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RESOLUTION NO, 2016 -XXX
<br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA
<br />APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA
<br />MUNICIPAL FINANCE AUTHORITY IN ONE OR MORE SERIES IN A
<br />MAXIMUM AMOUNT OF $19,000,000 FOR THE PURPOSE OF FINANCING
<br />THE ACQUISITION OF CERTAIN FACILITIES FOR THE BENEFIT OF
<br />NOVA ACADEMY CHILDREN'S FOUNDATION OR AN AFFILIATE
<br />THEREOF
<br />WHEREAS, pursuant to Chapter 5 of Division 7 of Title I of the Government Code of the
<br />State of California (the "Act "), certain public agencies (the "Members ") have entered into a Joint
<br />Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of
<br />January 1, 2004 (the "Agreement ") in order to form the California Municipal Finance Authority (the
<br />"Authority "), for the purpose of promoting economic, cultural and community development, and in
<br />order to exercise any powers common to the Members, including the issuance of bonds, notes or other
<br />evidences of indebtedness; and
<br />WHEREAS, the City of Santa Ana, California (the "City "), is a Member of the Authority; and
<br />WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose,
<br />among others, of financing or refinancing the construction of capital projects; and
<br />WHEREAS, NOVA Academy, a California nonprofit public benefit corporation ( "NOVA "),
<br />has applied for financing corder the Act, for the purpose of financing the acquisition, construction,
<br />expansion, remodeling, renovation, improvement, furnishing, and equipping of certain charter school
<br />educational facilities to be owned by NOVA Academy Facilities, LLC, a California limited liability
<br />company (the "Borrower "), the sole member of which is Nova Academy Children's Foundation, Inc.,
<br />a California nonprofit public benefit corporation (the "Foundation "), and leased to NOVA (the
<br />"Lessee ") for the use and occupancy of NOVA Academy Early College High School, a charter school
<br />established pursuant to the Charter Schools Act of 1992 (Part 26,8 of Division 4 of Title 2 of the
<br />Education Code); and
<br />WHEREAS, the Lessee has requested that the Authority issue and sell revenue bonds in the
<br />maximum principal amount of $19,000,000.00 (the "Bonds ") in one or more series for the purpose of
<br />making a loan to the Borrower to finance the costs of (a) acquiring land and education and related
<br />facilities located at 500 4B Santa Ana Blvd., City of Santa Ana, County of Orange, California (the
<br />"Facilities "), for use by the Lessee, currently serving students in grades 9 -12; (b) funding a debt service
<br />reserve fund for the Bonds; (c) paying capitalized interest on the Bonds; and (d) paying certain Bond
<br />issuance expenses (collectively, the "Project "); and
<br />WHEREAS, the Borrower will lease the Facilities to the Lessee pursuant to a. Lease
<br />Agreement dated as of August 1, 2016 (or such other data as approved by the Authority) (the "Lease ");
<br />and
<br />WHEREAS, Section 4 of the Agreement provides that the Authority shall not issue bonds with
<br />respect to any project located in thejuuisdiction of one or more member agencies unless the governing
<br />body of any such member, or its duly authorized representative, shall approve, conditionally or
<br />unconditionally, the project, including the issuance of bonds therefor; and
<br />I id
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