SUBJECT
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Adopt resolution approving plan of finance concerning the issuance by the Polk County Industrial Development Authority (the “Authority”) of its revenue bonds for The Schools of McKeel Academy Project, in a maximum stated principal amount not exceeding $30,000,000 for the purpose of providing funds to make a loan to the Schools of McKeel Academy, Inc. and McKeel Academy Mulberry, LLC for the financing or refinancing of the acquisition, renovation, expansion, design, construction, equipping, and/or furnishing of educational facilities to be operated by The Schools of McKeel Academy, Inc. and McKeel Academy Mulberry, LLC.
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DESCRIPTION
The Polk County Industrial Development Authority (the "Authority") previously adopted on May 14, 2026, its Resolution approving the issuance of the Authority's Industrial Development Revenue Bonds (The Schools of McKeel Academy Project) in a maximum stated principal amount not to exceed $30,000,000 (the "Bonds"), to provide funds, as part of a plan of finance, to make a loan to The Schools of McKeel Academy, Inc., a Florida not-for-profit corporation ("TSMA"), and McKeel Academy Mulberry, LLC, a Florida limited liability company (and together with TSMA, collectively, the "Borrowers") to (i) in a maximum principal amount not to exceed $4,000,000 to refinance TSMA's obligations with respect to an outstanding loan from SouthState Bank, N.A., which was used to refinance existing obligations and to finance certain renovations and construction of new educational facilities located at 411 North Florida Avenue, Lakeland, Florida 33801; (ii) in a maximum principal amount not to exceed $17,000,000 to finance or refinance the acquisition, renovation, expansion, design, construction, equipping, and/or furnishing of certain educational facilities of the Borrowers located at 2210, 2222 and 2310 Edgewood Drive in Lakeland, Florida 33803; (iii) in a maximum principal amount not to exceed $7,000,000 to finance the acquisition, renovation, expansion, design, construction, equipping, and/or furnishing of an existing educational facility located at 1400 Dean Street in Mulberry, Florida 33860; (iv) in a maximum principal amount not to exceed $2,000,000 to fund the acquisition of five acres of land for school purposes located at 0 Edgewood Drive South, Lakeland, Florida 33803; (v) fund necessary reserves; (vi) pay capitalized interest on the Bonds, if deemed necessary or desirable; and (vii) pay costs of issuance (collectively, the "Project"), the principal users of all of such facilities will be the Borrowers; to be financed as qualified 501(c)(3) bonds under Section 145 of Internal Revenue Code of 1986, as amended (the "Code").
The Authority has requested that the Board of County Commissioners (the "Board") of Polk County, Florida (the "County") approve the issuance of the Bonds in a principal amount not to exceed $30,000,000, to finance the Project.
Notice of a public hearing to be held by the Authority at 330 West Church Street, Bartow, Florida, inviting comments and discussions concerning the plan of finance for issuance of the Bonds by the Authority to finance the Project was published in The Ledger, a newspaper of general circulation in Polk County, Florida, at least seven (7) days prior to the Authority's meeting on May 14, 2026.
The Project and the issuance of the Bonds to finance the Project will have a substantial public benefit. The Bonds shall not be deemed to constitute a debt, liability or obligation, or a pledge of the faith and credit or taxing power, of the Authority, of the County or of the State of Florida or of any political subdivision thereof, but the Bonds shall be payable solely from the revenues and proceeds to be derived from the sale, operating or leasing of the Project, including payments received under the financing agreements entered into between the Authority and the Borrower.
RECOMMENDATION
Recommend Board approve resolution.
FISCAL IMPACT
None.
CONTACT INFORMATION
Randy Mink
County Attorney
863-534-7679