Um before the council acts on them.

The record in this matter will close at four five p.m.

on May 18th, 2026.

So we have a lot of witnesses.

Although I'm guessing it's probably about four or five percent.

I think revenue bonds project approval reserve.

Did you sign executive officer advisor and Darren Glimp, partner at ORC, Harrington and Sutcliffe LL table?

I'm fine.

And is Ms.

Dalton here?

Okay.

Um, and uh for the record, you're Patricia.

Otherwise known as Pat.

Um please proceed.

Good morning, Chairman Mendelssohn.

I am Pat Brantley of Friendship Public Charter School.

I'm here today to request the council's approval of up to 90 million in tax exempt revenue bonds, and to explain why this bond issuance is both warranted and prudent.

Friendship is a 15 campus public charter school network serving 4,600 students and employing over 1,000 staff across wards four, five, six, seven, and eight.

Our mission is straightforward, ensure that every child who walks through our doors has access to an excellent education.

Facilities are not incidental to that mission.

They are the infrastructure for it.

The council has been a partner in building that infrastructure.

Your prior approvals of bond issuances total well over $100 million, open across the district rates.

Interest rates that preserve dollars for teaching, learning, and student support rather than debt service.

We have a triple B stable bond rating and a demonstrated record of managing public resources effectively.

These bonds have never constituted a liability of the district, and that will remain true today.

The 90 million we're requesting serves two distinct purposes.

First, $65 million will refinance existing series 2016A bonds at lower current rates.

The resulting debt service savings will both free resources for direct investment in students and offset the carrying costs of the new capital financing that I will describe next.

So, second, 25 million will fund our most pressing capital needs.

The repairs and improvements we can no longer defer.

This includes HVAC systems, roofing, security infrastructure, and modernization of classrooms and instructional space across our oldest buildings, buildings that are nearing 30 years without a full renovation, along with the associated cost of issuance.

This bond financing allows us to address some of our most critical facility needs without further drawing down the operating resources our students depend on today.

And I do want to clarify our request is for renovation and refinancing, not for acquisition.

The data are clear that building conditions affect outcomes.

Schools with functional modernized facilities see measurable improvements in attendance, teacher retention, and academic performance.

Our students, the majority of whom are deemed at risk, deserve learning environments that reflect their worth and their potential.

The bonds will not constitute a debt or liability of the district.

Repayment is friendship's sole obligation.

Thus what we are asking for is the mechanism of issuance, not the money.

On behalf of our students, families, and educators, I thank the council for this opportunity and for your continued commitment to the children of Washington, D.C.

I welcome any questions you might have.

And for the record, I am joined here with borrowers' counsel, Darren Glimp of Oric, and also in the audience, we have Catherine Sanwo, our chief financial officer, and James Waller, our Chief of School Operations, in case you have any detailed questions.

Thank you.

Thank you, Miss Brantley.

Um I do have a few questions.

I'm probably going to ask similar questions for everyone who comes, every applicant who comes forward.

First question, is there any controversy around this that you know of?

I'm not aware of any controversy.

In fact, we've heard really positive results.

Essentially, every percent we save in interest or debt service annually amounts to over a million dollars in debt service savings.

So any opportunity like this one where we get to reduce our overall debt interest rate is a savings.

Second question.

Are there any changes to the legislation?

The only thing that I would clearly specify is that the total of up to 90 million is 65 million for refinance and 25 million for improvements, repair, and renovation of existing properties.

I think there was a mention of acquisition, which is not part of what we are doing with this bond financing.

Specifically, Minnesota.

Yes.

Specifically, you read an address of Minnesota Avenue.

That is not part of this request.

Give me a second.

So I think we took that information from a fact sheet to dump had prepared that was attached to the legislation.

Yes.

And so what would be helpful to us is if we got a revised or correct sources and uses table?

If you could provide that.

Yeah, no, and we can do that.

At the time we submitted the resolution, we had submitted a bid for that property, but during the last say two months, well, last few months, the bid was rejected.

So that's the reason why we're letting you know that it will not be part of our capital plan.

But at the time that we submitted the resolution and the bond application, it was part of the plan because we had submitted a bid for that property.

And we do have a revised sources and uses that we can send immediately.

Okay.

Um and I have not looked carefully at the legislation itself.

I was going to ask council this question whether there need to be any um uh drafting changes to the resolution.

No, not at this time.

So did the resolution is correct.

That is correct.

It is correct.

But uh, but we'll get a revised sources uses.

That is correct.

Um last question is um timing.

So before the hearing, I was discussing with Mr.

Stum to my left, how we're gonna move this legislation.

This is true for everybody.

Um, I think we have three options, so you you're not looking for any changes.

