Board authorizes $7.5 million bridge loan to start SoCal High special-education facility

The Santa Cruz County Board of Education voted unanimously to authorize a bridge financing package that will allow staff to draw down up to $7,500,000 in COPS (certificates of participation) for the SoCal High special-education facility project.

Michelle Kennedy, a business-services staff member handling the project, told the board the measure lets the county office “go out and accept the $7,500,000” as bridge funding while state modernization funds and a lease–leaseback contract are finalized. Financial adviser Joe Krampus explained standard municipal call provisions and said the modeled optional redemption provision is currently set to begin in 2031 and that an extraordinary redemption linked to subsidy payments would be structured to allow early payoffs when state funding arrives.

The board asked about restrictions on unused funds and the ability to make incremental early payments. Kennedy said the loan is structured to permit early termination and partial paydown rather than a single lump-sum payoff, and that the bridge term accounts for an anticipated five-to-ten-year timing of state subsidies. Trustee comments thanked staff for the thorough preliminary official statement and noted the county office’s use of experienced advisors.

Trustee (mover) moved to adopt Resolution 26-04 authorizing execution and delivery of certificates of participation; President Williams seconded the motion and the board approved the resolution in a roll-call vote with all trustees and both student trustees voting in favor.

The approval authorizes staff to proceed with bridge financing and positions the district to begin the SoCal High building work, which Michelle Kennedy said is expected to start around April. The staff will return with contract documents and further financing details as the project moves into construction.