Agenda - Council - 07/12/2022 - Laserfiche WebLink

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the Original School Facility; (iii) finance certain improvements to the Original School Facility,which after renovation will be operated as a public charter school for grades K through 5(the Original School Facility as improved,the"Elementary School Campus");(iv)finance the acquisition of approximately 18 acres of vacant land and the construction and equipping of an approximately 115,000 square foot facility to be operated by the Charter School as a public charter school for grades 6 through 12 to be located at or about 7633 161 st Avenue NW in the City (the "Upper School Campus" and, together with the Elementary School, the "School Facilities") (collectively, the "Series 2022 Project"); (v) fund a debt service reserve fund for the Series 2022 Bonds;(vi)fund capitalized interest on a portion of the Series 2022 Bonds; and (vii) pay the costs of issuance of the Series 2022 Bonds. See"SOURCES AND USES OF FUNDS"in this Official Statement. Payment.........................................Interest accrues on the Series 2022 Bonds at the rates set forth on the inside front cover of this Official Statement from the date of issue and is payable on June 1 and December 1 of each year commencing December 1,2022*,by check or draft of the Trustee to the persons who were the registered owners of the Series 2022 Bonds as of the 15th day of the month preceding each interest payment date provided that any holder of not less than $1,000,000 principal amount of Series 2022 Bonds may receive payment of interest by wire transfer upon proper instruction to the Trustee. Principal and premium, if any, will be payable at the principal corporate trust office of the Trustee. See"THE SERIES 2022 BONDS" in this Official Statement. Special, Limited Obligations......................The Series 2022 Bonds are special, limited obligations of the Issuer payable solely from the Loan Repayments to be made by the Company, pursuant to the Loan Agreement, and other funds pledged therefor under the Indenture. The Series 2022 Bonds are not secured by or payable from any taxes, revenues or assets of the Issuer, except for the Issuer's interest in the revenues derived from the Loan Agreement and amounts held pursuant to the Indenture as described herein. The Series 2022 Bonds do not give rise to a general obligation or general liability of the Issuer, the State of Minnesota(the "State'), or of any political subdivision or agency thereof, or a charge against the general credit of the Issuer, the State or any political subdivision or agency thereof, and shall never constitute nor give rise to a pecuniary liability of the Issuer, the State, or any political subdivision or agency thereof. The Series 2022 Bonds do not constitute a debt,moral obligation, liability or loan of credit or a pledge of the full faith and credit or taxing power of the Issuer, the State, or of any political subdivision thereof. The obligations of the Company under the Loan Agreement are a general credit pledge of the Company,provided, however, that the Company does not have taxing power and does not have the ability to charge fees to the Charter School's students in the event that revenues of the Company under the Leases are not sufficient to pay operations and debt service on the Series 2022 Bonds. See "SECURITY FOR THE SERIES 2022 BONDS"in this Official Statement. Security for the Series 2022 Bonds...................The Series 2022 Bonds will be secured by and payable from an assignment and pledge of(i) all money held under the Indenture, including Series 2022 Bond proceeds initially deposited in the Reserve Fund, (ii)the interest of the Issuer in the revenues derived from the Loan Agreement (except for certain rights to indemnification and payments of fees and expenses), and (iii) amounts realized pursuant to a mortgage on the School Facilities or an assignment of leases, (iv)insurance benefits and condemnation awards payable with respect thereto, (v)Lease Payments due from the Charter School, which will be automatically withdrawn by the Trustee from the Sweep Account pursuant to a Pledge and Covenant Agreement, dated as of August 1, 2022 (the "Pledge Agreement"), *Preliminary,subject to change. iii