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Home My WebLink About_ 6.1--Public Hearing re Issuance of Revenue Bonds by CEDA for RSA GI �" Y C� F � � �- ' � ° � � i � CITY OF REDDING �� REPORT TO THE CITY COUNCIL MEETING DATE: July 21, 2026 FROM: Michael Webb, Assistant City ITEM NO. 6.1 Manager/Public Works Director ***APPROVED BY*** mwebb@cityofredding.org �� ,4� a� � ° � ,.� ,� �,� � , �. au �-� ,�� ,�..�. � 1��31iaa�"��'arla+ax �`�� Iv�an��er 7l1�af202(a wtarbox@cityofredding.gov SUBJECT: 6.1--Public Hearing to consider Resol�ution approving the issuance of revenue bonds by the California Enterprise Development Authority (CEDA), a joint exercise of powers authority and public entity of the State of California, related to the development of Redding School of the Arts High School Campus as required by the Tax and Equity Fiscal Responsibility Act TEFRA). Recommendation Conduct a Public Hearing in accordance with the TEFRA and the Internal Revenue Code of 1986, as amended(the Code), and, upon conclusion: (1) Adopt Resolution approving the issuance revenue bonds by the California Enterprise Development Authority (CEDA) not-to-exceed $13,000,000 (the Bonds), for the bene�it of RSA Facilities, LLC, (the Borrower) to provide for the �nancing and/ar refinance the acguisition, construction, expansion, remodeling, renovation, improvement, furnishing and/or equipping of the charter school educational facilities known as Redding School of the Arts and RSA Early College High School, located at 955 Inspiration Place, Redding, CA 96003 (the "Existing Campus") and to be located at an adjacent parcel located south of the Existing Campus and east of Gibraltar Road (the "Adjacent Parcel" and, together with the Existing Campus, the "Project"). Such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code and CEDA's Joint Powers Agreement. Fiscal Impact The bonds to be issued by the California Enterprise Development Authority (CEDA) for the Project will be the sole responsibility of the borrower, and the City of Redding (City) will have no financial, legal, moral obligation, liability or responsibility for the project or the repayment of the bonds for the financing of the project. A11 financing documents with respect to the issuance of the bonds will contain clear disclaimers that the bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the borrower. Alternative Action The City Council (Council) eould ehoose not to approve the resolution authorizing CEDA to issue the bonds for the borrower. Report to Redding City Council July 16, 2026 Re: 6.1--Public Hearing re Issuance of Revenue Bonds by CEDA for RSA Page 2 Background/Analysis RSA Facilities, LLC, whose sole member is Redding School of the Arts, a California nonprofit public benefit corporation and organization described in Section 501(c)(3) of the Internal Revenue Code, has requested that CEDA issue qualified 501(c)(3)revenue bonds in an aggregate principal amount not to exceed$13,000,000. Proceeds of the bonds wi11 be used to finance and/or refinance the acquisition, construction, expansion, remodeling, renovation, improvement, furnishing, and equipping of educational facilities associated with Redding School of the Arts and RSA Early College High SchooL The facilities include the existing campus located at 955 Inspiration Place, Redding, California, and an adjacent parcel located south of the existing campus and east of Gibraltar Road. Bond proceeds may also be used to pay costs of issuance, fund capitalized interest, and fund a debt service reserve fund. Pursuant to Section 147(� of the Internal Revenue Code, prior to the issuance of tax-exempt private activity bonds, the applicable elected representative of the jurisdiction in which the project is located must approve the issuance following a public hearing. Because the project is located within the City, City Council approval is required to satisfy this federal requirement. The City's approval is limited solely to satisfying the requirements of Section 147(� of the Internal Revenue Code. Approval of the resolution does not constitute approval of the project, any land use entitlement, permit, environmental review, or other discretionary action by the City. In order for all or a portion of the bonds to qualify as tax-exempt bonds, the City 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 �nancing of the project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an "applicable elected representative" of the governmental unit hosting the project must provide its approval of the issuance of the