The Walnut Creek City Council on Tuesday approved the issuance of up to $20 million in tax-exempt bonds by a local Christian school to build and equip a new multipurpose facility on its Walnut Creek campus.
NorthCreek Academy and Preschool has submitted an application to the California Enterprise Development Authority to issue the bonds to finance the multipurpose facility at the academy’s Ygnacio Valley Road campus about 2.5 miles east of downtown Walnut Creek. The academy is closely affiliated with the adjacent NorthCreek Church.
The new and/or rehabilitated facilities include a gym, a library, meeting rooms and other related amenities.
The California Enterprise Development Authority is a joint powers authority, its main purpose being to issue tax-exempt and taxable conduit revenue bonds both for non-profit organizations and for small- to medium-sized commercial manufacturers, to pay for land purchases, building construction, facility expansion, new production equipment acquisition, and solar and energy conservation retrofits.
Most California cities and towns (including Walnut Creek), as well as 35 of its 56 counties, are California Enterprise Development Authority members.
The City Council is involved in the process because NorthCreek is within Walnut Creek, and state law requires cities to hold a public hearing to approve the issuance of the revenue bonds before they may be issued by CEDA.
Before their 5-0 vote Tuesday night to approve the bonds being issued, council members were assured that the city will have no financial involvement with the process, and that it is entirely up to NorthCreek to repay the bond debt.