Marin Independent Journal

Marin Academy $27M plan OK’d

Bonds to refinance existing debt, help fund new aquatic center

- By Keri Brenner kbrenner@marinij.com

Marin County supervisor­s approved a financing arrangemen­t for Marin Academy in San Rafael on Tuesday, allowing the private high school to receive $27 million in tax-exempt bonds through the California Public Finance Authority.

The state authority issues taxexempt bonds to nonprofit public benefit corporatio­ns — such as schools or other institutio­ns — for capital improvemen­ts or refinancin­g of existing debt.

“The County of Marin has no financing obligation­s in this project,” Marin County Administra­tor Matthew Hymel said after the hearing concluded with no public comment. “We’re simply providing the public hearing.”

According to Mike Joyce, Marin Academy’s chief financial officer, 90% of the $27 million will be used to refinance existing debt the school is servicing. The rest is for the school’s aquatics center project.

“We are trying to take advantage of lower interest rates today than when the original debt was issued,” Joyce said in an email. “About $2.5 million will be available for MA’s new aquatic center.”

The academy, which has 445 students, is building a 25-yardby-33-meter swimming pool at 1530 to 1534 Fifth Ave.

The total cost of the pool, beyond the $2.5 million that was part of Tuesday’s bond financing approval, is estimated at $9 million.

“The rest of the cost is being sourced from generous contributi­ons to the school,” Joyce said. “We have received an outpouring of support for this project from Marin Academy parents, alumni and our extended school community.”

The pool will have 11 competitio­n lanes and two transition or entry lanes. It will replace a much smaller, 90-year-old pool.

The older swimming pool was a relic from the former San Rafael Military Academy and was used by Marin Academy for the past 40 years.

In addition to the Marin Academy and club water polo teams, the new pool will be used for high school and club competitiv­e swim teams, lap swimming and adult and youth classes.

Mary Collie, head coach of the Marin Academy girls’ water polo team, said the thriving program has outgrown the smaller pool.

“We are so excited to be able to host games and small tournament­s here,” Collie added. “With more players interested in water polo, we are also eager to return to hosting multischoo­l clinics for new burgeoning players from public and private high schools in the area.”

Other classes to be offered include lifeguard and water safety certificat­ion, scuba certificat­ion and student wellness programs.

“I am most excited about the impact that this will have on our entire aquatics program,” said Rob Rafeh, the school’s athletic director. “This new facility will not only accommodat­e all our needs but, more importantl­y, will allow our student-athletes to push themselves to new heights and accomplish­ments.”

In addition to the school and club teams, Marin Academy has partnershi­ps for use of the pool with a range of community groups. Those include Tamalpais Aquatic Masters, an adult swim team;

Tidal Waves, a youth swim team; Tamalpais Tritons, a youth swim team; and Aim High-Crossroads, a summer enrichment program for middle school students from underserve­d communitie­s.

The aquatics center will also include an observatio­n deck, locker rooms and showers. Constructi­on started in March and is estimated for completion next spring.

Tuesday’s bond approval process is part of what is referred to as a TEFRA hearing, after the Tax Equity and Fiscal Responsibi­lity Act of 1983.

“Issuing tax-exempt debt allows the school to pay a lower interest rate because the bondholder­s or investors can exclude interest earnings on the bonds from reportable income on their federal tax returns,” Joyce said. “In order to issue the bonds as tax-exempt, the school must partner with a public agency to issue the bonds. In this case, the issuing agency is the California Public Finance Authority.”

In recent months, several other Marin schools and districts have used this TEFRA process to refinance existing bond debt at a lower interest rate or to secure new loans with tax-exempt status. Those include Branson School in Ross and the College of Marin, and the Tamalpais Union High School District.

 ?? SHERRY LAVARS — MARIN INDEPENDEN­T JOURNAL ?? Tax-exempt bonds issued by a state authority will help fund the ongoing constructi­on of an aquatics center at Marin Academy in San Rafael.
SHERRY LAVARS — MARIN INDEPENDEN­T JOURNAL Tax-exempt bonds issued by a state authority will help fund the ongoing constructi­on of an aquatics center at Marin Academy in San Rafael.

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