About CFC

Structure

 

Community Finance Corporation (CFC) is governed by a Board of Trustees which at a minimum consists of the four (4) officers of the corporation, including the President, the Vice President, Secretary and Treasurer, plus one (1) other director-at-large elected from the membership of the Corporation. The Board of Trustees currently has five (5) members.

CFC is an Arizona based nonprofit, non-stock corporation which exists for the purpose of lessening the burdens of government and to erect, finance the erection of, or maintain public buildings, monuments or works. CFC works on behalf of governmental entities to design a solution that meets its needs; services can include design, build, finance, operation and/or maintenance of governmental facilities. Our process ensures the best possible building for the least cost and burden to the governmental entity.

Experience

 

CFC has completed over $1.9 billion in projects, which are located throughout the western and southwestern United States.

  • Arizona Dept. of Administration Office Building and Parking Structure (Privatized Lease to Own)

  • Taylor Place – student housing for the Arizona State University downtown Phoenix campus

  • City of Oxnard Fire Station, Oxnard, California

  • Clark County Detention Facility, Las Vegas, Nevada

  • LCS Corrections Services, Inc. Texas and Louisiana

  • Click here to view our entire project list

Project Approach

 

CFC’s approach to public-private partnerships blends tax-exempt debt with private development expertise. Typically the governmental entity will enter into a lease with a single purpose entity (SPE) created by CFC for the project. CFC will in turn obtain the necessary tax-exempt financing at the best possible rate and assist with the design, and construction of the facility.

Projects can be structured so that the development team is under contract to take construction and delivery/completion risk. After construction is complete, the governmental entity takes possession and begins paying rent. The base rent is set at a level equivalent to the debt service. Once the debt service is retired the project is transferred to the governmental client at no additional cost. The tax exempt debt and project structure have several attractive characteristics:

  • Off balance sheet financing to the governmental entity

  • Typically 100% financing at best possible interest rates

  • Real property tax abatement possible under state law

  • No impact on statuary debt limitations

  • Shifts construction and completion risk from the governmental entity to the development team

Charitable Giving

 

Community Finance Corporation’s (“CFC”) charitable roots go back to 1986 when Business Development Finance Corporation (“BDFC”- then Tucson Local Development Corporation) was chosen by the City of Tucson to issue bonds for the major expansion of Tucson’s existing convention center.  Current BDFC President /CFC Advisor Gary Molenda and current CFC Board member Kendall Bert were key participants in that project, which was completed on-time and within budget.  CFC was formed in 1991 and over the years has completed numerous projects, meeting its legal mandate to “lessen the burdens of government and nonprofit organizations”.  Along the way, CFC’s advisor, BDFC Advisor Services, LLC (a subsidiary of BDFC) has gained deep economic development experience and bond financing expertise.

From its inception, the Board of CFC decided to donate any excess revenues back into the community.  There is a public purpose to this type of financing and we felt this was the right course of action. All Board members have a strong sense of community and choose our recipient organizations carefully, focusing on disadvantaged youth and/or advancing economic development.  To date, in excess of 2.5 million dollars has been directed to advance these goals.