City Attorney’s Office
Reference: APPROVING, IN ACCORDANCE WITH SECTION 147(f) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, THE ISSUANCE OF BONDS TO FINANCE A PROJECT FOR CAMPUS PARTNERS
To: Mayor Gregory Mills and Members of City Council
Through: Jane Bais DiSessa, City Manager
Prepared By: Lena McClelland, Acting City Attorney
Date Prepared: August 5, 2021
PURPOSE
To approve a resolution, in accordance with Section 147(f) of the Internal Revenue Code of 1986, as amended, the issuance of bonds to finance a project for Campus Partners 1.
STRATEGIC FOCUS AREA
Strong Regional Relationships and Partnerships
BACKGROUND
Campus Partners 1 (“CP1”) a non-profit corporation has requested The Industrial Development Authority of The County of La Paz (the “Authority”), an Arizona nonprofit corporation designated a political subdivision of the State of Arizona, to issue its revenue bonds in one or more series (the “Bonds”) pursuant to a plan of finance for a project within this jurisdiction in an aggregate principal amount not to exceed $16,500,000, as part of a larger scale multi-state project.
The proceeds from the sale of the Bonds will be loaned by the Authority to CP1 and its affiliates (the “Borrower”) to be used to finance or reimburse all or a portion of the costs of a project, including the acquisition and improvement of approximately 70 public charter school facilities across the country. The Borrower will lease the charter school facilities to qualified 501(c)(3) entities or governmental entities. CPI requested that the Authority issue the Bonds because it has the ability to issue bonds for projects throughout the country, providing a more efficient process and cost savings to the Borrower.
CP1 is coming to the City for approval of a resolution because in order for the Bonds to be issued on a tax-exempt basis, Section 147(f) of the Internal Revenue Code requires that the applicable elected representative of the governmental entity with jurisdiction over the area where any facility, approve the bond issue after a public hearing following reasonable public notice. The City of Brighton is the applicable elected representative because net proceeds of the financing will be used to acquire and improve a charter school facility, Foundations Academy, within the City.
FINANCIAL IMPACT
None.
STAFF RECOMMENDATION
Staff recommends that the city council vote to approve the resolution.
OPTIONS FOR COUNCIL CONSIDERATION
1. Approve the resolution as presented.
2. Disapprove the resolution.
ATTACHMENTS
1. Proposed resolution
2. Public Hearing Script