Historic financing to support development of proposed osteopathic medical school campus in Provo, Utah
D.A. Davidson & Co. has sold $42.8 million of limited tax general obligation bonds for Medical Campus Public Infrastructure District (PID), located in Provo, Utah, to finance public infrastructure related to the development of a new osteopathic medical school campus anticipated to be built on an approximately 30-acre site.
This was the first bond issuance from a Public Infrastructure District in the state of Utah since S.B. 228 was passed by the legislature in May of 2019. S.B. 228 allows the formation of a Public Infrastructure District as a way to finance public infrastructure for both new development and redevelopment projects across the state.
“Today is a big day for the state of Utah,” said Brennen Brown, senior vice president at D.A. Davidson. “This financing paves the way for a new medical school that will serve Utah Valley, the state of Utah and the entire region, and will be an economic catalyst and asset to the community for many years to come. I am extremely honored to be part of this historic financing.”
Upon completion, the development is planned to contain 400,000 square feet of medical education and research space including the Noorda College of Osteopathic Medicine (proposed) and the affiliated campus of Rocky Mountain University of Health Professions, a student union, and surgical/research space; 685,000 square feet of multi-family housing consisting of 685 units; and 234,000 square feet of parking structures consisting of 780 stalls.
“We couldn’t be happier with the team at D.A. Davidson for guiding us to a successful bond transaction,” said John Nemelka, a board member of Medical School Campus PID. “This financing lays the ground work for an incredible project to take shape that will transform the medical field in the state of Utah and we appreciate the problem-solving, creative thinking, and dedication of the D.A. Davidson team.”
“This is the first financing of its kind in the state of Utah and we expect many additional financings will follow,” added Sam Sharp, managing director at D.A. Davidson. “We are excited to continue to help clients all across the state efficiently access the capital markets for their public infrastructure needs.”
The Special District Group at D.A. Davidson is comprised of 17 individuals dedicated to financing public infrastructure across the country. The group has extensive transaction experience with over 100 transactions and over $2 billion of par amount issued in just the past year.
D.A. Davidson & Co.’s Fixed Income Capital Markets group is a national leader in raising capital through fixed income banking, distribution and depository strategy. With 29 locations in 17 states, the group is consistently ranked among the top firms in the country. The fixed income team serves new issue clients in public finance and taxable debt issuance, and maintains a diverse sales and trading group interacting with taxable and tax-exempt investors including banks, credit unions, insurance companies, bond funds, money managers and trust companies.
About D.A. Davidson Companies
D.A. Davidson Companies is an employee-owned financial services firm offering a range of financial services and advice to individuals, corporations, institutions and municipalities nationwide. Founded in 1935 and headquartered in Montana, with corporate offices in Denver, Los Angeles, Portland and Seattle, the company has approximately 1,400 employees and offices in 26 states.
Subsidiaries include: D.A. Davidson & Co., the largest full-service investment firm headquartered in the Northwest, providing wealth management, investment banking, equity and fixed income capital markets services, and advice; Davidson Investment Advisors, a professional asset management firm; D.A. Davidson Trust Company, a trust and wealth management company; and Davidson Fixed Income Management, a registered investment adviser providing fixed income portfolio and advisory services.
For more information, visit dadavidson.com.