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

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that any future change in exempt status would not have a material adverse effect on the Company. The Company and the Charter School have assumed that the site of the Upper School Campus will be exempt from property taxes from and after calendar year 20[23]. Competition for Students A significant portion of the Charter School's revenues is based on the number of students enrolled in the educational facilities of the Charter School. The Charter School faces competition from other educational facilities and could face additional competition in the future as a result of the organization of, the construction of new, or the renovation of existing,public schools or other public charter schools in the areas served by the Charter School. No assurance can be given that the enrollment of the Charter School will not be adversely affected by the availability of other educational facilities in the service areas of the Charter School and elsewhere. [[BORROWER TO CONFIRM]] The Charter School will be competing for students with Anoka- Hennepin School District 11 (the "School District") and other surrounding districts, including ISD 15 St. Francis Area School District and ISD 728 Elk River Area School District, as well as private schools and other public charter schools located within or near the City of Ramsey,which is located in Ramsey County, Minnesota. The Charter School's students currently come primarily from within the School Districts referenced above. See "APPENDIX A — THE COMPANY, THE CHARTER SCHOOL, AND THE SERIES 2022 PROJECT—SERVICE AREA"and"—COMPETING SCHOOLS"in this Official Statement for schools who compete with the Charter School for students. No assurance can be given that the Charter School will attract and retain the number of students that are needed to produce the Pledged Revenues that are necessary to pay the principal of and interest on the Series 2022 Bonds, or that additional schools will not be created in or near the Charter School's service area. Effect of Student Enrollment upon Receipt of State Payments The State General Education Revenues and Building Lease Aid payments to the Charter School are based on the number of students enrolled in the Charter School. See"CHARTER SCHOOL FUNDING IN MINNESOTA — State Payments" and "APPENDIX B — MINNESOTA LAWS RELATING TO CHARTER SCHOOLS —Funding for Charter Schools" in this Official Statement. The Charter School's State Aid payments will be adjusted to reflect the Average Daily Membership of students at the Charter School. In addition, the Budget Projection contains certain assumptions regarding enrollment, and the extension of the Charter Contract for school years after June 30,2023,of the Charter School in future school years, along with certain assumptions regarding State education funding payments in the future. No assurance can be given that the Charter School will attract or retain the number of students set forth in the Budget Projection or that are needed to produce the Pledged Revenues in amounts sufficient to pay the principal of and interest on the Series 2022 Bonds. See "APPENDIX A — THE COMPANY, THE CHARTER SCHOOL,AND THE SERIES 2022 PROJECT—ENROLLMENT,DEMOGRAPHICS AND TRANSPORTATION"and"APPENDIX C—BUDGET PROJECTION"in this Official Statement. Key Personnel The Charter School's creation, curriculum, educational philosophy, and day-to-day operations reflect the vision and commitment of the individuals who serve as the Charter School's administrators or serve on the Charter School's Board of Directors (the "Key Personnel"). In the absence of an outside manager, the Charter School is highly dependent upon its Key Personnel. The loss of any Key Personnel could adversely affect the Charter School's operations, its ability to attract and retain students, and ultimately its financial results. The Charter School has not obtained any "key person" insurance policies with respect to any of its Key Personnel. For more information regarding the Charter School's Key Personnel, see"APPENDIX A—THE COMPANY,THE CHARTER SCHOOL,AND THE SERIES 2022 28