The Canyons Board of Education is moving forward with plans for acquiring the regional headquarters of global tech giant eBay with the aim of transforming it into an innovative learning center focused on training students for the 21st century workplace. The Board of Education, acting as a Local Building Authority, on Tuesday, Sept. 3 approved a resolution allowing the issuance and sale of up to $50 million in lease-revenue bonds. This action initiated a 30-day contest period during which a public hearing will be held to gather input on the proposal. The public hearing is scheduled for Tuesday, Oct. 1 at 7 p.m. at the Canyons District Offices, 9361 S. 300 East in Sandy. The lease-revenue bonds will help pay for the purchase of the 36-acre eBay campus and minor renovations to the 215,000-square-foot eBay facility. The District is also investing existing capital funds and using proceeds from the sale of property it owns to pay for the eBay campus, which would reduce the amount of bonds that would need to be sold. Depending on these and other various factors, the District may need to generate increased tax revenue to repay the bonds, resulting in an estimated $20-$25 increase on the averaged-priced home in Canyons, which is valued at about $703,000. If this action is required, a truth-in-taxation hearing will be held in August 2025. If the timeline goes as expected, a competitive bond sale would be held November.Lease-revenue bonds are an option for addressing targeted capital needs in a way that doesn’t incur unnecessary debt. The bonds also have a comparatively short repayment schedule. The anticipated repayment schedule for this series is 16 years.
NOTICE OF INTENT TO ISSUE A LEASE REVENUE BOND
AND PUBLIC HEARING
PUBLIC NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Building Authority Act, Title 17D, Chapter 2, Utah Code Annotated 1953, as amended, and the Local Government Bonding Act, Title 11, Chapter 14, Utah Code, as amended (together, the “Act”), that the Governing Board (the “Governing Board”) of the Local Building Authority of Canyons School District, Utah (the “Authority”) intends to issue its Lease Revenue Bonds, Series 2024B (the “Bonds”) and will hold a public hearing to provide members of the public desiring to be heard an opportunity to present testimony on the proposed issuance of the Bonds in accordance with Sections 11-14-103 and 17D-2-501 of the Utah Code Annotated 1953, as amended. Said public hearing will be held on October 1, 2024, at 7:00 p.m., at 9361 S. 300 E., Sandy, Utah. The purpose of the Bonds is to provide funds to (a) finance all or a portion of the costs of acquisition and remodeling of a high school/innovation center, and all related improvements (the “Project”); (b) fund any required debt service reserve fund; and (c) pay costs associated with the issuance of the Bonds. The length of term of the Bonds shall not exceed 17 years. The average annual amount that the Authority will be required to pay in principal and interest on the Bonds is $4,370,000. The intended lessee of the facility to be constructed using proceeds from the Bonds is Canyons School District, Utah (the “District”) and the expected annual amount of lease payments that the District will pay is $4,370,000. The Authority anticipates taking action on the proposal to issue the Bonds directly following the public hearing at the same meeting listed above.
DATED this September 3, 2024.
/s/ Leon Wilcox
Secretary-Treasurer
NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED
PUBLIC NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Building Authority Act, Title 17D, Chapter 2, Utah Code Annotated 1953, as amended, and the Local Government Bonding Act, Title 11, Chapter 14, Utah Code, as amended (together, the “Act”), that on September 3, 2024, the Governing Board (the “Governing Board”) of the Local Building Authority of Canyons School District, Utah (the “Authority”) expects to consider for adoption a resolution (the “Resolution”) authorizing the issuance of the Authority’s Lease Revenue Bonds, Series 2024B (the “Bonds”), and calling a public hearing to receive input from the public with respect to the issuance of the Bonds.
