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Sierra Vista IDA staff previews up-to-$15M refunding bonds for PLC charter school
Summary
A Sierra Vista IDA representative said the authority may issue up to $15 million in education facility revenue refunding bonds to refund prior PLC charter school financings and to fund improvements; he emphasized the bonds would be repaid by the borrower and not by the city.
A remote representative of the Sierra Vista Industrial Development Authority briefed the council on a request to issue education facility revenue refunding bonds for PLC charter schools in an amount not to exceed $15 million. The proceeds would refund previous financings (including a 2016 refinancing) and pay for facility improvements.
The representative said the bonds would be publicly sold only to qualified institutional buyers or accredited investors and emphasized that the bonds are not a pledge of the Sierra Vista IDA's or the city's credit; they would be the sole financial obligation of the borrower. He said the decision to route similar financings to other jurisdictions has been driven by policy choices at neighboring county authorities.
Council members asked whether the migration of such financings northward (from other counties) reflected a policy change; the IDA representative said the other county's board decided not to issue certain education revenue bonds, prompting applicants to seek financing from other local authorities.
Next steps: staff said the IDA and city staff will appear at Thursday's meeting to allow council consideration and any required resolutions; no city obligation would be created by the IDA's public sale, according to the presenter.
