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HomeMy WebLinkAboutReso 2020-049 - Approving Issuance of Bonds by Calif Mun Finance Auth for Simpson University RESOLUTION NO. 2020-049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE ISSUANCE OF BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY FOR THE PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION, CONSTRUCTION, RENOVATION AND IMPROVEMENT OF CERTAIN FACILITIES FOR THE BENEFIT OF SIMPSON UNIVERSITY WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California(the "Act"), certain public agencies (the "Members") have entered into a Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, effective as of January 1, 2004 (the "Agreement") in order to form the California Municipal Finance Authority (the "Authority"), for the purpose of promoting economic, cultural and community development, and in order to exercise any powers common to the Members, including the issuance of bonds, notes or other evidences of indebtedness; and WHEREAS, City of Redding(the "City") is a Member of the Authority; and WHEREAS, the Authority is authorized to issue and sell revenue bonds for the purpose, among others,of financing or refinancing the construction of capital projects; and WHEREAS, Simpson University, a nonprofit religious corporation (the "Borrower")has requested that the Authority issue its qualified 501(c)(3) bonds, as defined in Section 145 of the Internal Revenue Code, as amended (the "Code") in one or more series in an aggregate principal amount not to exceed $33,500,000 (the "Bonds") for the purpose of making a loan to the Borrower, to enable the Borrower to finance and refinance the costs of the acquisition, construction, renovation and improvement of certain educational facilities located in the City (the "Project"), working capital expenses, and certain interest on the Bonds related to the Project or the Borrower; and WHEREAS, pursuant to Section 147(f) of the Code, the financing and refinancing of the Project and the issuance of the Bonds by the Authority requires approval, following a public hearing, by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located; and WHEREAS, the Authority has determined that the City Council is an"applicable elected representative" for purposes of providing the required approval following a public hearing; and WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Agreement; and WHEREAS, notice of the public hearing (the "TEFRA Notice") was published in The a Record Searchlight not less than 7 days prior to the date of the public hearing and the TEFRA 0 Notice is attached as EXHIBIT A; and a s WHEREAS, on April 23, 2020, a public hearing was held on behalf of the City by representatives of the City and the Authority via teleconference at the time set forth in the TEFRA Notice with respect to the financing or refinancing of the Project and the Authority's issuance of the Bonds therefor; and WHEREAS, such public hearing was conducted in a manner that provided a reasonable opportunity to be heard for persons with differing views on both the issuance of the Bonds and the location and nature of the Project to be financed and refinanced by the Bonds; and WHEREAS, attached as EXHIBIT B are the minutes of the public hearing prepared by representatives of the Authority; and WHEREAS, it is in the public interest and for the public benefit that the City Council approve the issuance of the Bonds by the Authority for the aforesaid purposes; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AS FOLLOWS: Section 1. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental unit having jurisdiction over the area in which the Project is located in accordance with Section 147(f) of the Code and(b) by the City Council in accordance with Section 4 of the Agreement. Section 2. 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. Section 3. 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 4. The Mayor, the Clerk and all other proper officers and officials of the City are hereby authorized and directed to execute such other agreements, documents and certificates, and to perform such other acts and deeds, as may be necessary or convenient to effect the purposes of this Resolution and the transactions herein authorized. Section 5. The Clerk shall forward a certified copy of this Resolution to the Authority in care of bond counsel: Jenna Magan Orrick, Herrington & Sutcliffe LLP 400 Capitol Mall, Suite 3000 Sacramento CA 95814 4131-4724-6883.3 Section 6. This resolution shall take effect immediately upon its passage. I HEREBY CERTIFY that the foregoing resolution was introduced at a regular meeting of the City Council of the City of Redding on the 5th day of May, 2020, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBER: Dacquisto,Resner, Schreder,Winter,and McElvain NOES: COUNCIL MEMBER: None ABSENT: COUNCIL MEMBER: None ABSTAIN: COUNCIL MEMBER: None ADAM McELVAIN, Mayor ATTEST APPROVED AS TO FORM: PAMELA MIZE, City Cler BARRY E. De AL , ity Attorney 4131-4724-6883.3 EXHIBIT A TEFRA NOTICE 4131-4724-6883.3 Record Searchlight PART QF THE USA TODAY NETWORK ORRIK 400 CAPITOL MALL SUITE 3000 SACRAMENTO,CA 95814 STATE OF WISCONSIN,COUNTY OF BROWN: I hereby certify that the Record Searchlight is a newspaper of general circulation within the provisions of the Government Code of the State of California,printed and published in the city of Redding,County of Shasta,State of California;that I am the principal clerk of the printer of said newspaper;that the notice of which the annexed clipping is a true printed copy was published in said newspaper on the following dates,to wit: 04/15/2020 such newspaper was regularly disributed to its subscribers during all of said period do,,c Legal ClerY I certify under penalty of perjury,under the laws of the State of California,that the foregoing is true and correct. Subscribed and sworn to before on April 15,2020: thikA171fib Notary,State of WIC County of own My commission expires \ouhumur1/p., Publication Cost:$259.80 JG�Y•F <T`'�,�` Ad No:0004151076 Customer No:1212612 „t4O1ARk '. PO#: Public Hewing Notice •O #of Affidavits) Siro'•, AUBL\G r, This is not an invoice .. • ; OF+'W#W100,,,,, 4131-4724-6883.3 4131-4724-6883.3 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIV- EN that on April 23, 2020,a public hearing as required by Section 147(1) of the In- ternal Revenue Code of 1986 will be held with respect to the pro0Osed Issuance be the California Municipal F!