The Lakes International Language Academy (LILA), #4116, a charter school, through its affiliated building corporation, the LILA Building Company, is proposing the purchase and construction of approximately 43,000 sq. ft. at the Headwaters development. The 12.9 acre site is located at the intersection of Headwaters Blvd. and Fenway Ave. in Forest Lake, MN. In addition, the LILA Building Company will purchase the Canvas Health Building, and refinance existing debt. LILA will enter into a long-term lease for the new facility and the Canvas Health Building with the LILA Building Company.
The charter school board believes the lease of new facilities which will be owned by its affiliated building corporation under the authority of Minn. Stat. 124D.10, Subdivision 17a, is in the best interest of the charter school and addresses the charter schools long-term facility needs.
The total cost of the project is not to exceed $15,959,063. Bonds issued by the City of Forest Lake, MN, for the LILA Building Company will finance the project. Upon approval, the City of Forest Lake, will issue $15,959,063, 30-year Refinance and Lease Revenue Bonds, the proceeds of which will be used to purchase the Headwater site and construct a new facility, to purchase the Canvas Health Building, and to refinance existing LILA Building Company debt. Both facilities will be owned by the LILA Building Company for lease to the charter school. A portion of the project funds will be used for the establishment of a capitalized interest fund, a debt service reserve fund, escrow for the bonds and for bond issuance costs. The LILA Building Company is responsible for the annual debt service payments. LILA Building Company will lease the facility on a long-term basis to LILA, #4116, and the charter school will use lease aid under Minn. Stat. 124D.11, Subdivision 4, and unrestricted general education funds for the annual lease payments.
Published in the
Forest Lake Times
January 2, 2014