Dauphin County Commissioners Meeting April 5, 2017.
JJ. Resolution #7-2017 – Authorizing the approval in accordance with Section 147(f) of the Internal Revenue Code of 1986, as amended, of a plan of financing of the Dauphin County General Authority; declaring that it is desirable for the health, safety and welfare of the people in the area to be served by such facilities to have such facilities provided by, or financed through, the Dauphin County General Authority - Harrisburg University of Science and Technology Project.
March 31, 2017 10am.
NOTICE IS HEREBY GIVEN that the Dauphin County General Authority (the "Authority") will hold a public hearing on Friday, March 31, 2017, at the offices of McNees Wallace & Nurick LLC located at 100 Pine Street, 9th Floor, Harrisburg, Pennsylvania, at 10:00 a.m., prevailing time, in connection with the proposed plan of financing involving the issuance by the Authority of one or more series of tax-exempt bonds in an aggregate principal amount not to exceed $65,000,000 (the "Bonds") for the benefit of The Harrisburg University of Science and Technology, a nonprofit corporation organized and existing under the laws of the Commonwealth of Pennsylvania (the "University").
A. Description of the Facilities to be Financed or Refinanced. The proceeds of the Bonds will be loaned to the University and applied (i) to currently refund all or a portion of the outstanding University Revenue Bonds, Series B of 2007 (The Harrisburg University of Science and Technology Project) previously issued by Capital Region Water (formerly The Harrisburg Authority) for the benefit of the University to finance the construction, development, equipping and improvement of the University's facilities located at 326 Market Street, City of Harrisburg, Dauphin County, Pennsylvania; (ii) to fund any necessary reserve funds or accounts; and (iii) to pay all or a portion of the costs of issuance of the Bonds.
B. Maximum Amount of Issue: $65,000,000.
C. Initial Owner: The Harrisburg University of Science and Technology, a nonprofit corporation organized and existing under the laws of the Commonwealth of Pennsylvania.
D. Location of Facilities: The project facilities described in Paragraph A above being financed or refinanced with the proceeds of the Bonds are located entirely on the campus of the University in the City of Harrisburg, Dauphin County, Pennsylvania, with a mailing address of: Harrisburg University of Science and Technology, 326 Market Street, Harrisburg, Pennsylvania 17101.
The public is invited to attend the hearing at the address set forth above. Any and all persons in attendance will be afforded an opportunity to comment on the proposed issuance of the Bonds. The public hearing is held by and on behalf of the Authority, as the issuer of the Bonds, and by and on behalf of the County of Dauphin, Pennsylvania, as the governmental unit having jurisdiction over the area in which the project facilities are located and on whose behalf the Authority acts, as required by the Internal Revenue Code of 1986, as amended.
November 15, 2016.
Public Hearings 2017 Dauphin County Budget.
Notes to Financial Statements Page 13.
County of Dauphin
During the years ended June 30, 2010 and 2011, the University borrowed $ 1,000,000 and $ 1,200,000, respectively, from the County of Dauphin, Pennsylvania. On February 29, 2012, the University borrowed $ 1.5 million from the County of Dauphin under the County Guarantee described above under "bonds payable". At that time, the University and the County of Dauphin entered into a promissory note for the entire $ 3.7 million at an interest rate of 0.5% and due date of December 29, 2019. On February 28, 2013, the University borrowed an additional $ 1.5 from the County of Dauphin under the County Guarantee. At that time, the University and the County of Dauphin entered into a promissory note for the entire $ 5.2 million at an interest rate of 0.5%. During the year ended June 30, 2014, the County forgave the $ 1.5 million borrowed on February 28, 2013, reducing the outstanding loan balance to $ 3.7 million at June 30, 2014. A $ 45,000 principal payment was made during 2015. The balance payable is $ 3,655,000 at June 30, 2016 and 2015.
On February 26, 2016, the County advanced $ 994,755 to the University under the guarantee agreement. The County considers the 2014 debt forgiveness and the 2014‐2016 advances to be grants to HU and therefore does not expect repayment (see Note 7).
(A) Under the terms of a promissory note dated February 28, 2013, the $ 3,655,000 owed to Dauphin County at June 30, 2016 and 2015 is at an interest rate of 0.5%, with repayment of both principal and interest due on December 29, 2019.
November 18, 2015.
Eric Darr, President of Harrisburg University made a 17 minute presentation to Dauphin county commissioners on Wednesday November 18th.
The presentation was part of four days of public meetings discussing the proposed 2015 Dauphin county budget.
Developing gaming videos.
Recruting International students.
Another loan default related to the $15,000,000 bond guarantee by Dauphin county.
From Harrisburg University web site.
