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TEFRA Public Hearing for Nova Academy Early College High School June 7, 2016 Page 2 The Project and Facilities are to be owned and operated by the Borrower, the sole member of which is the Foundation, a corporation solely organized and existing under the laws of the State of California and described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, for the benefit of the Lessee. The Borrower has requested the assistance of the California Municipal Finance Authority (the "Authority "). The Authority, which was established in 2004, was formed to assist local governments and non - profit organizations and businesses with the issuance of taxable and tax exempt bonds with the goal to promote economic, cultural, and community development. The City is a member of the Authority. However, in order for all or a portion of the Bonds to qualify as tax - exempt bonds, the City must conduct a public Tax Equity and Fiscal Responsibility Act Hearing (the "TEFRA Hearing ") providing for the members of the community an opportunity to speak in favor of or against the use of tax - exempt bonds for the financing of the Project. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the Project, in this case the City Council, must provide its approval of the issuance of the Bonds by the Authority for the financing of the Project. The Bonds to be issued by the Authority are the sole responsibility of the Borrower. The City has no financial or legal liability for the project or repayment of the Bonds, and the Bonds do not constitute any type of indebtedness for the City. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 — Economic Development, Objective #2 (Create new opportunities for business /job growth and encourage private development through new General Plan and Zoning Ordinance policies). FISCAL IMPACT The Authority shares 25 percent of all issuance fees directly with its member communities. With respect to the City of Santa Ana, it is expected that 25 percent of all issuance fees for this project attributable to the City will be granted by the Authority to the City. Upon receipt, the funds will be deposited in the Micellaneous Revenues, Miscellaneous Recoveries Revenue Account (no. 01102002 - 57010). Robert Cortez Special Assistant to the City Manager City Manager's Office Exhibits: 1. Public Notice 2. TEFRA Resolution APPROVED AS TO FUNDS AND ACCOUNTS: Francisco Gutierrez 00 Executive Director Finance & Management Services Agency 75A -2