NOTICE OF PUBLIC HEARING AND BONDS TO BE ISSUED

PUBLIC NOTICE IS HEREBY GIVEN pursuant to the provisions of the Local Building Authority Act, Title 17D, Chapter 2, Utah Code Annotated 1953, as amended, and the Local Government Bonding Act, Title 11, Chapter 14, Utah Code, as amended (together, the “Act”), that on February 20, 2024, the Governing Board (the “Governing Board”) of the Local Building Authority of Canyons School District, Utah (the “Authority”) adopted a resolution (the “Resolution”) declaring its intention to issue its Lease Revenue Bonds, Series 2024 (the “Bonds”), and calling a public hearing to receive input from the public with respect to the issuance of the Bonds.

TIME, PLACE AND LOCATION OF PUBLIC HEARING

The Authority shall hold a public hearing on Tuesday, March 12, 2024 at the hour of 7:00 p.m.  The location of the public hearing is at the District offices of Canyons School District, Utah (the “District”) located at 9361 South 300 East, Sandy, Utah.  The purpose of the hearing is to receive input from the public with respect to: (a) the proposed Bonds and (b) any potential economic impact that the improvements, facility or property financed in whole or in part with the proceeds of the Bonds may have on the private sector.  All members of the public are invited to attend and participate.

PURPOSE FOR ISSUING BONDS

The Authority intends to issue the Bonds to provide funds to (a) finance improvements and upgrades to school facilities and equipment at three high schools and one middle school, and related improvements (collectively, the “Series 2024 Project”); (b) fund any required deposits to a debt service reserve fund; and (c) pay costs associated with the issuance of the Bonds. 

PARAMETERS OF THE BONDS

The Authority intends to issue the Bonds in a principal amount of not to exceed Fifty Million Dollars ($50,000,000), to bear interest at a rate or rates of not to exceed six and one-half percent (6.5%) per annum, to mature in not more than twenty-one (21) years from their date or dates, and to be sold at a price not less than ninety-eight percent (98%) of the total principal amount thereof, plus accrued interest, if any, to the date of delivery of the Bonds.

The Bonds are to be issued and sold by the Authority pursuant to the Resolution, including as attachments to said Resolution forms of a Second Supplemental Indenture of Trust (the “Indenture”) and a First Amendment to Master Lease Agreement (the “Lease”), which were before the Governing Board at the time of the adoption of the Resolution.  The Indenture and the Lease are to be executed by the Authority and/or the Board with such terms and provisions and any changes thereto as authorized by the Resolution.

SECURITY FOR THE BONDS

The Bonds are payable solely from the rents, revenues and other income received by the Authority from the leasing of the Series 2024 Project to the Board on an annually renewable basis (the “Lease Revenues”).

OUTSTANDING BONDS SECURED BY LEASE REVENUES

The Authority currently has $34,825,000 of bonds outstanding secured by Lease Revenues.

OTHER OUTSTANDING BONDS OF THE AUTHORITY

Information regarding all of the Authority’s outstanding bonds may be found in the Board’s audited financial report (the “Financial Report”) at https://reporting.auditor.utah.gov/searchreports/s/.  For additional information, including any more recent than as of the date of the Financial Report please contact Leon Wilcox, at (801) 826-5040.

TOTAL ESTIMATED COST

Based on an estimate of the current interest rate and financing plan, the estimated total debt service cost of the Bonds, if held until maturity, is $67,472,161.

A copy of the Resolution and the forms of Indenture and the Lease are on file in the District offices, located at 9361 South 300 East, in Sandy, Utah, where they may be examined during regular business hours from 8:00 a.m. to 5:00 p.m., Monday through Friday (legal holidays excepted) for a period of at least thirty (30) days from and after the last date of posting of this notice.

NOTICE IS FURTHER GIVEN that a period of thirty (30) days from and after the date of the posting of this notice is provided by law during which (i) any person in interest shall have the right to contest the legality of the Resolution, the Indenture, the Lease, or the Bonds, or any provision made for the security and payment of the Bonds, and after such time, no one shall have any cause of action to contest the regularity, formality or legality thereof for any cause whatsoever, and (ii) active voters (as defined in Section 20A-1-102 of the Utah Code) within the District may sign a written petition requesting an election to authorize the issuance of the Bonds.  If written petitions which have been signed by at least twenty percent (20%) of the active voters of the District are filed with the Authority during said 30-day period, the Authority shall be required to hold an election to obtain voter authorization prior to the issuance of the Bonds.  If fewer than twenty percent (20%) of the active voters of the District file a written petition during said 30-day period, the Authority may proceed to issue the Bonds without an election.

DATED this February 20, 2024.

           /s/ Leon Wilcox

                                                                                      Secretary-Treasurer