MURIEL BOWSER MAYOR March 20, 2023 The Honorable Phil Mendelson Chairman, Council of the District of Columbia John A. Wilson Building 1350 Pennsylvania Avenue, NW Suite 504 Washington, DC 20004 Dear Chairman Mendelson: Enclosed for consideration and approval by the Council of the District of Columbia is a proposed resolution titled, “D.C. Hebrew Language Charter School d/b/a Sela Public Charter School Revenue Bonds Project Approval Resolution of 2023” (the “Resolution”). The Resolution authorizes the issuance, sale, and delivery in an aggregate principal amount not to exceed $15,000,000 of District of Columbia revenue bonds in one or more series and authorizes the loan of the proceeds of the bonds to assist Sela in the financing, refinancing, or reimbursing of costs incurred by Sela for their project located at 6015-17 Chillum Place, NE, in Ward 4. The project consists of refinancing the bridge loan used to purchase the existing school property and approximately $4 million in renovations. Opened in 2013, Sela Public Charter School has a diverse student body and faculty that reflects the multicultural and vibrant dynamics of the nation’s capital. “Global citizenship” education is a key school focus. It includes the development of student skills in communication (including learning a foreign language), collaboration, critical thinking, and creativity. It also includes an emphasis on building empathy and emotional intelligence, perspective taking, and learning about other cultures. The bonds, when, as, and if issued, shall be without recourse to the District. In accordance with Section 490 of the Home Rule Act, the bonds shall not be general obligations of the District; shall not be a pledge of or involve the full faith and credit or the taxing power of the District; shall not constitute a debt of the District; and shall not constitute a lending of public credit for private undertakings as prohibited in section 602(a)(2) of the Home Rule Act. The bonds shall not give rise to any pecuniary liability of the District and the District shall have no obligation with respect to the purchase of the bonds. I find that the proposed financing will assist in furthering the efforts of SELA in providing education and employment opportunities to the citizens of the District of Columbia. I urge the Council to take prompt and favorable action on the Resolution. MURIEL BOWSER MAYOR March 20, 2023 The Honorable Phil Mendelson Chairman, Council of the District of Columbia John A. Wilson Building 1350 Pennsylvania Avenue, NW Suite 504 Washington, DC 20004 Dear Chairman Mendelson: Enclosed for consideration and approval by the Council of the District of Columbia is a proposed resolution titled, "D.C. Hebrew Language Charter School d/b/a Sela Public Charter School Revenue Bonds Project Approval Resolution of 2023" (the "Resolution"). The Resolution authorizes the issuance, sale, and delivery in an aggregate principal amount not to exceed $15,000,000 of District of Columbia revenue bonds in one or more series and authorizes the loan of the proceeds of the bonds to assist Sela in the financing, refinancing, or reimbursing of costs incurred by Sela for their project located at 6015-1 7 Chill um Place, NE, in Ward 4. The project consists ofrefinancing the bridge loan used to purchase the existing school property and approximately $4 million in renovations. Opened in 2013, Sela Public Charter School has a diverse student body and faculty that reflects the multicultural and vibrant dynamics of the nation's capital. "Global citizenship" education is a key school focus. It includes the development of student skills in communication (including learning a foreign language), collaboration, critical thinking, and creativity. It also includes an emphasis on building empathy and emotional intelligence, perspective taking, and learning about other cultures. The bonds, when, as, and if issued, shall be without recourse to the District. In accordance with Section 490 of the Home Rule Act, the bonds shall not be general obligations of the District; shall not be a pledge of or involve the full faith and credit or the taxing power of the District; shall not constitute a debt of the District; and shall not constitute a lending of public credit for private undertakings as prohibited in section 602(a)(2) of the Home Rule Act. The bonds shall not give rise to any pecuniary liability of the District and the District shall have no obligation with respect to the purchase of the bonds. I find that the proposed financing will assist in furthering the efforts of SELA in providing education and employment opportunities to the citizens of the District of Columbia. I urge the Council to take prompt and favorable action on the Resolution. hairman Phil Mendelson at the request of the Mayor 1 2 3 4 5 6 7 A PROPOSED RESOLUTION 8 9 10 11 IN THE COUNCIL OF THE DISTRICT OF COLUMBIA 12 To authorize and provide for the issuance, sale, and delivery in an aggregate principal amount not to 13 exceed $15 million of District of Columbia revenue bonds in one or more series and to 14 authorize and provide for the loan of the proceeds of such bonds to assist D.C. Hebrew 15 Language Charter School d/b/a Sela Public Charter School in the financing, refinancing, 16 or reimbursing of costs associated with an authorized project pursuant to section 490 of the 1 7 District of Columbia Home Rule Act. 18 19 RESOLVED, BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, that this 20 resolution may be cited as the "D.C. Hebrew Language Charter School d/b/a Sela Public Charter 21 School Revenue Bonds Project Approval Resolution of 2023 ". 22 23 Sec. 2. Definitions. 24 For the purpose of this resolution, the term: 25 (1) "Authorized Delegate" means the Mayor or the Deputy Mayor for Planning and 26 Economic Development, or any officer or employee of the Executive Office of the Mayor to whom 2 7 the Mayor has delegated or to whom the foregoing individuals have subdelegated any of the 28 Mayor's functions under this resolution pursuant to section 422( 6) of the Home Rule Act. 29 (2) "Bond Counsel" means a firm or firms of attorneys designated as bond counsel 30 from time to time by the Mayor. 31 (3) "Bonds" means the District of Columbia revenue bonds, notes, or other 32 obligations (including refunding bonds, notes, and other obligations), in one or more series, 33 authorized to be issued pursuant to this resolution. 34 (4) "Borrower" means the owner, operator, manager and user of the assets 35 financed, refinanced, or reimbursed with proceeds from the Bonds, which shall be D.C. Hebrew 36 Language Charter School d/b/a Sela Public Charter School, Inc., a corporation organized under 37 the laws of the District of Columbia, which is exempt from federal income taxes under 26 U.S.C 38 § 501(a) as an organization described in 26 U.S.C. § 501(c)(3), and which is liable for the 39 repayment of the Bonds. 40 (5) "Closing Documents" means all documents and agreements other than 41 Financing Documents that may be necessary and appropriate to issue, sell, and deliver the Bonds 42 and to make the Loan contemplated thereby, and includes agreements, certificates, letters, opinions, 43 forms, receipts, and other similar instruments. 