HomeMy WebLinkAboutMINUTES - 04131999 - SD10 8
RESOLUTION NO.9 91171
RESOLUTION OF THE BOARD OF SUPERVISORS OF THE
COUNTY OF CONTRA COSTA APPROVING AN
INSTALLMENT PURCHASE FINANCING TO BE
UNDERTAKEN BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO BENEFIT
THE SPECTRUM CENTER FOR EDUCATIONAL AND
BEHAVIORAL DEVELOPMENT,INC.
AREAS, Spectrum Center for Educational and Behavioral Development, Inc. (the
"Corporation"), a nonprofit public benefit corporation, has requested that the California Statewide
Communities Development Authority ("CSCDA") participate in an installment purchase financing (the
"Financing7) for the purpose of financing and/or refinancing the acquisition, construction, improvement and
equipping of educational facilities (the "Facilities") located within the County of Contra Costa (the
bb 5r
aunty );
WHEREAS, in connection with the Financing, CSCDA and the Corporation will enter into an
installment purchase agreement (the "Purchase Agreement") under which the Corporation will sell the
Facilities to CSCDA and CSCDA will agree to make payments (the "Installment Payments") to the
Corporation for the purchase thereof,
WBEREAS, certificates of participation(the"Certificates")in an aggregate principal amount not to
exceed$6,000,000, each representing a proportionate undivided interest in the Installment Payments, will be
executed,delivered and sold in connection with the Financing;
WHEREAS, proceeds of the certificates in an amount not to exceed$6,000,000 are expected by the
Corporation to be used for the acquisition,construction, improvement and equipping of the Facilities;
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the
"Code"), the Financing and the execution and delivery of the Purchase Agreement by CSCDA must be
approved by the County because the Facilities are located within the territorial limits of the County;
WHEREAS, the Board of Supervisors of the County(the"Board")is the elected legislative body of
the County and is one of the applicable elected representatives required to approve the Financing and the
execution and delivery of the Purchase Agreement under Section 147(f)of the Code;
WHEREAS,CSCDA and the Corporation have requested that the Board approve the Financing and
the execution and delivery of the Purchase Agreement in order to satisfy the public approval requirement of
Section 1470 of the Code and the requirements of Section 9 of the Joint Exercise of Powers Agreement(the
"Agreement"),dated as of June 1, 1988,among certain local agencies,including the County;and
WHEREAS, pursuant to Section 147(f) of the Code, the Board has, following notice duly given,
held a public hearing regarding the Financing and the execution and delivery of the Purchase Agreement,and
now desires to approve the Financing and the execution and delivery of the Purchase Agreement.
15105.1\24197.0001 1
RESOLUTION NO. 99/171
NOW, TBEREFORE, BE rr RESOLVED, by the Board of Supervisors of the County of Contra
Costa,as follows:
1. The Board hereby approves the Financing and the Purchase Agreement, It is the purpose and
intent of the Board that this resolution constitute approval of the Financing and the execution and
delivery of the Purchase Agreement (and the execution and delivery of the certificates of
participation related thereto)for the purposes of(a)Section 147(f)of the Code by the applicable
elected representative of the governmental unit having jurisdiction over the area in which the
Facilities are located, in accordance with said Section 147(1), and (b)Section 9 of the
Agreement.
2. The officers of the County are hereby authorized and directed,jointly and severally, to do any
and all things and to execute and deliver any and all documents, certificates and other
instruments which they deem necessary or advisable in order to carry out, give effect to and
comply with the terms and intent of this resolution and the financing transaction approved
hereby. Any actions heretofore taken by such officers are hereby ratified and approved.
3. The Certificates will be paid entirely from repayments by the Borrower. Neither the full
faith and credit nor the taxing power, if any, of the County, CSCOA and its members, the
State of California(the "State") or any other political corporation, subdivision or agency of
the State is pledged to the payment of the principal of, premium, if any, or interest with
respect to the Certificates, nor shall the County, CSCDA and its members, the State, or any
other political corporation, subdivision or agency of the State be liable or obligated to pay
the principal of, premium, if any, or interest with respect to the Certificates.
4. This resolution shall take effect immediately upon its passage.
15105.1124197.0001 2
RESOLUTION NO. 99/171
PASSED AND ADOPTED by the Board of Supervisors of the County of Contra Cosh
this 13'day of April, 1999,by the following vote:
AYES, and in favor of the passage and adoption of the foregoing resolution:
Members of the Board of Supervisors GIOIA, UILKEMA, GERBER, OESAULNIER and CANCIAMILLA
NOES: N O N
ABSENT: N 0 N E
ABSTAIN: !SONE
Clerk of the Board of Supervisors of the
County of Contra Costa
Attest:
.a,
l
Phil Bachelor
Clerk of the Board of Supervisors
of the County of Contra Costa
13105.1124197.0001 3
RESOLUTION NO. 99/171
NOTICE OF PUBLIC HEARING PURSUANT TO SECTION 147(#)OF THE
INTERNAL REVENUE CODE OF 1986,AS AMENDED,FOR THE FINANCING
OF CERTAIN FACILITIES FROM THE SALE OF TAX-EXEMPT OBLIGATIONS.
NOTICE IS HEREBY GIVEN that at 9:00 a.m. on April 13, 1999 at the Contra Costa County
Beard of Supervisors,651 Pine Street, 11'Floor,Martinez,California,94553,the Board.of Supervisors of
the County of Contra Costa(the `County")will conduct a public hearing(the"Public Hearing")at which.the
County will hear and consider information concerning the proposed sale, execution and delivery by the
California Statewide Communities Development Authority (the "Authority") of its Certificates of
Participation(Spectrum Center Project), 1999 Series(the "Certificates") in an aggregate principal amount
not to exceed six million dollars ($6,000,000). Proceeds of the Certificates are to be used to assist the
Spectre Center for Educational and Behavioral Development, Inc., a CalLfornia corporation (or any
successor thereto) (the "Borrower"), to (1) fi=nance costs incurred by the Borrower with respect to t~fe
acquisition, construction, reconstruction and/or improvement of the property at 16330-16396 San Pablo
Avenue, San Pablo, California 94806(also known.as"Tara Hills Shopping Center"); (2) finance costs of
incurred by the Borrower with respect to the acquisition,construction,reconstruction and/or improvement
of the property at 1026 Oak Grove Road,Concord,California 94518;(3)refinance costs of incurred by the
Borrower with respect to the acquisition of the property at 6325 Camden Street,Oakland,California 94619;
and (4) pay other related expenses (collectively, the "Project"). The facilities to be financed and/or
refinanced have been and will continue to be used for exempt educational purposes of Borrower,and will
be owned and operated by,and used by,the Borrower or a related subsidiary.
