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Einstein sells $6.4M in bonds

Funds to help purchase property, expansion of complete facility

Posted: November 28, 2012 2:00 a.m.
Updated: November 28, 2012 2:00 a.m.
 

The Albert Einstein Academy for Arts, Letters and Sciences has completed the sale of $6.395 million in bonds issued to finalize the purchase of the property on Kelly Johnson Parkway that houses Einstein Academy.

The bond money will also pay off the expansion of the facility that was completed last summer.

Jeffrey Shapiro, the head of Einstein’s foundation, said Tuesday the quick turnaround of the bonds demonstrates the kind of support there is for the charter school.

“This shows that both our finances and our educational program are stellar,” Shapiro said.

Einstein received approval to issue $5.5 million of those bonds at the Sept. 25 meeting of the Santa Clarita City Council.

The $5.5 million in private bonds were issued by the California Statewide Communities Development Authority on behalf of Einstein Academy.

Shapiro said Tuesday that the original plan was to request council approval to issue the full $6.395 million in bonds, but due to an error with the filing the resolution put before the council only asked for $5.5 million.

While Einstein was still able to issue the full amount of bonds, the discrepancy was made up by selling bonds that are not tax exempt, Shapiro said.

Shapiro also said the error ended up having only a small financial impact on Einstein.

Due to provisions in the tax code, the city had to approve Einstein’s issuance of the bonds, even though the city itself assumed no financial liability for them.

“The city is not on the hook at all for any of Einstein’s loans,” said Darren Hernandez, the city’s director of administrative services and deputy city manager. “We’re just fulfilling our requirements under the tax code.”

Hernandez said the city has to approve bonds of this type to have some sort of regulatory control over their issuance.

Einstein also recently had a charter to provide education at all grade levels approved in San Diego County. Shapiro said another bond proposal may be on the table to fund land purchases or construction to that end.

lmoney@the-signal.com

661-287-5525

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