We have one of the largest and most active real estate development & redevelopment financing banking practices in the country. Our team has experience with many different forms of redevelopment including residential, commercial, nonprofit, institutional, industrial and mixed-use. We have provided financing for clients on a vast array of projects ranging from single family residential development to large mixed-use entertainment districts.

Areas of Expertise

Each solution we deliver for our clients helps overcome the ‘gap’ in financing needed to build infrastructure. Our expertise in complex modeling serves our clients by creating optimal capacity to fund public infrastructure from a wide variety of revenue streams.

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    Property Tax Increment (TIF)

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    Special Assessments

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    User Fees

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    Tourism Taxes

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    Sales Tax Increment

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    Public Improvement Fees (PIF)

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    Sales Taxes

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    Public Parking Revenues

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    Ad Valorem (Property) Taxes

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    Payments in Lieu of Taxes (PILOT)

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    Excise Taxes

#1 ranked
underwriter & financial advisor since 2005 by par amount and number of transactions for public financing of development and redevelopment

Over 3,000 issues
since 2005 totaling close to $72 billion

Case Studies

$122 million

Park Creek Metropolitan District
Second Lien Subordinate Limited Tax General Obligation Bonds


RBCCM has served the Park Creek Metropolitan District since its creation in 2000. Since the original bond issues, RBCCM has assisted the District in creating multiple lien structures and underwriting bonds in difficult markets which provided the infrastructure to facilitate the build-out of one of the largest urban infill projects in the US.

RBCCM served as placement agent for The Park Creek Metropolitan District’s $122 million Second Lien Subordinate Series 2020 Bonds. Proceeds of the bonds were used to refund the District’s outstanding Series 2013 and Series 2014 Bonds and subordinate developer advances. The refunded bonds were originally issued to finance construction of infrastructure improvements to support the 3,031 acre mixed-use redevelopment of the former Stapleton International Airport. The primary focus of the refunding was to create additional capacity on the senior lien to allow the repayment of subordinate developer-owned obligations.

As placement agent, RBCCM was heavily involved in creating a financing and cash flow model that addressed several constraints, including property and specific ownership tax revenue as well as several various subordinate liens with different additional bonds tests. This extensive modeling and structuring of the refunding allowed us to identify an investor to purchase the bonds on a second lien subordinate basis, which is the third lien of bonds under the existing bond indenture. As a part of this effort, RBCCM worked with a single investor to place the $122 million in bonds with a significant change in the overall bond covenants. With a complicated revenue pledge, the marketing plan involved a significant investment in addressing individual structuring issues related to the issuance with this investor. This was a unique transaction which allowed the District to refund out higher cost debt and reduce some of the related bond covenants. This financing allowed for the District to have flexibility in the future for additional capital projects and provided savings to area taxpayers.


$45 million

The Village Metropolitan District
Special Revenue and Limited Property Tax Refunding & Improvement Bonds


In September 2020 RBC Capital Markets served as sole underwriter for the Village Metropolitan District’s (the “District”) $13.285 million Series 2019A & 2019B bonds. The proceeds of the bonds were used to refund the District’s outstanding 2014 variable rate bonds and reimburse the developer for a portion of their outstanding district advances.

The development is located in Avon, Colorado within Eagle County. The Town of Avon is located at the base of the Beaver Creek Ski Mountain and approximately 10 miles west of Vail Ski Mountain. The Bonds are issued by The Village Metropolitan District located at the eastern end of the Town of Avon, on both the north and south sides of Interstate 70 (“I-70”). The combined acreage of the Districts is 1,788 acres, consisting of 1,752 acres in the District and 41 acres in the TCMD, of which 5.630 acres overlap the boundaries of the District. The primary source of repayment for the bonds was concentrated in two big box retailers.

As underwriter of the bonds, RBCCM created a financing structure that captured the District Mill levy & 4% Credit PIF as security for the transaction. The bonds were issued in late August 2020 and were very well received by investors. The issuance, in the midst of a pandemic, was able to achieve over $300 million in orders for a $45 million issuance. These orders included some of the largest institutional investors in the world and local Colorado investors.


 

Delta Coves


The California Statewide Communities Development Authority (“CSCDA”) formed the Delta Coves Community Facilities District (“CFD”) in 2016. The CFD notably joins together four local agencies, the Diablo Water District, Iron house Sanitary District, the Bethel Island Municipal Improvement District (BIMID), and the East Contra Costa Fire District via separate Joint Community Facilities Agreements with CSCDA. The CFD is authorized to sell up to $65 million in bonds and has issued three series of bonds totaling $35.81 million in par, including $13.54 million of non-rated 30-year fixed rate special tax bonds sold during September 2020, at a TIC of 3.891%. In addition to facilities, the CFD includes a services component for three of the local agencies (BIMID, Diablo Water District, and the East Contra Costa Fire District). Of note, the services tax is pledged to the bonds to protect it from a Prop 218 challenge.

