Agenda 04/24/2018 Item #16K1004/24/2018
EXECUTIVE SUMMARY
Request by the Collier County Educational Facilities Authority for approval of a resolution
authorizing the Authority to issue revenue bonds to be used to finance educational facilities for Ave
Maria School of Law.
OBJECTIVE: To accomplish the necessary approvals to authorize a proposed revenue bond issue by the
Collier County Educational Facilities Authority (the “Authority”) to be used to finance educational
facilities for Ave Maria School of Law.
CONSIDERATIONS: Chapter 243, Florida Statutes, creates in each county of the state, an educational
facilities authority, which may not function or transact business until the board of county commissioners
of the county adopts a resolution or ordinance determining there is a need for the a uthority to function in
the county. The Board of County Commissioners activated the Collier County Educational Facilities
Authority by Resolution 99-177, adopted March 23, 1999. An educational facilities authority has the
limited jurisdiction of issuing bonds only for accredited, non-profit educational institutions empowered to
provide a program of education beyond the high school level. The Authority has previously issued, and
the Board has approved, bonds to fund International College and Ave Maria University.
The Authority received a financing application filed by Ave Maria Law School, Inc. for tax-exempt
financing in the amount of $12,000,000 to refinance the costs acquisition, construction, and equipping of
Ave Maria School of Law, located at 1025 Commons Circle, in the Vineyards development. The
Authority conducted a public hearing on the application on April 5, 2018, considered the application, and
heard presentations from Law School officials. The meeting was noticed by publication in the Naples
Daily News, and a copy of the notice is attached to the Authority Resolution, as described below. No
comments from members of the public were received prior to or at the hearing, and no members of the
public appeared at the hearing.
Ave Maria School of Law has been operating at its current 12-acre site since 2009. The law school is
housed in six main buildings, including the Faculty and Administration Building, the Law Library, the
Commons, West and East Halls, and the Clinic/Student organizations building. Located in the Vineyards
development, the school is served by existing public infrastructure and utilities. The school has an
enrollment of approximately 253 students and has approximately 66 full-time employees and 30 part-time
employees, and houses about one-third of its students on campus.
The law school initially leased the facilities from Ave Maria University (a separate entity), and in 2017
purchased the property and facilities from Ave Maria University. The law school financed the purchase
with a loan from First Florida Integrity Bank, secured by a first mortgage (the “Existing Financing”). The
plan of financing is to refund the Existing Financing with the proceeds of a single revenue bond to be
issued by the Authority and designated Collier County Educational Facilities Authority Revenue Bond,
Series 2018 (Ave Maria School of Law Project) (the “Bond”) in an amount sufficient to refund the
Existing Financing, but in no event more than $12 million. The Bond will be placed with, and held by,
First Florida Integrity Bank as a replacement for the Existing Financing.
The security for the Bond will continue to be a first mortgage on the school property and facilities. In its
commitment to fund the Existing Financing, the Bank required an appraisal satisfactory to the Bank, and
the commitment contains a notation that the Bank has received and accepted an appraisal of the Property.
School officials testified at the Authority hearing that the appraisal shows a value substantially in excess
of the amount of the Bond
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Other Authority considerations:
a. Fiscal impact on the community. As noted above, the school has approximately 66 full -time
employees and 30 part-time employees. The school brings into the area about $9.8 million annually in
federal funds in the form of student loans. The establishment and successful operation of institutions of
higher education such as Ave Maria School of Law has and will continue to have a positive fiscal impact
on the County. These positive impacts include, but are not limited to, the creation of jobs, the revenues
associated with the operation of the school contributed to the local economy, and the enhancement of the
local workforce through educational facilities.
b. Availability of public services and infrastructure. Located in the Vineyards development, the
school is served by existing public infrastructure and utilities.
c. Use of proceeds for religious-oriented institutions. A question that sometimes comes up in the
financing of educational facilities for religious-based institutions is the use of tax-exempt bonds for these
facilities. In a number of cases, courts have held that where, as here, the facilities do not have an
exclusively religious purpose, particularly in the case of university or graduate school facilities, the
issuance of tax-exempt bonds is the provision of a generally available governmental benefit and therefore
does not amount to governmental “establishment” of religion.
d. Accreditation. Section 243.20(8) FS provides that an institution of higher education means an
institution that by virtue of law or charter is an accredited, non-profit educational institution empowered
to provide a program of education beyond the high school level. Counsel to the law school provided th e
Authority with documentation and an opinion that Ave Maria School of Law is fully accredited by the
American Bar Association (ABA), the primary law school accreditation body in the U.S.
