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Sierra Vista IDA resolution on revenue bonds for Wake Preparatory Academy presented; city not liable, more public hearings required
Summary
IDA staff presented a resolution to authorize issuance of education‑facility revenue bonds for Wake Preparatory Academy; staff stressed the bonds are payable from the school's revenues and that neither the IDA nor the city will be liable.
IDA staff presented a resolution authorizing the issuance of education‑facility revenue bonds intended to finance the purchase of a school site by Wake Prep Holdings, an entity affiliated with Wake Preparatory Academy in North Carolina.
"You have before you a resolution authorizing issuance of education facility revenue bonds for Wake Preparatory Academy," said Mr. Selena, the IDA staff presenter. He explained the bond issue would be an unrated 501(c)(3) financing sold by Robert W. Baird only to accredited investors or qualified institutional buyers and that the bonds would be payable solely from the school's revenues. Mr. Selena reiterated that neither the Sierra Vista IDA nor the City of Sierra Vista would be obligated to pay the bonds.
Mr. Selena told council that a public hearing had already been held by the Sierra Vista IDA on the third of the month and that two further public hearings will be required as part of the tax‑exempt bond issuance process per bond‑counsel rules. He also noted the borrower is Wake Prep Holdings and that Wake Preparatory Academy currently operates at the site under lease and seeks to have the affiliated entity purchase the property. The transcript indicates the presentation was informational; no city council vote on the resolution appears in the recorded portion of the meeting.
Council members had no substantive questions recorded in the transcript; Mr. Selena closed by saying he would see the council at a later meeting and answer questions if needed.
