. Tax-exempt financing is attractive because it:
- Eliminates the risk assumed by county or municipal governments for the delivery of facilities for governmental agencies.
- Eliminates any down payment requirements by the county or municipality for the development of the project.
- Provides governmental agencies the opportunity to build quality facilities without adding debt to the local government.
- Lease payments from the tenant (government agency) provides a way for the county or municipality to own the building free and clear at the end of the financing term.
This is a proven delivery method that we have used successfully throughout the State to the satisfaction of the Tenant (Agency), Owner (County) and the State of Georgia.