Consider and take appropriate action on a request to sign a TEFRA certificate approval for tax-exempt financing to be undertaken by the Newark Cultural Education Facilities Finance Corporation for the benefit of the NYOS Charter School, Inc. (Commissioner Travillion)

Staff Report & Agenda Item Details

This item is related to a request by NYOS Charter School, Inc. (the "Borrower"), a Texas nonprofit corporation exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986, that the County Judge of Travis County consent to the issuance of bonds or notes (the "Obligations") by Newark Cultural Education Facilities Finance Corporation (the "Issuer") on behalf of the Borrower.  Proceeds of the Obligations will be used by the Borrower to finance and/or refinance the cost of acquisition, construction, renovation, and equipping of school campus facilities located at 12301, 12309 and 12333 N. Lamar Blvd., Austin, Texas 78753 and 820 W. Yager Lane, Austin, Texas 78753, in a maximum amount of $5,000,000 (the “Project”)<br><br>In order for the interest on the Obligations to be excludable from gross income for federal income tax purposes, Section 147(f) of the Internal Revenue Code of 1986, as amended (the"Code"), requires that the Obligations and the Project be approved by the "applicable elected representative" (meaning the highest elected official or "AER") of the county in which each facility is located. The approval can only be given following a public hearing conducted under Section 147(f) of the Code, which the public hearing was held on January 17, 2025, after publication of notice in the Austin American Statesman as required by the Code. A copy of the Minutes of the Public Hearing with a copy of the Notice of Public Hearing and the Affidavit of Publication are enclosed as Exhibit A. If approved by Judge Brown, the Applicable Elected Representative Approval to be signed by Judge Brown approving the Obligations and the Project is enclosed as Exhibit B. <br><br>Approval of the issuance of the Obligations and the Project is requested solely for the purpose of complying with the public approval requirements of the Code regarding tax exemption of the interest on the Obligations. Such approval does not create or imply any obligation by Travis County with respect to the payment of the Obligations or the operation of the Project.