There are a couple where we know there'll be some changes.

Um we are able, uh my understanding I will double check this with councils who were able to make changes that doesn't apply to you guys.

Um the question then is whether we move it as freestanding legislation, we move it as a package with all eight, or we move it as part of the budget support act, which requires two votes and will be voted on in June um 9th.

I think it's the first vote.

The second is June 23rd.

So my question is what is your need for timing or urgency?

I think we are seeing rates right now that are favorable, and I don't know that they hold if we go much longer.

And so the preference would be for freestanding if that makes the timing.

Well, one person who does the freestanding legislation is also doing the budget, so yes, no, I know I know if I can add to that is that we do have a commitment from a bank that will expire at the end of June.

So we're scheduled to close this bond deal on June 24th.

So we were hoping that we could get this approved at least no later than your legislative section.

Legislative meeting the first Tuesday of June.

I won't ask when we got this.

Your closing is scheduled for when, June?

June 24th.

Any other questions?

I'm being told the resolution does um make reference to acquisition.

So there would need to be some correction there.

Okay.

I mean, is it for you planning?

I mean, we don't have to use that.

I guess it's basically.

Other questions for you.

Officer Jerry, TC, uh, you're Ms.

Here, Miss Gonzalez.

Executive Officer.

All right.

Uh Chairman, thank you for this opportunity to present testimony for district completing the required public TEFRA hearing and this city council committee of the whole hearing.

My Nessa Gonzalez, I'm the Chief Financial Officer of DC Preparatory Academy with home offices located at 23 30 Pomeroy Road, southeast in the district.

We operate including it to be financed with the process of this bond.

Our owned property we are requesting in aggregate amount series 2026 to be issued.

Will be used to make a loan to refinance or reimburse the borrower for certain acquisition, renovation, equipping, and development of our approximately 42,000 square foot public charter school facility, funding certain working capital costs to the extent financeable relating to the bonds, funding any credit enhancement costs, liquidity costs, or debt service reserve fund relating to the bonds, and paying cost of issuance and other related costs.

So I do need a copy of your statement, Skinsales, if you would provide that.

And is there any controversy that you know of around this bond issuance?

There is no controversy we know of.

Our staff are thrilled about the designs for the new home.

Okay.

Um is the resolution uh correct, accurate, in proper form, no changes necessary.

No changes, no changes necessary.

Um, and what is your need for timing?

We've penciled in June 17 for a close date.

Uh we our target is no later than June 30th, which is the end of our fiscal year.

Your pencil date was June 17th, you said?

Yeah.

Yes.

Uh preclosing schedule for the 16th, and the actual closing funding would be on the 17th.

I don't have any other questions for you.

Uh be sure to give us your statement.

Thank you very much.

Um, thank you.

Uh we're going to turn to 26-670, which is Food and Friends Inc.

Revenue Bonds Project.

I didn't mention any names.

Carrie Stolz Stolfis, who is Chief Executive Officer, George Bedner, Chief Operating Officer.

Uh, he's here for questions.

I'm the only one reading a statement.

Uh Rebecca Monzi, principal with she's on video with uh uh Freedliner Miss.

She's participated at paying by video.

I'm David Astro from Freedliner Messer.

You're David Astro, yes, and I'll be here.

Okay.

It looks you're the same firm, so you know Miss Monzi.

Yes.

And uh Andy Crane, Director of Construction Services, here in the audience, Ms.

Scott Kaufman, Executive Vice President, JMZL Partners.

Okay.

Um, I'm guessing Ms.

Dolph is that you are the only one who has a statement.

I am.

Go for it.

Thank you.

Good morning, Chairman Mendelson.

My name is Carrie Stoltzfus, and I'm the Chief Executive Officer of Food and Friends.

Our outside counsel, David Astro of Friedland or Missler is accompanying me today.

As you and your colleagues on the council know, Food and Friends provides medically tailored meals, medically tailored groceries, and nutrition counseling to those living with serious and chronic illness in DC and across the metro region.

I'm here to represent food and friends in connection with its bond application.

We ask that the council approve the issuance of up to 15 million dollars in tax exempt revenue bonds on the organization's behalf.

The bonds will not constitute a debt or liability of the district.

Food and friends will be responsible for the repayment of the bonds.

Founded in 1988 and operating from our current location at 219 Riggs Road Northeast since 2004, the organization is organized as a nonprofit organization under Section 501c3 of the Internal Revenue Code.

The organization intends to utilize bond proceedings for the purpose of financing capital improvements to the organization's campus, purchasing equipment and furnishings for the facility, funding a portion of interest on the bonds, credit enhancement costs, and paying the costs of issuance and other related costs for the bonds.

