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IDA seeks up to $15 million in revenue bonds to refinance charter school facility
Summary
A Sierra Vista IDA representative told council the agency plans to issue education facility revenue refunding bonds of up to $15 million to refund prior PLC financing and pay for facility improvements; the bonds would be nonrecourse to the city.
A representative of the Sierra Vista Industrial Development Authority appeared remotely to brief the council on a proposed revenue bond financing for a charter school. Mr. Senia said the PLC charter schools requested issuance of education facility revenue refunding bonds in an amount not to exceed $15 million; bond proceeds would refund prior financings dating back to 2016 and finance additional improvements at the facility.
Mr. Senia emphasized the financing structure: the bonds will not be a pledge of the Sierra Vista IDA’s or the city’s credit and will be sold publicly only to qualified institutional buyers or accredited investors. He said the financing mirrors a pattern of issuances that moved north after a neighboring county (Pima County) indicated it would stop issuing charter-school revenue bonds in certain circumstances.
Councilmembers asked why these transactions are moving to the IDA; Mr. Senia said it stemmed from a Pima County policy decision that constrained that county’s IDA activity, which in turn prompted charter financings to seek other local issuers. The council had no substantive objections to considering the resolution and the item is scheduled for the regular council meeting.