44 ( 6) "District" means the District of Columbia. 45 (7) "Financing Documents" means the documents other than Closing Documents 46 that relate to the financing or refinancing of transactions to be effected through the issuance, sale, 4 7 and delivery of the Bonds and the making of the Loan, including any offering document, and any 48 required supplements to any such documents. 49 (8) "Home Rule Act" means the District of Columbia Home Rule Act, approved 50 December 24, 1973 (87 Stat. 774; D.C. Official Code§ 1-201.01 et seq.). 51 (9) "Issuance Costs" means all fees, costs, charges, and expenses paid or incurred 52 in connection with the authorization, preparation, printing, issuance, sale, and delivery of the Bonds 53 and the making of the Loan, including, but not limited to, underwriting, legal, accounting, rating 2 54 agency, and all other fees, costs, charges, and expenses incurred in connection with the development 5 5 and implementation of the Financing Documents, the Closing Documents, and those other 56 documents necessary or appropriate in connection with the authorization, preparation, printing, 57 issuance, sale, marketing, and delivery of the Bonds and the making of the Loan contemplated 5 8 thereby, together with financing fees, costs, and expenses, including program fees and 5 9 administrative fees charged by the District, fees paid to financial institutions and insurance 60 companies, initial letter of credit fees (if any), compensation to financial advisors and other persons 61 ( other than full-time employees of the District) and entities performing services on behalf of or as 62 agents for the District. 63 ( 10) "Loan" means the District's lending of proceeds from the sale, in one or more 64 series, of the Bonds to the Borrower. 65 (11) "Project" means the financing, refinancing or reimbursing of all or a portion of 66 the Borrower's costs of: 67 (A) refinancing of certain existing indebtedness, the proceeds of which were 68 used to finance or refinance the costs of the acquisition of the Borrower's approximately 12,269 69 square foot public charter school facility located 6015-17 Chillum Place, N.E., Washington, D.C., 70 together with associated parking facilities and other property, real and personal, associated 71 therewith (the "Facility"); 72 (B) funding the renovation, fit-out, equipping and development of the 73 Facility; 74 (C) funding certain working capital costs, to the extent financeable relating 75 to the Bonds; 3 76 (D) funding any credit enhancement costs, liquidity costs, capitalized 77 interest, or debt service reserve fund relating to the Bonds; and 78 (E) paying allowable Issuance Costs. 79 Sec. 3. Findings. 80 The Council finds that: 81 ( 1) Section 490 of the Home Rule Act provides that the Council may by resolution 82 authorize the issuance of District revenue bonds, notes, or other obligations (including refunding 83 bonds, notes, or other obligations) to borrow money to finance, refinance, or reimburse and to assist 84 in the financing, refinancing, or reimbursing of undertakings in certain areas designated in section 85 490 and may effect the financing, refinancing, or reimbursement by loans made directly or 86 indirectly to any individual or legal entity, by the purchase of any mortgage, note, or other security, 87 or by the purchase, lease, or sale of any property. 88 (2) The Borrower has requested the District to issue, sell, and deliver revenue 89 bonds, in one or more series, in an aggregate principal amount not to exceed $15 million, and to 90 make the Loan for the purpose of financing, refinancing, or reimbursing costs of the Project. 91 (3) The Project is located in the District and will contribute to the health, education, 92 safety, or welfare of, or the creation or preservation of jobs for, residents of the District, or to 93 economic development of the District. 94 ( 4) The Project is an undertaking in the area of elementary, secondary and college 95 and university facilities within the meaning of section 490 of the Home Rule Act. 96 ( 5) The authorization, issuance, sale, and delivery of the Bonds and the Loan to the 97 Borrower are desirable, are in the public interest, will promote the purpose and intent of section 490 98 of the Home Rule Act, and will assist the Project. 4 99 Sec. 4. Bond authorization. 100 (a) The Mayor is authorized pursuant to the Home Rule Act and this resolution to assist in 101 financing, refinancing, or reimbursing the costs of the Project by: 102 ( 1) The issuance, sale, and delivery of the Bonds, in one or more series, in an 103 aggregate principal amount not to exceed $15 million; and 104 (2) The making of the Loan. 105 (b) The Mayor is authorized to make the Loan to the Borrower for the purpose of financing, 106 refinancing, or reimbursing the costs of the Project and establishing any fund with respect to the 107 Bonds as required by the Financing Documents. 108 ( c) The Mayor may charge a program fee to the Borrower, including, but not limited to, an 109 amount sufficient to cover costs and expenses incurred by the District in connection with the 110 issuance, sale, and delivery of each series of the Bonds, the District's participation in the monitoring 111 of the use of the Bond proceeds and compliance with any public benefit agreements with the 112 District, and maintaining official records of each bond transaction and assisting in the redemption, 113 repurchase, and remarketing of the Bonds. 114 ( d) The Bond authorization set forth in this resolution includes the authorization to issue 115 refunding Bonds to refinance any Bonds previously issued under this resolution to finance the 116 Project; provided, that the maximum principal amount of Bonds outstanding at any time does not 11 7 exceed the maximum principal amount of Bonds authorized hereunder. 118 Sec. 5. Bond details. 119 (a) The Mayor and each Authorized Delegate is authorized to take any action reasonably 120 necessary or appropriate in accordance with this resolution in connection with the preparation, 121 execution, issuance, sale, delivery, security for, and payment of the Bonds of each series, including, 5 122 but not limited to, determinations of: 123 ( 1) The final form, content, designation, and terms of the Bonds, including a 124 determination that the Bonds may be issued in certificated or book-entry form; 125 (2) The principal amount of the Bonds to be issued and denominations of the 126 Bonds; 127 (3) The rate or rates of interest or the method for determining the rate or rates of 128 interest on the Bonds; 129 . ( 4) The date or dates of issuance, sale, and delivery of, and the payment of interest 130 on the Bonds, and the maturity date or dates of the Bonds; 131 ( 5) The terms under which the Bonds may be paid, optionally or mandatorily 132 redeemed, accelerated, tendered, called, or put for redemption, repurchase, or remarketing before 133 their respective stated maturities; 134 ( 6) Provisions for the registration, transfer, and exchange of the Bonds and the 13 5 replacement of mutilated, lost, stolen, or destroyed Bonds; 136 (7) The creation of any reserve fund, sinking fund, or other fund with respect to the 137 Bonds; 13 8 (8) The time and place of payment of the Bonds; 139 (9) Procedures for monitoring the use of the proceeds received from the sale of the 140 Bonds to ensure that the proceeds are properly applied to the Project and used to accomplish the 141 purposes of the Home Rule Act and this resolution; 142 (10) Actions necessary to qualify the Bonds under blue sky laws of any jurisdiction 143 where the Bonds are marketed; and 6 144 (11) The terms and types of credit enhancement under which the Bonds may be 145 secured. 