Food and Friends is firmly rooted in the District of Columbia.

In 2025, we served nearly one million meals to more than 3,000 of our neighbors living in DC.

36% of the organization's employees or 50% are district residents.

We also have the support of 1,440 annual volunteers and nearly 4,000 annual donors who live in DC.

The expansion of our facility will enable us to more than double our services over the coming years.

The need is there, and we have reached the capacity limits of our current building.

As we often say, anyone can get sick and everyone can help.

This approval will ensure our ability to remain in our DC home in the decades to come and to continue to deliver hope one meal at a time to those in need of our services in the District of Columbia.

Thank you very much, and I'm happy to answer any questions.

So I have the same question for you that I've asked of others.

Do you know of any controversy around this?

No, not that we're aware of.

We've had great community support.

And is the resolution the legislative language in proper form accurate so forth?

Any changes needed to it?

None are necessary.

And what is your timing or urgency?

Um we hope to be on the June 2 legislative agenda with a closing in mid-June and a groundbreaking in mid-July.

All right, well, that answers that question.

Uh let me just say June 2nd could be difficult for us, but um hopefully not everybody has the same answer, but we'll find out.

Um, you're good.

Okay.

I don't have any other questions for you.

Thank you.

Yes, thank you.

So we will turn to PR 26-675, which is Provident Group Bison Properties, Inc.

Revenue Bonds Project Approval Resolution, and who do we have here?

Jasmine Brown.

Uh actually before yeah, you are good afternoon.

Uh, Christopher Hicks, Presidents.

I think we have a non-applicant witness first if they're here.

Jasmine Brown.

Don't we have a help of the Jesse?

What do you mean?

We all need to be one about project managers who might be.

Oh, okay.

So these are the names I have.

Jasmine Brown, Cash Weir, Paralegal with Provident Resources Group.

That is our paralegal who filed some of the testimony on our behalf.

Okay.

Who's not here?

Correct.

And Jamie Boyd, general counsel.

She's our general counsel from Provident, who's also not in attendance today.

Okay.

And Chris Hicks, that is you.

Yes, sir.

And you're looking lonely there.

G.

Paris from Howard.

Chai.

It's virtual.

Castell Abner.

Castell is from Mince Levin.

They're our local counsel.

Um she had plans to sit in for me today, but I was able to make the trip, so.

Okay.

And Mr.

Glimp.

Why don't you come to the table?

I'm tired of seeing you sitting behind the ropes here.

Am I sitting there?

Okay, and you have a why don't you proceed?

Sure.

Um, again, my name is Chris Hicks.

Um president CEO of Provident Resources Group.

We are the sole member of Provident Group Bison Properties Inc., the borrower in this transaction.

Um we are here today in connection with the borough's request that the District of Columbia approve the issuance of up to 575 million in tax exempt and/or taxable revenue bonds.

The borough intends to use the proceeds of the proposed bonds as follows.

First, to refund the district's revenue bonds, Provident Group Bison Properties Inc.

Series 2022 that were issued to refund prior bonds issued by the district, the proceeds of which were used for the purpose of acquiring from Howard University long-term leasehold interests in certain student dormitories, known as the Axis, located at 22 West in DC.

For up the Harriet Crangle, located at 2350 and 2455 4th Street Northwest, and refinance costs related to upgrading and rehabilitating the student dormitories known as Howard Plaza Towers East and West, located at 2251 Sherman Avenue Northwest, Drew Hall, 511 Gresham Place, and Cook Hall, located at 511 Fairmont Street, Northwest.

Second, the acquisition from Howard University of long-term leasehold interests in a student dormitory known as the Mary M.

Bethune NX, located at 2225 4th Street Northwest.

Third, the acquisition from Provident Group Girard Properties Inc., a long-term leasehold interest in a residential affordable rental community, commonly referred to as Howard Manor, comprising 80 rental housing units located at 654 Girard Street Northwest in Washington, DC.

And in connection therewith, the refunding of the district's revenue bonds, Provident Group Howard Manor Issue Series 2024, also known as the Howard Manor Bonds.

Those were originally issued in the aggregate principal amount of 13.75 million, pursuant to provisions of Provident Group Girard Properties Inc.

Revenue Bonds Project Approval Resolution No.

25-0538, adopted by the council June 25th, 2024, and the refinancing of certain existing indebtedness of Provident Group Girard Properties Inc., the proceeds of which were used to finance certain costs related to the acquisition and renovation of Howard Manor.

Fourth, the payment of certain deferred maintenance, capital improvements, equipment, and furnishings at the aforementioned student dormitories.

I would note that the application and bond resolutions were amended to correct a few typos and include use of proceeds for the second and third items listed above, as well as to add contingency for increased costs in connection with upgrading and rehabilitating the student dormitories.

