Georgia's Perdue Outlines Projects To be Funded With $1.2B of GOs

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BRADENTON, Fla. - Georgia Gov. Sonny Perdue has a long list of projects that he wants the state to finance with $1.2 billion of general obligation bonds in fiscal 2010, which begins July 1.

Perdue released an extensive list Wednesday, a day after his state of the state speech to the General Assembly in which he said Georgia - with its triple-A bond rating and strong balance sheet - would invest in projects that have long-term value.

"In the past, we have often funded the design phase of a project one year and construction at some later date," Perdue said. "This year's package will feature many projects in which both design and construction are funded in the same year, ensuring their timely completion."

The governor called his bond proposal an aggressive increase in the state's annual issuance, 20% higher than the current year, and said it would take advantage of low construction costs and create an estimated 20,000 new jobs.

The proposed bond package, if legislators approve, would provide $318 million for the construction of public school classrooms across the state, $325 million for construction projects within the university system, and $573 million of bonds for construction projects and equipment purchases at state facilities and technical colleges.

Some of the higher-priced individual projects to be bond financed include nearly $50 million for design and construction of a parking facility at the capitol in Atlanta, $45 million for various water and sewer programs, and $36 million to match federal funds for the Savannah Harbor expansion project, a long-planned deepening of the federal channel to 48 feet from its current 42-foot depth.

Some $25 million would be used to build a new conference center and oceanfront public park on Jekyll Island, $24 million would build and equip an agricultural testing laboratory in Tifton, and $20 million would be used to administer a matching grant program for certain projects in community improvements districts.

Meanwhile, Georgia officials are preparing to sell up to $614 million of GO bonds before the current fiscal year ends.

The tentative schedule calls for the issuance this month of $61.8 million of Series 2009A bonds with five-year maturities and $552 million of Series 2009B bonds with 20-year maturities.

The issuance schedule was announced in a request for proposals sought by the Georgia State Financing and Investment Commission for an underwriting team.

While Georgia traditionally sells its GO bonds competitively, current market uncertainty led the financing and investment commission to compose a team consisting of a "book-running senior managing underwriter and co-managing underwriters in the event the state decides to proceed with one or more negotiated sales of bonds in January 2009," the RFP said.

State officials were not immediately available for an update on the selection process.

Alston & Bird LLP will serve as bond counsel for the 2009A and B bond sales, while Greenberg Traurig LLP will serve as disclosure counsel. Public Resources Advisory Group is the state's financial adviser.

Florida, which typically sells bonds competitively, recently named an underwriting pool because of market volatility, but the state has yet to use it. Virginia has also gone the negotiated path for the same reason, although it usually sells debt competitively.

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