The Certificates will be paid entirely from lease payments by the Borrower. Neither the full faith
and credit nor the taxing power,if any,of the County,the Authority and its members,the State of California
(the"State")or any other political corporation,subdivision or agency of the State is pledged to the payment
of the principal of,premium, if any, or interest with respect to the Certificates, nor shall the County, the
Authority and its members,the State, or any other political corporation, subdivision or agency of the State
be liable or obligated to pay the principal of,premium,if any,or interest with respect to the Certificates.
The Public Hearing is intended to comply with the public approval requirements of Section 147(f)
of the Internal Revenue Code of 1986,as amended.
Those wishing to comment on the sale, execution and delivery of such. Certificates or on the
proposed nature and location of any of the Project and the financing of the Project with the proceeds of the
Certificates may either appear in person at the time and place indicated above or submit written comments,
15076.1124197,0001
which must be received prior to the Public hearing,to the County, c/o M—. at the address
indicated above.
Notice is finther given that the Borrower has filed an application with the Authority in connection
with the proposed issuance of the Certificates to finance the Project,and reference is hereby made to such
application for further particulars.
Bate: March 1999
County of Contra Costa
/s/
Clerk of the Board of Supervisors
€5076.1124€97.0001
Sponsored By:
Caifornia Stale Association
NZO of Counties
League of California Cities
CALIFORNIA
COMMUN FS
March 21, 1999
VIA FACSIMILE !924) 335-1098 AND REGULAR.MAIL
Mr. Claude Van Marter
County of Centra Costa
651 Pune Street, 11 th Floor
Martinez, California 94553
Re: Public Hearing for the Spectrum Center for Educational and Behavioral
Develonment Inc.
Dear Claude:
As we discussed, the Spectrum Center for Educational and Behavioral Development,
inc, a non-profit public benefit organization (the "Applicant"), has submitted to the
California Statewide Cornrnunities Development Authority (the "Authority") an application
(the "Application") for the financing of various educational facilities (the ".Project") in an
amount not to exceed $6,000,000 of tax-exempt obligations. The Project witll be located in
multiple jurisdictions, .including the County of Contra Costa and the County of Alameda.
The purpose of this letter is to request the assistance of t'_ne County of Contra Costa in
conducting on Tuesday, April 13-1999 a public hearing with respect to the proposed
financing.
As you are aware, the Authority is a joint exercise of powers authority consisting of
numerous California cities, counties and special districts, including the County of Contra
Costa. The Authority pursuant to its Amended and Restated joint Exercise of Powers
Agreement is authorized to assist in the financing of facilities for non-profit public benefit
organizations, including the Applicant. It, order to initiate such a financing, the member
participant of the Authority in which the proposed facilities will be located must (i) conduct
a public hearing and (ii) approve the Authority's issuance of indebtedness. Therefore,
although the Authority will be the issuer of the tax-exempt obligations for the Applicant, the
financing cannot proceed without the approval of the County of Contra Costa.
1 have attached for your review the Application filed by the Applicant with- the
Authority. You will be receiving shortly a letter from Russell Miller, Esq. of Str-adting,
Yocca, Carlson & Rauth, bond counsel to the Authority, describing the public hearing
process and the requirements under state and federal laws, including the Tax and Equity
Fiscal Responsibility Act (TEFRA). This letter will also include for your review the form of
Notice of Public Hearing and the form of Board of Supervisor Resolution evidencing the
County's approval of the financing. Bond Counsel, at your option, can coordinate for you
the publication of the Notice and the adoption of the Resolution.
California Statewide Communities 1470 Maria Lane, Suite 400
Development Authority Walnut Creek, California 94590-5339
Email: califcomm@aol.com 800.635.3993 925.933.9229 Fax 924.933.8-45-
Internet: wwvw.calkfcolTllYi.org
-2— March 21, 1999
Thank you for your assistance in this matter. Please let me know if you require any
additional information concerning the scheduling of such public hearing or if i can be of
any other assistance.
Very truly yours,
Jawr!en:c�ejN. Tonomura
Program Manager
Enclosures
cc. Craig Stanley (CDA) 408-323-1484
Jamie $adgley (California Capital Finance) 925-939-0834
Jenna Magan, Esq. (Orrick, Herrington& Sutcliffe ILP) 916-329-4900
Russell Miller, Esq. (Stradling,Yocca, Carlson&Rauth) 415-283--2255
SPECTRUM CENTER FoR ED AICA 7'IONAL AND
B E'.�'A f l V L DE .L.r i p Yl E l� INc.
