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HomeMy WebLinkAbout75B - TEFRA - JAKES LIFE i0ov REQUEST FOR, COUNCIL ACTION CITY COUNCIL MEETING DATE: CLERK OF COUNCIL USE ONLY: NOVEMBER 15, 2010 TITLE: APPROVED ? As Recommended PUBLIC HEARING ON ISSUANCE OF TAX ? As Amended EXEMPT BONDS FOR JAKE'S LIFE AND ? Ordinance on 1s' Reading RESOLUTION APPROVING THE El Ordinance on Re Reading ? Implementing Resolution ISSUANCE OF BONDS ? Set Public Hearing For CONTINUED TO FILE NUMBER CITY MANAGER RECOMMENDED ACTION 1. Conduct a Tax Equity and Financial Responsibility Act (TEFRA) Hearing considering the issuance of tax exempt bond financing by the California Municipal Finance Authority on behalf of Jake's LIFE, a California nonprofit public benefit corporation, for the purpose of the acquisition, rehabilitation, improvement and equipping of certain real property and improvements located at 1525 North Tustin Avenue, Santa Ana, California 92705. 2. Adopt a resolution approving the issuance of revenue bonds by the Authority in an amount not to exceed $25,000,000 to finance the acquisition, rehabilitation, improvement and equipping of certain real property and improvements located at 1525 North Tustin Avenue, Santa Ana, California 92705. DISCUSSION Jake's LIFE has requested the assistance of the California Municipal Finance Authority (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. The proceeds of the Bonds will be loaned by the Authority to Jake's LIFE, a California nonprofit public benefit corporation and applied to the acquisition, rehabilitation, improvement and equipping of real property and improvements at their building located at 1525 North Tustin Avenue, Santa Ana, California 92705. The principal tenant of the Project will be the Regional Center of Orange County, Inc., which will use the project for its charitable mission of coordinating services to individuals with developmental disabilities. For all or a portion of the Bonds to qualify as tax-exempt bonds, the City of Santa Ana must conduct a public hearing (the "TEFRA Hearing") providing 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, must provide its approval of the issuance of the Bonds by the Authority for the financing of the Project. 75B-1 PUBLIC HEARING ON ISSUANCE OF TAX EXEMPT BONDS FOR JAKE'S LIFE November 15, 2010 Page 2 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 does not constitute any type of indebtedness for the City. FISCAL IMPACT There is no fiscal impact to the City. Francisco Gutierrez Executive Director Finance & Management Services Agency 75B-2 Iss11/2/10 RESOLUTION NO. 2010-XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY REVENUE BONDS (REGIONAL CENTER OF ORANGE COUNTY PROJECT), SERIES 2010 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $25,000,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION, REHABILITATION, IMPROVEMENT AND EQUIPPING OF AN OFFICE BUILDING AND CERTAIN OTHER MATTERS RELATING THERETO BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. Jake's LIFE, a California nonprofit public benefit corporation (the "Borrower"), has requested that the California Municipal Finance Authority (the "Authority") participate in the issuance of revenue bonds, in one or more series and at one or more times, in an aggregate principal amount not to exceed $25,000,000 (the "Bonds"). The proceeds of the Bonds are to be loaned by the Authority to the Borrower (or any successor thereto or assign thereof), and applied by the Borrower for the purpose of financing the acquisition, rehabilitation, improvement and equipping of certain real property and improvements thereon (consisting of a building located within the City of Santa Ana (the "City") at 1525 North Tustin Avenue, Santa Ana, California 92705) and to pay certain expenses incurred in connection with the issuance of the Bonds (the "Project"). The principal tenant of the Project will be the Regional Center of Orange County, Inc. ("RCOC"), which will use the Project primarily in the furtherance of its charitable mission of coordinating services to individuals with developmental disabilities; and B. Pursuant to section 147(f) of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the Authority must be approved by the "applicable elected representatives" of the City because the Project is located within the territorial limits of the City; and C. The City Council of the City of Santa Ana (the "Council") is the elected legislative body of the City and so is the "applicable elected representatives" qualified to hold a public hearing with respect to the issuance of the bonds; and Resolution No. 2010-XXX 75B-3 Page 1 of 3 III D. The Authority has requested that the Council approve the issuance of the Bonds by the Authority to satisfy the public approval requirement of section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the "Agreement"), among certain local agencies, including, the City; and I i E. Pursuant to section 147(f) of the Code, the Council has, following notice duly given, held a public hearing at which all interested persons were j given an opportunity to be heard on all matters regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority. Section 2. The City Council hereby approves the issuance of the Bonds by the Authority for the purposes of financing the Project and related costs, and expenses of issuing the Bonds. It is the purpose and intent of the Council that this resolution constitute approval of the issuance of the Bonds by the Authority for the purposes of (a) section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located and (b) Section 4 of the Agreement. The Bonds may be issued in one or more series and at one time or at several times pursuant to a plan of financing for the Project. Section 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no responsibility or liability whatsoever with respect to the Bonds. I Section 4. The adoption of this Resolution shall not obligate the City or any department thereof to: (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, rehabilitation or operation of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or (iv) take any further action with respect to the Authority or its membership therein. Section 5. The City Manager, the Director of Finance and Management Services, the Clerk of the Council and all other proper officers and officials of the City, are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents that they deem necessary or advisable in order to carry out, give effect to, and comply with the terms and intent of this resolution and the financing transaction approved hereby. Resolution No. 2010-XXX 756_4 Page 2 of 3 Section 6. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this day of , 2010. Miguel A. Pulido Mayor APPROVED AS TO FORM: Joseph W. Fletcher, City Attorney By: Laura Sheedy Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers CERTIFICATE OF ATTESTATION AND ORIGINALITY I, MARIA D. HUIZAR, Clerk of the Council, do hereby attest to and certify the attached Resolution No. 2010-XXX to be the original resolution adopted by the City Council of the City of Santa Ana on Date: Clerk of the Council City of Santa Ana Resolution No. 2010-XXX 75B-5 Page 3 of 3 75B-6