2008-053 - Execution of a Joint Exercise of Powers Agreement

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F. Orange County Educational Arts Academy, a California nonprofit public benefit corporation (the "Borrower"), has requested that the Authority issue and sell revenue bonds in the maximum principal amount of $11,500,000 (the "Bonds") for the purpose of making a loan to the Borrower, to enable the Borrower to finance the costs of the acquisition, construction and improvement of an approximate 43,400 square foot charter public school facility to serve grades K through 8 and house related administrative and other support functions, located at 825 North Broadway, Santa Ana, California (the "Project"); and, G. In order for the interest on the Bonds to be tax-exempt, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires that an "applicable elected representative" of the governmental unit, the geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the Bonds following such hearing; and H. The Authority has determined that the City Council is an "applicable elected representative" for purposes of holding such hearing; and, I. The Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Agreement; and, J. Notice of such public hearing has been duly given as required by the Code, and this City Council has heretofore held such public hearing at which all interested persons were given an opportunity to be heard on all matters relative to the financing of the Project and the Authority's issuance of the Bonds therefor; and K. It is in the public interest and for the public benefit that the City Council approve the issuance of the Bonds by the Authority for the aforesaid purposes. Section 2. The Agreement is hereby approved and the City Manager is hereby authorized and directed to execute said document, and the Clerk of the Council is hereby authorized and directed to attest thereto. Section 3. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental unit having jurisdiction over the area in which the Project is located in accordance with Section 147(f) of the Code and (b) by the City in accordance with Section 4 of the Agreement. Resolution No. 2008-053 Page 2 of 4