Particularly due to current market conditions, it is imperative that we restructure and refinance the Howard Manor Bonds and related debt of Provident Group Girard Properties Inc., as doing so will allow the project to be available to affiliates of Howard University, expanding the base of eligible tenants.

The collective changes include increasing the application proposed tax exempt bond issuance by approximately 143 million from 432 million to 575 million, specifically in connection with the second and third items listed above.

The use of proceeds of the proposed bonds for refinancing 39 that's have increased from as related to be owned, operate District of Columbia Nonprofit Corporation tax under 501A of the Internal Revenue Code of 1986 as amended and as an entity organized under 501c3 of the code.

The borough is a supporting organization of Provident Resources Group Inc., also known as Provident, a Georgian nonprofit corporation.

Provident is an established national 501c3 organization committed to development, ownership, and operation of state of the arts that serve to advance education, lessen the burdens of government, promote health care, meet the needs of the elderly, and relieve the poor through the provision of safe, decent and affordable housing.

Over the past 26 years, Provident has operated Provident approximately 5.4 billion of higher education assets under management, including approximately 40,000 beds of student housing or so under development.

You just said uh Provident has, I think you said 5.4 billion of higher education.

Yes, sir.

I'm sorry, I that was as of October.

We've updated the statistics.

We can provide a revised testimony if you'd like to.

If you would, right, revised, okay.

As everyone here is aware, Howard University was founded in 1867 as an independent nonprofit, coeducational, non-sectarian institution of higher education, located principally on three campuses in the District of Columbia and one in Maryland.

Howard's mission is to provide an educational experience of exceptional quality at the undergraduate, graduate, and professional levels of students of high academic standing, while potential and potential with particular emphasis upon educational opportunities for black students.

While Howard impacts the district culturally, educationally, and socially, it is also a major source of economic activity with a workforce of over 7,000, many of whom reside in the district.

Howard is one of the largest private employer employers in the district.

Additionally, Howard's non-payroll outlays combined with the spending of its students and visitors contribute contribute tremendously to the gross city product of the district.

The proposed bonds will maintain the availability of convenient, affordable and safe housing for students and affiliates of Howard University, a major nonprofit academic, thereby contributing importantly to the health, education, prosperity, and general welfare of the district, direct financial burden.

The Barley requests that the district and the bonds will be repaid.

Thank you, Mr.

Hicks.

So do you know of any we're aware of, sir?

What's the timing?

We are moving as swiftly as we can through documentation.

We're hoping to get the bonds priced and closed by the end of the summer.

We don't have a firm date certain as of yet.

Now there's some changes to what the resolution was that was sent to us.

Correct.

And your statement after the paragraph that says fourth goes into what those changes are.

You say the application and biased resolution were amended.

Yes, sir.

And when you say we're amended, I think am I understanding correctly that that means we need to change the resolution to reflect those.

Yes, sir.

The not uh in consideration of adding and re adding Howard Manor to our transaction to roll that into the overall portfolio to fund um capital improvements and deferred maintenance that were outlined through an independent property conditions assessment of all of the all of the halls and properties within the portfolio.

Um they are in need of significant um deferred maintenance.

Um, I would say that Mr.

Chair, we have a draft of that resolution, the amended resolution, so we can provide that to you if you do not have it already.

I don't know if we have a do you have that?

No, no.

Okay, then we can get you a draft of that.

It has been drafted and provided uh to the district, but we can make sure that the revised resolution is provided to you today.

Yes.

Can you give it to us as a red line?

I have a I can give it to you right now as a red line.

Okay.

Why don't you do that?

I love hard copy.

No, don't get up after after I like our copy.

You so badly want to stand up and give it a lot of corner.

Well, you can do it after after I'm done with you.

Um if you can give us a hard copy, but then maybe um email uh you know um, I could do that right after this as well, yes.

Okay, I'll take care of that.

Um now and it will be increased to a total of five hundred and seventy-five million, in my understanding.

That is correct.

Is there because I'm I've not done IRB hearings before.

Um, is there any issue with the district government it being increased like that?

None at all.

Because it's not a liability of the district, it's a liability of province, so the increase will have no impact at all on the district.

It's fiscal, you know, impact.

No fiscal impact.

Isn't there a limit to how much we can do in IRBs in a year?

None at all.

There's no limit under the Home Rule Act regarding uh IRB.

No, no limit, it's unlimited.

Under the Home Rule Act.

Correct.

But there's also federal law that authorizes a separate federal law that authorizes the state to issue IRBs.

That's volume cap for housing.

Patrick's Episcopal Day School Revenue Bonds Project Approval Resolution of 2026.