At the conclusion of the public hearing on April 5, the Authority determined to proceed with the
financing, contingent on Board approval, and adopted a resolution to that effect (the “Authority
Resolution”, a copy of which is attached to the “County Resolution” described below).
Federal tax law requires two approvals for the issuance of private activity bonds. First, the Authority
must hold a public hearing, and must adopt a resolution in favor of issuing the bonds. This was done at
the conclusion of the public hearing on April 5, as described above. Following this a pproval, the
governing body of the jurisdiction must also approve the bond issue. This does not have to be a specially
advertised hearing, but must be done at a regularly noticed and held meeting of the Board. A Resolution
for the Board to adopt (the “County Resolution”) is attached.
Bonds issued by the Educational Facilities Authority are not County bonds and are not debt of the
County, but are payable solely by revenues of the Law School. There is no pledge of any taxes, or a
pledge of any County or other public revenues. Neither the County, the Board, nor any other
governmental entity is liable for their payment. Further, both the Authority Resolution and the proposed
County Resolution expressly provide that approval by the Board does not abrogate any County
regulations, including land use regulations.
FISCAL IMPACT: The issuance of the bond does not require any contribution from, or create any
payment obligation on, the Board of County Commissioners or any other County agency.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. The length of
these considerations is in response to several queries I have received by Commissioners as to the
relationship between various authorities and the County, as well as what liability the County has, if any,
with respect to bonds issued by these authorities.
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The Collier County Educational Facilities Authority was created by the Board of County Commissioners
by the adoption of Resolution 99-177, as authorized by Chapter 243, Part I, Florida Statutes. The
Authority’s purpose and powers are set forth in Florida Statutes Sec. 243.222. The purpose of the
Authority is “to assist institutions for higher education in the construction, financing, and refinancing of
projects.” To meet this purpose, the statute grants the Authority broad powers, including the power to
bond. Revenue bonds that are issued by the Authority do not obligate the County in any manner; put
another way, the County in no way “back-stops” these bonds. As set forth in Florida Statute Sec. 243.29:
243.29 Payment of bonds.-Revenue bonds issued under the provisions of this part shall
not be deemed to constitute a debt or liability of the state or of the county or a pledge of
the faith and credit of the state or of any such county, but shall be payable solely from the
funds herein provided therefor from revenues. All such revenue bonds shall contain on
the face thereof a statement to the effect that neither the State of Florida nor the authority
shall be obligated to pay the same or the interest thereon except from revenues of the
project or the portion thereof for which they are issued and that neither the faith and
credit nor the taxing power of the state or of any political subdivision thereof is pledged
to the payment of the principal of or the interest on such bonds. The issuance of revenue
bonds under the provisions of this part shall not directly or indirectly or contingently
obligate the state or any political subdivision thereof to levy or to pledge any form of
taxation whatever therefor or to make any appropriation for their payment.
A more detailed description of the Authority (which is taken from the Collier County main website),
together with the resolution creating the Authority, is attached. With the above noted, this item is
approved as to form and legality, and requires majority vote of the Board for approval. -JAK
GROWTH MANAGEMENT IMPACT: The adoption of the attached resolution will have no adverse
growth management consequences. The facilities were constructed in accordance with County growth
management regulations, and were subject to the LDC, the Growth Management Plan, concurrency
requirements, and the payment of impact fees.
RECOMMENDATION: The Board of County Commissioners adopt the attached Resolution.
Prepared by: Donald A. Pickworth, Counsel
Collier County Educational Facilities Authority
ATTACHMENT(S)
1. Resolution - educational facilities (PDF)
2. Authority Reso EFA w Affid of Pub Attached (PDF)
3. EDUCATIONAL FACILITIES AUTHORITY (DOCX)
4. Resolution 99-177 (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.K.10
Doc ID: 5359
Item Summary: Request by the Collier County Educational Facilities Authority for approval of a
resolution authorizing the Authority to issue revenue bonds to be used to finance educational facilities for
Ave Maria School of Law.
