It was announced during City Council Meeting – January 8, 2025 that there would be a waiver of rules to fill vacant spots for appointments to the Higher Education Building Authority (HEBA), since Gannon needs a tax-exempt bond to be issued for an upcoming project, and they didn’t want to have their timeline held up due to lack of board members.
Under Treasury regulations, the role of the HEBA is to hold a public TEFRA (Tax Equity and Fiscal Responsibility Act of 1982) hearing about the project and the private activity tax-exempt bond being issued so the public has an opportunity to provide comment. HEBA must pass a resolution approving the financing to go through. No city funds are used. This is an IRS requirement for any nonprofit borrower providing a public benefit that is seeking tax-exempt bonds.
Here is the Notice of Public Hearing for this:
NOTICE OF PUBLIC HEARING Notice is hereby given of a public hearing to be held by the City of Erie Higher Education Building Authority (the “Authority”) on January 21, 2025 at 10:00 a.m. in the City Council Chambers on the first floor of the City of Erie Municipal Building, 626 State Street, Erie, PA, 16501. Individuals and representatives of organizations who desire to present oral testimony at the public hearing are requested to state their names at the public hearing and addresses as well as the organization they represent. The public hearing is in connection with a proposed plan of financing involving the issuance by the Authority of its tax-exempt revenue bonds (the “Bonds”) in one or more series pursuant to a plan of finance for the following project (the “Project”): A. BORROWER: Gannon University (the “University”), a Pennsylvania nonprofit corporation and a tax-exempt organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”) that is exempt from federal income taxes under Section 501(a) of the Code. B. MAXIMUM PRINCIPAL AMOUNT OF BONDS: $14,000,000 of which up to $2,500,000 will be applicable to the New Money Project (as defined below). C. DESCRIPTION OF PROJECT TO BE FINANCED: If issued, the Bonds are intended to be issued as qualified 501(c)(3) bonds described in Section 145 of the Code. The proceeds of the Bonds will be loaned to the University and used to finance, refinance or reimburse educational facilities, including all or a portion of the costs of a project that consists of: (1) the current refunding of all or a portion of the Authority’s Revenue Bonds (Gannon University Project) Series 2013 (the “2013 Bonds”), funding required reserves, and paying costs of issuing the Bonds; proceeds of the 2013 Bonds were used by the University, to finance the acquisition, design, construction, renovation, equipping and furnishing of new facilities and existing facilities of the University located on the main campus of the University (described below), including, but not limited to, renovation of the recreation center and construction of a field house and indoor turf field, together with certain site and infrastructure improvements and acquisition of capital equipment for use in or in connection with the University’s facilities; and (2) the payment of, or reimbursement to the University for (i) constructing, renovating, and/or equipping various facilities on its main campus (described below) in furtherance of its educational purposes; (ii) the funding of any required reserves and interest payable during construction; and (iii) the payment of certain costs of issuance of the Bonds (collectively, the “New Money Project”). D. LOCATION OF PROJECT: All facilities to be financed and/or refinanced are located at the Gannon University campus, which is located south of West 3rd Street, north of West 9th Street, east of Chestnut Street, and west of State Street, with the administrative office located at 109 University Square in the City of Erie, Erie County, Pennsylvania 16501. Immediately following the public hearing the Authority will convene a special meeting to take action on this project and any other matters that may be brought to the Authority’s attention. The public is invited to attend the hearing in person at the address set forth above. Members of the public may also submit written comments to the Authority for receipt in advance of the hearing by sending such comments c/o Jay W. Alberstadt, Jr., Esquire, MacDonald, Illig, Jones & Britton LLP, 100 State Street, Suite 700, Erie, PA 16507. This notice is published, and the public hearing is being held by and on behalf of the Authority as the issuer of the Bonds, as required by Section 147(f) of the Code, and regulations promulgated thereunder. CITY OF ERIE HIGHER EDUCATION BUILDING AUTHORITY.
It’s unclear what this project is, but considering a wavier of rules was requested, it might be a good idea to attend if you’re a city resident. The accelerated timeline is giving a sense of deja vu. Remember how important it is to stay engaged. The contact information for Erie City Council has been added to our Stay Engaged page.
“There is no power for change greater than a community discovering what it cares about.”
~Margaret J. Wheatley
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