146 (b) The Bonds shall contain a legend, which shall provide that the Bonds are special 14 7 obligations of the District, are without recourse to the District, are not a pledge of, and do not 148 involve the faith and credit or the taxing power of the District, do not constitute a debt of the 149 District, and do not constitute lending of the public credit for private undertakings as prohibited in 150 section 602(a)(2) of the Home Rule Act. 151 ( c) The Bonds shall be executed in the name of the District and on its behalf by the manual 15 2 or facsimile signature of the Mayor, and attested by the Secretary of the District of Columbia by the 153 Secretary of the District of Columbia's manual or facsimile signature. The Mayor's execution and 154 delivery of the Bonds shall constitute conclusive evidence of the Mayor's approval, on behalf of the 15 5 District, of the final form and content of the Bonds. 156 ( d) The official seal of the District, or a facsimile of it, shall be impressed, printed, or 157 otherwise reproduced on the Bonds. 15 8 ( e) The Bonds of any series may be issued in accordance with the terms of a trust instrument 159 to be entered into by the District and a trustee to be selected by the Borrower subject to the approval 160 of the Mayor, and may be subject to the terms of one or more agreements entered into by the Mayor 161 pursuant to section 490(a)(4) of the Home Rule Act. 162 (f) The Bonds may be issued at any time or from time to time in one or more issues and in 163 one or more senes. 164 Sec. 6. Sale of the Bonds. 7 165 (a) The Bonds of any series may be sold at negotiated or competitive sale at, above, or 166 below par, to one or more persons or entities, and upon terms that the Mayor considers to be in the 167 best interest of the District. 168 (b) The Mayor or an Authorized Delegate may execute, in connection with each sale of the 169 Bonds, offering documents on behalf of the District, may deem final any such offering document on 170 behalf of the District for purposes of compliance with federal laws and regulations governing such 171 matters and may authorize the distribution of the documents in connection with the sale of the 172 Bonds. 1 73 ( c) The Mayor is authorized to deliver the executed and sealed Bonds, on behalf of the 174 District, for authentication, and, after the Bonds have been authenticated, to deliver the Bonds to the 175 original purchasers of the Bonds upon payment of the purchase price. 176 ( d) The Bonds shall not be issued until the Mayor receives an approving opinion from Bond 177 Counsel as to the validity of the Bonds of such series and, if the interest on the Bonds is expected to 178 be exempt from federal income taxation, the treatment of the interest on the Bonds for purposes of 1 79 federal income taxation. 180 Sec. 7. Payment and security. 181 (a) The principal of, premium, if any, and interest on, the Bonds shall be payable solely from 182 proceeds received from the sale of the Bonds, income realized from the temporary investment of 183 those proceeds, receipts and revenues realized by the District from the Loan, income realized from 184 the temporary investment of those receipts and revenues prior to payment to the Bond owners, other 185 moneys that, as provided in the Financing Documents, may be made available to the District for the 8 186 payment of the Bonds, and other sources of payment (other than from the District), all as provided 187 for in the Financing Documents. 188 (b) Payment of the Bonds shall be secured as provided in the Financing Documents and by 189 an assignment by the District for the benefit of the Bond owners of certain of its rights under the 190 Financing Documents and Closing Documents, including a security interest in certain collateral, if 191 any, to the trustee for the Bonds pursuant to the Financing Documents. 192 ( c) The trustee is authorized to deposit, invest, and disburse the proceeds received from the 193 sale of the Bonds pursuant to the Financing Documents. 194 Sec. 8. Financing and Closing Documents. 195 (a) The Mayor is authorized to prescribe the final form and content of all Financing 196 Documents and all Closing Documents that may be necessary or appropriate to issue, sell, and 197 deliver the Bonds and to make the Loan to the Borrower. 198 (b) The Mayor is authorized to execute, in the name of the District and on its behalf, the 199 Financing Documents and any Closing Documents to which the District is a party by the Mayor's 200 manual or facsimile signature. 201 ( c) If required, the official seal of the District, or a facsimile of it, shall be impressed, 202 printed, or otherwise reproduced on the Financing Documents and the Closing Documents to which 203 the District is a party. 204 (d) The Mayor's execution and delivery of the Financing Documents and the Closing 205 Documents to which the District is a party shall constitute conclusive evidence of the Mayor's 206 approval, on behalf of the District, of the final form and content of the executed Financing 207 Documents and the executed Closing Documents. 9 208 ( e) The Mayor is authorized to deliver the executed and sealed Financing Documents and 209 Closing Documents, on behalf of the District, prior to or simultaneously with the issuance, sale, and 210 delivery of the Bonds, and to ensure the due performance of the obligations of the District contained 211 in the executed, sealed, and delivered Financing Documents and Closing Documents. 212 Sec. 9. Authorized delegation of authority. 213 To the extent permitted by District and federal laws, the Mayor may delegate to any 214 Authorized Delegate the performance of any function authorized to be performed by the Mayor 215 under this resolution. 216 Sec. 10. Limited liability. 21 7 (a) The Bonds shall be special obligations of the District. The Bonds shall be without 218 recourse to the District. The Bonds shall not be general obligations of the District, shall not be a 219 pledge of or involve the faith and credit or the taxing power of the District, shall l}.Ot constitute a 220 debt of the District, and shall not constitute lending of the public credit for private undertakings as 221 prohibited in section 602(a)(2) of the Home Rule Act. 222 (b) The Bonds shall not give rise to any pecuniary liability of the District and the District 223 shall have no obligation with respect to the purchase of the Bonds. 224 (c) Nothing contained in the Bonds, in the Financing Documents, or in the Closing 225 Documents shall create an obligation on the part of the District to make payments with respect to 226 the Bonds from sources other than those listed for that purpose in section 7. 