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Issuance of taxable bonds by CEDA for Robinson Pharma <br />November 4, 2025 <br />Page 3 <br />5 <br />4 <br />1 <br />5 <br />(Chapter 5 of Division 7 of Title 1 of the Government Code, commencing with Section <br />6500), City Council approval is required for the issuance of the bonds. <br />Conduit revenue bonds are a specialized form of financing in which the borrower, rather <br />than the issuing agency such as CEDA, is solely responsible for repaying the debt. The <br />City has no financial obligation for the repayment of these bonds. In this case, the bonds <br />will be repaid entirely through payments made by the borrower under a loan or financing <br />agreement. The bonds will be purchased and held by a qualified institutional buyer. <br />It is important to note that the bonds do not represent a debt or financial obligation of <br />the Authority, the City of Santa Ana, or any other member agency. Neither the City’s <br />credit, taxing power, nor any public funds are pledged toward repayment of the bonds. <br /> <br />ENVIRONMENTAL IMPACT <br />Section 15061(b)(3) of the California Environmental Quality Act (CEQA) Guidelines <br />provides that CEQA only applies to projects, which have the potential for causing a <br />significant effect on the environment. Where it can be seen with certainty that there is <br />no possibility that the activity in question may have a significant effect on the <br />environment, the activity is not subject to CEQA. The activity at issue is the adoption of <br />a resolution approving the issuance of taxable revenue bonds by CEDA to finance, <br />refinance and/or reimburse the cost of manufacturing facilities for the benefit of <br />Robinson Pharma, Inc. The manufacturing facilities consist of recently constructed <br />82,000 square foot industrial building, that includes 10,000 square-feet of office space. <br />The adoption of the resolution is solely for the purpose of satisfying the requirements of <br />CEDA to issue $40,000,000 in taxable revenue bonds for 3130 South Fairview Street. <br />The City Council’s action does not involve the approval of any physical development or <br />activity that would have the potential for causing a significant effect on the environment. <br />Therefore, the proposed action does not constitute approval of a project under CEQA <br />and is not subject to CEQA. <br />FISCAL IMPACT <br />There is no fiscal impact associated with this action. <br />EXHIBIT(S) <br />1. Resolution approving issuance of California Enterprise Development Authority <br />(CEDA) Bonds <br />Submitted By: Michael L. Garcia, Executive Director - Community Development Agency <br />Approved By: Alvaro Nuñez, City Manager