Financial Model

Destiny USA has pioneered a new way of financing large capital projects.

The model redevelops underused land that generates minimal property tax and no sales tax. The land parcel is then developed to ensure a steady flow of sales tax for the local government, as well as jobs for the community.

The equivalent of the post-development property tax is used to service debt on municipal bonds. The combination of municipal bonds sold to the marketplace coupled with city and state legislation essentially trades the promise of future sales taxes for immediate capital, all at no cost to the taxpayer.

In the traditional model, every construction project pays both property taxes and debt service. Instead of property tax payments, Destiny USA makes “payments in lieu of taxes” (known as “PILOTs”) to a bond trustee, which in turn repays the holders of the bonds.

Simple, efficient and working – we issued our first series of PILOT Bonds in February 2007 in the amount of $326 million to help finance the first phase of Destiny USA.