by Max Marbut
Staff Writer
The Jacksonville Economic Development Commission is trying to help a private, church-based K-12 school save some money on its operating costs.
At Tuesday’s City Council meeting, the JEDC requested that the Council approve an industrial development revenue bond (IRB) issue of up to $10.25 million to provide funds to finance the acquisition of building facilities and improvements to Providence Schools of Jacksonville, Inc. Providence School is described on its Web site as a ministry of New Life Christian Fellowship on Hodges Boulevard.
Providence Schools requested the funds in order to purchase the school’s 135,000 square-foot building — New Life Christian Fellowship — said Jimmy Johns, Providence School chief financial officer. The school will enter a long-term lease with New Life in respect to the real property on which the building is located.
“In essence, the school will own the building. This bond issue will help lower the overall operating costs for the school, which will allow the school to set aside money for future improvements,” said Johns.
Ginny Walthour, JEDC media and public relations manager, said that AmSouth Bank will provide the funds and will hold a mortgage on the school’s building as security. The City and JEDC will incur no liability for payment of any debt service related to the bond issue.
She also said that the JEDC has obtained similar funding for projects related to other not-for-profit organizations including The Bolles School, Sea Coast Christian Academy, Episcopal High School, the YMCA and Goodwill Industries.
“The City’s interest is that the funding go forward as tax-exempt funding,” said Walthour. “It’s a way to help them save some money on interest.”
Paul Crawford, deputy director of the JEDC, said that neither the City nor the Commission have any financial stake in the project.
He added, “In no way does it impact our bond rating, ability to bond or any involve any moneys from the City or the JEDC.”
A public hearing concerning the bond issue will be held Aug. 31 at 10 a.m. in the JEDC’s 14th-floor conference room at the City Hall Annex.