PR 25-0752 — D.C. Preparatory Academy Revenue Bonds Project Approval Resolution of 2024

MURIELENROLLED BOWSERORIGINAL MAYORA MayRESOLUTION 2,25-539 2024IN TheTHE HonorableCOUNCIL PhilOF MendelsonTHE ChairmanDISTRICT CouncilOF ofCOLUMBIA June 25, 2024 To authorize and provide for the issuance, sale, and delivery in an aggregate principal amount not to exceed $45 million of District of Columbia Pennsylvaniarevenue Avenue,bonds N.W.in one or more series pursuant to a plan of finance and to authorize and provide for the loan of the proceeds of such bonds to assist D.C.

Suite 504 Washington, DC 20001 Dear Chairman Mendelson:

Enclosed for consideration and adoption by the Council of the District of Columbia is a proposed resolution entitled “"D.C.

Preparatory Academy Revenue Bonds Project Approval Resolution of 2024" (the “Resolution”).

The Resolution authorizes the issuance, sale, and delivery of tax-exempt revenue bonds, notes, or other obligations in aggregate principal amount not to exceed $45,000,000.00.

These bonds will be used for the financing, refinancing, or reimbursing of costs incurred by D.C.

Preparatory Academy for projects located at 2330 Pomeroy Road S.E., and 1409 V Street S.E.

In accordance with Section 490 of the Home Rule Act, we have determined that the bonds, when, as, and if issued, shall be without recourse to the District.

The bonds shall not be general obligations of the District;

shall not be a pledge of or involve the full faith and credit or the taxing power of the District;

shall not constitute a debt of the District;

and shall not constitute a lending of public credit for private undertakings as prohibited in section 602(a)(2) of the Home Rule Act.

The bonds shall not give rise to any pecuniary liability of the District and the District shall have no obligation with respect to the purchase of the bonds.

I urge the Council to take prompt and favorable action on the measure.

Sincerely, Muriel E.

Bowser Enclosures 2 ~ at the request ofthe Mayor 5 7 A PROPOSED RESOLUTION 9 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA To authorize and provide for the issuance, sale, and delivery in an aggregate principal amount not to exceed $45 million of District of Columbia revenue bonds in one or more series pursuant to a plan offinance and to authorize and provide for the loan ofthe proceeds ofsuch bonds to assist D.C.

Preparatory Academy Revenue Bonds Project Approval Resolution of2024".of 2024".

For the purposesfthispurposes of this resolution, the term:

(1) "Authorized“Authorized Delegate"Delegate” means the Mayor or the Deputy Mayor for Planning and Economic Development, or any officer or employeeftheemployee of the Executive Office oftheof the Mayor to whom the Mayor has delegated oroor to whom the foregoing individuals have subdelegated any oftheof Mayor'sthe Mayor’s functions under this resolution pursuant to section 422(6) oftheof the Home Rule Act.

(2) "Bond“Bond Counsel"Counsel” means a firm or firmsofattorneysfirms of attorneys designated as bond counsel from time to time by the Mayor.

(6) “Closing Documents” means all documents and agreements other than Financing Documents that may be necessary and appropriate to issue, sell, and deliver the Bonds ENROLLED ORIGINAL and to make the Loan, and includes agreements, certificates, letters, opinions, forms, receipts, and other similar instruments.

79 (D) Funding any credit enhancement costs, liquidity costs or debt service reserve fund relating to the Bonds;

ENROLLED ORIGINAL Sec.

ENROLLED ORIGINAL Sec.

ENROLLED ORIGINAL (e) The Bonds of any series may be issued in accordance with the terms of a trust instrument to be entered into by the District and a trustee to be selected by the Borrower subject to the approval of the Mayor, and may be subject to the terms of one or more agreements entered into by the Mayor pursuant to section 490(a)(4) of the Home Rule Act.

ENROLLED ORIGINAL Sec.

ENROLLED ORIGINAL (e) All covenants, obligations, and agreements of the District contained in this resolution, the Bonds, and the executed, sealed, and delivered Financing Documents and Closing Documents to which the District is a party, shall be considered to be the covenants, obligations, and agreements of the District to the fullest extent authorized by law, and each of those covenants, obligations, and agreements shall be binding upon the District, subject to the limitations set forth in this resolution.

The ENROLLED ORIGINAL Borrower shall have no claims for damages or for any other legal or equitable relief against the District, its elected or appointed officials, officers, employees, or agents as a consequence of any failure to issue any Bonds for the benefit of the Borrower.

This approval shall constitute the approval of the Council as required in section 147(f) of the Internal Revenue Code of 1986, as amended (the(“Code”), “Code”), and section 490(k) of the Home Rule Act, for the Project to be financed, refinanced, or reimbursed with the proceeds of the Bonds.

ENROLLED ORIGINAL Sec.

DC Preparatory Academy Revenue Bond Project FACT SHEET DC Preparatory Academy has requested that the District issue up to $45,000,000 of tax-exempt new market tax credit financing on their 1409 V Street S.E.

location.

Both properties are in Ward 8.

The Applicant DC Preparatory Academy is a public charter school that focuses on bridging the educational divide by increasing the number of students from underserved communities with the academic preparation and personal character to succeed in competitive high schools and colleges.

Proposed Project DC Preparatory Academy is a network of six charter schools in Washington, DC.

The project consists of:

A)The Phase II renovation of the 2330 Pomeroy Road, S.E.

location B) The refinancing of new market tax credit financing for the 1409 V Street S.E.

location Financing Plan A summary of the proposed sources and uses of funds is attached (see Table 1).

Feasibility/Structure/Security of the Bonds First Tryon Advisors has reviewed the organization’s finances and deemed this project financially feasible.