SAN ANTONIO--(BUSINESS WIRE)--Today, Brooks City Base and Preston Hollow Capital announced the issuance of the Brooks Development Authority Revenue Bonds, Series 2015. The $54.9 million bond package includes:
- $36,100,000 tax-exempt bonds, series 2015A-1
- $7,200,000 tax-exempt bonds, series 2015B-1
- $11,600,000 taxable bonds, series 2015B-2.
“The primary purpose of this bond program is to finance the cost of public capital infrastructure improvements, which will accelerate economic development at Brooks City Base,” said Brooks City Base President & CEO Leo Gomez. “After embarking on an intensive land-use planning process, we identified a number of infrastructure needs, especially in the north and west areas of our campus that we believe will attract further residential, retail and restaurant investment, therefore bringing more people and energy to Brooks.”
“We’re proud to partner with Brooks City Base, one of the most exciting projects of its kind in the country,” said Ramiro Albarran, managing director of Preston Hollow Capital. Launched in January 2014 by former leaders of ORIX USA Corporation, Preston Hollow Capital is an independent specialty finance company that serves as a solution provider in municipal finance. “This bond financing will give Brooks City Base significant, flexible capital to take advantage of its many opportunities for further economic development and job creation.”
“Preston Hollow Capital has been an excellent financial partner to Brooks City Base,” said Gomez. “We have worked diligently with the Preston Hollow team to craft financing that allows Brooks City Base to create ongoing and accelerated economic development on our campus. We look forward to sharing the success of this partnership with our community and across the country as a model for other organizations.”
Established in 2001 to redevelop the former Brooks Air Force Base, Brooks City Base has successfully replaced 2,700 military jobs with more than 3,000 private sector jobs at an average salary of $50,000 per year and has attracted major employers including Baptist Health System, DPT Laboratories, Mission Solar, Carenet Healthcare Services, and dozens of others.
In 2014, Brooks City Base developed a land use plan to lay out a strategic vision for future development of the 1,308-acre campus. The publically-vetted plan strikes a balance between culture, commercial development and ecology, and was the driver in identifying projects to be included in the bond program.
Notable projects within the bond package include the restoration of historic Hangar 9, the only surviving hangar from World War I, parkway and drainage improvements, repairs and upgrades to Aeromedical Drive and Louis Bauer Drive, as well as engineering and design work for South New Braunfels road extension to Loop 410. A portion of the funds will also be used for the construction of the Embassy Suites by Hilton at Brooks City Base, the only conference and event center south of downtown San Antonio and north of Corpus Christi or McAllen.
Brooks City Base’s bond program is designed and structured to be paid entirely from revenues generated through tenant leases. No city, county, state or federal taxes will be used to pay off debt services associated with the bonds. The bond issue design and structure was coordinated with First Southwest Company, financial advisor to Brooks Development Authority, Stifel Nicolaus & Company, Inc. and Estrada Hinojosa & Co., Inc., underwriters.
About Brooks City Base
Brooks City Base is a community of more than 1,200 acres planned for mixed-use development that includes residential, retail, office, and light industrial opportunities. Since its inception, the community has attracted more than 26 businesses including Mission Solar, Mission Trail Baptist Hospital, DPT Laboratories, Wyle Integrated Science and Engineering, Texas A&M-San Antonio Brooks City Base, VMC, Bridge PTS, the City/County Emergency Operations Center, the Brooks Academy of Science and Engineering Charter School, The Landings at Brooks City Base apartment community, and a variety of restaurants and retail stores. For more information, visit www.brookscity-base.com.
About Preston Hollow Capital
Preston Hollow Capital is an independent specialty finance company launched in January 2014 by Jim Thompson, the former longtime President and Chief Executive Officer of ORIX USA Corporation. Preston Hollow Capital is a solution provider in municipal finance, and seeks to produce superior risk-adjusted returns across a broad spectrum of investment strategies. For more information, visit phcllc.com.