Title
Issuance of Taxable Educational Facilities Revenue Bonds (Valley College of Osteopathic Medicine Project), Series 2026 (Resolution 22360) - District 3
Description
Requests City Council approval for the issuance of Taxable Educational Facilities Revenue Bonds (Valley College of Osteopathic Medicine Project), Series 2026, to be issued in one or more separate series and subseries, in an aggregate original principal amount not to exceed $100,000,000 (the “Bonds”).
Report
Summary
Request City Council adoption of a resolution (Attachment A) granting approval of the proceedings under which The Industrial Development Authority of the City of Phoenix, Arizona (the “Phoenix IDA”) has previously resolved to issue its Taxable Educational Facilities Revenue Bonds (Valley College of Osteopathic Medicine Project), Series 2026, to be issued in one or more separate series and subseries, in an aggregate original principal amount of not-to-exceed $100,000,000, for use by The Valley College of Osteopathic Medicine LLC, a Delaware limited liability company (the “Borrower”), to finance, and/or refinance, as applicable, all or a portion of the costs of the acquisition, construction, and equipping of a facility (the “Facility”), for the operation of a college of osteopathic medicine, including the payment and discharge of that certain indebtedness incurred by the Borrower and The Valley COM Propco LLC (“Propco”), a Delaware limited liability company, pursuant to a Construction Loan and Security Agreement, by and between the Borrower and Propco, as borrower thereunder, and Lapis Municipal Opportunities Fund V, LP, a Delaware limited partnership, as lender. In addition, to fund the Debt Service Reserve fund established pursuant to the Indenture, fund capitalized interest with respect to the Bonds, fund the Repair and Replacement Fund established pursuant to the Indenture, fund working capital requirements of the Borrower, and pay certain costs of issuance (collectively, the “Project”); and approve the plan of financing for the Project, for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended.
Concurrence/Previous Council Action
The Phoenix IDA Board has previously resolved to issue the Bonds at its meeting held on December 18, 2025.
Location
The Facility is located at or near 2525 W. Townley Avenue, Phoenix, AZ.
Council District: 3
With the exception of certain housing bonds, the Phoenix IDA can finance projects located anywhere in Arizona. In addition, the Phoenix IDA may issue bonds to finance projects outside of Arizona, if the out-of-state project provides a benefit with the state.
Department
Responsible Department
This item is submitted by Assistant City Manager Ginger Spencer.