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The lingering Great Recession and slow recovery have diminished the growth of state and local government revenues while expenses continue their increase causing structural budget gaps. A new source of revenue is the sale or conversion of government assets into revenues. These revenues may be one-time proceeds of asset sales, leases and franchise fees, redevelopment of existing buildings, imposing new fees, rents, assessments on underutilized assets and various offsets to operating costs. Squire Sanders partner Kenneth W. Bond will cover the budget benefits and the legal and tax challenges in conducting asset sales and conversions. This OnDemand Webinar will also cover how state laws need reform to develop a comprehensive legal basis for accessing the equity in government assets. Squire Sanders partner Harriet M. Welch will discuss various techniques and financial structures available to effect asset sales. Squire Sanders partner Christopher Brigstocke will provide insight on the European-UK model of private-public sector partnerships where assets are sold to a special purpose entity and the financial risk of design, construction, operation and management of government assets and services is shifted to investors.
Date: 2011-09-21
Time: -
The Issue to Be Addressed State and Local Government Fiscal Stress
Recurring Revenue Shortfalls Due to Great Recession
Recurring Expenditure Increases Due to Fixed Labor/Benefits Agreements
Attempts to Achieve Balance Causing Reduction in Core Public Services
The Budgetary Benefits From Asset Sales
Monetizing Assets Unlocks Asset Value to Close Budget Gaps
Urban Renewal/Economic Development Assets Sold May Enhance Revenues
Proceeds of Asset Sale Not Restricted but Must Be Applied to Alleviate Deficit
The Techniques to Effect Asset Sales
Sale and Leaseback; May Require Creation of Conduit on Behalf on Public Entity
True Sale Transaction (California Model)
Use of Senior and Subordinated Debt Paid From Revenue Flow
Lease Facilities With Up-Front Investor Payment (i.e., Parking Facilities); P3
Ground Lease to Retain Public Asset Ownership and Regulation
Sale of Easements, Franchises, Licenses, etc. for Land Use Control
Legal Issues Involved in Asset Sales
Need for Basic State Law Authority to Sell Assets If Not Surplus
Referenda Requirements and Fair Valuation of Assets
Effect on Labor Agreements and Benefits If Assets and Facilities Sold
Tax-Exempt Status of Interest on Bonds Which Financed Sold Assets
Continued Public Management or Privatization of Sold Assets
The Need for Revision of State Laws to Effect Asset Sales
Statutes Which Authorize Asset Sales to Generate Budget Revenues; Authorize Public Assets to Be Rented or Leased Rather Than Owned; Empower Conduits
Statutes Which Authorize True Sales; Address Asset Ownership Issue
Statutes Which Set Parameters for Valuation of Assets and Regulation of Public Assets Under Private Sector Ownership
Statutes Which Address Labor Agreements/Employee Benefits When Assets Held on Trust for Investors
UK-Type Public Private Partnership Infrastructure Financing
Establish Legal Alternatives With Equity Participation to Finance Infrastructure
Shift Risk of Loss to Investors With Senior/Subordinate
Include Asset Sales in P3 Transaction to Generate Budget Revenues
Federal Funding and Tax Incentives
Amend IRC to Provide New Category for Asset Sale Tax-Credit Bonds
Provide Matching Federal Dollars for Asset Sale (ABA Resolution 105, 2009)
Kenneth W. Bond, Squire, Sanders & Dempsey (U.S.) LLP Christopher Brigstocke, Squire, Sanders & Dempsey (U.S.) LLP Harriet M. Welch, Squire, Sanders & Dempsey (U.S.) LLP
CLE (Please check the Detailed Credit Information page for states that have already been approved) ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.
Click here for detailed credit information
This live audio conference is designed for state and municipal officials, city managers and administrators, board members, controllers, CFOs, CPAs, accountants, finance managers and attorneys.
SKU: 387197EAU
Date: 2011-09-21
Time: -
Price: $179.00 USD
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