CALIFORNIA STATFwioDE C01vLMtT:vITrES DEVELOPNL mNT AuTHoRrry
APPLICATION FOR FINANCING
TYPE OF FINANCING: NONPROFIT
BORROWER NAME: NIR. RANDY KEYWORTH
NIR. ,TACK STATES
SPECTRUM CENTER CO-DIRECTORS
2855 TELEGRAPH AVENUE, SUITE 312
BERKELEY, CA 94705
(510) 845-1321
FAX: (510) 845-7841
LEGAL STRUCTURE: NONPROFI T 501(0)(3) CORPORATION
PROJECT INFORMATION: EDUCATION -NONPUBLIC SCHOOL FOR CHILDREN
WITH SEVERE LEARNING DISABILITIES
FINANCING STRUCTURE:
TYPE OF OFFERING: PRIVATE PLACEMENT
MATURITY: 20 YEARS WITH 10-YEAR CALL
INTEREST RATE MODE: FIXED
SOURCE OF CREDIT ENHANCEMENT: N/A-PRIVATE PLACEMENT
EXPECTED DATING N/A-- PRIVATE PLACEMENT
SPECIAL CALL OR PUT FEATURES I O-YEAR CALL
FINANCE TEAM:
PLACEMENT AGENT
CALIFORNIA CAPITAL FINANCE
2950 BUSKIRK AVENUE, SUITE 165
WALNUT CREEK, CA 94596
JAMIE N. BADGLEY, PRINCIPAL......................................................(925)939-0833
FAX................................................................................................(925)939-0834
E-MAIL..............................................................................JBADGLEY£@i1 VERIO.C7M
;Spectrum Venter CSCDA Application
Page 1 of 34
PROJECT MANAGER
CDA NONPROFIT FINANCE
6027 EVANSTONE PLACE
SAN JOSE, CA 95123
CRAIG W. STANLEY .................................................................. .....(408) 230-4108
FAX................................................................................................408) 323-1485
E-MAIL.....................................................................�-STANLEY@CAMPUSDEV.COM
LENDER'S COUNSEL—REAL ESTATE
SHEPPARD, MULLIN, RICHTER & HAMPTON
4 EMBARCADERO CENTER, 17T"FLOOR
SAN FRANCISCO, CA 94111
WTLLIAM WYATT, EsQ. ............................................................. ......(415)774-3286
FAX................................................................................................(415)434-3947
BORROWER'S COUNSEL
SHARTSis, FiEsE& GINSBURG
EIGHTEENTH FLOOR
ONE MARITIME PLAZA
SAN FRANCISCO, CA 94111
JEFF O'CONNEL......................................................................... .....(415)421-6-500
FAX............... .............................................................. .................(415)42'1-2922
LENDER
AsSOCIATES COMMERCIAL CORPORATION
300 E. CARPENTER FREEWAY, 16T"FLOOR
IRVING, TX 75082
DEBORAH DENNINGTON, VP & ASSOCIATE GENERAL COUNSEL....(972)652-3261
FAX............................................................................ ............ ......"972)652-2750
BRYAN EELT S, VICE PRESIDENT, OPERATIONS................................072)652-8598
FAX................................................................................................(972)652-3491
BOND COUNSEL
ST RADLING YOCCA CARLSON& RAUTH
44 MONTGOMERY STREET, SUITE 2950
SAN FRANCISCO, CA 94104
,Spectrum Center CSCDA Application
Page 2 of34
DAviD G. CASNOCHA, Esc .............................................................(415) 283-2241
FAX................................................................................... ...........(415)283-2255
E-mail............................................... ..................................dcasnocha0asyer.com
TRUSTEE
US TRUST COMPANY, N.A.
ONE EMBARCADERO CENTER, SUITE 2050
SAN FRANcisco, CA 94111, 3709
MS. JOSIE LIBUNAO........................................................................(415) 743-9033
FAX............................................................ ..................................(415) 956-2545
E-MAIL............................................................................JL1BUNAOaUSTRUST.COM
TRUSTEE'S COUNSEL
LILLICK & CHARLES
Two EMBARCADERO CENTER
SAN FRANCISCO, CA 94111-3996
Ms. KIMBERLY CLARK, ESQ...........................................................(415) 984-8335
E-MAIL,...................... ......................................... .....................kelark@lillick.com
Spectrum Center CSCDA Application
Page 3 of 34
TABLE OF CONTENTS
EXECUTIVE SUMMARY ...................................................................................5
APPENDIXA..................................................................................................7
Company History.............................................................................. ..........7
..................................
APPENDIXB................................................................................................ 10
PublicBenefit............................................................................................................................. 10
APPENDIXC................................................................................................ 12
List of Existing,''acilities/Address of Each Facility to be Financed....................................................... 12
APPENDIXD................................................................................................ 13
The Associates Commitment Letter................................................................................................ 13
APPENDIXE................................................................................................ 19
Listof Outstanding Debt.............................................................................................................. 19
APPENDIXF................................................................................................ 20
FeasibilityStudy......................................................................................................................... 20
APPENDIX +G................................................................................................ 21
Financials for Last, Complete Fiscal Year........................................................................................ 21
APPENDIXH................................................................................................ 32
Financial Proformas(HousingOnly)............................................................................................... 32
APPENDIXI................................................................................................. 33
Project Costs!Sources= Uses ......................................... 33
Spectrum Center CSCDA application
Wage 4 of 34
f
xEcu L vii AR Y
Spectrum Center for Educational and Behavioral Development, Inc. ("Spectrum Center"),
a not- for-profit public benefit corporation, provides specialized educational programs for
children with severe learning disabilities. The organization operates schools in Concord,Rodeo
and Oakland, California, with funding provided through contracts with local school districts. The
organization also provides services to public schools to Help their: maintain"at risk." students.
Established in 1975, Spectrum Center is dedicated to improving the educational and
behavioral performance of students and schools through effective classrooms management,
innovative teaching environments, outcome based learning technology, data-guided instructional
design.,team building, and organizational performance management. It has over 20 years of
experience in the research, design and successful application of innovative educationa and
behavioral ifnprovement strategies across a wide range of students, programs, and.issues.
In addition to its student-oriented. programs, Spectrum. Center's In Class Support
Services (ICSS)provides staff training and program consultation to public schools to assist them
in maintaining at risk students (regular and special education) in their classrooms. The Applied
Behavior Training Center(ABTC) is the organization's staff development division, developing
and providing workshops and training materials in curriculum, teaching technologies,program.
management, and other skills necessary for effective education.
Spectrum Center's services and products have been used in thousands of classrooms,
schools, and training, organizations across the ration. Its expertise is in helping schools succeed
with students who are at risk due to their challenging behavioral and educational needs. In
today's society, such students can be found in virtually every part of the education continuum
(from gifted programs, to K-12,to special education). Spectrum. Center has worked successfully
with hundreds of public and private organizations including public schools, state agencies, special
education departments, private schools, residential progranris, adult services, and vocational
training programs, as well as countless education professionals and parents.
The mission of Spectrum Center's student-oriented services is to provide effective,
quality programs to individuals with special heeds for whom public schools have no appropriate
placement options. The emphasis is on successfully integrating students back into public
education}programs. Spectrum Center identifies changing needs in education,develops services
and products to meet those needs, and effectively disseminates the technology to other
organizations and professionals. Its products and services have demonstrated over and over again
that all students can succeed in school.
Spectrum Center CSCDA Application
Page 5 of 34
Spectrum Center plans to issue tax-exempt bonds in the amount of up to $6,875,000 to
fund relocation of its Rodeo campus to a permanent site, refinance an existing conventional real
estate loan, and to purchase a currently leased campus.
Spectrum Center CSCDA Application
Page 6 o,f 34
APP Di A
COMPANY HISTORY
Since 1975, Spectrum Center has developed and operated a wide range of services and
products, gaining critical experience in virtually every aspect of providing quality education
services at an individual, classroom=, and program level. Unlike organizationsthat base their
modeis on theory, Spectrum Center's expertise is the result of its direct, "hands-on" experience in
developing and operating a wide range of educational and human service programs. These
programs have succeeded with both everyday behavioral and learning problems, and some of the
most challenging behaviors (in both students and adults) in the community. Spectrum Center's
approach has been researched and refined in its past programs, is being used in its present
programs, and is the foundation for the development of its future programs.
