Council adopts bond reissuance resolution; city staff say no new liability to the city

The Milledgeville City Council adopted Resolution R2507.24 approving the reissuance and extension of the weighted-average maturity of tax-exempt revenue bonds for the benefit of Fairview Terrence LP.

Allison Dyer, a partner with Holland & Knight LLP participating by phone on behalf of the housing authority, told the council the project tied to the bonds is complete and leased and that the 2023 bond issuance was secured solely by the property’s revenues. ‘‘There is no new debt being issued. There is nothing changing about the project. There is no new liabilities,’’ Dyer said, explaining that changes to the bond terms triggered a federal requirement to hold a TEFRA hearing.

Dyer said the additional issuance in 2023—about $3 million—was used because federal and state allocation limits prompted the issuer to seek that route; she told council the action is required under Section 147(f) of the Internal Revenue Code and was reviewed by counsel. City staff said the prior hearing and associated approvals by local authorities had been conducted as required.

Council subsequently voted to adopt the resolution by roll call. The council was told the bonds are secured by property revenues and do not create contingent liability for the city or housing authority; staff and outside counsel said multiple attorneys had reviewed the matter and confirmed compliance with Georgia law and federal tax rules. The resolution’s adoption advances the administrative step related to the bond reissuance; no new city-funded commitment was reported at the hearing.