ITEM 5.2 Kaleidoscope Charter SchoolP
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DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT:
REQUESTOR:
MEETING DATE:
Administration
Lori Johnson, City Administrator
May 12, 2014
PRESENTER(s):
REVIEWED BY:
ITEM #:
Lori Johnson, City Administrator
of Conduit Revenue Bonds to finance the expansion from a K-8 school to a K-12 school along with a
5.2
AGENDA ITEM DETAILS
RECOMMENDATION:
Recommend continuing review of documents and processing of application to assist Kaleidoscope
Charter School with the issuance of approximately $17,500,000 of revenue bonds for the expansion of
the school to a Kindergarten through 12th grade school in Otsego per the City's Conduit Debt Policy.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
Not at this time
BACKGROUND/JUSTIFICATION:
Kaleidoscope Charter School of Otsego has approached the City with a request to assist in the issuance
of Conduit Revenue Bonds to finance the expansion from a K-8 school to a K-12 school along with a
refinancing of its 2007 bonds.
The issuance, if approved, would be consistent with the City's Conduit Debt Policy which states that the
City will in no way be liable for the payment of the debt and it will not be a general obligation of the
City. This is revenue debt paid from revenue generated by Kaleidoscope Charter School.
Additionally, all legal review costs incurred by the City for the issuance of this debt will be reimbursed by
Kaleidoscope Charter School along with payment of a non-refundable application fee and a bond
issuance fee. The City does not anticipate the issuance of any City debt this year, thus, exceeding the
bank qualified limit is not a concern.
City Planner Dan Licht's review of all zoning and site plan items along with applicable Planning
Commission and Council approvals are required before actual issuance of the bonds. The preliminary
timeline calls for issuance in September, 2014.
This item is before the Council now for staff direction to begin discussions and review with Kaleidoscope
Charter School. By giving that direction, the Council is not committing to issuing the debt; a public
hearing and adoption of bond resolutions are required before issuance.
SUPPORTING DOCUMENTS: ❑ ATTACHED ❑ NONE
POSSIBLE MOTION
Please word motion as you would like it to appear in the minutes.
Motion to continue the review and processing of Kaleidoscope Charter School's request for Conduit
Revenue Bonds in the amount of approximately $17,500,000.
BUDGET INFORMATION
FUNDING: BUDGETED: ❑ YES
N/A
❑ NO
ACTION TAKEN
❑ APPROVED AS REQUESTED ❑ DENIED ❑ TABLED ❑ OTHER (List changes)
COMMENTS: