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Board authorizes up to $18 million in certificates of participation to finance district property purchase
Summary
Trustees approved a resolution to issue certificates of participation not to exceed $18 million to finance purchase and improvements of property at 3130 Crow Canyon Place; Bella Vista Elementary was identified as collateral in the lease structure and trustees approved related JPA authority documents.
The San Ramon Valley Unified School District board approved a financing package using certificates of participation (COPs) to fund the district’s acquisition and improvement of rental and administrative space at 3130 Crow Canyon Place.
Assistant Superintendent Danny Hillman and district financial adviser John Isim described the transaction as a lease‑purchase structure using a Joint Powers Financing Authority. Hillman said the board had earlier authorized staff to pursue acquisition and to prepare financing documents; the resolution on the agenda authorized execution and delivery of COPs in an aggregate principal amount not to exceed $18 million and approved related legal documents (ground lease, lease agreement, continuing disclosure certificate and the preliminary official statement).
Officials said the authority will lease certain land and improvements and sublease them to the district for continued use. Hillman explained that Bella Vista Elementary was chosen as the collateral site because it is a newer facility and provides sufficient collateral coverage relative to the financing amount.
The board moved and unanimously approved the resolution (item 11.2). The board then convened as the San Ramon Valley Unified School District Joint Powers Financing Authority to adopt the corresponding authority resolution (16.1) approving the ground lease and trust documents; that action also passed on a unanimous vote.
Why it matters: The financing will provide the district with funding to complete the agreed property purchase and associated improvements without a voter‑approved bond; COPs are a lease‑back financing structure that converts lease obligations into certificate payments to investors. Trustees asked questions about site selection, details of the budget estimate in the packet and the leaseback terms; staff said the packet appendix contains the good‑faith estimate of transaction costs.
Next steps: Staff and advisers will proceed with execution of the approved documents and finalize transaction pricing and closing steps per the authorization.
