WCIDA: Charter school foundation seeks to purchase building
A Pittsburgh charter school will be using the Washington County Industrial Development Authority as a conduit as it seeks a tax-exempt bank loan not to exceed $2.4 million to purchase a building.
Manchester Educational Foundation will purchase the building that houses the Manchester Academic Charter School from the Manchester Youth Development Center at 1214 Liverpool St. in a North Side Pittsburgh neighborhood, according to Jeff Kotula, executive director of the Washington County Industrial Development Authority.
The school currently leases the building from the youth development center and will continue to occupy the space, serving 250 students in kindergarten through eighth grade.
The foundation will also lease space to the youth development center to continue its after-school program and summer camp.
The Washington County Industrial Development Authority’s role in the transaction is to serve as the conduit, allowing the foundation to obtain a $2.4 million bank loan with a tax-exempt interest rate, according to Kotula, who added:
“The WCIDA or the County of Washington does not provide any taxpayer funds or taxpayer guarantees for this type of financing. The WCIDA serves only as the conduit allowing the bank loan to be tax-exempt.”
The Washington County commissioners Thursday unanimously adopted a resolution acknowledging the county Industrial Development Authority can serve as a conduit for the charter school foundation as it seeks the tax-exempt loan.
The commissioners’ resolution notes that, “the issuance of bonds by the authority does not pledge the faith and credit or taxing power” of Washington County.