HomeMy WebLinkAbout2016-038 - Issuance of Tax-Exempt Obligations by the California Enterprise DevelopmentRESOLUTION NO. 2016 -038
A 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 $55,000,000 TO
FINANCE AND REFINANCE VARIOUS SCHOOL FACILITIES OWNED
BY ORANGE COUNTY SCHOOL OF THE ARTS, THE LEGACY FUND,
AND /OR THE OPUS FUND, LLC
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS
FOLLOWS:
WHEREAS, Orange County School of the Arts, a California nonprofit public
benefit corporation (the "School "), The Legacy Fund, a California nonprofit public benefit
corporation, and The Opus Fund, LLC, a California limited liability company (collectively,
and together with any affiliate thereof or successor thereto, the "Borrowers "), have
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
$55,0000,000, for the benefit of the Borrowers, 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 Borrowers to finance and refinance
the cost of acquiring, constructing, installing, improving, equipping and furnishing school
facilities located at 800 North Bush Street, 801 North Main Street, 902 North Main
Street, 906 North Main Street, 1000 North Main Street, 1010 North Main Street, 1018
North Main Street, 1104 North Main Street, 1107 North Main Street, 1110 North Main
Street, 123 East 11th Street, 900 North 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 (collectively, 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 financing and refinancing and other related
costs: and
WHEREAS, the Borrowers own and operate the Facilities as 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), for the purpose of furthering the
School's mission of providing a creative, challenging and nurturing environment for
students in grades 7 through 12 that prepares them for higher education and a profession
in the arts; and
Resolution No. 2016 -038
Page 1 of 4
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 Internal Revenue Code of 1986, as amended (the "Code ") only if the
Obligations are approved in accordance with Section 147(f) of the Code; and
WHEREAS, the City Council of the City (the "Council') is the elected legislative
body of the City and is the applicable elected representative required to approve the
issue within the meaning of Section 147(f) of the Code; and
WHEREAS, the Authority has requested the Council to approve the issuance of
the Obligations in order to satisfy the public approval requirements of Section 147(f) of
the Code; and
WHEREAS, on May 24, 2016, the City caused a notice to appear in The Orange
County Register, which is a newspaper of general circulation in the City, stating that a
public hearing with respect to the issuance of the Obligations would be held by the
Council on June 7, 2016; and
WHEREAS, the Council held the public hearing described above on June 7,
2016, and an opportunity was provided for persons to comment on the issuance of the
Obligations and the financing and refinancing of the Facilities; and
WHEREAS, it is intended that this Resolution shall comply with the public approval
requirements of Section 147(f) of the Code; provided, however, that this Resolution is
neither intended to nor shall it constitute an approval by the Council of the Facilities for
any other purpose, including, but not limited to, compliance with the California
Environmental Quality Act (California Public Resources Code, Section 21100, et seq.)
( "CEQA ");
NOW, THEREFORE, BE IT RESOLVED, that the Council hereby finds and
declares the above recitals are true and correct; and, be it
Section 1. The Council hereby finds and determines that all of the recitals are
true and correct. The Council hereby approves the issuance of the Obligations, from time
to time pursuant to a plan of finance, by the Authority which Obligations may be tax -
exempt and /or taxable as approved by the Authority in its resolution, in an amount not to
exceed $55,000,000 to finance and refinance the cost of the Facilities. This resolution
shall constitute "host' approval of the issuance of the Obligations within the meaning of
Section 147(f) of the Code and shall constitute the approval of the issuance of the
Obligations within the meaning of the Act; provided, however, that this Resolution shall
Resolution No. 2016 -038
Page 2 of 4
not constitute an approval by the Council of the Facilities for any other purposes,
including compliance thereof with CEQA, nor does it constitute an approval of the
underlying credit or financial structure of the Obligations. The City shall not bear any
responsibility for the issuance of the Obligations, the tax - exempt status of the
Obligations, the repayment of the Obligations or any other matter related to the
Obligations.
Section 2. All actions heretofore taken by the officers, employees and agents of
the City with respect to the approval of the issuance of the Obligations are hereby
approved, confirmed and ratified, and the officers and employees of the City and their
authorized deputies and agents are hereby authorized and directed, jointly and severally,
to do any and all things and to execute and deliver any and all certificates and documents
which they or bond counsel may deem necessary or advisable in order to consummate
the issuance of the Obligations and otherwise to effectuate the purposes of this
Resolution.
Section 3. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any financing for the Facilities; (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, construction, rehabilitation or
operation of the Facilities; or (iii) make any contribution or advance any funds whatsoever
to the Authority.
Section 4. This Resolution shall take effect from and after its adoption.
ADOPTED this 7t' day of June, 2016.
APPROVED AS TO FORM:
Sonia R. Carvalho
City A�c>1p, gy
Attorney
Resolution No. 2016 -038
Page 3 of 4
AYES: Councilmembers: Amezcua Benavides Pulido Reyna, Tinaiero (5)
NOES: Councilmembers: None (0)
ABSTAIN: Councilmembers: None (0)
NOT PRESENT: Councilmembers: Martinez, Sarmiento (2)
CERTIFICATION OF ATTESTATION AND ORIGINALITY
I, MARIA D. HUIZAR, Clerk of Council, do hereby attest to and certify the attached
Resolution No. 2016 -038 to be the original resolution adopted by the City Council of the
City of Santa Ana on June 7, 2016.
Date:
Resolution No. 2016 -038
Page 4 of 4
) / 44"' 1D- O�is
Clerk of Council
City of Santa Ana