TIME, PLACE AND LOCATION OF PUBLIC HEARING
The Authority shall hold a public hearing on Tuesday, October 1, 2024 at the hour of 7:00 p.m. The location of the public hearing is at the District offices in Sandy, Utah (the “District”) located at 9361 S. 300 E., Sandy, Utah. The purpose of the hearing is to receive input from the public with respect to: (a) the proposed Bonds and (b) any potential economic impact that the improvements, facility or property financed in whole or in part with the proceeds of the Bonds may have on the private sector. All members of the public are invited to attend and participate.
PURPOSE FOR ISSUING BONDS
The Authority intends to issue the Bonds to provide funds to (a) finance all or a portion of the costs of acquisition and remodeling of a high school/innovation center, and all related improvements (the “Project”); (b) fund any required deposits to a debt service reserve fund; and (c) pay costs associated with the issuance of the Bonds.
PARAMETERS OF THE BONDS
The Authority intends to issue the Bonds in a principal amount of not to exceed Fifty Million Dollars ($50,000,000), to bear interest at a rate or rates of not to exceed six percent (6.0%) per annum, to mature in not more than seventeen (17) years from their date or dates, and to be sold at a price not less than ninety-eight (98%) of the total principal amount thereof, plus accrued interest, if any, to the date of delivery of the Bonds.
The Bonds are to be issued and sold by the Authority pursuant to the Resolution, including as attachments to said Resolution forms of a Third Supplemental Indenture of Trust (the “Third Supplemental Indenture”) amending and supplementing a General Indenture of Trust dated as of August 1, 2021, as previously amended and supplemented (collectively, the “Indenture”) and a Second Amendment to Master Lease Agreement (the “Second Amendment to Master Lease”) amending the Master Lease Agreement dated as of August 1, 2021, as previously amended (collectively, the “Lease”), which Third Supplemental Indenture and Second Amendment to Master Lease were before the Governing Board at the time of the adoption of the Resolution. The Third Supplemental Indenture and Second Amendment to Master Lease are to be executed by the Authority and/or the Board with such terms and provisions and any changes thereto as authorized by the Resolution.
SECURITY FOR THE BONDS
The Bonds are payable solely from the rents, revenues and other income received by the Authority from the leasing of the Project to the Board on an annually renewable basis (the “Lease Revenues”).
OUTSTANDING BONDS SECURED BY LEASE REVENUES
The Authority currently has $77,645,000 of bonds outstanding secured by Lease Revenues.
OTHER OUTSTANDING BONDS OF THE AUTHORITY
Information regarding all of the Authority’s outstanding bonds may be found in the Board’s audited financial report (the “Financial Report”) at https://reporting.auditor.utah.gov/searchreports/s/. For additional information, including any more recent than as of the date of the Financial Report please contact Leon Wilcox at 801-826-5040.
TOTAL ESTIMATED COST
Based on an estimate of the current interest rate and financing plan, the estimated total debt service cost of the Bonds, if held until maturity, is $69,892,285.
A copy of the Resolution and the forms of Indenture and the Lease are on file in the District offices, located at 9361 S. 300 E., in Sandy, Utah, where they may be examined during regular business hours from 7:30 a.m. to 5:00 p.m., Monday through Friday (legal holidays excepted) for a period of at least thirty (30) days from and after the last date of posting of this notice.
NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of the posting of this notice is provided by law during which (i) any person in interest shall have the right to contest the legality of the Resolution, the Indenture, the Lease, or the Bonds, or any provision made for the security and payment of the Bonds, and after such time, no one shall have any cause of action to contest the regularity, formality or legality thereof for any cause whatsoever, and (ii) active voters (as defined in Section 20A-1-102 of the Utah Code) within the District may sign a written petition requesting an election to authorize the issuance of the Bonds. If written petitions which have been signed by at least twenty percent (20%) of the active voters of the District are filed with the Authority during said 30-day period, the Authority shall be required to hold an election to obtain voter authorization prior to the issuance of the Bonds. If fewer than twenty percent (20%) of the active voters of the District file a written petition during said 30-day period, the Authority may proceed to issue the Bonds without an election.
DATED this September 3, 2024.
/s/ Leon Wilcox Secretary-Treasurer