Spectrum Center has demonstrated remarkable success in teaching individuals previously
thought to be "untrainab:e" or "too difficult to reach" by existing public education systems.
Spectrum Center's programs are based on the belief that a.11 individuals can learn and lead
productive lives in the community when provided the proper learning environment. The main
responsibility for learning,therefore, rests with those teaching and not those learning.
Spectrum Center's educational and behavioral improvement model has been tested and
succeeded in the following areas:
• Educational Services: special education schools, staff development and consultation,
adult skills centers, a pre-school program., and after school care
• Staff Development. staff training with thousands of individuals, groups, schools, an
organizations in clinical,educational,behavior management, and performance
improvement content areas
• Public School Support. in-class support services and consultation to public school
classrooms, a general education early intervention and prevention project, a student
mainstrearning project, and multiple full inclusion projects
• Parent Training: parent consultation and training on both an individual case and group
basis for parents of general and special education students
• Policy Development, active involvement in public policy issues such as school discipline,
student suspension/expulsion, non-aversive strategies, right to education, right to
treatment, residential program zoning restrictions
Spectrum Center CSCDA Application
Page 7 of 34
• Vocational Services: a job readiness and placement program, a workability project, and a
supported work program.
• Residential Services: residential training programs, staff development and consultation in
group home development and management, and a diversion project for emergency
intervention to maintain community placements
Program Gals
Spectrum Center School Programs provide an effective learning environment
emphasizing:
student accomplishments and progress
v' training for maximum independence
• highly structured, supportive learning environments
✓ community based instruction
,' prevention strategies for working with challenging behaviors
• positive reinforcement
• individualized student programs
✓' critical skills instruction in functional contexts
V integration opportunities with non-disabled peers
Spectrum Center School Programs provide extensive educational assessments in the following
domains:
✓ communication
community
✓ social
vocational
V academic
,' leisure
✓ domestic
Spectrum Venter School Programs provide an individualized functional curriculum based on
goals developedfrom the following areas:
✓ social problem solving
self-control management strategies
V language infusion model
✓ life skills training
V travel training
Spectrum Center CSCDA Application
Page 8 of 34
✓ skills for independent living
✓ augmentative communication
✓ leisure skill's
✓ lob training
✓ functional academics
Spectrum Center School Programs provide Related Services (Designated and Instruction
Services-DIS) by.
✓ Behavior Analysts
✓ Occupational Therapists
✓ Parent Trainers
✓ Clinical Psychologists
✓ Speech and Language Specialists
✓ Education Specialists
✓ Job Coaches
✓ Transition Specialists
Spectrum Center CSCDA Application
Page 9 of 34
APPE1vDix B
PUBL1c BENEFiT
Spectrum Center serves children with emotional and behavioral difficulties that preclude their
participation in mainstream public schools. Spectrum is known as a special education non-public
school. A variety of funding sources are available for special education programs. The
Department of Education must certify nonpublic schools, certification that has been held for
many years by Spectrum Center. The application process requires submission of the instruction
and services the school will provide, along with staff qualifications and the maximum number of
students the program will be certified to serve at one time.
"Special education"means specially designed instruction, at no cost to the parent, for individuals
with exceptional needs that cannot be met with modification of the regular instruction program.
Special education is an integral part of the total public education system and provides a full
continuum of program options to educate individuals with exceptional needs.
Nonpublic school legislation was established with the intent that the role of nonpublic schools
will be to provide alternative special education services to school districts and other social service
agencies when an appropriate public school program is not available, A "nonpublic" school
tarian school that enrolls individuals with exceptional needs pursuant to
means a private, nonsec
an individualized education program, that employs at least one full-time teacher who holds an
appropriate credential authorizing special education services, and is certified by the Department
of Education.. A certified nonpublic school must meet standards as prescribed in federal and state
statutes and regulations pertaining to special education.
Students who enroll at Spectrum Center are supported by federal and state education funds, and
have been previously identified as eligible to receive specially designed services by the local
Public schools. Prior to enrolling, an individualized education.program (IEP)mast be in place,
which is developed between the local public school district, the parents, and the nonpublic school
to decide the kinds of services the student needs.
The 1990 Individuals With Disabilities Education Act (IDEA, for=merly the Education of the
Handicapped Act, or E HA) guarantees "that all children with disabilities have available to
them...a free appropriate public education which emphasizes special education and related
services designed to meet their needs..." Eligibility is based on the fact of a child's condition
,°adversely affecting the child's educational performance." Eligibility under IDEA establishes a
two-pronged criterion. First, does the child actually have one or more disabilities? Secondly, does
the child require special education and/or related services?Not all children who have a disability
require special education; many are able, and should, attend school without any program
Spectrum Center CSC'DA Application
Page 10 of 34
modification.
According to the Thirteenth Annual Report To Congress On The Implementation Of Education
Of The Handicapped Act(1990), 4,687,620 children with disabilities were served during the
1988-1989 school year. This was an increase of 2.2% over the 1987-1988 data and is the greatest
increase since 1980-81. The overall picture is that the population of students served with learning
disabilities has grown, while the number of students served with speech or language impairments
and mental retardation have declined. During the 1988-1989 school year, the majority of children
and youth with handicaps received special education and related services in settings with non-
handicapped students. Over 31% received special education primarily in regular classes. More
than 37%received special education and related services primarily in resource rooms, while 24%
received special education and related services in separate classes within a regular education
building. These three settings accounted for over 93% of the placements; thus, most students
with handicaps were 'being educated in buildings with their non-handicapped peers. The
remaining children and youth were educated in public/private separate day school facilities
(5.2%)public/private residential facilities (0.8%), and 'homebound or hospital environments
(0.9%).
During 1988-1989, 286,546 special education teachers reportedly served children with handicaps.
This was an increase of about A% over the 1987-1988 school year. Furthermore, an additional
27,977 teachers were needed to fill vacancies, especially in the areas of learning disabilities,
mental retardation, emotional disturbance, and speech or language disabilities. These four
categories, together with cross-categorical teachers account for 97%of all teachers needed.
Approximately 9% of the teachers were needed for the categories of other health impaired, hard
of hearing and deaf, multi-handicapped, orthopedically impaired, visually handicapped, and dea'`
.lend.
