Special Districts

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.

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.

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%.

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.