International Students: Why Choose HU?
Gain the American experience and a great student-centered education in highly-sought after science, technology, engineering and mathematics fields.
An international student planning to study at the University with a student (F-1) visa must satisfy the appropriate admissions requirements and procedures, demonstrate proficiency in the English language, and provide an affidavit of financial support. Academic records should include courses studied, grades earned, diplomas, certificates, and results of comprehensive national examinations. A certified translation of previous education records is required if the records are in a language other than English.
An applicant whose native language is not English may demonstrate English proficiency by submitting his or her scores from the Test of English as a Foreign Language (TOEFL), International English Language Testing System (IELTS), other testing, or a personal interview.
Acceptable demonstrations of English proficiency would include one of the following:
Completing a college degree from a regionally accredited U.S. institution.
Earning a score of 4.0 or higher on the Analytical Writing section of the Graduate Record Exam (GRE).
Earning a TOEFL score of 80 or higher on the web-based version or earning an IELTS score of 5.0
The Department of Homeland Security, U.S. Immigration and Customs Enforcement (DHS-USICE), approves Harrisburg University as an institution eligible for the Student and Exchange Visitor Information System (SEVIS).
This approval allows an international student to apply for entry into the United States for study on an F-1 visa only after an "Affidavit of Financial Support" is deemed sufficient by the university and a tuition deposit payment of at least $1,000 toward the first semester's tuition has been received. A USICE Form I-20 is then certified and submitted to SEVIS. The SEVIS application fee of $200 is then paid by the student directly to SEVIS.
Following entry into the United States and arrival at the university, the student will be required to provide a copy of the passport, I-20 Certificate of Eligibility, and the Form I-94 departure record to confirm all identification information in SEVIS.
An international student does not qualify for Federal and State financial aid but may be considered for institutional aid awards or private education loans through participating lenders.
NEW Curricular Practical Training To receive information on Curricular Practical Training offered in ISEM, Analytics, Learning Technologies or Project Management, please email your request toCPT@HarrisburgU.edu
March 26, 2014.
Harrisburg University defaulted on the March 1, 2014 Debt Service Payment. Dauphin county paid to UMB Bank (Trustee) $1.5 million as the first guarantor of the 2007 series B Revenue Bond, this is the fourth year of default by the university with the county paying $6 million, the county has guaranteed a total of $15 million of the 2007 series bond.
Video. Guaranteed until 2019.
As published by EMMA - Electronic Municipal Market Access January 9, 2014.
UPDATE TO BONDHOLDERS.
THE HARRISBURG AUTHORITY UNIVERSITY REVENUE BONDS (THE HARRISBURG UNIVERSITY OF SCIENCE AND TECHNOLOGY PROJECT) SERIES B OF 2007 (THE “BONDS”)
Please forward this Notice to beneficial holders.
UMB Bank, N.A. (the “Trustee”) is successor indenture trustee under the Trust Indenture (the “Indenture”), dated as of January 1, 2007, by and between The Harrisburg Authority (the “Authority”) and Commerce Bank, National Association, as trustee, pursuant to which the Authority issued its University Revenue Bonds, Series A of 2007 (The Harrisburg University of Science and Technology Project) and its University Revenue Bonds, Series B of 2007 (the Harrisburg University of Science and Technology Project) in the aggregate principal amount of $87,915.000 (together, the “Bonds”). Reference is made to the Indenture and to the Loan Agreement (the “Loan Agreement”), dated as of January 1, 2007, pursuant to which the Authority loaned the proceeds of the Bonds to The Harrisburg University of Science and Technology (the “University”). The Authority assigned all of its rights in, to, and under the Loan Agreement to the Trustee. Capitalized terms not defined herein have the meanings ascribed to them in the Indenture and the Loan Agreement.
Events of Default.
The Trustee previously notified Holders of the failure by the University to make the March 1, 2013 and September 1, 2013 Debt Service Payments. Following discussion between the Trustee and Holders, the Debt Service Reserve Fund was not utilized to make the March 1, 2013 or September 1, 2013 payments and those payments were not paid to Holders.
Additionally, pursuant to section 4.2 of the Loan Agreement, the University was required to make a Loan Payment to the Trustee in the amount of $1,806,750 at least seventy-five (75) Business Days prior to March 1, 2014. The University failed to make that payment. Such failure constitutes an Event of Default under section 7.1(a) of the Loan Agreement and section 6.1(e) of the Indenture. As a result of the failure by the University to make the required Loan Payment, the Trustee requested payment from the County under the Guaranty and Credit Support Agreement in the amount of $1,500,000, which is the maximum amount that may be requested during any one calendar year. Such funds are to be received from the County not later than three days prior to the March 1, 2014 Debt Service Payment Date.
