California: County Approves up to $140 Million in Bond Issuances for Expansion of Chabad Hebrew Academy

LOS ANGELES, CA — Two proposed tax-exempt bond issuances valued at up to $340 million were approved on consent by the board of supervisors Tuesday but how much demand there will be for this debt is an open question.

The instruments include up to $200 million in order to refinance and refund costs associated with the new 330-bed inpatient tower at Sharp Memorial Hospital in Kearny Mesa; and up to $140 million for an expansion of the Chabad Hebrew Academy plus the addition of a dormitory for at least a couple hundred students at its Poway location at 10785 Pomerado Road.

The $140 million Chabad bond issuance for the Hebrew Academy is by Walnut Creek-based California Statewide Communities Development Authority, another nonprofit corporation. The proceeds of the bonds are to be used for acquisition, construction, improvements, furnishing and equipping the academy and its dormitory

Along with the dormitory, the work is to include a student center, new classroom facilities, a gymnasium and a pre-school. Chabad officials couldn’t be reached for comment.

The Chabad Hebrew Academy is an entity of the Friends of Chabad Lubavitch, San Diego, a California corporation. The entity said on its Web site that it has 20 community centers, multiple school and pre-school facilities and a summer camp in the county.

Terrence Murphy, a California Statewide Communities program manager, said it looks like the bonds for the Hebrew Academy expansion will be issued in June, but whether it happens then will depend on market conditions.

The academy may need to expand, but the bonds must be sold first. The bond issuances come at a time when it may be the worst period for municipal bond investors since 1999.

Article is from Yahoo News. Click here to read the article in its entirety.