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

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BONDHOLDERS' RISKS No person should purchase any Series 2022 Bonds without carefully reviewing the following information, which summarizes some, but not all factors that should be carefully considered before such purchase. Nature of Special,Limited Obligations The Series 2022 Bonds are special, limited obligations of the Issuer,payable solely from amounts pledged under the Indenture to the payment of principal, interest and premium, if any, on the Series 2022 Bonds (which includes Loan Repayments from the Company, amounts in the Reserve Fund, Lease Payments from the Charter School and other amounts held by the Trustee under the Indenture and proceeds realized under the Mortgage), and do not give rise to a general obligation or general liability of the Issuer or a charge against its general credit or taxing powers and shall never constitute nor give rise to a pecuniary liability of the Issuer. 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. Impact of COVID-19 Pandemic In late 2019, a novel strain of coronavirus ("COVID-19") emerged in Wuhan, Hubei Province, China. COVID-19 has spread throughout the world, including to the United States, resulting in the World Health Organization proclaiming COVID-19 to be a pandemic and former President Trump declared a national emergency on March 13, 2020. Minnesota Governor Tim Walz originally declared a peacetime emergency under Executive Order 20-01 on March 14, 2020. Governor Walz has subsequently extended the peacetime emergency thirteen times through the issuance of various executive orders. The most recent Executive Order 21-22 extending the peacetime emergency was issued May 14,2021. The Minnesota state legislature extended the peacetime emergency to July 1, 2021, and as of July 1, 2021, Minnesota's state of emergency for the COVID-19 pandemic had ended. In response to the spread of COVID-19, the United States government, state governments, local governments and private industries have taken measures to limit social interactions in an effort to limit the spread of COVID-19. The effects of the spread of COVID- 19 and the government and private responses to the spread continue to rapidly evolve. COVID-19 has caused significant disruptions to the global,national and State economy. The extent to which COVID-19 impacts the Charter School and its financial condition will depend on future developments,which are highly uncertain and cannot be predicted by the Charter School and the Company, including the duration of the outbreak and measures taken to address the outbreak. The State's finances may materially be adversely affected by COVID-19 or efforts taken to control the COVID-19 pandemic, which efforts could affect the amount or timing of State aid appropriated to public schools,including charter schools such as the Charter School. See"BONDHOLDERS' RISKS—Effect of Student Enrollment upon Receipt of State Payments"and"—Changes in Law;Annual Appropriation; Inadequate State Payments"in this Official Statement. In addition, the COVID-19 pandemic has caused changes to enrollment patterns for school aged children and could have an adverse effect on future enrollment. For example, if it is perceived that competitors of the Charter School, including traditional public schools, private schools or other charter schools, are better equipped to handle the spread of COVID-19 or similar future outbreaks or to provide virtual learning, it could lead to lower enrollment in the future or families could decide to home school their students. See "BONDHOLDERS' RISKS — Competition for Students" in this Official Statement. In addition, to the executive orders described above, Minnesota Governor Tim Walz previously issued various other Executive Orders affecting the Charter School,including Executive Order 20-20 which 23