Delta Coves is located in the eastern portion of Contra Costa County, California, within the unincorporated community of Bethel Island. Delta Coves is an exclusive, high-end development consisting of 560 waterfront homes with private docks, a saltwater lagoon, and a 4,500 square foot private recreational facility. This private amenity, called the Island Camp, includes a pool, barbecue, and picnic areas, and 230 private boat slips with access to the Sacramento/San Joaquin Delta. It is bordered by Dutch Slough on the south with its older homes, and Bethel Island Golf Course on the north, and is approximately 15 miles east of the Town of Oakley.

DMB Development, LLC is performing work as the Master Developer. Homes are currently under construction by Davidson Homes and Blue Mountain Communities, per sales agreements with DMB. Building permits have been issued for the residential development and home prices are expected to range from $1 to $1.5 million. The investor base for the Delta Coves special tax bonds has broadened as home sales continue, with the most recent sale attracting interest from a diverse mix of retail and institutional investors. The development should transform the area from rural to a high end resort type landscape. The CFD has a 4x value to lien requirement and taxes cannot exceed 2%.


 

Miami Beach Convention Center


In November 2015, RBC Capital Markets acted as financial advisor to the Miami Beach Redevelopment Agency on the sale of $322.095 million in bonds. The purpose of the bond issue was to refund certain outstanding bond obligations and provide additional funds for the renovation and expansion of the Convention Center. The Convention Center will be renovated to Class A standards including versatile indoor/outdoor space, public parks, food pavilion, pedestrian walkways and an additional 878 parking spaces. In addition to the Convention Center improvements, there will be additional ancillary public facilities and infrastructure improvements within the City Center. The redevelopment agency bonds are secured by the tax increment revenues generated from the ad valorem property tax generated within the redevelopment area. This issue was a portion of the total $651 million in financing for the projects. The entire funding package for the Convention Center projects came from multiple sources including; County General Obligation Bonds, Resort Tax Revenue Bonds, Parking Revenue Bonds and the Redevelopment Agency Bonds.

As financial advisor, RBC Capital Markets advised the Agency on the financial structure and debt capacity available to fund the redevelopment project. Part of this analysis was creating the capacity within the existing tax increment revenues to maximize the proceeds available for the Convention Center with a debt structure. In structuring the bonds we shortened the taxable piece, refunded the existing 2005A bonds, and amortized the 2015A bonds around the existing debt, ultimately resulting in a successful borrowing for the Agency.


 

Oakland


In February 2015, RBC Capital Markets was appointed by the Oakland Redevelopment Successor Agency (ORSA) to serve as senior manager on approximately $89 million of tax allocation refunding bonds. Proceeds of the refunding were used to advance refund on a taxable and tax-exempt basis six series of bonds from four separate Project Areas. The Project Areas include Central City East, Coliseum Area, Broadway / Macarthur / San Pablo and Citywide Housing Set Aside. With multiple project areas, we chose to use the Redevelopment Property Tax Trust Fund (RPTTF) structure to homogenize the security/credit.

One challenge this structure faced at the onset was the gap in cash flows which barred ORSA from meeting its existing obligations (senior lien) and newly created RPTTF debt (subordinated lien) during the refunding period. The refunded bonds contain principal payments that are paid with Recognized Obligation Payment Schedule (ROPS) distributions of January 2nd and June 1st. We structured the new RPTTF bonds with principal maturities to be paid with the June 1st ROPs distribution. The cash flow gaps arose since non-callable bonds of the refunded series remained outstanding and ORSAs principal payments on these bonds remained designated from both the January 2nd and June 1st ROPs distributions. As a result, we decided to redraft the indenture, allowing the refunding bonds to be paid on a split basis (50/50 from each ROPs cycle) instead of paying 100 percent of the new RPTTF debt service with the January 2nd distribution. This provided ORSA with enough flexibility and sufficient capacity to meet its obligations as they came due during the refunding period, and going forward.

Our Team

Robert E. Spangler

Managing Director & Head of Municipal Finance
New York

+1.212.618.5645

Bob Spangler is a Managing Director and Head of Municipal Finance at RBC Capital Markets. In this role, he oversees RBC’s 270-person municipal finance platform which includes the top four ranked Municipal Banking group and Community Investments, the leading syndicator of U.S. federal low income housing and renewable energy tax credits.

