Title
TEFRA Hearing - Bradford Preparatory School
Action
ACTION:
A) Open TEFRA public hearing and receive comments on the proposed financing by Bradford Preparatory School.
B) Close public hearing and adopt resolution entitled:
Resolution of the Board of Commissioners of the County of Mecklenburg, North Carolina, approving the issuance by the Public Finance Authority of its education revenue bonds (Bradford Preparatory School) series 2020 in an aggregate principal amount not exceed $40,000,000.
Staff Contact: Tyrone C. Wade, County Attorney
Presentation: No
BACKGROUND/JUSTIFICATION:
As more fully explained in the attached Resolution BPS Bears LLC (the"Borrower") a North Carolina limited ability company whose sole member is Bradford Preparatory School (the "Lessee") has requested that the Public Finance Authority, a public authority existing under the laws of the State of Wisconsin (the "Authority"), issue its Education Revenue Bonds (Bradford Preparatory School) series 2020 (the "Bonds") in an aggregate principal amount not to exceed $40,000,000 and loan the proceeds thereof to the Borrower for the following purposes:
(a) financing the acquisition of certain land and charter educational facilities of the Lessee and the Borrower to be owned by the Borrower and leased to the Lessee for use as a charter school known as "Bradford Preparatory School" (the "School") located at 2502, and 2510 Salome Church Road, Charlotte, North Carolina 28262;
(b) refinancing certain indebtedness incurred by the Lessee to acquire certain land and charter educational facilities of the Lessee and the Borrower to be owned by the Borrower and leased to the Lessee for use as the school located at 2130, and 2300 Salome Church Road, Charlotte, North Carolina 28262
(clauses (a) and (b) together, the "Project"); and
(c) paying all or a portion of the costs of issuance of the Bonds.
Bradford Preparatory School, is using the Wisconsin Public Finance Authority as the issuer of the Bonds because of a desire to have a 30-year maturity on the debt; the North Carolina Capital Facilities Finance Agency, which would be the North Carolina issuer, has a policy which prohibits a bond maturity greater than 20 years.
In order to comply with federal tax law, and the code and approval requirements, Bradford Preparatory School has requested that the Mecklenburg County Board of Commissioners hold a public hearing and approve the Resolution. This approval will not make the County responsible in any way for the Bonds or the Project financed with bond proceeds. Hosting the public hearing and approving the issuance of the Bonds are merely ministerial acts that will enable the Borrower to comply with federal tax law requirements in order that interest on the Bonds be exempt from federal income tax.
PROCUREMENT BACKGROUND:
N/A
POLICY IMPACT:
N/A
FISCAL IMPACT:
N/A