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File #: RES PH 20-263    Version: 1
Type: Resolution-Public Hearing Status: Passed
In control: Housing & Redevelopment Authority
Final action: 11/18/2020
Title: Resolution giving preliminary approval to the proposed issuance of conduit revenue bonds for the Minnesota Math and Science Academy Charter School Project, 169 Jenks Avenue, under Minnesota Statutes, Sections 469.152 through 469.1655 District 6, Ward 5
Sponsors: Amy Brendmoen
Attachments: 1. Board Report, 2. Map, 3. District 6 Profile
Title

Resolution giving preliminary approval to the proposed issuance of conduit revenue bonds for the Minnesota Math and Science Academy Charter School Project, 169 Jenks Avenue, under Minnesota Statutes, Sections 469.152 through 469.1655 District 6, Ward 5

Body

WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (the “HRA”) is duly organized and existing under the Constitution and laws of the State of Minnesota; and

WHEREAS, under the Minnesota Municipal Industrial Development Act, Minnesota Statutes, Sections 469.152-469.1655, as amended (the “Act”), each housing and redevelopment authority in the State of Minnesota, including the HRA, is authorized to issue revenue bonds to finance or refinance, in whole or in part, the costs of the acquisition, construction, improvement, or extension of revenue producing enterprises, whether or not operated for profit; and

WHEREAS, MMSA Building Company, a Minnesota nonprofit corporation (the “Borrower”), has requested that the HRA issue one or more series of tax-exempt or taxable conduit revenue bonds (the “Bonds”) and loan the proceeds derived from the sale of the Bonds to the Borrower, pursuant to the terms of a Loan Agreement between the HRA and the Borrower (the “Loan Agreement”) to be used to (i) finance the acquisition of, and related renovations and improvements to, an approximately 60,525 square foot existing charter school facility (the “School Facility”) located at 169 Jenks Avenue, in the City of Saint Paul, Minnesota (the “City”); (ii) fund a debt service reserve fund; (iii) pay the costs of issuing the Bonds (the “Project”); and (iv) pay capitalized interest (the “Project”), if any; and

WHEREAS, the Project will be owned by the Borrower and will be leased to and operated by Minnesota Math and Science Academy (the “School”); and

WHEREAS, the Bonds proposed to be issued by the HRA to finance the Project will constitute revenue bonds secured solely by:  (i) the reve...

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Date NameDistrictOpinionCommentAction
5/20/2021 7:47 PMBonnie Youngquist Against Complaint: Minnesota Math and Science Academy (MMSA) is managed by Concept Schools, the management fee is up to 10 percent of annual revenues received by MMSA by the state. Total management fee for 2020 was $590,000. In 2014 the FBI raided 19 sites, alleging that Concept where Concept allegedly contracted with “related entities” without soliciting written bids. Concept agreed to pay a $4.5 million to settle claims last November, no mention was noted in the HRA staff report. MMSA was formerly the Minnesota School of Science that suddenly closed in 2013 due to a judgement of $530,000 due to the Minneapolis Public Schools for unpaid rent. The board closed its bank account, created a new non-profit, renamed the school to MMSA, found a new authorizer, and moved across the Mississippi, leaving Minneapolis Public Schools out of $530,000 in rent.
5/19/2021 2:41 AMMick McGibbon Against Will the Council and HRA address the issue of Minnesota Math and Science Academy’s connection to Minnesota School of Science (MSS) in August of 2013? MMSA was incorporated on 8/19/2013, and all its original board members were also board members of MSS at that time. On 8/12/2013, one week prior to MMSA’s incorporation, a Hennepin County court entered a $518,302 settlement against MSS for unpaid rent owed to the Minneapolis Public School District. Evidence exists which suggests that MMSA and its board on 8/29/2013 may have played a integral role in colluding with MSS to avoid paying all but $54.11 of that over $500,000 judgement. HRA Director Goodman, Chair Tolbert, and all St Paul City Council members have been made aware of this connection between MMSA and MSS in August 2013. I hope the Council addresses this issue with the seriousness that it deserves, and refuses to give final approval to RES PH20-263.