bonds for the financing of the project for purposes of the Code and CDEA's Joint Powers Agreement. CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY California Enterprise Development A�uthority (CEDA) is a joint powers authority formed under California's Joint Exercise of Powers Act to provide conduit �nancing services for eligible public bene�it projects, including nonprofit organizations, charter schools, and other qualified borrowers. CEDA issues revenue bonds on behalf of participating entities to facilitate access to tax-exempt financing. CEDA does not lend its own funds and does not pledge its credit or taxing power. D�bt service on issued bonds is the sole responsibility of the borrower. The City is a member agency of CEDA pursuant to the Joint Exercise of Powers Agreement entered into by City Couneil Resolution No. 2015-012 adopted on February, 17, 2015, approving participation in CEDA. Report to Redding City Council July 16, 2026 Re: 6.1--Public Hearing re Issuance of Revenue Bonds by CEDA for RSA Page 3 Environmental Review This is not a project defined under the California Environmental Quality Act, and no further action is required. Council PNio�^ity/City Manager Goals • Communication and Transparency — "Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust." Attachments Resolution Notice of Hearing Resol�ution No. 2015-012 - California Enterprise Development Authority RESOLUTION NO. 2026- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING APPROVING THE ISSUANCE OF THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY QUALIFIED 501(C)(3) BONDS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $13,000,000 FOR THE PURPOSE OF FINANCING AND/OR REFINANCING THE ACQUISITION, CONSTRUCTION, REHABILITATION, IMPROVEMENT, AND EQUIPPING OF REDDING SCHOOL OF THE ARTS AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS,RSA Facilities, LLC (the`Borrower")whose sole member is Redding School of the Arts, 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 rec�uested that the California Enterprise Development Authority (the "Authority") adopt a plan of financing providing for the issuance of qualified 501(c)(3)bonds as de�ned in Section 145 of the Code in one or more series issued from time to time, and at no time to exceed$13,000,000 in aggregate principal amount(the `Bonds"), to: (1) finance and/or refinance the acquisition, construction, expansion, remodeling, renovation, improvement, furnishing ancUor equipping of the charter school educational facilities known as Redding School of the Arts and RSA Early College High School, located at 955 Inspiration Place, Redding, CA 96003 (the "Existing Campus") and to be located at an adjacent parcel located south of the Existing Campus and east of Gibraltar Road (the "Adjacent Parcel" and, together with the Existing Campus, the "Project"), (2) to pay certain expenses incurred in connection with the issuance of the Bonds, (3) to fund capitalized interest relating to the Bonds, and (4) to fund a debt service reserve fund with respect to the Bonds; and WHEREAS, pursuant to Section 147(� of the Code, the issuance of the Bonds by the Authority must be approved by the City of Redding (the "City") because the Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the "City Council") is the elected legislative body of the City and is one of the "applicable elected representatives"required to approve the issuance of the Bonds under Section 147(� of the Code; 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 Joint Exercise of Powers Agreement Relating to The California Enterprise Development Authority, dated as of February 17,2015 (the "agreement"), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f� of the Code, following notice duly given, the Authority held a public hearing regarding the issuance of the Bonds, the proceedings of which were summarized and provided to the City Council, and now the City Council desires to approve the issuance of the Bonds by the Authority; NOW, THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY OF REDDING AS FOLLOWS: Section 1: The foregoing recitals are true and correct. Section 2: 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 constitutes approval of the issuance of the Bonds by the Authority, for the purposes of(a) Section 147(� of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(� and Section 4 of the Agreement. Section 3: The issuance of the Bonds sha11 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 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 re�nancing 