227 ( d) The District shall have no liability for the payment of any Issuance Costs or for any 228 transaction or event to be effected by the Financing Documents. 229 ( e) All covenants, obligations, and agreements of the District contained in this resolution, 230 the Bonds, and the executed, sealed, and delivered Financing Documents and Closing Documents to 10 231 which the District is a party, shall be considered to be the covenants, obligations, and agreements of 232 the District to the fullest extent authorized by law, and each of those covenants, obligations, and 233 agreements shall be binding upon the District, subject to the limitations set forth in this resolution. 234 (f) No person, including, but not limited to, the Borrower and any Bond owner, shall have 23 5 any claims against the District or any of its elected or appointed officials, officers, employees, or 236 agents for monetary damages suffered as a result of the failure of the District or any of its elected or 23 7 appointed officials, officers, employees or agents to perform any covenant, undertaking, or 23 8 obligation under this resolution, the Bonds, the Financing Documents, or the Closing Documents, 239 nor as a result of the incorrectness of any representation in or omission from the Financing 240 Documents or the Closing Documents, unless the District or its elected or appointed officials, 241 officers, employees, or agents have acted in a willful and fraudulent manner. 242 Sec. 11. District officials. 243 (a) Except as otherwise provided in section l0(f), the elected or appointed officials, officers, 244 employees, or agents of the District shall not be liable personally for the payment of the Bonds or be 245 subject to any personal liability by reason of the issuance, sale or delivery of the Bonds, or for any 246 representations, warranties, covenants, obligations, or agreements of the District contained in this 24 7 resolution, the Bonds, the Financing Documents, or the Closing Documents. 248 (b) The signature, countersignature, facsimile signature, or facsimile countersignature of 249 any official appearing on the Bonds, the Financing Documents, or the Closing J?ocuments shall 250 be valid and sufficient for all purposes notwithstanding the fact that the individual signatory 251 ceases to hold that office before delivery of the Bonds, the Financing Documents, or the Closing 252 Documents. 253 Sec. 12. Maintenance of documents. 11 254 Copies of the specimen Bonds and of the final Financing Documents and Closing 25 5 Documents shall be filed in the Office of the Secretary of the District of Columbia. 256 Sec. 13. Informatio'n reporting. 257 Within three (3) days after the Mayor's receipt of the transcript of proceedings relating to 25 8 the issuance of the Bonds, the Mayor shall transmit a copy of the transcript to the Secretary to the 25 9 Council. 260 Sec. 14. Disclaimer. 261 (a) The issuance of Bonds is in the discretion of the District. Nothing contained in this 262 resolution, the Bonds, the Financing Documents, or the Closing Documents shall be construed as 263 obligating the District to issue any Bonds for the benefit of the Borrower or to participate in or assist 264 the Borrower in any way with financing, refinancing, or reimbursing the costs of the Project. The 265 Borrower shall have no claims for damages or for any other legal or equitable relief against the 266 District, its elected or appointed officials, officers, employees, or agents as a consequence of any 267 failure to issue any Bonds for the benefit of the Borrower. 268 (b) The District reserves the right to issue the Bonds in the order or priority it determines in 269 its sole and absolute discretion. The District gives no assurance and makes no representations that 270 any portion of any limited amount of bonds or other obligations, the interest on which is excludable 2 71 from gross income for federal income tax purposes, will be reserved or will be available at the time 2 72 of the proposed issuance of the Bonds. 2 73 ( c) The District, by adopting this resolution or by taking any other action in connection with 274 financing, refinancing, or reimbursing costs of the Project, does not provide any assurance that the 275 Project is viable or sound, that the Borrower is financially sound, or that amounts owing on the 12 276 Bonds or pursuant to the Loan will be paid. Neither the Borrower, any purchaser of the Bonds, nor 277 any other person shall rely upon the District with respect to these matters. 278 Sec. 15. Expiration. 279 If any Bonds are not issued, sold, and delivered to the original purchaser within three (3) 280 years of the date of this resolution, the authorization provided in this resolution with respect to the 281 issuance, sale, and delivery of the Bonds shall expire. 282 Sec. 16. Severability. 283 If any particular provision of this resolution, or the application thereof to any person or 284 circumstance is held invalid, the remainder of this resolution and the application of such provision 285 to other persons or circumstances shall not be affected thereby. If any action or inaction 286 contemplated under this resolution is determined to be contrary to the requirements of applicable 287 law, such action or inaction shall not be necessary for the purpose of issuing the Bonds, and the 288 validity of the Bonds shall not be adversely affected. 289 Sec. 17. Compliance with public approval requirement. 290 This approval shall constitute the approval of the Council as required in section 147(f) of the 291 Internal Revenue Code of 1986, as amended, and section 490(k) of the Home Rule Act, for the 292 Project to be financed, refinanced, or reimbursed with the proceeds of the Bonds. This resolution 293 approving the issuance of the Bonds for the Project has been adopted by the Council after a public 294 hearing held at least seven (7) days after publication of notice in a newspaper of general circulation 295 in the District. 296 Sec. 18. Transmittal. 297 The Council shall transmit a copy of this resolution, upon its adoption, to the Mayor. 298 Sec. 19. Fiscal impact statement. 13 299 The Council adopts the fiscal impact statement of the Chief Financial Officer as 300 the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 301 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.4 7a). 302 · Sec. 20. Effective date. 303 This resolution shall take effect immediately. 