:Many factors could increase the Number of children served. There is emerging evidence that
substantial numbers of pregnant women are using alcohol and/or other drugs. Many specialists
believe that these children are likely to have significant learning and behavioral. disabilities that
may require specialized school services. However, even without these mandates, these young
children would very likely have been identified at a later age. Increased poverty and the children
affected by it will also increase the number of children served.
:spectrum Center CSCDA Application
Page I I of 34
LIST OF FXISTr4G FACILITIES/ADDRESS OF EACH FACILITY TO BE FINANCED
Tara Hills Shopping Center: acquisition and renovation to move existing leased campus
16330-16396 San Pablo Avenue
San Pablo, CA
Camden Campus: refinance of existing campus
6325 Camden Street
Oakland, CA
Concord Campus: acquisiton of existing leased campus
1026 Oak Grove Road
Concord, CA
Each of these facilities provides the fallowing services:
• School based services Vocational services
• Staff development Related Services (Speech Therapy,
• School to work transition services • Occupational Therapy, etc.)
Spectrum Center CSCDA Application
Page 12 of 34
APPENDixD
TBm Assocans Co-Lm. rr.mE.NT LFT TFR
Spectrum Center CSCDA Application
Page 13 of°34
s
+ ED:�2;G�:Gd Jb.�a rr•v+� �•
CZ8_17--SS 14 :; IS FROM:AS SOC S APES
Ta ASSOCIATES
uLojetpa!gm-ce E7fYWM
February 17, 1999
Mr. Randy`fieyworth, Ececutive Director
Sperm Center for Educa.tior al and Behavioral Development, inc,
2555 Telegraph Avenue, Suite 312
Berms, CA 94705
Dear Randy:
It is a pleasure to ctir&=to you that the Associates Com=ercial Cox—poration V-.ACC"-,
Credit Committer has approved the credit of Spectrum Center, subject to final
docu=entation -review and approval by ACG legal department, in conjunction with the
contemplated financing for t1liree facilities in Californrn a;
lj acquisitiozi and renovation of a facility located at 16330—15395 San
Pablo Avenue in San Pablo;
2) acquisition of a faciEty it currently leases located at 1026 Oak Grove
Road in Concord; and.
3) refln=cing of its facility located at 5325 Ca Iden Street in. Ca nal.-
This letter is subject to the terms and conditions set forth Ln this letter and the
attached Su=maxy o:rir arcing Tearms. If this is acceptable, please sign below and
return. tr-s letter to me by February 26, 1.999. Otherwise this letter will expire and
shall be de=ed withdrawn as of such date.
If you have any questions concerning this letter, please do not hesitate to contact mc.
Very truly yours,
Diane L. Faauwe
Bus�css Development Manager
AORSED Td AND ACCEP'1ED BY:
Spw�M CENTER FOP.=lUCATIONAL
AND BERAVIORAL DZVEIOpMPM, INC.
Name,
Title:
Late:
2925 oese'T#�as4evJay $`:2 925.7624
S09 300 61,2-92L-7631 (tat)
Mfinnelpoiis.MN 55416 WWW'Meass0cl2=.a0M(irnamet)
90/Ee"d t7280 6Z6 01ST ADD S2:9T 666T—LZ-93
FEE—1 7—eS 14 s 16 FRCtM:ASSOC i ATEn :L: e 1 2w zwyez:J s
SUMMARY OF FINANCING'TERMS
Financing Type: Tax-ex=pt, Qualified 50 1(c)(3) Bond Ij inanc iug
Borrower Spur z Center for Educati=al and Behavioral
Development, Inc.
Leander. Associates Cca=e:tial Corporation, or its Assigns or
Nozninees
Project: Acquisition and renovation of a f, ty located at 16330 --
16396 San Pablo Avenue, San Pablo, CA, acquisition of a
facility located at 10126 Oak Grove, Concord, CA, and
refinancing of a facility located at 6325 Ca=dan Street,
Card, CA.
Band A= unt: $5,346,500 (raaximu=bond amount based on 85% .cyan-to-
value)
Closing mate: On or before April :5, 1999, subject x conditions precedent
To= and Payments. !0 years, witlh equal.=an.thly payments in: arrears, based
on a,20-year amortization schedule, beginning 50 days
from. closing date
Fixed Interest Rate: The interest rate for an escrow closing that occurs or o.:
before April 1.5, 1999, wfa be axed at 6.00% (30/360). If
the tnmsaction doses not close by April 15, the interest rate
will he set using the indeed,^..g formula des `bed bt--1ow.
Inde�dn.g For=ula: The quested tax-=a=pt interest rate will index to a change
in the weekly average of the Merr�:l.l Lynch Bond Index,
Corporate-High Quality, as published in The Wall Street
Journsl, according to the forznula below:
New Rate = [(New Corporate Bond index Rate .. 'base
Corporate Bond Index Rate) x .S5] + 'ase Rate
Base Base
Fiwzzlng Base Corpomte Bond Corporate Bond
Ter=: Rate: Index: Index Rate:
10 Years 6.000/0 10# Years 6.28%
Base Corporate Bond Index: Corresponds to the
appr to life of the fi .=r4ng ten=.
FEB-1 7-as 14 z Is FROM I Assoc I ATZS Z E3=�2 2�Zt37t�: S rr+err.
811=mary of Financing Terms
Page:2 of 4
Base Corporate Bond Indrx: Cort ponds to the
aPPr XXL*=te life of the financing tesz..
CUrrent Corparate Baird ULdex Rate: Cur-,ent weeekly
average of the corporate bond index rate for the week
preceding the cosi:g dato.
Sample calculation:
If Current Corporate Bond Index Rate : 6.55%
({6,35% - 6.2S%) x .551 + 5.000/6 = 6.04% IN'ew Pate
Secarity for Financing, The Bond Financing will be se=ed by a Erst deed of trust
Or first mortgage-on the Borrower's feesimple interest in
the real proper:y and improvements described below.
