PFG President, John Finke was interviewed by The Bond Buyer’s far west regional editor, Keeley Webster, to discuss the Vermont Corridor project recently approved by L.A. County. Ms. Webster writes:
There are two ways that government can take control of the 501(c)3. When the debt is paid off, PFG transfers fee ownership. The government entity also can replace PFG with a joint powers authority or take over the issuing entity itself.
“Our mission is to help government build buildings,” Finke said.
His philosophy is different from the Design-Building-Finance-Operate-Maintain structure common in the P3 space, which involves private equity instead of tax-exempt debt.
“They generally involve private equity and conventional debt and they eschew tax exempt debt,” Finke said.
Tax-exempt debt offers the lowest financing cost available in the U.S., Finke said.
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