And I have Rebecca Kim, Chief Financial and Operations Officer at St.

Patrick's of Physical Day School, and Sean Glynn with Aaron Fox Schiff.

You're already there.

Um give me a second.

When you're ready.

Okay, great.

Good afternoon, Chamber Mendelssohn.

Thank you for your time today.

I'm Rebecca Kim, the Chief Financial and Operations Officer of St.

Patrick's Episcopal Day School.

Joining me today is our counsel, Sean Glynn of Aaron Fox Schiff.

We are here to request that the District of Columbia approve the issuance of up to $35.5 million in tax exempt revenue bonds on the school's behalf.

Originally, our request for financing was for $30.5 million, but we have filed an amendment to our bond application to increase the bond amount by $5 million for a new bond amount of up to $35.5 million.

This change is a direct result of the favorable response the school has received from potential lenders.

The school has always had a maximum projected debt amount of $35.5 million for this project, but that total previously included $5 million of taxable debt.

Initial negotiations with lenders indicate a receptiveness to provide more tax exempt debt instead of taxable debt.

As this is tax exempt would be less expensive for the school.

As a result, the school requests that its bond application be increased by $5 million, bond amount of up to $35.5 million.

Founded in the District of Columbia in 1956, St.

Patrick's is a nonprofit independent coeducational day school for children from nursery through grade eight.

The school's mission is to create a diverse and inclusive learning community of students, faculty and staff, and parents with a focus on developing character, advancing human understanding, and promoting academic excellence to shape citizens who live with integrity, empathy, and purpose.

Saint Patrick's strives to create an atmosphere of trust and cooperation in which to nourish each student's growth toward personal integrity and a lifetime of service.

Within this atmosphere, students are encouraged to work collaboratively as well as independently to take other perspectives and to understand and value the differences in our society.

Beyond student development through academics, community service involvement is an integral part of St.

Patrick's program.

The school is a service learning curriculum that Army's Great Patrol, a nearly 50% with a sister school in Haiti, and an over 25-year relationship with Horizons Greater Washington.

Children across all grade levels participate in some aspect of the Salvation Army's Great Patrol program, whether it's making sandwiches, soup, or trail mix for the unhoused.

St.

Patrick's has educated over 4,000 District of Columbia children with 90 children.

For the current school year, St.

Patrick's provided almost $3 million in financial aid to its students.

St.

Patrick's has used the district's revenue bond program several times.

We appreciate the council's support of the revenue bond program as it has allowed us to provide DC residents with a superior educational experience.

Depending on the final debt structure, the school expects to utilize these bond proceeds to refinance the school's series 2016 bonds, the proceeds of which were used to finance improvements to the school's campus, and to finance the development of a new approximately 3033,000 square foot middle school to be located on the school's campus at Whitehaven Parkway Northwest.

Following construction of the new middle school, the school's middle school program will be relocated from the leased facility located at 4590 MacArthur Boulevard, Northwest.

The proposed bonds will add no direct or indirect financial burden or risk to the district government or its citizens.

The bonds would be repaid solely by the school.

Accordingly, we respectfully request that the district approve the issuance of up to 35.5 million and tax exempt revenue bonds.

Thank you for your consideration.

Happy to answer your questions.

Thank you for your testimony.

So are you aware of any controversy around this project?

I am not, sir.

And what is your timing?

So our goal would be to close before the summer recess.

We are very sensitive to the level of interest rates and its impact on our overall project budget and overall debt service.

So we'd like to be able to do that if possible.

So our summer recesses July 15th, that's what you're referring to.

Yes, sir.

Uh other than the amount, are there any other changes or corrections to the resolution?

The resolution is in proper form.

Everything about it is okay.

Yes.

Can you give us a revised sources and use table?

We can certainly supply that.

We've supplied it to the revenue bond program, but we'll make sure you've got you got a okay.

Well, they don't always share, so we do need to change the resolution with regard to the amount.

And that would be the only change to the resolution.

Yes, correct.

That's correct.

Any questions?

Okay, you'll get us revised sources uses table.

We have to change the amount in the resolution.

I think you've answered all my questions.

Thank you very much.

Thank you.

All right, we're turning now to P2C Wonder Plaza Properties Inc.

Revenue Bonds Project Approval Resolution of 2026.

And I have listed here Cash Floyd, Chris Hicks, and Darren Glimp.

And you get Chris Hicks one more time.

Yes, that's okay.

You were you did well last time, so when you're ready.

Once again, I'm Chris Hicks.

I'm president CEO of Provenant Resources Group of PRG Wonderless Transaction.

I'm here in Columbia approved the issuance of up to approximately 350 million in tax exempt and/or taxable revenue bonds.

