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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />CLERK OF COUNCIL USE ONLY: <br />JULY 7, 2008 <br />TITLE: <br />TEFRA ON ISSUANCE OF TAX EXEMPT <br />BONDS FOR CHARTER PUBLIC SCHOOL <br />FACILITY ANDS RESOLUTION EXECUTING <br />JOINT POWERS AGREEMENT AND <br />APPROVING THE ISSUANCE OF BONDS <br />CITY MANAGER <br />APPROVED <br />^ As Recommended <br />^ As Amended <br />^ Ordinance on 151 Reading <br />^ Ordinance on 2"d Reading <br />^ Implementing Resolution <br />^ Set Public Hearing For_ <br />CONTINUED TO <br />FILE NUMBER <br />RECOMMENDED ACTION <br />1) Conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing <br />in consideration of the issuance of tax exempt bond financing by the <br />California Municipal Finance Authority on behalf of the Orange County <br />Educational Arts Academy, a public charter school, for the purpose of <br />the acquisition, construction, and improvement of property located at <br />825 North Broadway, Santa Ana. <br />2) Adopt a resolution authorizing the execution of a joint powers <br />agreement with the California Municipal Finance Authority (Authority) <br />and approve the issuance of revenue bonds by the Authority in an <br />amount not to exceed $11,500,000 for the purpose of acquisition, <br />construction, and improvement of property located at 825 North <br />Broadway, Santa Ana. <br />DISCUSSION <br />The Orange County Educational Arts Academy (OCEAA), a public charter <br />school, is seeking to purchase the building they currently occupy at 825 <br />North Broadway, Santa Ana. The public school facility is 43,400 sq.ft <br />building with 24 classrooms, kitchen, and cafeteria. It provides <br />instruction to approximately 500 students from kindergarten thru eighth <br />grade. <br />In order to purchase and gain favorable tax exempt financing, OCEAA has <br />requested the assistance of the California Municipal Finance Authority <br />(Authority). The Authority, which was established in 2004, was formed to <br />assist local governments and non-profit organizations and businesses with <br />the issuance of taxable and tax exempt bonds with the goal to promote <br />economic, cultural, and community development. To date over 75 <br />municipalities are members of the Authority. <br />However, in order for the Authority to have the authorization to serve as <br />the issuer of the bonds, the City of Santa Ana must become a member of <br />75C-1 <br />