Title:
TEFRA Hearing - Queens University of Charlotte
Summary
ACTION:
1) Open TEFRA public hearing and receive comments on the proposed financing by Queens University of Charlotte
2) Close public hearing and adopt resolution titled:
Resolution of the Board of Commissioners of the County of Mecklenburg, North Carolina, Approving the Issuance By The Public Finance Authority of its Educational Revenue Bonds (Queens University of Charlotte), in an Aggregate Principal Amount Not to Exceed $13,500,000
Staff Contact: Tyrone C. Wade, County Attorney
Presentation: No
BACKGROUND/JUSTIFICATION:
As more fully explained in the attached Resolution, Queens University of Charlotte (the “University”), has requested that the Public Finance Authority, a public authority existing under the laws of the State of Wisconsin (the “Authority”), issue its Educational Facilities Revenue Bonds (Queens University of Charlotte), in one or more series (the “Bonds”), in an aggregate principal amount not to exceed $13,500,000 for the following purposes:
(A) to finance the construction and furnishing of a new 120 to 130 bed residence hall on the main campus of the University at the location of an existing administrative office building known as Stultz Hall (to be demolished), the renovation of an existing residence hall known as Belk Residence Hall, and the renovation of existing space on the main campus to house the administrative teams and functions to be relocated from Stultz Hall (collectively, the “Project”); and
(B) to pay certain expenses incurred in connection with the authorization and issuance of the Bonds.
Queens University of Charlotte 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, Queens University of Charlotte 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