TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Christopher Cauley, MPA - Director of Economic and Community Development
DATE: February 10, 2025
RE:
Title
Public Hearing on Authorization of the Issuance of Private Activity Bonds not to Exceed $175,000,000 by the Public Finance Authority Relating to the Acquisition of an Educational Training Facility Located at 3725 Ramsey Street
end
COUNCIL DISTRICT(S):
Council District(s)
District 3
b
Relationship To Strategic Plan:
GOAL II: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy.
GOAL III: The City of Fayetteville will be a city invested in Today and Tomorrow.
GOAL IV: The City of Fayetteville will be a highly desirable place to live, work and recreate.
Executive Summary:
Lindenwood Education System, a Missouri nonprofit corporation headquartered in St. Charles, Missouri is requesting the City hold a Public Hearing and adopt a resolution authorizing the issuance of not more than $175,000,000 in Private Activity Bonds issued by the Public Finance Authority (PFA). The project involves the acquisition of an educational training facility located at 3725 Ramsey Street. The issuance of bonds is a transaction between the PFA and the Borrower and does not expose the City to any financial risk. City Council is asked to hold a Public Hearing and adopt the resolution authorizing the issuance of not more than $175,000,000 in Private Activity Bonds issued by the PFA.
Background:
Lindenwood Education System, the non-profit parent entity of Lindenwood University and Dorsey College, is excited to announce the newest anticipated addition to the System that will expand its reach to serve more students with the addition of Ancora Education. Ancora is a dynamic career focused group of schools serving nearly 7,000 students annually at its on-ground locations, online, or through its professional training divisions. Ancora has been serving students through technical and skills-based training since 2013 and has become an industry leader in these educational areas. The Borrower is organized, among other purposes, for the purpose of lessening the government burdens by providing essential operation for educational services. The PFA is a governmental entity established under Section 66.0304 of the Wisconsin State Statutes, authorized to issue tax-exempt, taxable, and tax credit conduit bonds for public and private entities throughout all 50 states.
To enable the Borrower to access municipal lending rates, the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) requires the City provide reasonable public notice (TEFRA notice) and conduct a Public Hearing (TEFRA Hearing). The hearing provides a reasonable opportunity for interested individuals to express their views, either orally or in writing, on the proposed issue of bonds, location, and nature of the project to be financed. The resolution affirms the project location, the expressed government burdens, and authorizes the applicable elected representative (Mayor) to approve the issuance of the Private Activity Bonds.
Issues/Analysis:
The City of Fayetteville is the governmental unit with the geographic jurisdiction containing the project site and is required to approve the issuance. The TEFRA Notice was posted in the Fayetteville Observer on January 31, 2025 to allow for a 10-day notice of the TEFRA Hearing.
Budget Impact:
Private Activity Bonds do not involve the City’s finances and do not impact the City’s borrowing ability.
Options:
• Conduct the Public Hearing (TEFRA Hearing) and approve the resolution authorizing the issuance of private activity bonds not to exceed $175,000,000 by the Public Finance Authority relating to the acquisition of an educational training facility Located at 3725 Ramsey Street,
• Do not Conduct the Public Hearing (TEFRA Hearing) and do not approve the resolution authorizing the issuance of private activity bonds not to exceed $175,000,000 by the Public Finance Authority relating to the acquisition of an educational training facility Located at 3725 Ramsey Street,
• Direct staff to some other action.
Recommended Action:
Conduct the Public Hearing (TEFRA Hearing) and approve the resolution authorizing the issuance of private activity bonds not to exceed $175,000,000 by the Public Finance Authority relating to the acquisition of an educational training facility Located at 3725 Ramsey Street.
Attachments:
Lindenwood Education System TEFRA Notice
Lindenwood Education System TEFRA Resolution