Meeting Date: 04/24/2018
Prepared by:
Title: Legal Assistant/Paralegal – County Attorney's Office
Name: Virginia Neet
04/12/2018 10:29 AM
Submitted by:
Title: County Attorney – County Attorney's Office
Name: Jeffrey A. Klatzkow
04/12/2018 10:29 AM
Approved By:
Review:
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/12/2018 10:47 AM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 04/12/2018 11:18 AM
Budget and Management Office Mark Isackson Additional Reviewer Completed 04/12/2018 11:35 AM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 04/16/2018 7:52 AM
Board of County Commissioners MaryJo Brock Meeting Pending 04/24/2018 9:00 AM
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Packet Pg. 1317 Attachment: Resolution - educational facilities (5359 : Educational Facilities Authority)
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Packet Pg. 1318 Attachment: Resolution - educational facilities (5359 : Educational Facilities Authority)
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Packet Pg. 1319 Attachment: Authority Reso EFA w Affid of Pub Attached (5359 : Educational Facilities Authority)
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Packet Pg. 1320 Attachment: Authority Reso EFA w Affid of Pub Attached (5359 : Educational Facilities Authority)
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Packet Pg. 1321 Attachment: Authority Reso EFA w Affid of Pub Attached (5359 : Educational Facilities Authority)
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Packet Pg. 1322 Attachment: Authority Reso EFA w Affid of Pub Attached (5359 : Educational Facilities Authority)
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Packet Pg. 1323 Attachment: Authority Reso EFA w Affid of Pub Attached (5359 : Educational Facilities Authority)
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Packet Pg. 1324 Attachment: Authority Reso EFA w Affid of Pub Attached (5359 : Educational Facilities Authority)
EDUCATIONAL FACILITIES AUTHORITY
The five member authority was established on March 23, 1999. The purpose of this five member
authority is to assist institutions for higher education in the construction, financing, and
refinancing of projects as described below. One member shall be a trustee, director, officer or
employee of an institution for higher education located in Collier County. Terms are five years.
General Information
1. Full Name: Collier County Industrial Development Authority.
2. Public Purpose: To provide capital financing for projects as defined and described in the
Florida Industrial Development Financing Act, Chapter 159, Part II, Florida Statutes
(“Qualifying Projects”), and to foster economic development in Collier County.
3. Boundaries: Collier County, and in other locations in the State of Florida as may be approved
by interlocal agreement approved by Collier County.
4. Services Provided: Issuance of revenue bonds to finance the cost of acquisition, construction,
equipping, or rehabilitation of Qualifying Projects.
5. Authorizing statutes and Creation Documents: Chapter 159, Part III Florida Statutes,
authorizes the creation of industrial development authorities within the State of Florida, and the
Board of County Commissioners of Collier County adopted Resolution 79-34 on February 27,
1979 creating the Authority and authorizing it to act.
Chapter 243, Part I Florida Statutes
Resolution 99-177
Contact Information:
1. Contact Person Information
Donald A. Pickworth, Executive Director/General Counsel
5100 Tamiami Trail North
Suite 103
Naples, FL 34103
picklaw@earthlink.net
239.263.8060
2. Governing Body Information
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Packet Pg. 1325 Attachment: EDUCATIONAL FACILITIES AUTHORITY (5359 : Educational Facilities Authority)
a. Appointing Authority: Board of County Commissioners of Collier County
b. Authority Members:
District Name Current Term Ending Date
3 Barbara Minch Rosenberg, Chair 03/23/23
1 John Agnelli, Vice Chair 06/12/20
4 Clay W. Cone, Secretary 03/23/19
4 Alice J. Carlson 03/23/23
William J. Reagan 03/23/18
1 David J. Wolff 03/13/22
1 Gerald Shannon 03/13/22
Addresses for all members:
[Member Name]
c/o Donald A. Pickworth, Executive Director
5100 Tamiami Trl N Ste 103
Naples, FL 34103
c. Registered Agent: Donald A. Pickworth [address as above]
Financial Information:
1. The Authority’s fiscal year is from October 1 to the following September 30.
2. The Authority has no taxing power. Its revenues are derived from bond issuance fees paid by
project applicants. The statutory authority for these fees is Chapter 243, Part I, Florida Statutes.
3. Final adopted budget:
Ethics:
The Authority and its members operate under, and are subject to the applicable “Ethics Laws” as
provided by the Florida Commission on Ethics. These laws are set forth on the website of
the Florida Commission on Ethics.
Employees:
The Authority has no employees.
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Packet Pg. 1326 Attachment: EDUCATIONAL FACILITIES AUTHORITY (5359 : Educational Facilities Authority)
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Packet Pg. 1327 Attachment: Resolution 99-177 (5359 : Educational Facilities Authority)
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Packet Pg. 1328 Attachment: Resolution 99-177 (5359 : Educational Facilities Authority)