Broward County Commission Regular Meeting

A. MOTION TO OPEN Public Hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), relating to the issuance by the Capital Trust Agency (the “CTA”) of not to exceed $8,500,000 aggregate principal amount of the CTA's Educational Facilities Revenue Bonds (Paragon Academy of Technology and Sunshine Elementary Charter School Project) from time to time in one or more tax-exempt or taxable series pursuant to a plan of financing (the “Bonds”) for the purpose of financing a project for Sunshine Elementary Charter School, Inc., a Florida not-for-profit corporation (the “Borrower”) located in the City of Hollywood, Broward County, Florida.

ACTION:  (T-11:43 AM)  Approved. (Refer to minutes for full discussion.)

VOTE:  6-3.  Commissioners Furr, Geller and Udine voted no. 

ACTION:  (T-12:06 PM)  The Board closed the Public Hearing.  (Refer to minutes for full discussion.)

VOTE:  9-0.

B. MOTION TO ADOPT Resolution No. 2019-079 of the Board of County Commissioners of Broward County, Florida, approving for purposes of Section 147(f) of the Code, Chapter 163, Florida Statutes and Section 159.29, Florida Statutes, the issuance by the CTA of the Bonds in one or more series in an aggregate principal amount not to exceed $8,500,000 for the primary purpose of financing the acquisition of an existing charter school facility to continue to house Paragon Academy of Technology and Sunshine Elementary Charter School in the City of Hollywood, Broward County, Florida, and providing for an effective date.

ACTION:  (T-11:43 AM)  Approved.  (Refer to minutes for full discussion.)

VOTE:  7-2.  Commissioners Furr and Udine voted no.

Motions A and B: The federal Tax Equity and Fiscal Responsibility Act (“TEFRA”) and U.S. Treasury Regulations promulgated thereunder concerning tax-exempt private activity bonds require a public hearing and adoption of a TEFRA Resolution (as defined below) by the Board of County Commissioners prior to the issuance of tax-exempt bonds. In addition, Chapter 163 of the Florida Statutes, the Florida law authorizing the creation of the CTA, allows Florida governmental entities to work together in connection with the issuance of bonds.

Motions A and B: Ensures compliance with TEFRA and U.S. Treasury Regulations promulgated thereunder, and with Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, by providing for a public hearing and adoption of a TEFRA Resolution by the Board prior to the issuance of the Bonds, the proceeds of which will be used to finance and refinance capital projects located in Broward County, Florida, for the benefit of the Borrower.

None.

THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.

The Borrower has requested that the Board hold the public hearing described herein (the “TEFRA Hearing”) and adopt the Resolution described herein (the “TEFRA Resolution”) for the purpose of, and as required by, Section 147(f) of the Code, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, with respect to the issuance by the CTA of the above described Bonds, in an amount not to exceed $8,500,000 from time to time in one or more tax-exempt or taxable series pursuant to a plan of financing. The proceeds of the Bonds will be loaned by the CTA to the Borrower, and used by the Borrower to pay the costs of the (a) acquisition, renovation, installation and equipping, together with the acquisition and installation of related facilities, fixtures, furnishing and equipment, of an approximately 36,766 square-foot existing charter school facility occupied by two charter schools known as Paragon Academy of Technology, with capacity for approximately 500 students in grades 6-12, and Sunshine Elementary Charter School, with capacity for approximately 500 students in grades K-5, located on approximately 6.45 acres of land at 502 N. 28th Avenue, Hollywood, Florida 33020, within the territorial limits of Broward County, Florida; (b) the funding of a debt service reserve fund for the Bonds, and (c) the payment of certain costs of issuing the Bonds (the purposes described in clauses (a) through (c) are hereinafter collectively referred to as the “Project”).
 

Pursuant to Section 147(f) of the Code, the issuance of the Bonds by the CTA must be approved by the Board because the Project is located within the territorial limits of Broward County. In addition, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes, encourage governmental entities to cooperate when bonds are issued by one governmental entity to finance a project located within the territorial limits of another governmental entity. Motions A and B provide for the TEFRA Hearing and adoption of the TEFRA Resolution in accordance with Section 147(f) of the Code, Chapter 163, Florida Statutes, and Section 159.29, Florida Statutes.
 

The TEFRA Hearing was properly noticed as evidenced by the Proof of Publication attached as Exhibit 2. Exhibit 3 is a public hearing “script,” which must be read into the official record prior to the commencement of the TEFRA Hearing. Exhibit 4 is a letter from the CTA further describing the transaction. The Bonds are expected to be issued by the CTA in March of 2019.

George Tablack, Chief Financial Officer, (954) 357-7130
Stephen Farmer, Finance Manager, Finance and Administrative Services Department, (954) 357-7246