TITLE
Title
HOLD PUBLIC HEARING AND CONSIDER APPROVAL OF FINANCING OF EDUCATIONAL FACILITIES WITH THE PROCEEDS OF NOT TO EXCEED $42,000,000 IN AGGREGATE PRINCIPAL AMOUNT OF EDUCATIONAL FACILITIES REVENUE AND REVENUE REFUNDING BONDS (GUILFORD COLLEGE), IN ONE OR MORE SERIES, TO BE ISSUED BY THE PUBLIC FINANCE AUTHORITY OF WISCONSIN
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SPONSOR
Sponsor
Donald P. Ubell, Esq., Parker Poe Adams & Bernstein LLP
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BACKGROUND
Background
The Bonds are expected to be issued pursuant to 66.0304 of the Wisconsin Statutes, as amended, by the Public Finance Authority (the “Authority”), a commission organized under and pursuant to the provisions of Sections 66.0301, 66.0303 and 66.0304 of the Wisconsin Statutes, and the proceeds from the sale of the Bonds will be loaned to Guilford College, a North Carolina non-profit corporation (the “Borrower”), and used for the for the following purposes:
(a) to refund in advance of their maturity the College’s obligations with respect to (1) the North Carolina Capital Facilities Finance Agency Revenue Bonds (Guilford College), Series 2005A, (2) the North Carolina Capital Facilities Finance Agency Revenue Bonds (Guilford College), Series 2005B, and (3) the North Carolina Capital Facilities Finance Agency Tax-Exempt Educational Facilities Revenue Bonds (Guilford College Project), Series 2008;
(b) to renovate the gymnasium, including the floor, locker rooms, roof and chiller; update fire alarm systems; improve campus lighting, improve ADA access and install fire-dampening sprinklers; renovate Hendricks, Bauman and Founders Buildings; renovate the Campus Library; acquire, furnish and equip an apartment building; renovate or add to New Garden, Binford, Milner, Bryan, Frank Science Center Buildings; update academic classrooms and computer labs; renovate Hege-Cox Hall and add an addition to the building; renovate North Hall; construct a new athletic facility and provide other educational improvements related to the College’s mission on the campus of the College;
(c) to fund a debt service reserve for the Bonds; and
(d) to pay costs of issuance in connection with the issuance of the Bonds.
The projects to be financed and refinanced with the proceeds of the Bonds will initially be owned and operated by the Borrower. The Bonds will be limited obligations of the Authority, payable solely from the loan repayments to be made by the Borrower to the Authority, and certain funds and accounts established by the bond indenture for the Bonds.
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BUDGET IMPACT
Budget Impact
NO ADDITIONAL COUNTY DOLLARS REQUIRED RESOLUTION
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RESOLUTION
Resolution
WHEREAS, the Guilford College (the “College”), has requested that the Public Finance Authority, a public authority existing under the laws of the State of Wisconsin (the “Authority”), issue its Educational Facilities Revenue and Revenue Refunding Bonds (Guilford College) (the “Bonds”), in one or more series in an aggregate principal amount not to exceed $42,000,000 for the following purposes:
(a) to refund in advance of their maturity the College’s obligations with respect to (1) the North Carolina Capital Facilities Finance Agency Revenue Bonds (Guilford College), Series 2005A (the “2005A Bonds”), (2) the North Carolina Capital Facilities Finance Agency Revenue Bonds (Guilford College), Series 2005B (the “2005B Bonds”), and (3) the North Carolina Capital Facilities Finance Agency Tax-Exempt Educational Facilities Revenue Bonds (Guilford College Project), Series 2008 (the “2008 Bonds”);
(b) to renovate the gymnasium, including the floor, locker rooms, roof and chiller; update fire alarm systems; improve campus lighting, improve ADA access and install fire-dampening sprinklers; renovate Hendricks, Bauman and Founders Buildings; renovate the Campus Library; acquire, furnish and equip an apartment building; renovate or add to New Garden, Binford, Milner, Bryan, Frank Science Center Buildings; update academic classrooms and computer labs; renovate Hege-Cox Hall and add an addition to the building; renovate North Hall; construct a new athletic facility and provide other educational improvements related to the College’s mission on the campus of the College (collectively, the “New Projects”);
(c) to fund a debt service reserve for the Bonds; and
(d) to pay certain expenses incurred in connection with the authorization and issuance of the Bonds.
