As manufacturing looks at opportunities for investment in the U.S., Texas is an attractive location with access to a well-educated work force, existing infrastructure to support manufacturing investment, access to global markets and a global reputation as the best state for business.
Gulf Coast Authority (GCA) can support investment opportunities through conduit bond financing.
GCA has long provided bond financing options for industrial projects in Texas. Through its Gulf Coast Industrial Development Authority (GCIDA), GCA now has the unique ability among Texas providers to offer nationwide bond conduit financing. This capability was accomplished through the passage of HB 2390, sponsored by Texas State Representative Dennis Paul and Senator Larry Taylor, in the last Texas Legislative session.
"GCA is proud to be the first entity in Texas that can offer nationwide conduit bond financing," explained Liz Fazio Hale, GCA GM/CEO. "With investment and growth in the state, GCA has seen an increase in inquiries about leveraging Private Activity Bonds (PABs) to fund projects."
Since GCA's inception in 1969, many industrial partners have used its governmental conduit bond services through PABs to finance projects. These projects have included solid waste disposal, environmental improvements and pollution control.
GCA has the authority to issue tax-exempt bonds for both governmental municipal bonds and PABs. Projects that can qualify for GCA-issued tax-exempt PABs range from water supply, sewage and solid waste disposal facilities to local furnishing of steam or electricity, dock and wharf facilities and airports.
GCIDA can issue taxable bonds for many types of facilities that create jobs, including:
- Manufacturing and industrial facilities
- Research and development facilities
- Military facilities
- Transportation facilities such as airports, hangars, rail ports, rail switching facilities, maintenance and repair facilities, cargo facilities, related infrastructure located on or adjacent to an airport facility, rail port facilities, marine ports, inland ports, mass commuting facilities and parking facilities
- Distribution centers
- Small warehouse facilities that serve as decentralized storage and distribution centers
- Job training facilities used by higher education institutions
- Regional or national corporate headquarters
- Streets and roads, rail spurs, water and sewer facilities, electric utilities, gas utilities drainage, site improvements and related improvements
- Telecommunications and internet improvements
- Beach remediation along the Gulf of Mexico
- Projects for the creation or retention of primary jobs for the Coast Guard
- Projects suitable for use as a career center
- Job training for development and expansion of business enterprises
Recent years have seen the development of non-traditional funding programs. GCIDA can also provide nationwide conduit financial services for Property Assessed Clean Energy (PACE) projects. PACE is an innovative financial program for low-cost, long-term financing of water, energy efficiency and conservation improvements.
"The PACE program has not been widely used by industrial facilities in Texas," Fazio Hale explained. "However, given the ongoing interest in water conservation and reuse projects, particularly in the water-scarce areas of the state and in energy efficiency projects, we are excited to make this program available."
Qualified PACE projects must be permanently fixed to the real property and have a demonstrated ability to decrease water consumption or demand, or energy consumption or demand. To date, several commercial building water reuse and energy efficiency projects have leveraged the PACE program in Texas.
For more information, visit gcatx.org or call (281) 488-4115.