A 22-year employee of RBC, Mr. Spangler is a member of the U.S. Regional Operating Committee, the U.S. Diversity Leadership Council and is the Chairman of RBC’s U.S. Political Action Committee (PAC). He currently serves as Vice Chairman of SIFMA’s Municipal Securities Committee.

Mr. Spangler received an A.B. in History from Stanford University and a Masters in Management from the J. L. Kellogg Graduate School of Management at Northwestern University.

Leslie Cook

Vice President
Texas

+1.713.853.0884

Eric Harrigan

Managing Director
New Mexico

+1.505.872.5992

Bob Williams

Managing Director
California

+1.415.445.8674

Mr. Robert Williams is a Managing Director in the Public Finance Department at RBC CM. Mr. Williams began his career in municipal finance at Sutro & Co. Inc. in 1985 and has over 29 years of investment banking experience. Prior to RBC CM, Mr. Williams worked 5 years as a legislative analyst for the Alaska State Legislature and as an oil and gas consultant. Mr. Williams specializes in California municipal financings including general fund lease revenue bonds and COPs, sales tax issues, water and sewer revenue bonds, land secured 1915 act and Mello-Roos bonds, redevelopment agency bonds, and school district general obligation bonds. Mr. Williams has been a guest speaker at the State Treasurer’s Office, the Bond Buyer, CSMFO and the California Redevelopment Association. He is the lead banker for the Statewide Community Infrastructure Program (SCIP) sponsored by the League of California Cities and California State Association of Counties.

Mr. Williams holds a Bachelor’s degree from the University of California at Santa Barbara, a Master’s degree in Public Administration from Harvard University and an MBA in finance from the University of Pennsylvania, Wharton School. Mr. Williams is currently registered with Financial Industry Regulatory Authority, Inc. (“FINRA”) with Series 7, 63 and 79 licenses.

Jon Moellenberg

Managing Director
Colorado

+1.303.595.1210

Jon serves as Manager of RBC’s Denver Public Finance office, Colorado’s leading underwriter of tax-exempt and taxable municipal securities.  He is charged with further expanding the firm’s presence in Colorado and throughout the Western Region.  Jon has more than 15 years of experience serving state and local government clients on more than $20 billion in securities and financial products in ten different states.  He frequently serves Colorado’s largest governmental entities:  the State of Colorado, the University of Colorado, Colorado State University, the Colorado Department of Transportation, and the Denver Regional Transportation District.  A list of transactions Jon has led for longstanding Colorado clients includes:

  • University of Colorado Senior Manager for $632 million Enterprise Revenue Bonds Series 2013, 2012, 2010 and 2009, and Co-Senior Manager for $298 million in various series since 2009
  • Colorado State University Senior Manager for $291 million System Enterprise Revenue Bonds Series 2013 and 2012, and Co-Senior Manager for $297 million in various series since 2010
  • Colorado Department of Transportation Senior Manager for $104 million Transportation Revenue Anticipation Notes (TRANs) Refunding Series 2011 and Senior Manager, Co-Senior Manager or Financial Advisor for an additional $2 billion in various series of TRANs since 2000
  • Colorado Bridge Enterprise Senior Manager for its inaugural $300 million Revenue Bonds Senior Taxable Build America Series 2010A
  • Regional Transportation District Senior Manager for $224 million Certificates of Participation Series 2013A and $475 million Sales Tax Revenue Bonds Series 2012A, and Co-Senior Manager or Co-Manager on $425 million in various series since 2009
  • State of Colorado Senior Manager for $33 million Higher Ed Certificates of Participation (COPs) Series 2010 and Senior Manager or Co-Senior Manager for more than $600 million in various series of COPs since 2000

In addition to the transactions listed above, Jon brings innovative financial solutions to a wide variety of government entities.  Examples include Denver Urban Renewal Authority, the Colorado Department of Corrections, the Capitol Parking Authority, the Colorado School of Mines, Metropolitan State University of Denver, cities such as Aurora and Fort Collins, counties including Adams, Broomfield, Jefferson and Routt; and numerous special districts, improvement districts and urban renewal authorities.

A fourth generation native of Colorado, Jon holds a Bachelor of Science degree in Business Administration with a concentration in Finance from Colorado State University and a Juris Doctor degree from the University of Colorado School of Law.  Jon holds Series 7, 53 and 63 FINRA licenses.

Michael Persichitte

Director
Colorado

+1.303.595.1202

Tom Wendelin

Director
Colorado

+1.303.595.1211

Julie Santamaria

Director
Florida

+1.727.895.8871

Loren Morales

Director
Texas

+1.713.651.3342