• nonce Authority of Its quall- fled 501(c)(3) bonds, os de- fined in Sectlor 145 of the Internal Revenue Code, as amended (the "Code") in one or more series in an ag- gregate principal omount not to exceed s33.500,000 (Ihe "Bonds"). The pro• ceeds of the Bonds will be used by Simpson University (the "Borrower"), a Colltornio nonprcflt rell• glous corporation end an or. ganixat ion described in Sec. Ilan 591(c)(3) of the Code. to(1)finance and refinance the acquisition, construe. lion, renav0lion, improve. men' and equipping of car- loin educational facilities, and certain working capital expenses, (2) certain inter- est on the Bonds, and (3) pay certain expenses incur- red in connection with the issuance of the Bonds. The facilities are owned by the Borrower and located at 2211 College View Drive, Redding,California 96003, The Bonds and the oblige- lo pay principal of and interest thereon with re- spect thereto do not consti- tute indebtedness or on obli- gation of the Authority, the State of California Or any political subdivision thereof, within the meaning of any constitutional or statutory debt limitatiar, or a charge ogainst the general credit Or foxing powers of any of them. The Bonds shall be limited obligations of Ihe Authority, payable Solely from certain revenues duly pledged therefor and gener- ally representing amounts pold by the Borrower, Thehearing will commence at 11:30 axis. Cr as soon thereafter os the matter can be heard. In light of the COVID-14 pandemic, Governor Newsom issued Executive Orders 114-25.20 and N-29.20), which temeorarily suspend certain require• ments of the Brown Act dur- ing the period In which state or local public health offi- cials have imposed or rec• ommended social distancing measures. Pursuant to the Executive Orders, aublic meetings may be held via teleconferencing where members of the public are allowed to observe and ad• dress The meeting telephoni• cally. Accordingly, the pub- lic hearing will be held via teleconference and the pub• lic may participate in the teleconference via the fol- lowing teleconference tine for interested persons to Ai lite in lieu of physical pros- Once at Ihe public hearing: Telephone: 1-877-211-3621 Participant Code: 693396 Interesled persons wishing to express their views on the issuance of the Bonds or on the nature and locotion of the facilities proposed to be financed and refinanced mne ofl..nri hip n,,hlir bonr. 4131-4724-6883.3 ing by telephone or,prior to the time of the hearing,sub- mit written comments 05 provided below. Oral com- ments will be limited to 10 minutes per speaker. A Per- son wishing to speak at the hearing will be asked to provide his or her name,ad- dress and the person(s) or entltv(les) he or she repre- sents,if any,prior to speak- ing. Public comments may be submitted by regular mall or email os described be- low, but must be received prior to the time of the Pub- lic hearing, All Public Comments must include the following description: To- x-Exempt Financing for Simpson University. Additional Information con- cerning the above matter may be obtained from and written comments should be addressed to City of Redding, Planning Commis- sion. P.O. Box 49607, Redding, California 96049 or by email at planningcomml sslonOc i tyofredding.org. April 15,2020,4151076 4131-4724-6883.3 EXHIBIT B MINUTES OF THE PUBLIC HEARING 4131-4724-6883.3 CERTIFICATION OF TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA) HEARING I, Jenna Magan of Orrick, Herrington & Sutcliffe, LLP, in its role as bond counsel to the California Municipal Finance Authority (the "Authority"), hereby certify as follows in connection with a public hearing under the Tax Equity and Fiscal Responsibility Act of 1982 ("TEFRA") related to a proposed bond issuance on behalf of Simpson University (the "Borrower"). I do hereby further certify as follows: 1. Hearing Date. On April 23, 2020, a hearing was opened at 11:30 a.m. and closed at 11:35 a.m. for the Borrower. 2. Hearing Details. In light of the COVID-19 pandemic, Governor Newsom issued Executive Orders (N-25-20 and N-29-20), which temporarily suspend certain requirements of the Brown Act during the period in which state or local public health officials have imposed or recommended social distancing measures. Pursuant to the Executive Orders, public meetings may be held via teleconferencing where members of the public are allowed to observe and address the meeting telephonically. Accordingly, the public hearing was held via teleconference on the Hearing Date. 3. Posting. No fewer than 7 days prior to the date of this hearing, the notice of the TEFRA hearing was published in the Record Searchlight, a newspaper having general circulation in the City of Redding, California, setting forth the time, date, and subject matter of said hearing. 4. Public Comments: Public comments were received from the following and summarized in the attached. DATED: April 23, 2020. By: Jenna Magan, Orrick, Herrington& Sutcliffe LLP, as Bond Counsel to the California Municipal Finance Authority PUBLIC COMMENTS RECEIVED There were no public comments made at the time of the hearing, nor were there comments received in writing in advance of the hearing.