TITLE
Title
PUBLIC HEARING: APPROVAL OF $34,000,000 IN STUDENT HOUSING REVENUE BONDS (AGGIE APARTMENT LIFE HOLDING CORPORATION II, LLC)
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SPONSOR
Sponsor
Brandon K. Lewisohn, Attorney, Parker Poe
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BACKGROUND
Background
The Public Finance Authority (PFA) is a governmental unit of the State of Wisconsin created for the purpose of issuing tax-exempt and taxable conduit bonds for public and private entities nationwide. PFA is sponsored by the National Association of Counties, the National League of Cities, the Wisconsin Counties Association and the League of Wisconsin Municipalities. Any debt issued is not debt of the County or PFA, but rather is payable solely from debt service payments received from the borrowing entity.
PFA has been requested to issue student housing revenue bonds in an aggregate principal amount not to exceed $34,000,000 to Aggie Apartment Life Holding Corporation II, LLC to finance the acquisition of two student housing facilities, University Landing and University Pointe, formerly known as University Park, adjacent to the Campus of North Carolina Agricultural and Technical State University. Additionally, a portion of the bond proceeds will be used to finance or refinance certain obligations incurred by Aggie Apartment Life Holding Corporation, LLC, incurred for the benefit of its sole member, the North Carolina A&T Real Estate Foundation, Inc, which refinanced a warehouse facility owned by the Foundation. Finally, the student housing revenue bonds will be used to: reimburse the borrower for payment of costs in connection with these projects, fund a debt service reserve account for the benefit of the owners of the bonds, and pay certain expenses incurred in connection with the authorization and issuance of the bonds. Please reference the following resolution for a full description of the projects to be financed or refinanced.
Federal tax law requires that tax exempt bonds issued to finance or, in certain circumstances, refin...
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