163303- 16396 Sala. Pablo Avenue, San Pablo, CA
10326 Oak Grove Road, Concord, CA
61325 Camden Street, Oakland, CA
The Band Financing will be fuether secured by an
assignment of leases for all cu--rent and future tenants in
the San Pablio and Concord facilities,
rLan iat Covenants: Borrower will comply with the fb11owing:1-=cia1
conven,ants:
Amnu,ally submit to Lander audited F"`YYE financial
statements within 220 days of year end
. Annually (based on Fv.E audit) =ai.�ntain a debt to worth
of no greater than 3,00 to 1.00
Annually (based on nB audit) maintain a debt ser-vice
.coverer ratio of at 41tast 1.20 tizncz
Prepayment: Borrower will have the option to prepay its obligation in
whole but not in pant, on any payment date after sixty (60)
months from the data of the closing. In the event the
Borrower elects this option, in add:tan to the principal
amount, a preruiu= on the outstanding px ncipal ba`ance
will be due as follows;
Month 61 through. Month 72 3%
Month 73 through Month 84 2%
Month 85 through Month 119 1%
Month 220 00/0
FM:H-17—SS 14 : 26 FROM rASSOC 1ATES iD:Bi2W:etlfta.1. s •�....
Su ary of F inain lg Term
Page 3 of 4
Net pinancing. Borrower will be responsible for all expenses, maintenance,
insurance and taxes (other than taxes baud solely on the
net income of Lader) re .'.ang to the purchase, possession
and use of the P--Cject.
Insurance: Borrower vdill,bear all risk of loss or damage to the Project.
Borrower will be responsible to beep the Project insured
with companies acceptable to and for such a=ounts
required by Lender, inc udrrg;but not limited to, insurance
for damage to or lass of the Project and liability coverage.
Earthquake insurance will be required only if the raum
probable loss from, seismic hazards excceds twenty percent
(20%) of the replacement cost. A31 such insurance poiicics
must be satisfactory to 1&n,der and name Lend=as loss
payee =d additional insured.
Construction Risk; Lender will refire that the construction-related,risk
associated with the renovation of the San Pablo qty be
adequately covered by proper =struction contracts and
pay==t and perfon-nance bonds, At Borrower's expense,
Lender will retain a.representative to review the plans and
specifications, as well as the constructi= work in progress.
All construction draw requests will' be approved by L=der's
representative prior to any disburse:nent.
Bond Do u.=entat%onc The Band Financing wi-" be evidenced and governed by the
provisions of a hate and Loan A&-°een .t and supporting
documentation.('Tlocuments") it form, and c=tent
sati&actory to Leader, The Dom,.rents will' include various
conditions precedent, repord g req,u re=ents, oov znts,
events of default, representations and warranties and other
rerraiYe=enw which are rot specincally outlined.
Other.Dccu=entati m: As to the real estatc aspects o ibis Anancing, leder will
require that Borrower provide certain infbrmation and
documentation for each facility in farm and content
satisfactory to Under, including but not limited to, ALTA.
title insurance policy, ,.z...voy, envirormzental.report and
appraisal.
go/Go`d V£90 6Z9 OTST -J9D 92:9T 6GGT-LT—aEj
s�
um=ary of Financing Tcr=
Pie 4 of 4
Expenses: Borrower will be responsible for the legal Wises i s
connection with document g the Bond Tqxs sci=g. This
includes the legal expenses of the Leader up to $15,000;
legal expenses of the Lender in excess of$15,000 but less
than $30,000 will be split between Borrower and Lender;
and lege expenses in excess of$30,000 wM be paid by
Borrower. Borrower will also be respct si"ble for all o&.er
costs inmu=d=d with respect to this transact on.
PPE Dix
LIST OF OUTSTANDING DEBT
As of fiscal year end Jane 30, 1998, Spectrum had the following debt:
Note payable, $615,525 secured by Camden Campus at 6325 Camden Street Oakland, CA
Spectrum Center CS'CDA Application
Page 19 of 34
APP 1vDi
FEASIBILITY STUDY
An independent feasibility has not been prepared, however exhaustive information has been
provided to The Associates during the course of obtaining their commitment to buy the bonds.
The Associates' commitment is evidence of the viability of this financing.
Spectrum Center CSCDA Application
Page 20 cif 34
APPEND
FINANCIALS FOR LAST, COMPLETE FISCAL YEAR
Following is the audit for the fiscal year end dated 6/30/98:
Spectrum Center CSCDA Application
Page 21 oyf`34
SPECTRUM CENTER FOR EDUCATIONAL AND
BEHAVIORAL DEVELOPMENT, INC.
Financial Statements
June 30, 1 998
Antoinette G. Nes
°tYz2
Certifierl.Public Accountant
Antoinette G. Nies
Ccrtified Public Accountant
61 Prince Royal Drive
Corte Madera, CA 94425
agn.cpaew >rldnct.att.net
415-927-4475 ,voice
415-924-6960 fax
Independent Auditor's Report
BOARD OF DIRECTORS
SPECTRUM CENTER FOR EDUCATIONAL AND BEHAVIORAL DEVELOPMENT, INC.
I have audited the accompanying Statement of Financial Position of Spectrum
Center for Educational and Behavioral Development, Inc. as of June 30, 1998, and the
related Statements of Activities and Cash Flows for the year then ended. These
financial statements are the responsibility of the Center's management. My
responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. i believe that my audit provides a
reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Spectrum Center for Educational and
Behavioral Development, Inc. as of June 30, 1998,-and the changes in its net assets
and its cash flaws for the year then ended in conformity with generally accepted
accounting principles.
Antoinette G. Nies
Certified Public Accountant
September 25, 1998
Page 1 of 9
SPECTRUM CENTER FOR EDUCATIONAL
AND BEHAVIORAL DEVELOPMENT, INC.
Statement of Financial Position
June 30, 1998
(With Comparative Totals at June 30, 1997)
1998 1997
ASSETS
Current Assets
Cash and Equivalents $ 2,888,697 $ 1,311,952
Investments - 679,070
Receivables 1,746,365 1,738,287
Prepaid Expenses 32,597 83,664
Inventory - 29,524
Total Current Assets 4,667,653 3,842,497
Deposits 54,931 31,172
Property and Equipment-Net(Vote 3) 1,288,415 255,960
TOTAL ASSETS $ 6,011,005 $ 4,129,629
LIABILITIES AND NET ASSETS
LIABILITIES
Current Liabilities
Accounts Payable $ 336,910 $ 213,332
Accrued Expenses 363,459 419,588
!Vote Payable-Current Portion (Note 4) 23,464 -
Current Portion of Capital Lease Obligations (Note 5) 9,294 9,037
Total Current Liabilities 733,127 641,957
Long-Term Liabilities
Note Payable- Noncurrent(Mote 4) 615,525 -
Capital Lease Obligations(Dote 5) 22,825 12,268
Total Long-Terra Liabilities 638,350 12,268
TOTAL LIABILITIES 1,371,477 654,225
NET ASSETS
Unrestricted 4,619,526 3,475,4434
Temporarily Restricted 20,000 _
TOTAL NET ASSETS 4,639,528 3,475,404
Total Liabilities and Net Assets $ 6,011,005 $ 4,129,629
See Notes to Financial Statements
Page 2 of 9
SPECTRUM CENTER FOR EDUCATIONAL
AND BEHAVIORAL DEVELOPMENT, INC.