14 DC Hebrew Language Charter School (Sela) Revenue Bond Project FACT SHEET DC Hebrew Language Charter School Inc (Sela) has requested that the District of Columbia issue up to $15,000,000 of 501(c)(3) revenue bonds, refinancing, and renovations to support construction projects at 6015-17 Chillum Place NE Washington, DC in Ward 4. The Applicant Opened in 2013 in DC's Ward 4, Sela Public Charter School has a diverse student body and faculty that reflects the multicultural and vibrant dynamics of the nation's capital. "Global citizenship" education is a key school focus. It includes the development of student skills in communication (including learning a foreign language), collaboration, critical thinking, and creativity. It also includes an emphasis on building empathy and emotional intelligence, perspective taking, and learning about other cultures. Sela has been recognized as a high-performing school by the DC Public Charter School Board. The school offers an academically rigorous curriculum, including daily Modem Hebrew studies, that lead to a high level of language proficiency. Proposed Proiect DC Hebrew Language Public Charter School (Sela) project consists of refinancing the bridge loan used to purchase the existing school property and approximately $4 million in renovations. DC Hebrew Language Public Charter School (Sela) Fact Sheet February 2023 Financing Plan A summary of the proposed sources and uses of funds is attached (see Table 1 ). Total Cost Tax-exempt Taxable Loan Equity Bond Proceeds Refinancing/Refunding $7,825,000 Building Renovation $6,000,000 Up-frontfees/Other $220,000 $280,000 Issuance costs Contingency $955,000 TOTAL $15,000,000 $280,000 Feasibility/Structure/Security of the Bonds A commitment letter to provide a direct pay letter of credit was included in the application from ConnectOne, who will also serve as underwriter. The bonds will be repaid at a synthetically fixed interest rate (to be determined based on market conditions) over 25 years (with payments beginning one year after closing). A Bond Trustee has not been selected. Bonds will be a general obligation of DC Hebrew Language Public Charter School (Sela) and will be repaid primarily by revenues from tuition. Legal and Regulatory Affairs The law firm of Orrick, Herrington, & Sutcliffe bond counsel to the Revenue Bond Program, has preliminarily determined that DC Hebrew Language Public Charter School is a 501 ( c )(3) organization and that the project constitutes a permissible undertaking within the meaning of Section 490( a)( 1) of the District of Columbia Home Rule Act. The Office of Planning, Office of Tax and Revenue and Department of Employment Services, Department of Consumer and Regulatory Affairs have all approved the application. Based upon the information set forth in the application, the Revenue Bond Program staff has determined that the proposed project complies with criteria for approval of a proposed financing transaction through the District's Revenue Bond Program and will assist the Borrower in furthering its organizational mission. 2 GOVERNMENT OF THE DISTRICT OF COLUMBIA OFFICE OF THE ATTORNEY GENERAL Commercial Division Tax & Finance Section *** -- MEMORANDUM TO: FROM: William Liggins Director, Revenue Bond Program Office of the Deputy Mayor for Planning and Economic Development Patrick Allen Senior Assistant Attorney General Commercial Division DATE: February 23, 2023 SUBJECT: Legal Sufficiency Certification of the "D.C. Hebrew Language Charter School d/b/a Sela Public Charter School Revenue Bonds Project Approval Resolution of 2023 ". This is to certify that the Office of the Attorney General has reviewed the above referenced resolution and found it to be legally sufficient. If you have any questions in this regard, please do not hesitate to call me at (202) 724-7754. Patrick Allen Senior Assistant Attorney General 2 (3) “Bonds” means the District of Columbia revenue bonds, notes, or other 31 obligations (including refunding bonds, notes, and other obligations), in one or more series, 32 authorized to be issued pursuant to this resolution. 33 (4) “Borrower” means the owner, operator, manager and user of the assets 34 financed, refinanced, or reimbursed with proceeds from the Bonds, which shall be D.C. Hebrew 35 Language Charter School d/b/a Sela Public Charter School, Inc., a corporation organized under 36 the laws of the District of Columbia, which is exempt from federal income taxes under 26 U.S.C 37 § 501(a) as an organization described in 26 U.S.C. § 501(c)(3), and which is liable for the 38 repayment of the Bonds. 39 (5) “Closing Documents” means all documents and agreements other than 40 Financing Documents that may be necessary and appropriate to issue, sell, and deliver the Bonds 41 and to make the Loan contemplated thereby, and includes agreements, certificates, letters, opinions, 42 forms, receipts, and other similar instruments. 43 (6) "District" means the District of Columbia. 44 (7) “Financing Documents” means the documents other than Closing Documents 45 that relate to the financing or refinancing of transactions to be effected through the issuance, sale, 46 and delivery of the Bonds and the making of the Loan, including any offering document, and any 47 required supplements to any such documents. 48 (8) “Home Rule Act” means the District of Columbia Home Rule Act, approved 49 December 24, 1973 (87 Stat. 774; D.C. Official Code § 1- 201.01 et seq.). 50 (9) “Issuance Costs” means all fees, costs, charges, and expenses paid or incurred 51 in connection with the authorization, preparation, printing, issuance, sale, and delivery of the Bonds 52 and the making of the Loan, including, but not limited to, underwriting, legal, accounting, rating 53 3 agency, and all other fees, costs, charges, and expenses incurred in connection with the development 54 and implementation of the Financing Documents, the Closing Documents, and those other 55 documents necessary or appropriate in connection with the authorization, preparation, printing, 56 issuance, sale, marketing, and delivery of the Bonds and the making of the Loan contemplated 57 thereby, together with financing fees, costs, and expenses, including program fees and 58 administrative fees charged by the District, fees paid to financial institutions and insurance 59 companies, initial letter of credit fees (if any), compensation to financial advisors and other persons 60 (other than full-time employees of the District) and entities performing services on behalf of or as 61 agents for the District. 62 (10) “Loan” means the District’s lending of proceeds from the sale, in one or more 63 series, of the Bonds to the Borrower. 64 (11) “Project” means the financing, refinancing or reimbursing of all or a portion of 65 the Borrower's costs of: 66 (A) refinancing of certain existing indebtedness, the proceeds of which were 67 used to finance or refinance the costs of the acquisition of the Borrower’s approximately 12,269 68 square foot public charter school facility located 6015-17 Chillum Place, N.E., Washington, D.C., 69 together with associated parking facilities and other property, real and personal, associated 70 therewith (the “Facility”); 71 (B) funding the renovation, fit -out, equipping and development of the 72 Facility; 73 (C) funding certain working capital costs, to the extent financeable relating 74 to the Bonds; 75 4 (D) funding any credit enhancement costs, liquidity costs, capitalized 76 interest, or debt service reserve fund relating to the Bonds; and 77 (E) paying allowable Issuance Costs. 78 Sec. 3. Findings. 79 The Council finds that: 80 (1) Section 490 of the Home Rule Act provides that the Council may by resolution 81 authorize the issuance of District revenue bonds, notes, or other obligations (including refunding 82 bonds, notes, or other obligations) to borrow money to finance, refinance, or reimburse and to assist 83 in the financing, refinancing, or reimbursing of undertakings in certain areas designated in section 84 490 and may effect the financing, refinancing, or reimbursement by loans made directly or 85 indirectly to any individual or legal entity, by the purchase of any mortgage, note, or other security, 86 or by the purchase, lease, or sale of any property. 