Title
Issuance of Lease Revenue Bonds (ASU Preparatory Academy Project), Series 2020 (Resolution 21842)
Description
Request City Council approval for the issuance of Lease Revenue Bonds (ASU Preparatory Academy Project), Series 2020, to be issued in one or more tax-exempt and or taxable series in an aggregate principal amount not to exceed $8,000,000.
Report
Summary
Request City Council adoption of a resolution granting approval of the proceedings under which The Industrial Development Authority of the City of Phoenix, Ariz., (the “Phoenix IDA”) has previously resolved to issue up to $8,000,000 of Lease Revenue Bonds (the “Revenue Bonds”) to CPLC South Phoenix Charter Schools Holding, LLC (the “Borrower”), an Arizona limited liability company whose sole member is Chicanos Por La Causa, Inc., a nonprofit corporation and exempt organization under Section 501(c)(3) of the Internal Revenue Code, for the purpose of assisting the Borrower in;
(a) financing, refinancing or reimbursing, as applicable, the costs of acquiring, constructing, improving and equipping, as applicable, certain charter school facilities to be owned by the Borrower and operated by ASU Preparatory Academy, an Arizona nonprofit corporation, in connection with its charter school operations, specifically (i) land and a building located at 5610 S. Central Ave., Phoenix, Arizona, and (ii) land and a building located at 4441, 4447 and 4453 S. 12th St., Phoenix, Arizona;
(b) funding any required reserves; and
(c) paying costs and expenses incurred in connection therewith.
Concurrence/Previous Council Action
The Phoenix IDA Board has previously resolved to issue the Revenue Bonds at its meeting held on May 29, 2020.
Location
The Central Avenue site serves as a middle school campus and is located within Phoenix City Council District 7. The 12th Street site serves as a high school campus and is located in Phoenix City Council District 8. Both sites are to be leased to ASU Preparatory Academy.
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 within the State.
Department
Responsible Department
This item is submitted by Assistant City Manager Milton Dohoney, Jr.