On Tuesday, the Pima County Board of Supervisors will likely approve the funding for the Southgate Academy Project while declaring an emergency in the matter. The Pima County Industrial Development Authority approved a resolution for the issuance of up to $15,500,000.00 in Education Facility Revenue Loan Obligations.
The agenda items reads:
20. Southgate Academy Project
RESOLUTION NO. 2016 – 63, of the Board of Supervisors of Pima County, Arizona, approving the proceedings of the Industrial Development Authority of the County of Pima regarding the issuance of its not to exceed $15,500,000.00 Education Facility Revenue Loan Obligations (Southgate Academy Project, 820, 850, 902, 910, 916, 920, 924, and 930 W. Valencia Road, Tucson, AZ), Series 2016 and declaring an emergency.
As the ADI reported in April, the Democrat controlled Pima County Board of Supervisors, has approved through the Industrial Development Authority of Pima County funding for publicly funded corporate owned charter schools over the years. In each case an emergency was declared.
According to the Goldwater Institute, cities and counties “sometimes propose measures declaring an emergency as a matter of routine. They may do so to prevent citizens from taking out a referendum on an unpopular or controversial action that they don’t want, reversed, like a tax increase, or they may do so to speed up the effective date for a project that the council should have considered and approved before, like an important contract that wasn’t negotiated on time. The only requirement is that super-majorities of members – typically three-fourths – vote in favor.”
In the case of Southgate, the emergency is declared to lock up the interest rate.
The IDA does not act as a lender but as a “conduit,” allowing a lender to issue tax-free bonds on behalf of the borrower, Russo said. The conduit role earns the IDA fees and brings money to its partner in many projects, the Community Investment Corp. – Arizona Daily Star