Travis County Commissioners Court
May 19, 2009,
Item 1
Number 1 is a public hearing to receive comments regarding a proposed issuance of tax exempt note and related loan agreement by oglesby educational facilities corporation for chaparral star academy, inc.
d/b/a star charter school in a maximum principal amount of $3 million.
move that the public hearing be opened: all in favor?
that passes by unanimous vote.
>> good morning.
>> good morning, I'm harvey Davis, manager of the county corporations.
i'm here with cliff blunt, our attorney, and mr.
charles collins, who is the president of the star academy.
go ahead and let cliff explain this transaction.
>> real briefly, the notice of the public hearing was published in the Austin american-statesman more than 14 days ago as required by the internal revenue code.
this is a request to approve a financing on the part of Travis County that is basically a refinancing of a school financing that was approved in November of '07.
for a variety of reasons, that money was never spent and the -- the school was presented with a better opportunity for a better location and so -- so because of some tax reasons, they have to do a new offering and so this is essentially a reapproval of a project that's already been approved and just at a different location.
and -- and I don't know if you have any specific questions, but mr.
colins could answer your questions about the school if you have any.
>> so
>> [indiscernible] response.
>> the school is.
who is the a risk.
>> the school is they are going to be issued by the oglesby educational finance corporation.
Travis County's approval is required because the project is located within our jurisdiction, there's no liability on this project to the county, financial liability or, to the county or any of the options.
>> okay.
>> I would say there's one -- any of the corporations.
there's one request that was not in the backup, because this is a refinance and the school paid the $3,000 application fee, back in '07 for a project that the money wasn't used for, they have requested that that be waived this time around.
but that's -- that's purely at the discretion of the county.
so ...
>> how much is that amount again?
>> $3,000.
so did that $3 million earn principle.
>> it didn't earn enough interest to cough the interest that we paid.
>> did it earn enough to cover that $3,000 that you paid up.
>> I think during that period the interest rates on the bonds was higher than the earnings for those funds.
just the way the markets have been the last year and a half.
>> we paid $200,000 over and above what we earned in interest over the two years.
>> would anyone like to give testimony during this public hearing?
>> move that the public hearing be closed.
>> second.
>> all in favor?
that passes by unanimous vote.
>> thank you.
>> we will call this item up in just a few minutes.
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Last Modified:
Tuesday, May 19, 2009 2:00 PM