HomeMy WebLinkAbout2014.08.18 CC PowerPoint Conduit BondsCITY OF HUGO
Charter School Lease Revenue
Bonds
Request for Conduit Bonds
• The City of Hugo has been asked to
consider issuing Charter School Lease
Revenue Bonds
• Not to exceed $20 million
• On behalf of CS Property Noble, LLC
• Minnesota nonprofit liability company
• CSPN will use the bond proceeds to
finance the acquisition, construction, and
equipping of an approximately 95,000 sq.
ft. charter school facility to be leased to
Noble Academy.
• Will pay the City a fee of $50,000.
Noble Academy
• Noble Academy is approved as a K-8 charter
school by the Minnesota Department of
Education.
• Started in school year 2007-2008 in Brooklyn
Park.
• Moved to North Minneapolis after the 2008-2009
school year.
• There is now a desire to return to Brooklyn Park.
Public Hearing
• Increase bond issue from " not to exceed
$20 million" to "not to exceed $22.5
million"
is Requires another public hearing
is Notice published in "The Citizen."
Risks to the City of Hugo
• City only serves as the bond "issuer."
is CSPN is the actual borrower and is solely
responsible for repaying investors.
• The bonds are not moral obligations on
the part of the City
• Will not constitute a debt of the City
• Will not affect our credit rating
• Borrower is solely responsible for on-going
reporting requirements.
Recommendation
• Approve Resolution Affirming the Issuance of
Charter School Lease Revenue Bonds to
Finance A Public (Charter) School Project
Pursuant to Minnesota Law (Noble Academy
Project)