A Capital Lease financing transaction enables the borrower to take advantage of sales tax savings while still enjoying the benefits of ownership. The Port Authority must have an ownership interest in the project to be constructed allowing it to pass its benefit of State and Local sales tax exemption on to the project. The Port Authority issues bonds which may be purchased by banks, private investors or by an affiliate of the borrower. Lease payments are designed to fully amortize the debt. Construction costs are reduced and a buyout option allows the company to buy the asset at a nominal amount at the end of the lease term and/or when Bond proceeds are paid off.