Statement of Activities
For the Year Ended June 30, 1998
(With Comparative Totals at June 30, 1997)
Temporarily Total
Unrestricted Restricted 1998 1997
REVENUE,GAINS,AND OTHER SUPPORT
Program Services $ 11,590,210 $ 11,590,216 $ 11,673,905
Grant Revenue 35,400 45,000 80,400 27,251
Interest and Dividends 80,479 80,479 56,405
Unrealized Gains on investments 74,027 74,027 60,951
Donations 36,150 36,150 39,469
Other 12,166 12,166 22,202
Net Assets Released from Restrictions 25,000 (25,000)
Total Revenue, Gains and Other Support 11,853,432 20,000 11,873,432 11,296,183
EXPENSES AND LOSSES
Program 9,662,195 9,662,195 9,714,703
General and Administrative 1,047,113 1,047,113 983,674
Total Expenses 10,709,308 - 10,799,308 10,698,377
CHANGE IN NET ASSETS 1,144,124 20,000 1,164,124 591,806
NET ASSETS,Beginning of Year 3,475,404 - 3,475,404 2,883,598
NET ASSETS,End of Year $ 4,619,528 $ 26,000 S 4,639,528 $ 3,475,404
See Notes to Financial Statements
Page 3 of 9
SPECTRUM CENTER FOR EDUCATIONAL
AND BEHAVIORAL DEVELOPMENT, INC.
Statement of Activities
For the Year Ended June 30, 1998
(With' Comparative Totals at June 30, 1997;
1998 1997
CASH FLOWS FROM OPERATING ACTIVITIES
Change in Net Assets $ 1,164,124 $ 591,906
Adjustments to Reconcile Chance in Net Assets
to Cash Provided by Operating Activities
Depreciation 123,599 99,995
Loss on Sale of Property and Equipment 9,830 39
Reinvested Interest and Dividends (28,386) (31,246)
Unrealized Gain on Investments (74,027)
Chances in Operating Assets
Decrease in Receivables (8,078) (496,665)
(increase) Decrease in Prepaid Expenses 51,067 (9,001)
Decrease in inventory 29,52.4 2,870
(increase) Decrease in Deposits (23,759) 2,665
increase in Accounts Payable 123,578 65,969
Increase(Decrease) in Accrued Expenses (56,129) 115,835
Net Cash Provided by Operations 1,311,343 281,315
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Sale of Investments 781,483
Proceeds from Sale of Property and Equipment 6,829 140
Purchase of Property and Equipment (500,777)- (64,499)-
Net Cash(Used)by Investing Activities 287,535 (64,359)
CASH FLOWS FROM FINANCING ACT€VITIES
Repayment of Long-Term Obligations (22,133) (10,542)
Borrowings on Line of Credit 350,000 550,000
Repayments on Line of Credit (350,000) (550,000)
Net Casty (Used) by Financing Activities (22,133) (10,542)
NET. INCREASE(DECREASE) IN CASH 1,576,745 206,414
CASH, Beginning of Year 1,311,952 1,105,538
CASH, End of Year $ 2,888,697 $ 1.311,952
SUPPLEMENTAL DISCLOSURES:
interest Paid $ 26,633 $ 20,347
Acquisition;of Equipment with Capital Lease $ 21,936 $ 14,462
Acquisition of Real Property with Debt $ 69-0,000 $
See Notes to Financial Statements
Page 4 of 9
SPECTRUM CENTER FOR EDUCATIONAL
AND BEHAVIORAL DEVELOPMENT, INC.
Nous to Financial Statements
June 30, 1998
1. Organization — Spectrum Center for Educational and Behavioral Development, Inc.
("the Center") is a not-for-profit public benefit corporation.
The Center operates schools in Concord, Rodeo and San Lorenzo, California,
providing specialized educational programs for children with severe learning
handicaps. Tuition funding is provided through contracts with local school districts.
The Center's In-Class Support Services provides staff training and program
consultation to public schools to assist them in maintaining "at risk" students (regular
and special education) in their classroom. Funding is provided through contracts with
local school districts.
The Applied Behavior Training Center ("ABTC") is the staff development division of
the Center, developing and providing workshops and training materials in curriculum,
teaching technologies, program management, and ether skills necessary for
effective education.
2. Summary of Significant Accounting Policies -
a. Basis of Presentation - Financial statement presentation follows the
recommendations of the Financial Accounting Standards Board in its Statement
of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-
for Proft Organizations. Under SFAS No. 117, the Center is required to report
information regarding its financial position and activities according to three
classes of net assets: =unrestricted net assets, temporarily restricted net assets,
and permanently restricted net assets.
b. Cash and Cash Equivalents — For purposes of the Statement of Cash Flows,
the Center considers all unrestricted highly liquid investments with an initial
maturity of three months or less to be cash equivalents.
c, Investments— Investments held by the Center are stated at fair market value.
d. Inventory— Inventory is stated at cost on a first-in first-out basis..
e. Property and Equipment and Depreciation - Property and equipment are
stated at cost and are depreciated over estimated useful lives using the straight-
line method. Expenditures for maintenance and repairs are charged to expense
as incurred.
Wage 5 of 9
SPECTRUM CENTER FOR EDUCATIONAL
AND BEHAVIORAL DEVELOPMENT, INC.
Notes to Financial Statements
,June 30, 1998
(Continued)
2. Summary of Significant Accounting Policies - continued
f. Donated Assets - Donated marketable securities and other noncash donations
are recorded as contributions at their estimated fair values at the date of
donation.
g. Donated Property and Equipment - Donations of property and equipment are
recorded as support at their estimated fair value at the date of donation. Such
donations are reported as unrestricted support unless the donor has restricted
the donated asset to a specific purpose. Assets donated with explicit restrictions
regarding their use and contributions of cash that must be used to acquire
property and equipment are reported as restricted support. Absent donor
stipulations regarding how long those donated assets must be maintained, the
Center reports expirations of donor restrictions when the donated or acquired
assets are placed in service as instructed by the donor. The Center reclassifies
temporarily restricted net assets to unrestricted net assets at that time.
h. Donated Services m No amounts have been reflected in the financial statements
for donated services. The Center pays for most services requiring specific
expertise.