87 (2) The Borrower has requested the District to issue, sell, and deliver revenue 88 bonds, in one or more series, in an aggregate principal amount not to exceed $15 million, and to 89 make the Loan for the purpose of financing, refinancing, or reimbursing costs of the Project. 90 (3) The Project is located in the District and will contribute to the health, education, 91 safety, or welfare of, or the creation or preservation of jobs for, residents of the District, or to 92 economic development of the District. 93 (4) The Project is an undertaking in the area of elementary, secondary and college 94 and university facilities within the meaning of section 490 of the Home Rule Act. 95 (5) The authorization, issuance, sale, and delivery of the Bonds and the Loan to the 96 Borrower are desirable, are in the public interest, will promote the purpose and intent of section 490 97 of the Home Rule Act, and will assist the Project. 98 5 Sec. 4. Bond authorization. 99 (a) The Mayor is authorized pursuant to the Home Rule Act and this resolution to assist in 100 financing, refinancing, or reimbursing the costs of the Project by: 101 (1) The issuance, sale, and delivery of the Bonds, in one or more series, in an 102 aggregate principal amount not to exceed $15 million; and 103 (2) The making of the Loan. 104 (b) The Mayor is authorized to make the Loan to the Borrower for the purpose of financing, 105 refinancing, or reimbursing the costs of the Project and establishing any fund with respect to the 106 Bonds as required by the Financing Documents. 107 (c) The Mayor may charge a program fee to the Borrower, including, but not limited to, an 108 amount sufficient to cover costs and expenses incurred by the District in connection with the 109 issuance, sale, and delivery of each series of the Bonds, the District’s participation in the monitoring 110 of the use of the Bond proceeds and compliance with any public benefit agreements with the 111 District, and maintaining official records of each bond transaction and assisting in the redemption, 112 repurchase, and remarketing of the Bonds. 113 (d) The Bond authorization set forth in this r esolution includes the authorization to issue 114 refunding Bonds to refinance any Bonds previously issued under this r esolution to finance the 115 Project; provided, that the maximum principal amount of Bonds outstanding at any time does not 116 exceed the maximum principal amount of Bonds authorized hereunder. 117 Sec. 5. Bond details. 118 (a) The Mayor and each Authorized Delegate is authorized to take any action reasonably 119 necessary or appropriate in accordance with this resolution in connection with the preparation, 120 execution, issuance, sale, delivery, security for, and payment of the Bonds of each series, including, 121 6 but not limited to, determinations of: 122 (1) The final form, content, designation, and terms of the Bonds, including a 123 determination that the Bonds may be issued in certificated or book- entry form; 124 (2) The principal amount of the Bonds to be issued and denominations of the 125 Bonds; 126 (3) The rate or rates of interest or the method for determining the rate or rates of 127 interest on the Bonds; 128 (4) The date or dates of issuance, sale, and delivery of, and the payment of interest 129 on the Bonds, and the maturity date or dates of the Bonds; 130 (5) The terms under which the Bonds may be paid, optionally or mandatorily 131 redeemed, accelerated, tendered, called, or put for redemption, repurchase, or remarketing before 132 their respective stated maturities; 133 (6) Provisions for the registration, transfer, and exchange of the Bonds and the 134 replacement of mutilated, lost, stolen, or destroyed Bonds; 135 (7) The creation of any reserve fund, sinking fund, or other fund with respect to the 136 Bonds; 137 (8) The time and place of payment of the Bonds; 138 (9) Procedures for monitoring the use of the proceeds received from the sale of the 139 Bonds to ensure that the proceeds are properly applied to the Project and used to accomplish the 140 purposes of the Home Rule Act and this resolution; 141 (10) Actions necessary to qualify the Bonds under blue sky laws of any jurisdiction 142 where the Bonds are marketed; and 143 7 (11) The terms and types of credit enhancement under which the Bonds may be 144 secured. 145 (b) The Bonds shall contain a legend, which shall provide that the Bonds are special 146 obligations of the District, are without recourse to the District, are not a pledge of, and do not 147 involve the faith and credit or the taxing power of the District, do not constitute a debt of the 148 District, and do not constitute lending of the public credit for private undertakings as prohibited in 149 section 602(a)(2) of the Home Rule Act. 150 (c) The Bonds shall be executed in the name of the District and on its behalf by the manual 151 or facsimile signature of the Mayor, and attested by the Secretary of the District of Columbia by the 152 Secretary of the District of Columbia’s manual or facsimile signature. The Mayor’s execution and 153 delivery of the Bonds shall constitute conclusive evidence of the Mayor’s approval, on behalf of the 154 District, of the final form and content of the Bonds. 155 (d) The official seal of the District, or a facsimile of it, shall be impressed, printed, or 156 otherwise reproduced on the Bonds. 157 (e) The Bonds of any series may be issued in accordance with the terms of a trust instrument 158 to be entered into by the District and a trustee to be selected by the Borrower subject to the approval 159 of the Mayor, and may be subject to the terms of one or more agreements entered into by the Mayor 160 pursuant to section 490(a)(4) of the Home Rule Act. 161 (f) The Bonds may be issued at any time or from time to time in one or more issues and in 162 one or more series. 163 Sec. 6. Sale of the Bonds. 164 8 (a) The Bonds of any series may be sold at negotiated or competitive sale at, above, or 165 below par, to one or more persons or entities, and upon terms that the Mayor considers to be in the 166 best interest of the District. 167 (b) The Mayor or an Authorized Delegate may execute, in connection with each sale of the 168 Bonds, offering documents on behalf of the District, may deem final any such offering document on 169 behalf of the District for purposes of compliance with federal laws and regulations governing such 170 matters and may authorize the distribution of the documents in connection with the sale of the 171 Bonds. 172 (c) The Mayor is authorized to deliver the executed and sealed Bonds, on behalf of the 173 District, for authentication, and, after the Bonds have been authenticated, to deliver the Bonds to the 174 original purchasers of the Bonds upon payment of the purchase price. 