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HRA hears introduction to refinance Twin Cities Academy bonds; no new construction proposed
Summary
St. Paul HRA staff introduced a proposal to issue up to $15 million in conduit revenue bonds to refinance prior bonds for Twin Cities Academy; the refinancing would extend maturity and reduce annual payments, and staff said the HRA and City Council will consider the item at upcoming meetings.
Commissioners heard an introductory presentation on a request by Twin Cities Academy to issue conduit revenue bonds to refinance outstanding debt on its school facility; staff said the issuance would not finance new construction.
Jenny Wolf, PED debt manager, said Twin Cities Academy previously issued conduit revenue bonds in 2015 and has an outstanding balance described as just shy of $14,000,000. The school has applied for up to $15,000,000 in conduit revenue bonds to refinance the prior bonds; staff materials showed a proposed principal amount of $14,905,000 and a deposit to refinance of $14,100,000, with total sources and uses shown at $15,500,000. Wolf said refinancing would reduce annual bond payments by extending the final maturity date from July 1, 2050 to July 1, 2065.
Wolf reiterated that conduit bonds are repayable solely from the borrower’s revenues and are not secured by the city or HRA. She said the HRA will collect a closing fee equal to one quarter of 1% of the amount issued and that fee revenue from prior Twin Cities Academy bonds in 2025 was listed at $30,225.
Betsy Leete, executive director of Twin Cities Academy, described the school as largely East Side based and said she expected enrollment of about 550 students in the coming school year. Leete said roughly 71% of students come from the East Side and roughly 89% from the city of Saint Paul. She told commissioners the school’s funding need is primarily to support programming and student services rather than building projects, and that because there is no new construction the compliance requirements are limited to affirmative action and equal employment opportunity registration, which the school has already completed.
Wolf said the HRA will hold a public hearing and consider a resolution at the next meeting, also scheduled for Aug. 20; Twin Cities Academy anticipates closing the financing in September.
