Seguin EDC, council approve 20-year sales-tax-backed financing to support planned education campus

The Seguin Economic Development Corporation and the Seguin City Council approved a sales-tax-backed financing structure to fund land acquisition for a proposed education campus in Seguin. The financing plan presented to the council would use a 20-year sales-tax-backed note arranged through Government Capital Corporation, with an estimated interest rate of 4.7 percent, quarterly payments and optional early refinancing beginning in year five.

SEDC and city staff said the structure pledges future sales tax receipts as the repayment source and does not place an interest in the land itself; the arrangement is intended to leave SEDC flexibility to negotiate land terms with the education partner while guaranteeing financing for acquisition.

Matt Sullivan of Government Capital Corporation described the proposed structure as a 20-year note callable at a premium in the first years (described as callable at a 101 premium years 5–10 and at par year…