75B - PH - TEFRA OCHSA - Laserfiche WebLink

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TEFRA Public Hearing For Orange County School of Arts June 7, 2016 Page 2 Sycamore Street, 912 North Sycamore Street, 921 North Sycamore Street, 839 North Broadway, 843 North Broadway, 845 North Broadway, 915 North Broadway, 919 North Broadway, 201 West Washington Avenue, and 207 West Washington Avenue, Santa Ana, California (the "Facilities "). A portion of the proceeds of the Obligations will be used to pay costs of issuance in connection with the financing. The Borrowers own and operate the Facilities as a charter school pursuant to the Charter School Act of 1992, as amended (constituting Part 26.8 of Division 4 of Title 2 of the Education Code). The Legacy Fund's mission includes supporting the School in its mission to provide a creative, challenging and nurturing environment for students that prepares them for higher education and a profession in the arts. Established in 1987, the School currently serves more than 2,100 students in grades 7 through 12 from more than 100 cities throughout Southern California. The School provides a six year comprehensive academic and conservatory arts program and is committed to excellence, innovation, professionalism and integrity. Students attend five hours of rigorous academic classes in addition to three hours of daily arts instruction. The School fosters a nurturing environment of creativity, respect, and collaboration with a commitment to life -long artistic and scholarly development. The City of Santa Ana is an associate member of the Authority, a joint powers agency established by the California Association for Local Economic Development whose purpose is to issue tax - exempt and taxable conduit revenue bonds to fund commercial and industrial development projects within member jurisdictions. The Joint Powers Act, comprising Articles 1, 2, 3 and 4 of Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of the Government Code of the State of California and Internal Revenue Code Section 145 provide for the issuance of tax - exempt "private activity" obligations by a conduit governmental issuer on behalf of a 501(c)(3) corporation to finance facilities used, owned and /or operated by such entity. For interest on such private activity obligations to be tax - exempt, Section 147(f) of the Internal Revenue Code requires, among other things, the obligations and the facilities financed thereby must be approved by both the governmental unit which will issue the obligations (in this case, the Authority) and the governmental unit in which the obligation- financed facilities are located (City of Santa Ana). Further, a public hearing, for which reasonable notice has been given, must be held. This hearing and process is referred to as TEFRA, after the Tax Equity and Fiscal Responsibility Act of 1982. The assets to be financed and refinanced with the proceeds of the Obligations are located within the jurisdiction of the City. Therefore, the City has been asked to conduct the public hearing, and to approve the Obligations as the host governmental unit. The City has effectuated proper notice of the hearing via publication at least 14 days in advance. 75B -2