Bond Public Hearings
NOTICE OF PUBLIC HEARING
PRIVATE COLLEGE FACILITY REVENUE BONDS
OF THE IOWA HIGHER EDUCATION LOAN AUTHORITY
NOTICE IS HEREBY GIVEN that the Iowa Higher Education Loan Authority (the “Authority”) proposes to issue not to exceed $14,000,000 in aggregate principal amount of its Private College Facility Revenue and Refunding Bonds (Mount Mercy University Project), Series 2023 (the “Bonds”), as tax-exempt qualified 501(c)(3) bonds as defined in Section 145 of the Internal Revenue Code of 1986, as amended, in one or more series, for financing private college facilities pursuant to the provisions of Chapter 261A of the Code of Iowa, as amended, for the purpose of providing financing for (I) refunding Iowa Finance Authority, Private College Facility Revenue Bonds (Mount Mercy University Project), Series 2016 (the “2016 Bonds”) originally issued in the amount of $10,000,000 which proceeds were originally used for the purpose of providing financing for (i) the costs of constructing, equipping and improving real property with respect to facilities to be used by the Borrower as a facility for activities, consisting of a baseball field, a softball field, a multi-sport complex and practice field located on 23.25 acres at 902 17th Street NE, Cedar Rapids, Iowa 52402; and (ii) costs of issuance; and (II) refunding the City of Robbins, Iowa Private College Revenue and Revenue Refunding Bonds (Mount Mercy Project), Series 2018 (the “2018 Bonds”) originally issued in the amount of $8,341,000 which proceeds were originally used for the purpose of providing financing for (i)(a) refunding Linn County, Iowa, Private College Revenue Bond (Mount Mercy College Project) Series 2010 Bond R-1 (the “2010 Bond”), issued to provide funds to refund 1999 Iowa Higher Education Loan Authority Bonds originally issued in the amount of $5,495,000 the proceeds of which were used to finance the costs of constructing, improving and equipping student residence facilities, parking lot improvements and various other building improvements; (ii) refunding 2002 Iowa Higher Education Loan Authority Bonds (the “2002 Bonds”) originally issued in the amount of $3,595,000 to finance the costs of constructing, improving and equipping a classroom, laboratory, and office building containing approximately 39,000 square feet located on said campus, refinance indebtedness incurred to acquire properties adjacent to said campus, and finance the costs of constructing, improving and equipping a 5,000 square foot University Center between Regina and McAuley residence halls and renovating the first floors of such residence halls and other campus improvements on said campus; (iii) refunding Linn County, Iowa, Private College Revenue Bond (Mount Mercy Project) Series 2013, (the “2013 Bond”) issued to provide funds to refund the Linn County, Iowa, Private College Revenue Bonds (Mount Mercy College Project) Series 2010 Bond R-2 the proceeds of which were originally issued for the purposes of the 2010 Bond as described above; (iv) refinancing amounts used to finance campus improvements including the renovation of the Rinderknecht Athletic Center, replacing the roof on Warde Hall, replacing the HVAC in Busse Library, installing energy efficient water heaters and domestic boilers in Regina and McAuley Residence Halls and activating heated sidewalks at the University Center, and (v) paying costs of Issuance (altogether under known as the “Project”). The Projects will be located on the campus of the Borrower at 1330 Elmhurst Dr. NE, Cedar Rapids, Iowa 52402). The proceeds of the Bonds will be loaned to the University to be used to finance the costs of refunding the Project, including paying costs of issuance. The facilities to be refinanced with the proceeds of the Bonds are or will be owned by the Borrower and the Borrower will agree to make loan payments sufficient to pay the principal of and interest and redemption premium, if any, on the Bonds as the same fall due.
NOTICE IS HEREBY GIVEN that a Public Hearing will be conducted before the Authority at its meeting to be held at the offices of the Authority at 1200 Valley West Drive, Suite 206-11, West Des Moines, Iowa 50266 at 10:30 a.m. on May 17, 2023, pursuant to the provisions of Chapter 261A of the Code of Iowa and Section 147 of the Internal Revenue Code on the proposal to issue the Bonds. At such public hearing all residents and interested persons shall be given an opportunity to express their views, orally or in writing, for or against the proposal to issue the Bonds and the location and nature of the Projects to be refinanced and at said hearing or any adjournment thereof, the Board of the Authority shall adopt a resolution to determine whether or not to proceed with the issuance of the Bonds. Members of the public wishing to express their views for or against the proposal to issue the Bonds have the option to participate in the public hearing via Zoom at:
The Bonds, if issued, and the interest and premium, if any, thereon will be payable solely out of the revenues derived from the loan agreement executed in connection with the loan of the proceeds of the Bonds to the Borrower. The Bonds shall be limited and special obligations of the Authority payable solely from revenues received by the Authority under the loan agreement and secured by a pledge of the rights of the Authority under and pursuant to the loan agreement. The Bonds will represent and constitute, solely and exclusively, limited obligations of the Authority and will not represent, constitute or create an obligation, general or special, debt, liability or moral obligation of the State of Iowa or any political subdivision thereof within the meaning of any constitutional provision or statutory limitations, and will not constitute a pledge of the full faith and credit of the Authority or the State of Iowa.
IOWA HIGHER EDUCATION LOAN AUTHORITY
By: Maribeth Wright, Executive Director