Diversified Municipal Finance Corporation

“Serving the leasing needs of government for over 45 years”

USING LEASE PURCHASE

The objective of the lease program is to allow a client to obtain major capital facilities in a shorter time at a lower cost with better quality, and with less risk that would be possible under more conventional approaches.

Time is saved because we can design the facility using "fast-track" methods.

"Design-build" and "Value engineering techniques become available.

Access to tax-exempt public sector financing rates and competitive market rates are preserved.

Quality is improved because the private sector's expertise is tapped.  That is, the project is designed and built by people who do it every day for a living, and who have done it before.

Risk is reduced because the private sector participants assume (and insure against) a great deal of the construction period risk as well as prevent construction overruns.

To the extent there may be political concerns about a negotiated financing, they can be addressed by using a request for proposals process allowing the selection of the private sector team leader.

In addition, the client could require that the major subcontracts be publicly and competitively bid. 

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