Dorchester County, South Carolina, sold $18.9 million in term bonds to develop a mixed-use community within the county.
The bonds mature between 2033 and 2051, yielding between 4.55% and 5.625%. They did not receive a rating.
The bond proceeds will finance the so-called Summers Corner Improvement District, a 7,000-acre area that the county intends to develop into commercial and residential property. The county is building roads, a water and sewer system, fire and emergency medical services facilities, and parks, among other infrastructure.
The development aims to recruit affluent homebuyers, from both Charleston and out of state, with a slew of amenities, including parks, playgrounds, walking trails, pools, and clubhouses. Several similar developments have cropped up in South Carolina in recent years.
“The Development competes in a market that is comprised of local developments that cater to upper-middle and upper-income home-buying segments as well as affluent retirees relocating to the Charleston area,” the official statement accompanying the sale of the bonds reads.
The county created the district in 2017, committing up to $108 million in bonds for potential improvements over the next 25 years. In 2018, the county sold $17 million to begin funding improvement projects.
Together, the two sets of bonds have created $78 million in debt for the county, according to the bond documents. The securities are payable by an annual assessment on property within the district, amounting to about $850 for single-family homes and $680 in a senior living community within the district, as of tax year 2023.
Dorchester County includes 160,000 people and is about 20 miles from Charleston. The bonds are special obligations of the county, secured by the property assessments and other revenue.
Wells Fargo Bank, NA served as lead underwriter on the issuance. First Tryon Advisors acted as financial advisor.