175 (d) The Bonds shall not be issued until the Mayor receives an approving opinion from Bond 176 Counsel as to the validity of the Bonds of such series and, if the interest on the Bonds is expected to 177 be exempt from federal income taxation, the treatment of the interest on the Bonds for purposes of 178 federal income taxation. 179 Sec. 7. Payment and security. 180 (a) The principal of, premium, if any, and interest on, the Bonds shall be payable solely from 181 proceeds received from the sale of the Bonds, income realized from the temporary investment of 182 those proceeds, receipts and revenues realized by the District from the Loan, income realized from 183 the temporary investment of those receipts and revenues prior to payment to the Bond owners, other 184 moneys that, as provided in the Financing Documents, may be made available to the District for the 185 9 payment of the Bonds, and other sources of payment (other than from the District), all as provided 186 for in the Financing Documents. 187 (b) Payment of the Bonds shall be secured as provided in the Financing Documents and by 188 an assignment by the District for the benefit of the Bond owners of certain of its rights under the 189 Financing Documents and Closing Documents, including a security interest in certain collateral, if 190 any, to the trustee for the Bonds pursuant to the Financing Documents. 191 (c) The trustee is authorized to deposit, invest, and disburse the proceeds received from the 192 sale of the Bonds pursuant to the Financing Documents. 193 Sec. 8. Financing and Closing Documents. 194 (a) The Mayor is authorized to prescribe the final form and content of all Financing 195 Documents and all Closing Documents that may be necessary or appropriate to issue, sell, and 196 deliver the Bonds and to make the Loan to the Borrower. 197 (b) The Mayor is authorized to execute, in the name of the District and on its behalf, the 198 Financing Documents and any Closing Documents to which the District is a party by the Mayor’s 199 manual or facsimile signature. 200 (c) If required, the official seal of the District, or a facsimile of it, shall be impressed, 201 printed, or otherwise reproduced on the Financing Documents and the Closing Documents to which 202 the District is a party. 203 (d) The Mayor’s execution and delivery of the Financing Documents and the Closing 204 Documents to which the District is a party shall constitute conclusive evidence of the Mayor’s 205 approval, on behalf of the District, of the final form and content of the executed Financing 206 Documents and the executed Closing Documents. 207 10 (e) The Mayor is authorized to deliver the executed and sealed Financing Documents and 208 Closing Documents, on behalf of the District, prior to or simultaneously with the issuance, sale, and 209 delivery of the Bonds, and to ensure the due performance of the obligations of the District contained 210 in the executed, sealed, and delivered Financing Documents and Closing Documents. 211 Sec. 9. Authorized delegation of authority. 212 To the extent permitted by District and federal laws, the Mayor may delegate to any 213 Authorized Delegate the performance of any function authorized to be performed by the Mayor 214 under this resolution. 215 Sec. 10. Limited liability. 216 (a) The Bonds shall be special obligations of the District. The Bonds shall be without 217 recourse to the District. The Bonds shall not be general obligations of the District, shall not be a 218 pledge of or involve the faith and credit or the taxing power of the District, shall not constitute a 219 debt of the District, and shall not constitute lending of the public credit for private undertakings as 220 prohibited in section 602(a)(2) of the Home Rule Act. 221 (b) The Bonds shall not give rise to any pecuniary liability of the District and the District 222 shall have no obligation with respect to the purchase of the Bonds. 223 (c) Nothing contained in the Bonds, in the Financing Documents, or in the Closing 224 Documents shall create an obligation on the part of the District to make payments with respect to 225 the Bonds from sources other than those listed for that purpose in section 7. 226 (d) The District shall have no liability for the payment of any Issuance Costs or for any 227 transaction or event to be effected by the Financing Documents. 228 (e) All covenants, obligations, and agreements of the District contained in this resolution, 229 the Bonds, and the executed, sealed, and delivered Financing Documents and Closing Documents to 230 11 which the District is a party, shall be considered to be the covenants, obligations, and agreements of 231 the District to the fullest extent authorized by law, and each of those covenants, obligations, and 232 agreements shall be binding upon the District, subject to the limitations set forth in this resolution. 233 (f) No person, including, but not limited to, the Borrower and any Bond owner, shall have 234 any claims against the District or any of its elected or appointed officials, officers, employees, or 235 agents for monetary damages suffered as a result of the failure of the District or any of its elected or 236 appointed officials, officers, employees or agents to perform any covenant, undertaking, or 237 obligation under this resolution, the Bonds, the Financing Documents, or the Closing Documents, 238 nor as a result of the incorrectness of any representation in or omission from the Financing 239 Documents or the Closing Documents, unless the District or its elected or appointed officials, 240 officers, employees, or agents have acted in a willful and fraudulent manner. 241 Sec. 11. District officials. 242 (a) Except as otherwise provided in section 10(f), the elected or appointed officials, officers, 243 employees, or agents of the District shall not be liable personally for the payment of the Bonds or be 244 subject to any personal liability by reason of the issuance, sale or delivery of the Bonds, or for any 245 representations, warranties, covenants, obligations, or agreements of the District contained in this 246 resolution, the Bonds, the Financing Documents, or the Closing Documents. 247 (b) The signature, countersignature, facsimile signature, or facsimile countersignature of 248 any official appearing on the Bonds, the Financing Documents, or the Closing Documents shall 249 be valid and sufficient for all purposes notwithstanding the fact that the individual signatory 250 ceases to hold that office before delivery of the Bonds, the Financing Documents, or the Closing 251 Documents. 252 Sec. 12. Maintenance of documents. 253 12 Copies of the specimen Bonds and of the final Financing Documents and Closing 254 Documents shall be filed in the Office of the Secretary of the District of Columbia. 255 Sec. 13. Information reporting. 256 Within three (3) days after the Mayor’s receipt of the transcript of proceedings relating to 257 the issuance of the Bonds, the Mayor shall transmit a copy of the transcript to the Secretary to the 258 Council. 259 Sec. 14. Disclaimer. 