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

Home

directed Minnesotans to stay at home and shelter in place (subject to certain exceptions) beginning on Friday,March 27,2020 at 11:59 p.m.through Friday,April 10,2020 at 5:00 p.m. as extended by Executive Order 20-33 to May 3, 2020 at 11:59 p.m. On April 15, 2020, Minnesota Governor Tim Walz issued Emergency Executive Order 20-02 which was additionally supplemented by Executive Order 20-19 (collectively, the "Executive Orders") that authorized and directed the Minnesota Commissioner of Education to temporarily close all K-12 schools to plan for a safe educational environment in response to the COVID-19 pandemic. The Executive Orders initially closed all public and private Minnesota K-12 schools for in-person instruction through Friday April 27, 2020 but such period was extended to May 4, 2020 pursuant to Executive Order 20-19 (the "Initial Closure Period"). During the Initial Closure Period, Minnesota K-12 schools implemented and operated distance learning programs and the Charter School utilized its distance learning plan. Many public schools, including as the Charter School transitioned to distance learning as the incidence of COVID-19 rose. [[BORROWER TO PROVIDE BRIEF DESCRIPTION OF 2020-2021 AND 2021-2022 LEARNING PLAN— THE FOLLOWING IS AN EXAMPLE]] [The Charter School implemented a "hybrid model"for much of the 2020-2021 school year; students attended school in-person two days a week and attended remotely two days per week. Since the beginning of the 2021-2022 school year, students at the Charter School have attended in-person the full school week. The Charter School has continued the in- person learning experience for its students for the 2021-2022 school year. See "APPENDIX A — THE COMPANY, THE CHARTER SCHOOL, AND THE SERIES 2022 PROJECT — ENROLLMENT; DEMOGRAPHICS AND TRANSPORTATION — Learning Plan During COVID-19" in this Official Statement.] At this time, the Charter School is not anticipating a reduction in revenue from the State of Minnesota for the 2022-2023 school year. However, no assurance can be given that the State will not encounter unforeseen circumstances as a result of the COVID-19 pandemic and will not reduce or delay public education funding in future budget cycles. Dependence on Company's Ability to Pay Loan Repayments;Ability of Charter School to Pay Lease Payments Payment of principal of, premium, if any, and interest on the Series 2022 Bonds is intended to be made from Loan Repayments by the Company under the Loan Agreement, except to the extent payment is intended to be made from other amounts held under the Indenture such as Series 2022 Bond proceeds or investment earnings. The Company has no significant assets or business other than the assets and business related to the School Facilities. The ability of the Company to make Loan Repayments will depend solely on the Company's ability to generate revenues sufficient to pay the Loan Repayments from the Leases to the Charter School. Future revenues of the Company from the School Facilities will primarily depend on the ability of the Charter School to make payments under the Leases. The Charter School's ability to make payments under the Leases is dependent on its revenues, including Building Lease Aid received from the State("Building Lease Aid"),which are largely dependent on student enrollment and educational funding from the State. Because Building Lease Aid is limited to 90% of the lease amount, subject to certain caps as described under the heading "CHARTER SCHOOL FUNDING IN MINNESOTA—State Payments—Building Lease Aid"in this Official Statement. Building Lease Aid alone will be insufficient to make the total payments due under the Leases. See"APPENDIX A —THE COMPANY, THE CHARTER SCHOOL, AND THE SERIES 2022 PROJECT"and"APPENDIX C — BUDGET PROJECTION" in this Official Statement. The Charter School's general revenues are a combination of(a) State aid such as: General Education Aid (which coincides with enrollment), Special Education, [Limited English Proficiency,] Compensatory Aid and Building Lease Aid (which coincides with enrollment), and (b)Federal programs administrated by the State including Title 1, Part A of the No 24