Cumberland Academy looking to grow, seeks financing

Published on Monday, 20 March 2017 18:27 - Written by

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FAITH HARPER, fharper@tylerpaper.com

Cumberland Academy is looking to grow - and will need the approval of the Tyler City Council to do it.

On Wednesday, the Tyler City Council will hold a public hearing on the school's plans to finance construction. The hearing is set for 9 a.m. Wednesday in City Hall, 212 N. Bonner St. The meeting is open to the public.

Cumberland Academy is in the process of refinancing a loan that is being used to finance construction of a new one-story classroom building, which will be used initially as kindergarten classes and daycare facility for children of Cumberland Academy employees, according to the city.

Cumberland will need $3.5 million for the project, and it will be the sole entity responsible for paying back the loan.

 

INVOLVED PROCESS

The charter school is looking to have their financing bonds tax-exempt, and there is a process that involves getting approval from the city of Tyler.

The financing will be issued by the Crawford Education Facilities Corporation, according to the city of Tyler.

In order for the bonds to be tax-exempt, the bank that buy the bonds/notes, needs to be in a city that will commit to $10 million or less in tax-exempt financing during 2017.

Crawford, Texas has agreed to be a pass through for the financing, but Cumberland Academy will be responsible for paying the note. BTH Bank, N.A. will make the loan.

The city of Tyler must give its blessing, through an official resolution, for the transaction because the charter school lies within its jurisdiction. This requirement is outlined in the Texas Education Code and Internal Revenue Codes.

The city’s portion of the process has three steps. It must publish a notice in the classified section of the newspaper notifying of an upcoming public hearing, hold that public hearing and then adopt a resolution of support for the project.

The city is not responsible for the loan, other than giving its blessing as a “host city,” under tax laws.

If adopted, this will be the fourth resolution of support given to Cumberland Academy for financing since 2011, according to the city.

In other business:

- The Tyler City Council will receive a presentation on its outside financial audit from Gollob Morgan Peddy LLC for the 2015-2016 fiscal year.

- Council will consider adopting a resolution of support for a uniform truancy plan in Smith County.

- McDonald Transit could be hired to manage of the Tyler Transit System for $156,864 each year. The system currently is managed by city staff.

- The city may advertise for bids for the construction of the 2017 Asphalt Enhancement Program.

- A contract with Capps-Capco Construction Inc. will be considered to for the Lake Street Culvert Replacement Project. The expenditure is projected not to exceed $345,859, and will require adopting an ordinance to amend the budget.

- A construction contract with Gracon Construction Inc. will be considered for the Golden Road Backwash Pump Station and Clearwell Baffles project. It’s projected to cost $4.435 million.

- The Development Services Department to use the services of Halff Associates as-needed if Council approves a task order contract with the firm.

The Tyler Morning Telegraph will attend the meeting. For updates as they happen follow @TMTFaith on Twitter.