Municipal Recovery
Many municipalities face significant challenges reconciling growing public demands for local government services with declining revenue bases, reduced state funding, rising labor and pension costs, a restrictive regulatory environment, and limited access to capital.
Barnes & Thornburg’s Municipal Recovery practice serves as a strategic partner to local governments and municipal investors navigating these pressures. With deep understanding of fiscal constraints and credit considerations, we help clients:
- Access capital markets on favorable terms
- Enhance revenues by maximizing taxing authorities
- Negotiate and arbitrate labor contracts
- Expand tax bases through targeted economic development
- Identify opportunities for cost efficiencies
- Monetize and privatize public assets
- Restructure outstanding bonds
- Negotiate and litigate defaults and remedies.
Public Finance
We maintain one of the nation’s premier public finance practices. Our attorneys have participated in the issuance of tax-exempt obligations across all states, the District of Columbia, and three U.S. territories.
Our attorneys are consistently recognized in The BondBuyer’s Municipal Marketplace (“Red Book”) and are well-versed in current municipal finance challenges, including working capital financings, restructurings, direct loans, pension disclosure, distressed municipality laws, and Chapter 9 of the Bankruptcy Code.
We advise municipalities on non-traditional financing alternatives, including government incentives, brownfields, low-interest state loans and grants, and workforce grants. We also assist clients in rebuilding tax bases through economic development and targeted redevelopment projects, including enterprise zones, tax-increment districts, and business and neighborhood improvement districts, leveraging underutilized assets to generate sustainable revenue.
Municipal Labor
Labor costs are often the largest operating expense for municipalities. Our labor and employment attorneys represent public employers in union-management relations, including negotiations, arbitrations, and proceedings before state labor relations boards and other regulatory agencies.
Pension and Post-Retirement Benefits
Underfunded pension and post-retirement liabilities are an increasing concern nationwide. We advise municipalities on public employee pension law, tax issues related to pension funding obligations, disclosure requirements for unfunded benefits, and treatment of unfunded liabilities under Chapter 9.
Municipal Bankruptcy and Workouts
We represent municipalities, authorities, trustees, letter-of-credit banks, bond insurers, and borrowers in default and workout situations. Our attorneys’ projects have included municipal facilities, airports, public transportation systems, hospitals, academic medical centers, continuing-care retirement facilities, and social-service agencies.
We actively negotiate among parties—including trustees, bondholders, credit enhancers, and borrowers—and, when appropriate, initiate litigation on behalf of indenture trustees to enforce contractual or statutory remedies. Our attorneys have hands-on experience with landmark Chapter 9 cases and understand the interplay between state laws and the Federal Bankruptcy Code.
We also assist municipalities in establishing operating authorities to spin off enterprises from traditional government functions, enabling cost savings and increased efficiency. Our team handles long-term working capital financings, as well as refinancings and restructurings of outstanding debt, with careful consideration of tax implications and bankruptcy interactions.
Government Relations
Our government relations attorneys provide state-level advocacy across the country, monitoring legislative and administrative developments and supporting clients in economic development and contracting matters. We help clients identify and pursue opportunities aligned with fiscal and operational objectives.
Land Use
Members of our Municipal Recovery practice collaborate with Barnes & Thornburg's real estate team to represent governmental entities in real estate transactions, administrative proceedings, and judicial matters involving redevelopment, master planning, zoning, leasing, subdivision, land development, enforcement actions, and condemnation and regulatory takings. We regularly coordinate with attorneys in construction, eminent domain, water and environmental law, taxation, and public finance to provide comprehensive advice.