2016-039 - Development Authority in an Aggregate Principal Amount

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RESOLUTION NO. 2016 -039 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF TAX - EXEMPT OBLIGATIONS BY THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $12,750,000 TO FINANCE AND REFINANCE VARIOUS SCHOOL FACILITIES OWNED BY ORANGEWOOD REAL PROPERTY, LLC WHEREAS, Orangewood Real Property, LLC, a California limited liability company (the 'Borrower "), the sole member of which is the Orangewood Foundation, a California nonprofit public benefit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986 (the "Code "), has requested that the California Enterprise Development Authority, a joint exercise of powers agency established pursuant to the laws of the State of California (the "Authority') issue its tax - exempt obligations, from time to time pursuant to a plan of finance (the "Obligations'), in an aggregate principal amount not expected to exceed $12,750,000, for the benefit of the Borrower, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State (commencing with Section 6500) (the "Act'), for the purpose of making one or more loans to the Borrower to finance and refinance the cost of constructing, installing, improving and equipping a high school campus located at 1901 and 1919 North Fairview Street, Santa Ana, California (the "Facilities "); and WHEREAS, a portion of the proceeds of the Obligations will be used to pay the costs of issuance in connection with such refinancing and other related costs; and WHEREAS, the Borrower owns the Facilities and leases the Facilities to Samueli Academy, a California nonprofit public benefit corporation and a charter school established pursuant to the Charter Schools Act of 1992, as amended (constituting Part 26.8 of Division 4 of Title 2 of the Education Code), which will operate the Facilities for the purpose of furthering its mission of providing a quality education for students in grades 9 -12; and WHEREAS, the City of Santa Ana (the "City') is an associate member of the Authority; and WHEREAS, the issuance of the Obligations shall be subject to the approval of and execution by the Authority of all financing documents relating thereto to which the Authority is a party; and WHEREAS, the Facilities are located wholly within the City; and WHEREAS, the interest on the Obligations may qualify for tax exemption under Section 103 of the Code only if the Obligations are approved in accordance with Section 147(f) of the Code; and Resolution No, 2016 -039 Page 1 of 4