Proceeds of the 2005A Bonds and the 2005B Bonds were used to (1) refinance a loan from Branch Banking and Trust Company dated as of October 29, 2001 to the College (the “BB&T Loan”), the proceeds of which were used to refinance a loan from Bank of America, N.A., dated as of November 4, 1999 to the College, the proceeds of which were used to acquire, construct and equip the Frank Family Science Center on the College campus (the “2005A Project”), (2) pay the costs of constructing and equipping an approximately 142-bed student housing project and community center on the College campus (the “2005B Project,” and collectively with the 2005A Project, the “2005 Projects”). Proceeds of the 2008 Bonds were used to (a) refund the line of credit with Branch Banking and Trust Company (the “Line of Credit”), obtained for the purpose of paying the costs of purchasing or redeeming in advance of their maturity the North Carolina Capital Facilities Finance Agency’s Variable Rate Demand Revenue Bonds (Guilford College), Series 1997 (the “1997 Bonds”), the proceeds of which were used to finance (1) the renovation, improvement and equipping of Binford Hall, English Hall, Founder’s Hall and certain classroom buildings and roadways, (2) the construction and equipping of a laboratory building, (3) the acquisition and installation of technology systems, including a security system, and related computers and software and (4) the refunding of prior North Carolina Capital Facilities Finance Agency debt issued for the benefit of the College, the proceeds of which were used to finance or refinance the costs of (A) the acquisition, construction and equipping of a library, a telecommunications center, a telecommunications system and a new residence hall complex and the renovation and equipping of two existing residence halls, (B) the construction of a new road through the College’s campus and (C) the acquisition and installation of a new telephone switch.
The 2005 Projects, the 2008 Project, and the New Projects (collectively, the “Project”) are and will be owned and operated by the College.
WHEREAS, the Project is owned and operated by the College. The proceeds of the Bonds will be used by the College to refinance the 2005 Projects and the 2008 Project and acquire the New Projects.
WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, the Bonds are required to be approved by the “applicable elected representative” of a governmental unit having jurisdiction over the area in which the Project is located, after a public hearing held following reasonable public notice;
WHEREAS, the Board of Commissioners (the “Board”) of the County of Guilford, North Carolina (the “County”) is the “applicable elected representative” of the County for the Project located within the County;
WHEREAS, the College has requested that the Board approve the Authority’s issuance of the Bonds and the refinancing and financing of the Project located within the County in order to satisfy the requirements of Section 147(f) of the Code; and
WHEREAS, the Board, following notice duly given in the form attached hereto as Exhibit A (the “TEFRA Notice”), held a public hearing today regarding the Authority’s issuance of the Bonds and the financing and refinancing of the Project and now desires to approve the Authority’s issuance of the Bonds and the financing and refinancing of the Project in accordance with the Code;
BE IT RESOLVED by the Board as follows:
Section 1. Pursuant to and in satisfaction of the requirements of Section 147(f) of the Code, the Board hereby approves (a) the Authority’s issuance of the Bonds in an aggregate principal amount not to exceed $42,000,000 and (b) the financing and refinancing of the Project located in the County.
Section 2. The County has no responsibility for the payment of the principal of or interest on the Bonds or for any costs incurred by the College with respect to the Bonds or the Project.
Section 3. This resolution is effective immediately on its passage.
ADOPTED this 17th day of November, 2016.
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REQUESTED ACTION
Requested Action
Hold Public Hearing on Financing of Education Facilities with the proceeds of not to exceed $42,000,000 in aggregate principal amount of Educational Facilities and Revenue and Revenue Refunding Bonds (Guilford College), in one or more series, to be issued by the Public Finance Authority of Wisconsin; and APPROVE Associated Resolution in support of refinancing.
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