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Issuance of Tax Exempt Bonds for Goodwill Industries of Orange County Facilities October 6, 2008 Page 2 Authority, which was established in 2004, was formed to assist nonprofit organizations and businesses with the issuance of taxable and tax exempt bonds. The Authority is seeking to issue variable rate revenue demand bonds in an amount not to exceed $8,000,000. No more than $7,250,000 of proceeds will be used for acquisition. Certain leasehold improvements, fixtures, and equipment at the Borrower's retail store facility located at 3021 West Lincoln Avenue, Anaheim, California, will account for no more than $710,000 of proceeds of the Bonds, and certain building improvements at the Borrower's administrative offices located at 410 North Fairview Street, Santa Ana, California, will account for the balance of Bond proceeds. The Project is to be owned and operated by the Borrower, provided that approximately 10,000 square feet of the industrial property referred to above will be leased to Landmark Services, Inc. for the document destruction services. Both the Borrower and Landmark, are California nonprofit public benefit corporations and organizations described in Section 501(c)(3) of the Code. In order 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 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, the City must provide its approval for the issuance of the Bonds by the Authority for financing 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 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