Proposal for the Issuance of Charter School Lease Revenue Bonds- City
CITY OF MINNEAPOLIS, MINNESOTA
NOTICE OF PUBLIC HEARING ON A PROPOSAL FOR THE ISSUANCE OF CHARTER SCHOOL LEASE REVENUE BONDS (SPERO ACADEMY PROJECT)
NOTICE IS HEREBY GIVEN that the Community Development and Regulatory Services Committee of the City Council (the "Council") of the City of Minneapolis (the "City") will hold a public hearing on Tuesday, June 6, 2017, commencing at or after 1:30 p.m. in the Council Chambers (Room 317) at City Hall, 350 South Fifth Street in the City, to consider a proposal for the issuance by the City of revenue bonds in one or more series (the "Bonds") under the provisions of Minnesota Statutes, Sections 469.152-469.1655, as amended (the "Act"). The proceeds derived from the sale of the Bonds are proposed to be loaned to Friends of Spero Academy, a Minnesota nonprofit corporation (the "Borrower"), to finance: (i) the acquisition, construction and equipping of a new public charter school for grades K through 6 (the "Project"), to be located at 2701 California Avenue NE in the City; (ii) the funding of a debt service reserve fund; (iii) the funding of a supplemental reserve fund; (iv) the payment of a portion of the capitalized interest on the Bonds; and (v) the payment of a portion of the costs of issuing the Bonds. The Project will be owned by the Borrower and leased to and operated by Spero Academy, a public charter school, Minnesota nonprofit corporation and 501(c)(3) organization (the "School").
Following the public hearing, the Council will consider a resolution (on June 16) authorizing the issuance of the Bonds to finance the costs of the acquisition, construction and equipping of the Project and related costs. The aggregate face amount of the Bonds proposed to be issued is presently estimated not to exceed $22,000,000. The Bonds will be special, limited revenue obligations of the City payable solely from the revenues expressly pledged to the payment thereof, and will not constitute a general or moral obligation of the City, and will not be secured by the taxing powers of the City or any assets or property of the City, but will be payable from loan payments made by the Borrower to the City pursuant to a Loan Agreement and from other security provided by the Borrower and the School.
A draft copy of the proposed application to the Department of Employment and Economic Development for approval of the Project, together with all attachments and exhibits, is available for public inspection at the offices of the Department of Community Planning & Economic Development-Business Development (Charles Curtis), 105 Fifth Avenue South, Minneapolis, Minnesota 55401, during normal business hours.
At the time and place referred to above, the City will give all persons who appear at the public hearing an opportunity to express their views with respect to the issuance of the Bonds and the financing of the Project. In addition, interested persons may file written comments respecting the issuance of the Bonds and the financing of the Project with the City Clerk at or prior to such public hearing.
For sign language interpreting, TDD 673-2626. For additional information, contact Charles Curtis of the City of Minneapolis - Community Planning and Economic Development at (612) 673-5069.
Dated: May 20, 2017
(Published in Finance and
Commerce May 20, 2017)