I would note, Mr.

Chair, in the original testimony that was submitted, 350 million was the number provided.

Uh but as you noted in your opening statement, that number has actually gone to 375 million for the not to exceed amount, and we will submit an amended uh testimony as soon as possible.

Okay.

The borrower intends to use the proceeds of the proposed bonds for the Wonder Plaza project, a mixed use redevelopment of a 1.59-acre site that adaptively reuses a historic industrial building to create a new hub for student life at Howard University.

The development will integrate student housing, a health and wellness and rec center dining and support spaces while increasing density activating the Georgia Avenue corridor and strengthening connections between campus and community.

The Wonder Plaza facilities will be owned, operated, and managed by the borrower or Howard University or their agents.

All the facilities will be used by the borrower and Howard in connection with their educational purposes and in a manner designed to promote and support the function of Howard University.

The borrower is a District of Columbia nonprofit corporation and is exempt from the payment of federal income tax under 501A of the Internal Revenue Code of 86 as amended as an entity organized under 501c3 of the code.

The borrower is a supporting organization of Provident Resources Group Inc., a Georgia nonprofit corporation.

Mr.

Chair, would you want me to repeat myself on some of the background on Provident or Howard into the record, or was it sufficient in my first testimony?

Good question.

No, I don't think you need to repeat.

I appreciate that.

Um the proposed bonds will maintain the availability of convenient, affordable, and safe housing for students and affiliates of Howard University, a major non-profit academically to the health while adding no direct or indirect burden or risk to the district or its citizens.

The borrower respectfully requests that the district approve the issuance of the bonds on its behalf.

The bonds, of course, would not constitute a debt or liability to the district, and the bonds would be repaid solely by the borrower.

Thank you again for your consideration.

A question is as since the timing is the same as the other, which is I if I remember correctly, before the end of the summer, that's correct.

We're targeting the end of July to start construction in August.

The two issuances will be staggered.

They are on similar tracks in August.

Yep.

Um my quick look at 375.

Are there any changes needed to confirm that as well, Mr.

Chair?

It is 375, so then no changes to the end of project description, all regards to resolution looks correct.

Oh, that is correct.

Okay.

I had that incorrect.

Okay.

Um there any tax implications with real complications with this property?

Come forward.

I'm gonna let Rashad go, even though we just talked about it a few minutes ago.

Uh Mr.

Chairman, there could be, depending on the interpretation that OTR takes in these structurings, uh, as we've said before, their view tends to be when provident is uh that they view that as own tax status.

Will they have an asset like this, and therefore it is tax exempt?

Is the property currently it's currently owned by Howard?

It is currently to be owned.

The deed to the property will continue to be owned, rest with Howard University.

And is the property exempt from real property tax now?

Yeah, the property to before was a retail activity, so there may be some parts of it that were taxable.

The property use now will be residential housing for students, and so therefore, clearly tax exempt by virtue of its use.

So with the previous project, my thinking was since it was owned since the property I believe was currently tax exempt.

There's no fiscal impact statement, no fiscal impact if we say this property will continue to be tax exempt.

It sounds like for this project, there may be an argument over the fiscal impact.

Not quite as clean.

In terms of your argument with OTR, I completely agree with your argument that council's intent and the use of the property both say it's tax, it's just we're dealing with this differing interpretation with which I disagree.

And so with the other project, if we just say, well, hey, we mean for this to be tax exempt, there's no score against it.

But here there may be.

I would see where you're going with in this instance requirements and definitions to a very clear student housing use.

So their view of that use in this potential project should also be tax exempt.

I think where they get tripped up is this financing structure has an intermediary that then they tend to view as changing the tax status.

The if if Howard were doing this independent of Provident, I think there'd be zero question about its tax status.

But because Provident is the intermediary, they hold that this right that they they get they have continuously being tripped up despite legislation that clarify that exact point.

Well, if you would think about if we can put some language in here to help you with that argument, very well.

Yes, we will, thank you.

You mean one of you will follow up on it?

Thank you.

And otherwise, I think we're good on this one.

Thank you, Mr.

Chairman.

Thank you.

PR 26-678, which is Harmony DC public charter schools revenue bonds project approval resolution of 2026.

And I have Muhammad Turkey, Chief Executive Officer, Harmony DC.

And Sean Glenn with Aaron Fox Schiff.

And Darren Glimp, who is in the room.

And I have your statement.

Why don't you give it proceed?

Good morning, Chairman Menderson.

My name is Dr.

Mohammeduka.

I'm the Chief Executive Officer of Harleman DC Public Charter Schools.

Joining me is uh Council Sean Glyph with Arnold Fox Chief.

