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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />CLERK OF COUNCIL USE ONLY: <br />MAY 6, 2013 <br />TITLE: <br />PUBLIC HEARING ON ISSUANCE OF TAX <br />EXEMPT BONDS FOR TOWN AND COUNTRY <br />MANOR <br />APPROVED <br />? As Recommended <br />? As Amended <br />? Ordinance on 1st Reading <br />? Ordinance on 2nd Reading <br />? Implementing Resolution <br />? Set Public Hearing For_ <br />f-.. <br />CITY MANA ER <br />RECOMMENDED ACTION <br />CONTINUED TO <br />FILE NUMBER <br />Conduct a Tax Equity and Financial Responsibility Act hearing in consideration of the <br />issuance of tax exempt bond financing by the California Municipal Finance Authority on behalf <br />of Town and Country Manor. <br />2. Adopt a resolution approving the issuance of revenue bonds by the California Municipal <br />Finance Authority in an amount not to exceed $8,700,000 for the purpose of making a loan to <br />Town and Country Manor to enable repayment in full and retire the Outstanding Bonds. <br />DISCUSSION <br />Town and Country Manor of the Christian and Missionary Alliance, located at 555 East Memory <br />Lane, has requested the assistance of the California Municipal Finance Authority (CMFA). <br />CMFA, which was established in 2004, was formed to assist local governments and non-profit <br />organizations and businesses with the issuance of taxable and tax exempt bonds with the goal to <br />promote economic, cultural, and community development. The City is a member of the CMFA. <br />In October 1990, the City issued Multi-Modal Interchangeable Rate Health Facility Revenue <br />Bonds (Town and Country Manor Project) Series 1990, to finance the construction of a new wing <br />to house additional residential care apartment units, the construction of a new building to house <br />additional skilled nursing facilities, the relocation of existing intermediate care units and creation <br />of assisted living units in the Town and Country Manor's then existing facility, and the refinancing <br />of outstanding indebtedness incurred in connection with its existing project. At this time, the letter <br />of credit is expiring and Town and Country wants to refinance the existing debt to a lower interest <br />rate. <br />However, in order for all or a portion of the Bonds to qualify as tax-exempt bonds, the City of <br />Santa Ana must conduct a Tax Equity and Financial Responsibility Act (TEFRA) hearing which <br />75C-1