Parking Garage Transaction.
As security for the performance of the obligations of the University under the Loan Agreement, the University entered into an Open-End Mortgage and Security Agreement (as amended, modified, or supplemented from time to time, the “Mortgage”), pursuant to which the University granted to the Trustee a security interest in and mortgage on the Mortgaged Property, including the Land, Building, Property, and Parking Unit (all as defined in the Mortgage).
The University entered into an Agreement of Sale and Purchase, dated as of January ￼ , 2007, with the Harrisburg Parking Authority (“HPA”) wherein, inter alia, the University represented that the University intended to submit the Property to a condominium form of ownership and agreed to sell to HPA one condominium unit (the “Parking Unit”) within the Mortgaged Property, to consist of seven floors of parking facilities to include 392 parking spaces, for a purchase price of $14,000,600. Such purchase price (except for a payment related to certain change orders on construction of the building) was paid and thereafter used, along with proceeds of the Bonds, to construct the Building.
In mid-2013, HPA demanded that the University deliver a deed conveying the Parking Unit free and clear of all mortgages and liens, including the Trustee’s Mortgage. The Trustee advised HPA and the University that, under the terms of the Mortgage, the Trustee had no obligation to release its lien so long as any Event of Default existed. As a consequence of existing Events of Default, the Trustee refused to release its lien on the Parking Unit.
Following discussion with the Holders, the Trustee entered into negotiations with HPA regarding payment to be made by HPA to the Trustee in return for the Trustee releasing its Lien upon the Parking Unit. With the agreement of a majority of the Holders, the Trustee agreed to release its lien on the Parking Unit upon payment to the Trustee of $3,600,000. On December 23, 2013 the Trustee received payment from HPA in the amount of $3,600,000, whereupon the Trustee released its lien on the Parking Unit. The Trustee retains its lien on all other property subject to the Mortgage.
As noted below, an interest payment in the amount of $3,613,500 will be made to Holders. The Trustee has assigned January 19, 2014 as the record date (the “Special Record Date”) and January 29, 2014 as the payment date for this Distribution to Holders. Holders of the Bonds as of the Special Record Date will receive the following distribution of the proceeds:
.CUSIP Outstanding Principal Aggregate Interest Distribution per CUSIP 41473XAB5 Rate Per $1,000
Outstanding Principle $60,225,000 Aggregate Interest Distribution per CUSPID $3,613,500 Rate Per $1,000 $60.00
The Distribution of funds will be applied to the missed payments for March 1, 2013 and September 1, 2013. The sources of the Distribution are the $3,600,000 the Trustee received from HPA and an additional $71,000 the Trustee received from the University on December 30, 2013.
Following the Distribution, the University will remain in default of its obligation to make a Loan Payment in the amount of $1,806,750.
After discussion with Holders, the Trustee entered in negotiations with the University on a forbearance agreement. With the consent of a majority of the Holders, the Trustee entered into such an agreement on December 6, 2013. The agreement requires, among other things, that the University pay the Trustee the amount of $71,000 per month. The Trustee received the first payment of $71,000 on December 30, 2013.
As stated above, the University remains in default of its obligations. The Trustee and Holders of a majority in aggregate principal amount of the Bonds are in continuing discussions with the University on matters relating to the Bonds.
The Trustee intends to issue periodic notices to Holders regarding certain matters relevant to the Bonds. Holders should not rely on the Trustee as their sole source of information.
Certain disclosure documents with respect to the Bonds have been posted to the EMMA service and are available free of charge. The Trustee is not responsible for the maintenance or accuracy of the EMMA Service and makes no representations or warranties with respect thereto.
The Trustee has been in consultation with the majority Holders regarding matters relating to the Bonds. Any Holders wishing to participate in these consultations with the Trustee, wishing to receive expedited communication, or having questions regarding this notice are encouraged to contact the Trustee. You may contact the Trustee, Mark Heer directly by e-mail: Mark.Heer@umb.com or through the Trustee’s counsel, EricA. Schaffer, at ESchaffer@reedsmith.com. The Trustee will not share any bondholder information delivered via this disclosure unless agreed to by the Holder. The Trustee may conclude that a specific response to particular inquiries from individual Holders is not consistent with equal and full dissemination of information to all Holders. The Trustee makes no recommendations and gives no investment or tax advice. If any Holder has not contacted the Trustee, such Holder is asked to do so.
UMB BANK, N.A., JANUARY 9, 2014 As Trustee *The Trustee is not responsible for the selection or use of this CUSIP. It is included solely for Holder convenience.
US_ACTIVE-115954344.2 01/09/2014 2:35 PM