We are here today in connection with Harlem and DC's request that the district of Columbia approve the issuance of up to 17 million dollar in tax exempt revenue bonds on the school's funded in 2014 from JK3 through FIFA.

Currently, the school educates approximately 184 students with a student to teach ratio 9 to 1.

The school employees around 40 full-time thank you tough, and we estimate that we have under 60 DC children during our 12th year history.

Harmony DC takes this continued commitment to academic excellence, community engagement, and institutional stability seriously.

The school SMET and ELA curricular are both related to one.

And we have been using this curricula supportive community that inspires and engages seniors and their caregivers.

In March of 2024, Forrest Hills officially joined the Government Living family of organizations.

Government Living is a highly respected non-for-profit senior living and healthcare services provider based in Alexandria, Virginia.

We serve approximately 4,000 older adults annually across four senior living campuses, including Forest Hills of DC.

This partnership brings tremendous operational resources, financial strength, and innovation to our community while allowing Forest Hills to maintain its separate corporate status and unique DC identity.

We are requesting that the council approve the issuance of up to 13.7 in tax exempt million in tax exempt revenue bonds to accomplish two important objectives.

Number one, first, uh Forest Hills of DC plans to refinance its outstanding tax exempt fixed rate debt, specifically the series 1999 and series 2009 A bonds with a tax-exempt bank loan.

This refinancing is expected to generate annual cash flow savings for the organization.

Second, we intend to secure up to three million dollars in new capital to fund important facility improvements.

Projects include roof repairs and window replacement, building envelope repairs, cooling tower, elevator repairs, chiller and boiler replacements, apartment renovations, and office to apartment uh conversions, and interior carpet replacement and sidewalk repairs.

These improvements will help ensure that we continue to provide quality in a safe and well-maintained environment.

Piper Sandler uh serves serves as our placement agent and recently conducted a competitive request for proposal pro for bank proposals on our behalf.

Following a comprehensive review of our existing debt operations management governance credit profile and market position, the offering was very well received by potential lenders.

We've received three competitive proposals and are currently working to close the transaction with our selective bank.

So Forest Hills is a significant employer in the district of Columbia, currently employing 132 team members.

Of these employees, 46 are district residents, contributing approximately 23,400 in DC unemployment tax revenue and approximately 95.65,677 annually in DC income tax revenue.

Forest Hills of DC is one of the few CMS five-star nursing homes in the district and includes a residents on both Medicare and Medicaid as well as private pay.

We partner closely with local hospital to provide high quality support to meet the needs of the local community.

Our application has received letters of support from prominent community organizations, including the District of Columbia Healthcare Association, the District of Columbia Hospital Association, Tinley Town Main Street, and Van Nest Main Street.

These organizations recognize that Forest Hill of Disease Forest Hills of DC adds value to our community through the excellent quality of care we provide to our residents.

Our support for family members and loved ones of a residents, our role as an employer, offering good jobs and career opportunities, and our active engagement with our neighbors.

So we do want to emphasize, of course, that the bonds will not constitute a debt or liability of the District of Columbia.

The bonds will be a general obligation of the district, will not be a pledge of or involve the faith and credit of the taxing power of the district.

The bonds will be repaid solely by Forest Hills of DC from our pledged revenues.

This financing will enable Forest Hills to achieve meaningful debt service savings, invest critical and critical facility improvements, and continue our over 136 year mission of serving seniors in the District of Columbia.

Refinancing savings will allow Forest Hills to reinvest in our mission in a very meaningful way.

We thank you for the opportunity to present this testimony on behalf of Forest Hills and be pleased to answer any questions you have, sir.

Thank you, Mr.

Smith.

So several questions.

Are you aware of any controversial?

May 7th.

From the Mayor.

Yes, sir.

No changes.

Okay, Wagner, you're the attorney for this.

Not the attorney.

We are the investment banker working on the transaction.

Okay.

Um, but the resolution seems to be accurate.

It's wording no changes are necessary there.

Yes, sir.

Um, when the legislation was transmitted without the mayor, uh was transmitted by the mayor.

Uh there was no sources or uses document.

Can you give us the sources and uses table?

Yes, sir.

We can absolutely provide that.

Sources.

Yes.

I'm not sure I said this at the beginning of the hearing, but we have budget with us right now, so it's like all hands on deck working on the budget for fiscal year 2027, and uh we vote on that June 9th.

So trying to get this on our June 2nd agenda could be difficult.

I'm not saying no, but just could be difficult.

But um, we appreciate any consideration.

Thank you.

That's why I asked the sense of timing.

Uh, I don't have any other questions for you.

Okay.

So thank you very much.

Thank you.

Uh, we will turn now to William Liggins, who's director of the DC Revenue Bond Program, to Deputy Mayor for Planning and Economic Development.