260 (a) The issuance of Bonds is in the discretion of the District. Nothing contained in this 261 resolution, the Bonds, the Financing Documents, or the Closing Documents shall be construed as 262 obligating the District to issue any Bonds for the benefit of the Borrower or to participate in or assist 263 the Borrower in any way with financing, refinancing, or reimbursing the costs of the Project. The 264 Borrower shall have no claims for damages or for any other legal or equitable relief against the 265 District, its elected or appointed officials, officers, employees, or agents as a consequence of any 266 failure to issue any Bonds for the benefit of the Borrower. 267 (b) The District reserves the right to issue the Bonds in the order or priority it determines in 268 its sole and absolute discretion. The District gives no assurance and makes no representations that 269 any portion of any limited amount of bonds or other obligations, the interest on which is excludable 270 from gross income for federal income tax purposes, will be reserved or will be available at the time 271 of the proposed issuance of the Bonds. 272 (c) The District, by adopting this resolution or by taking any other action in connection with 273 financing, refinancing, or reimbursing costs of the Project, does not provide any assurance that the 274 Project is viable or sound, that the Borrower is financially sound, or that amounts owing on the 275 13 Bonds or pursuant to the Loan will be paid. Neither the Borrower, any purchaser of the Bonds, nor 276 any other person shall rely upon the District with respect to these matters. 277 Sec. 15. Expiration. 278 If any Bonds are not issued, sold, and delivered to the original purchaser within three (3) 279 years of the date of this resolution, the authorization provided in this resolution with respect to the 280 issuance, sale, and delivery of the Bonds shall expire. 281 Sec. 16. Severability. 282 If any particular provision of this resolution, or the application thereof to any person or 283 circumstance is held invalid, the remainder of this resolution and the application of such provision 284 to other persons or circumstances shall not be affected thereby. If any action or inaction 285 contemplated under this resolution is determined to be contrary to the requirements of applicable 286 law, such action or inaction shall not be necessary for the purpose of issuing the Bonds, and the 287 validity of the Bonds shall not be adversely affected. 288 Sec. 17. Compliance with public approval requirement. 289 This approval shall constitute the approval of the Council as required in section 147(f) of the 290 Internal Revenue Code of 1986, as amended, and section 490(k) of the Home Rule Act, for the 291 Project to be financed, refinanced, or reimbursed with the proceeds of the Bonds. This resolution 292 approving the issuance of the Bonds for the Project has been adopted by the Council after a public 293 hearing held at least seven (7) days after publication of notice in a newspaper of general circulation 294 in the District. 295 Sec. 18. Transmittal. 296 The Council shall transmit a copy of this resolution, upon its adoption, to the Mayor. 297 Sec. 19. Fiscal impact statement. 298 14 The Council adopts the fiscal impact statement of the Chief Financial Officer as 299 the fiscal impact statement required by section 4a of the General Legislative Procedures Act of 300 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1- 301.47a). 301 Sec. 20. Effective date. 302 This resolution shall take effect immediately. 303 DC Hebrew Language Charter School (Sela) Revenue Bond Project FACT SHEET DC Hebrew Language Charter School Inc (Sela) has requested that the District of Colum bia issue up to $15,000,000 of 501(c)(3) revenue bonds, refinancing, and renovations to support construction projects at 6 015-17 Chillum Place NE Washington, DC in Ward 4. The Applicant Opened in 2013 in DC’s Ward 4, Sela Public Charter School has a diverse student body and faculty that reflects the multicultural and vibrant dynamics of the nation’s capital. "Global citizenship" education is a key school focus. It includes the development of student skills in communication (including learning a foreign language), collaboration, critical thinking, and creativity. It also includes an emphasis on building empathy and emotional intelligence, perspective taking, and learning about other cultures. Sela has been recognized as a high-performing school by the DC Public Charter School Board. The school offers an academically rigorous curriculum, including daily Modern Hebrew studies, that lead to a high level of language proficiency. Proposed Project DC Hebrew Language Public Charter School (Sela) project consists of refinancing the bridge loan used to purchase the existing school property and approximately $ 4 million in renovations. DC Hebrew Language Public Charter School (Sela) Fact Sheet February 2023 2 Financing Plan A summary of the pro posed sources and uses of funds is attached (see Table 1). Total Cost Tax-exempt Bond Proceeds Taxable Loan Equity Refinancing/Refunding $7,825,000 Building Renovation $6,000,000 Up-frontfees/Other Issuance costs $220,000 $280,000 Contingency $955,000 TOTAL $15,000,000 $280,000 Feasibility/Structure/Security of the Bonds A commitment letter to provide a direct pay letter of credit was included in the application from ConnectOne, who will also serve as underwriter. The bonds will be repaid at a synthetically fixed interest rate (to be determined based on market conditions) over 25 years (with payments beginning one year after closing). A Bond Trustee has not been selected. Bonds will be a general obligation of DC He brew Language Public Charter School (Sela) and will be repaid primarily by revenues from tuition . Legal and Regulatory Affairs The law firm of Orrick , Herrington, & Sutcliffe bond counsel to the Revenue Bond Progra m, has preliminarily determined that DC He brew Language Public Charter School is a 501(c)(3) organization and that the project constitutes a permissible undertaking within the meaning of Section 490(a)(1) of the District of Columbia Home Rule Act. The Office of Planning, Office of Tax and Revenue and Department of Employment Services, Department of Consumer and Regulatory Aff airs have all approved the application. Based upon the information set forth in the application, the Reve nue Bond Program staff has determined that the proposed project complies with criteria for approval of a proposed financing transaction through the District’s Revenue Bond Program and will assist the Borrower in furthering its organizational mission. GOVERNMENT OF THE DISTRICT OF COLUMBIA OFFICE OF THE ATTORNEY GENERAL Commercial Division Tax & Finance Section MEMORANDUM TO: William Liggins Director, Revenue Bond Program Office of the Deputy Mayor for Planning and Economic Development FROM: Patrick Allen Senior Assistant Attorney General Commercial Division DATE: Fe bruary 23, 2023 SUBJECT: Legal Sufficiency Certification of the “D.C. Hebrew Language Charter School d/b/a Sela Public Charter School Revenue Bonds Project Approval Resolution of 2023”. This is to certify that the Office of the Attorney General has reviewed the above- referenced resolution and found it to be legally sufficient . If you have any questions in this regard, please do not hesitate to call me at (202 ) 724-7754. _________________________________ Patrick Allen Senior Assistant A ttorney General