Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Education Finance Conduit Bonds topic
No spam. Unsubscribe anytime.
HRA hears introduction for up to $25 million conduit revenue bonds for NOVA Classical Academy expansion
Summary
HRA staff and NOVA Classical Academy leaders presented a proposal for the HRA to issue up to $25 million in conduit revenue bonds to refinance prior debt and finance a new 28,000-square-foot building; no action was taken at the meeting.
St. Paul Housing and Redevelopment Authority staff presented an introductory request for conduit revenue bonds that would allow NOVA Classical Academy to refinance outstanding debt and finance construction of a new building on adjacent property.
Jenny Wolf, debt manager with PED, told the HRA that the authority would act only as a conduit issuer: “HRA issued conduit revenue bonds are repayable solely from the secured by any revenues or taxing powers of the government and the HRA and the City undertake no risk by issuing the bonds.” Wolf said the HRA does not underwrite or guarantee repayment and that due diligence on credit and repayment is completed by the private underwriter or lender.
According to the presentation, NOVA previously used HRA conduit bonds in 2011, 2016 and 2021. As of Sept. 1, the outstanding balance on prior bonds is described as just shy of $20,000,000. NOVA applied to the HRA to issue up to $25,000,000 to refinance part of the prior debt and to finance a new two‑story, roughly 28,000‑square‑foot building that would connect to the existing school by a skyway. The total estimated project cost shown in staff slides was $25,330,000, including a $4,025,000 contribution from the school.
Staff materials showed a sample principal amount of $21,305,000 and a proposed deposit to the project fund of $13,300,000; those numbers were listed as preliminary and subject to change before closing. Wolf said the bonds would be sold as a public offering with Piper Sandler as underwriter and that the HRA will collect issuance fees and a closing fee equal to one quarter of 1% of the amount issued.
The proposed expansion requires an amendment to the Victoria Park master plan and several zoning variances; Wolf said the zoning committee had approved those variances on July 31 and that the project will next go to the planning commission and, if approved, to the City Council. She also described compliance requirements for conduit financings and construction, including affirmative action, prevailing wages and vendor outreach.
Dr. Brett Woodland, executive director of NOVA Classical Academy, described the school’s capacity pressures and program goals, saying the school has “a very strong wait list that's currently about 1,500 students” and that the expansion is intended primarily to better serve existing students by improving safety, reducing on‑street parking for bus drop‑offs and adding space for specialized services.
This was an introductory presentation only; staff said the HRA and City Council will consider resolutions and hold required public hearings at meetings scheduled for Aug. 20, with NOVA anticipating closing the financing in October.