1. Use of Estimates -The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
J• Income Taxes - The Center is exempt from income taxes under Internal
Revenue Section 501(c)(3) and California-Revenue and Taxation Code Section
23701 d. The Center qualifies for the charitable contribution deduction under
Section 170(b)(1)(A) and has been classified as an organization that is not a
private foundation under Section 509(x)(2)•
k. Comparative Totals -The financial statements include certain prior-year
summarized comparative information in total but not by net asset class. Such
information does not include sufficient detail to constitute a presentation in
conformity with generally accepted accounting principles. Accordingly, such
information should be read in conjunction with the Center's financial statements
for the year ended June 30, 1997, from which the summarized information was
derived.
Page 6 of 9
SPECTRUM CENTER FOR EDUCATIONAL
AND BEHAVIORAL DEVELOPMENT, INC.
Notes to Financial Statements
.lune 30, 1998
(Continued)
3, Property and Equipment- Property and Equipment consist of the following:
Land $ 508,286
Building and Improvements 558,382
Furniture and Equipment 634,973
Vehicles 23,422
Leasehold Improvements X49.892
1,874,955
Less: Accumulated Depreciation 58 .540
g 1 8.415
4. Note Payable— Due to a bank, principal and interest at 2,65% over the bank's index
(currently 8.46%) payable in monthly installments of$6,386, secured by real
property, matures in December, 2012.
Maturities are as follows:
Years ending June 30,
1999 $ 23,464
2000 25,528
2001 27,774
2003 22,875+3�r0y,2@�1 77^
2003 22,81 5
Thereafter 492:131
638,989
Less Current Portion (23,464)
Long-Term Liability I311=
Page 7 of 9
SPECTRUM CENTER FOR EDUCATIONAL
AND BEHAVIORAL DEVELOPMENT, INC.
Notes to Financial Statements
June 30, 1998
(Continued)
5. Obligation Under Capital Leases - The Center leases equipment under capital
leases, the economic substance of the leases is that the Center is financing the
acquisition of the assets through the leases. Accordingly, they are recorded in the
Center's assets and liabilities.
Minimum lease commitments as of June 30, 1998 are as follows:
1999 12,148
2000 10,982
29031 9,772
203032 4,625
Total Minimum Lease Payments 37,527
Less Amount Representing Interest r.; 4081
Present Value of Net Minimum Lease Payments 32,119
Less Current Portion 941
Long-Term Portion of Capital Lease Obligation 2.82
Equipment and accumulated amortization under capital leases are as follows:
Equipment $ 47,418
Less: Accumulated Amortization -___27.482
Net 3 1 g36
6. Concentrations of Credit Risk Arising from Cash Deposits in Excess of
Insured Limits—The Center maintains its cash balances in one financial institution
located in California. The balances are insured by the Federal Deposit Insurance
Corporation up to $100,900. At June 30, 1998•, the Center's uninsured cash
balances total $1,223,388.
7. Line of Credit—The Center has a $850,000 bank line of credit that expires
November 15, 1958. The interest rate is 03.5 percent over the bank's determined
index rate. Borrowings are secured by all assets of the Center other than equipment.
At June 30, 1998, there were no borrowings outstanding.
The Center also has a $250,000 bank line of credit that expires November 15, 1998.
Each advance under this line is due 120 days after the disbursement date. The
interest rate is 0.75 percent over the bank's determined index rate. Borrowings are
secured by all assets of the Center ether than equipment. At June 30, 1998, there
were no borrowings outstanding.
Page 8 of 9
SPECTRUM CENTER FOR EDUCATIONAL
AND BEHAVIORAL 0tEVELOPMENT, INC.
Notes to Financial Statements
June 30, 1998
(Continued)
8. Operating Leases m The Center leases facilities under operating leases expiring in
various years through 2401. Minimum future rental payments under noncancelable
leases are as follows:
Fiscal Yea
1999 $ 292,145
2000 185,842
2001 1111.333
$ 588,32[1
Fent expense for operating leases for the year ended June 30, 1998 was $559,539.
9. Pension Plan -•On July 1, 1989, the Center established a defined contribution
pension plan for all employees 21 years of age or older who have worked more than
one year for the Center. Contributions to the Plan are made at the discretion of the
Center based on its fiscal performance and vest over five years. Contributions to the
Plan during the year ended June 30, 1998 were $45,902.
Page 9 of 9
APPENDixH
FINANCIAL PROFOR'bIAS (HOUSING ONLY)
Not applicable.
Spectrum Center CSCDA Application
CSCDA
SPECTRUM CENTER
SERIES 1999 CERTIFICATES OF PARTICIPATION
SOURCES AND USES OF FUNDS
SOURCES OF FUNDS
Total Scads issued $5,219,000
Equity Contribution 1,95 (Includes some funds already spent)
TOTAL SOURCES $6,875,000
USES OF FUNIS
Project Costs $6,530,000 (see below)
Placement Agent 92,500
Project manager 92,500
Bond Counsel 40,000
Appraisals, Environmental, etc. 30,000 (for re:mbursement to Spectrum)
Issuer(1) 32,500
Le^der (1) 15,030
Title Reports and Surveys 33;000
Trustee 4,750
Wsceilaneous/Rounding (2) 4,750
TOTAL USES $6,875,000
(1) includes legal tees.
(2) To be deposited in Costs of Issuance Fund.
PROJECT COSTS
Tara Hills Purchase $2,275,000 (40,000 sf total; 10;000 sf private ase)
Para Hili Rencvatlon 1,200,000 (estimate)
Refinance Camden Property 1,}05,000 (at 85% of $1.3mrn appraisal)
Purchase of Concord Property 1,950, (based on curre^t price)
TOTAL PROJECT COSTS $6,530,000
APPRAISED VALUES
Yarn "lis $3,040,000 (actual)
)
Camden 1,300,000 (actual)
Concord 1.8 0 D 0 (pending)
TOTAL APPRAISED VALUES $6,140,000
MAXIMUM VALUE TO LIEN 85°I
MAX.BOND AMOUNT $5,219,000
Note: depending on appraisal results for the Concord campus, its acquisition'may be delayed and
therefore deleted fico this financing.
:Spectrum Center CSCDA Application
Page 34 of 34
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