La Verne EIFD Completes Tax Exempt Financing
The City of La Verne successfully closed a privately placed lease financing that provides the first financing to an Enhanced Infrastructure Financing District (EIFD).
Kosmont Transactions Services served as Municipal Advisor to the City. Kosmont Companies assisted the City with formation of the EIFD.
One of the first formed EIFDs, the La Verne EIFD is using Tax Increment Financing to pay for the cost of installing various public improvements in the City’s Old Town Area in advance of opening Metro’s Foothill Gold (L) Line station. The public facilities are designed to ensure that high quality private development takes place, as envisioned by the Old Town La Verne Specific Plan.
The City will loan the lease proceeds to the EIFD which in turn repays the loan with the Tax Increment generated by the private projects, making this the first Tax Increment based EIFD financing since the dissolution of RDAs (redevelopment agencies) 10 years ago.