PDA Discusses GSW Dormitories Bonds

The Americus-Sumter Payroll Development Authority (PDA) talked about its role as the issurer of bonds for a new student housing facility at Georgia Southwestern State University (GSW).

PDA attorney Michael Fennessy told PDA members at a meeting Tuesday that the PDA will bear no financial responsibility for the issuance of the bonds. Tuesday's PDA meeting was an information session about the bond issue.

Fennessy recently released this statement to the public, "You are hereby notified that on the 17th day of November 2008 at 9:30 a.m. at the offices of Michael A. Fennessy, 206 North Prince Street, Americus, GA. 31709. Michael A. Fennessy, as hearing officer for the Americus-Sumter Payroll Development Authority (the "Issuer"), will hold a public hearing with respect to the issuance by the Issuer of up to $18,000,000 in aggregate principal amount of its revenue bonds, in one or more series (the "Bonds").

The proceeds of which are to be loaned to GSW Foundation Housing II, LLC, a Georgia limited liability company (the "Company"), whose sole member is Georgia Southwestern Foundation Inc., a Georgia nonprofit corporation, and used to (a) finance or refinance in whole or in part the cost of the acquisition, construction, renovation, installation and improvement of certain land, buildings, structures, equipment and related real and personal property to be used as a student housing facility containing approximately 300 beds, 293 parking spaces and related amenities located on Perimeter Road directly across from Duncan Hall at the site formerly known as Complex III and other improvements, all on or adjacent to the campus of Georgia Southwestern State University (the "University"), 800 Georgia Southwestern State University Drive, Americus, Georgia, 31709 (the "Project").

"(b) fund capitalized interest on the Bonds, (c) fund a debt service reserve fund or surety for the Bonds and (d) pay the costs of issuing the Bonds and certain initial operating expenses for the benefit of the Company. The initial owner of the Project is the Company, and the initial operator of the Project is the University. The Bonds will not constitute an indebtedness or obligation of the State of Georgia or of any county, municipal corporation or political subdivision thereof, but will be payable solely from revenues derived from the Company and pledged to the payment thereof. Any person interested in the proposed issuance of the Bonds or the location or the nature of the Project may appear and be heard."