THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT AND THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTIONS.
The Borrower is a Florida not-for-profit corporation operating the Imagine School at Broward, a tuition-free public charter school in Coral Springs, Florida. The Borrower seeks taxable and tax-exempt financing in an amount not to exceed $22 million dollars for (i) financing (including through reimbursement) all or a portion of the costs of acquiring an existing approximately 71,918-square-foot building containing 44 traditional classrooms, an indoor multi-purpose room, a kitchen, media center, arts room, music room, restrooms, conference rooms, office space, and other related educational areas, together with all related improvements and the site on which the building is located, and which acquisition may include related equipment (collectively the "Facility"); (ii) funding a debt service reserve fund; (iii) funding a renewal and replacement fund, if determined to be necessary and appropriate; and (iv) paying all or a portion of certain costs associated with the acquisition of the Facility and certain costs of issuance of the bonds (collectively, the "Project"). The Borrower currently employs approximately 98 persons and the Project is expected to result in additional employment of one person. The Borrower's current annual payroll is $3.6 million.
The Broward County Bond Review Committee met on Wednesday, December 5, 2018, at 2:00 p.m. and Tuesday, January 15, 2019, at 2:00 p.m. As evidenced by Exhibit 1, the Committee voted unanimously to recommend the Project for bond financing.
Motion A provides for a public hearing in accordance with Section 147(f) of the Internal Revenue Code and related Treasury Regulations regarding the issuance of tax-exempt education facilities revenue bonds. This hearing has been properly noticed as evidenced by the Proof of Publication attached to the Resolution (Exhibit 2). A script for this hearing is attached as Exhibit 3, and should be read into the Official Record by the presiding hearing officer.
Motion B provides for preliminary approval for issuance of Broward County, Florida, Educational Facilities Revenue Bonds (Imagine School at Broward Project), to be issued in one or more taxable and tax-exempt series, in an aggregate principal amount not exceeding $22,000,000. The Bonds will be sold in a limited public offering to institutional and accredited investors in minimum denominations of $100,000 in accordance with Section 18.62 of the Broward County Administrative Code. The Bond proceeds will be used for the purpose of making a loan of funds to the Borrower to finance the cost of the Project. The Bonds will be payable solely from revenues and proceeds derived from the Borrower’s operations, and will not constitute a debt, liability, or obligation of Broward County (the "County"). Terms, conditions, and details for issuance and sale of the Bonds are set forth in the Memorandum of Agreement attached as Exhibit B to the Resolution. Upon approval of Motion B, financing agreements necessary for issuance and sale of the Bonds, including a loan agreement and bond trust indenture, will be negotiated for future consideration by the Board. |