Thank you.

When you are ready, good afternoon, Chairman Mendelson and the committee of the whole.

My name is William Liggins, and I serve as a director of the DC Revenue Bond Enterprise Zone Program within the Office of the Deputy Mayor for Planning and Economic Development.

I am here today to request the council's approval on behalf of the following organizations.

DC Prep Public Charter School, Friendship Public Charter School, the Methodist Home Force Hills, Food and Friends, Provident Group Wonder Plaza, Provident Group Bison Properties, Harmony DC Public Charter School, and St.

Patrick's Episcopal Day School.

The district's revenue bond program administered by the District of Columbia's Office of Planning and Economic Development is an economic development financing tool that enables qualifying entities access to tax exempt or taxable bond financing for eligible projects.

Under the program.

The government of the District of Columbia issues on behalf of a borrower with repayment secured solely by project revenues and the borrower with no recourse to the district's general funds, meaning there's no financial obligation or pledge of the district's credit.

The program is commonly used to support projects for nonprofit organizations, including affordable housing, health care facilities, educational institutions, and other qualified uses helping to borrow lower borrowing costs and facilitate investment and advance the district's economic goals.

From FY20 to FY26, the district's revenue bond program has demonstrated sustained strength, and NPAC has financing tools supporting mission-driven organizations across education, healthcare, housing, and nonprofit sectors, with over $5.1 billion in total closed transactions during this period.

Since 2020, the district's revenue bond program has supported financings for educational entities, nonprofits, health care, and cultural institutions, including Studio Theater, KIPP DC, Trinity College, Howard University, DC Prep, Capital City Public Charter School, Sidwell Friends School, the American College of Cardiology, International Spa Museum, the National Academy of Sciences, Shakespeare Theatre Company, Children's Hospital Foundation, National Public Radio, Vital Voices, Brookings Institution, and many more.

Over the last several years, the program has grown to nearly a billion dollars in economic activity a year.

Collectively, these results demonstrate the program's consistent effectiveness across economic cycles, its critical role in supporting nonprofit and institutional growth, and its particular resilience and importance during times when access to low-cost capital remains essential to maintaining operations and advancing long-term community investment in the district.

With respect to the current District of Columbia Revenue Bond transactions included on this agenda, each of these qualified entities has applied for the issuance of District of Columbia revenue bonds in the amounts outlined in the current resolution packages.

The proceeds from these bonds will be loaned to the organizations to finance, refinance, or reimburse costs associated with eligible projects in accordance with Section 490 of the district's home rule act.

These bonds will be secured solely by the general obligations of the respective organizations and will not constitute a financial obligation or liability of the district.

Based on our review, the revenue bond program staff has determined that the proposed project meets the necessary criteria for approval.

Furthermore, these projects will advance economic development, support education, promote trade and commerce, expand employment opportunities, and contribute positively to the district's communities.

This concludes my testimony.

Thank you, Mr.

Liggins.

Give me just a second.

So Mr.

Liggins, earlier I had asked, I think it was Mr.

Glimp, whether there's any limit in the program.

No, not for our types of bond transactions.

They're not.

And there were, I believe, two of the bond resolutions where there's an increase in the authorized amount.

One was PR 26-675, the bison properties.

And the other was I believe St.

Patrick's?

Yes, uh Bison properties increase from, I think it was four sixty to five hundred and seventy five million.

Yes.

And St.

Patrick's to increase from I believe it was thirty point five to thirty five point five.

That's correct.

Do you have any objections to that?

No objective.

No objections at all.

Speaking on behalf of DemPed.

Yes.

Or the executive.

So there's no objection to that.

I think that uh to buy some properties also had a change I was in an addition of a couple properties, that's why the amount went up.

That is good.

We don't have a problem with that.

Not at all.

And uh and then I had you were present when I asked Howard University about the real property tax.

I can't imagine you would have a problem with our amending resolutions to um if we can to deal with their real property tax issues since Howard University's tax exempt, these buildings are going to be used for dormitories.

But just double checking, you don't have any problem with that.

Not at all.

So it's important you're here because you're the executive that's saying to us, yes, this is all okay, including the testimony today with some changes that are being made.

So I want to thank you for that.

I do not have any other questions for you.

Thank you.

So thank you.

And I think that's going to conclude the uh hearing.

The um several of the witnesses said they would get back to us with stuff, and I trust that they took notes what it was.

I took notes what it was.

So um, I want to thank everybody for their testimony.

As I indicated at the beginning of the hearing or round table, the record will close at five PM on May eighteenth.

So if folks could get us materials by then, I would appreciate it.

The time is one thirty seven p.m.

This round table is adjourned.