PUBLIC HEARING ON PROPOSED PLAN OF FINANCE AND ISSUANCE OF REVENUE BONDS BY ADFA FOR THE BENEFIT OF RESPONSIVEED HOLDINGS, LLC - LITTLE ROCK

SEP, 23 2020

PUBLIC HEARING ON PROPOSED PLAN OF FINANCE AND ISSUANCE OF REVENUE BONDS BY ADFA FOR THE BENEFIT OF RESPONSIVEED HOLDINGS, LLC - LITTLE ROCK

SEP 23, 2020
Department of Commerce Building

#1 Commerce Way
Little Rock, AR 72202

NOTICE OF PUBLIC HEARING ON PROPOSED PLAN OF FINANCE AND ISSUANCE OF REVENUE BONDS BY ARKANSAS DEVELOPMENT FINANCE AUTHORITY FOR THE BENEFIT OF RESPONSIVEED HOLDINGS, LLC

Notice is hereby given, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and Act No. 852 of the Acts of Arkansas of 1987, that a public hearing will be conducted by a representative or representatives of the Arkansas Development Finance Authority (the “Authority”) with respect to the proposed issuance by the Authority of its charter school revenue and revenue refunding bonds in an aggregate principal amount not to exceed $21,000,000 (the “Bonds”), to be issued as part of a plan of finance in one or more series for ResponsiveEd Holdings, LLC (“Holdings”), a Texas limited liability company to be formed by Responsive Education Solutions. The Bonds will be issued as “qualified 501(c)(3)” bonds pursuant to Section 145 of the Code.

The proceeds of the Bonds will be loaned to Holdings and used (a) (i) to finance and/or refinance the costs of leasehold improvements relating to its educational facilities known as West Little Rock Classical Academy and located at 1815 Rahling Road, Little Rock, Arkansas 72223 and to finance and/or refinance the acquisition of such educational facilities and related nearby land located at Tract 209 of Chenal Valley, 27.3605 acres, intersection of Rahling Road and Brionne Lane, northwest corner, (ii) to finance and/or refinance the acquisition of the land on which educational facilities are sited and educational facilities known as Premier High School of North Little Rock located at 801 W. 29th Street in North Little Rock, Arkansas 72114, (iii) to finance and/or refinance the acquisition of the land on which educational facilities are sited and educational facilities known as Northwest Arkansas Classical Academy and Northwest Arkansas Classical Academy High located at 1302 Melissa Road in Bentonville, Arkansas 72712, and (iv) to finance and/or refinance the purchase of land located at SE Dodson Road in Rogers, Benton County, Arkansas, Tax Parcel No. 02-01671-511 (collectively, the “2020 Projects”); (b) to fund a debt service reserve fund; (c) to pay capitalized interest on the Bonds; and (d) to pay certain costs of issuing the Bonds. The 2020 Projects will be owned by Holdings and leased to and operated by Responsive Education Solutions, a Texas nonprofit corporation and organization described in Section 501(c)(3) of the Code, for the continued operation of the identified schools as part of an integrated operation. Responsive Education Solutions, the sole member of Holdings, or Blue Learning, Inc., an affiliate of Responsive Education Solutions and Holdings, is the existing obligor on certain loans to be refinanced with proceeds of the Bonds.

The Bonds will be issued pursuant to Arkansas Code Annotated Sections 15-5-101 et seq., and a resolution to be adopted by the Board of Directors of the Authority and will be secured by and payable solely from certain revenues of Holdings and by a lien on certain real and personal property owned by Holdings. The Bonds will not be secured by or payable from any revenues or property of the Authority, the State of Arkansas or any political subdivision thereof, and will not constitute an indebtedness of the Authority, the State of Arkansas or any political subdivision thereof within the meaning of any constitutional or statutory provision.

Any persons interested may express their views, both orally and in writing, on the proposed issuance of the Bonds before the representative or representatives of the Authority on Wednesday, September 23, 2020, at 9:00 a.m. in the offices of the Authority located at #1 Commerce Way, Suite 602, Little Rock, Arkansas. At such hearing all objections and suggestions will be heard and considered.

September 9, 2020. /s/ Bryan Scoggins President, Arkansas Development Finance Authority