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,construction,rehabilitation, installation 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 officers 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 which 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. Section 6: This resolution shall take effect immediately upon its adoption. I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the City Council of the City of Redding on the 21 st day of July, 2026, by the following vote: AYES: COUNCIL MEMBERS: - NOES: COUNCIL MEMBERS: - ABSENT: COUNCIL MEMBERS: - ABSTAIN: COUNCIL MEMBERS: - MIKE LITTAU, Mayor ATTEST: APPROVED AS TO FORM: SHARLENE TIPTON, City Clerk BENJAMIN L. STOCK, Interim City Attorney NOTICE OF PUBLIC HEARING NOTICE IS HEREBY that the City Council of the City of Redding will conduct a public hearing on July 21, 2026, at 6:00 p.m. in the City Council Chambers located at 777 Cypress Avenue, Redding, California, the City Council of the City of Redding (City) The public hearing will be held as required by Section 147(f�of the Internal Revenue Code of 1986 (the"Code"),will be held with respect to a proposed plan of financing providing for the issuance and sale by the Cali�ornia Enterprise Development Authority (the "Authority") of revenue bonds (qualified 501(c)(3)bonds as defined in Section 145 of the Code),pursuant to a plan of fmancing and in one or more series from time to time, on behalf of RSA Facilities, LLC (the `Borrower"), a California limited liability company, whose sole member is Redding School of the Arts, a California nonprofit public benefit corporation and an organization described in Section 501(c)(3)of the Code (the "Sole Member"), in an aggregate principal amount not to exceed $13,000,000 (the `Bonds").The proceeds of the Bonds will be used to (1) finance and/or refinance the acquisition, construction,expansion,remodeling,renovation, improvement, furnishing and/or equipping of the charter school educational facilities known as Redding School of the Arts and RSA Early College High School, located at 955 Inspiration Place, Redding, CA 96003 (the "Existing Campus") and to be located at an adjacent parcel located south of the Existing Campus and east of Gibraltar Road (the "Adjacent Parcel" and, together with the Existing Campus, the "Project"), (2) to pay certain expenses incurred in connection with the issuance of the Bonds, (3) to fund capitalized interest relating to the Bonds, and (4) to fund a debt service reserve fund with respect to the Bonds. The Existing Campus is owned by The McConnell Foundation and operated as a public charter school by the Sole Member. The Adjacent Parcel will be owned by the Borrower and will be operated as a public charter school by the Sole Member. The Bonds and the obligation to pay principal of and interest thereon and any redemption premium with respect thereto do not constitute indebtedness or an obligation of the City of Redding, the Authority, the State of California or any political subdivision thereof, within the meaning of any constitutional or stat�utory debt limitation, or a charge against the general credit or taxing powers of any of them. The Bonds shall be a limited obligation of the Authority, payable solely from certain revenues duly pledged therefore and generally representing amounts paid by the Borrower. Interested persons wishing to express their views on the issuance of the Bonds or on the nature and location of the facilities proposed to be financed or refinanced may participate in the public hearing or, prior to the time of the hearing, submit written comments. If you have any questions regarding the above matter, please contact the City Clerk's Of�ce at 530-225-4044 or email cit clerlc2 c��i� c��r�ddi�� o �v. Please refer to the hearing title and date of hearing in any correspondence. /s/ Sharlene Tipton City Clerk, City of Redding DATED: July 10, 2026 � � RESOLUTION NO. 2015-012 RESOLUTION APPROVING ASSOCIATE MEMBERSHIP BY THE CITY OF REDDING IN THE CALIFORNIA ENTERPRISE DEVELOPIVIENT AUTHORITY AND AUTHORIZING AND DIRECTING THE EXECUTION OF AN ASSOCIATE MEMBERSHIP AGREEMENT RELATING TO ASSOCIATE MEMBERSHIP OF THE CITY IN T��UTHORITY , � � t �.. ; � t: W��',�the �i��`��dding, California (the "City"), a municipal corporation, duly organiz�,��xisting under the��stitution and the laws of the State of California; and � � , � �,. �; ��IEREAS, the City, upo�y��horization of the City Council, may pursuant to Chapter 5 � of I.��,��on 7 of Title 1 of the G��timent Code of the State of California, commencing with Seci��f6500 (the "JPA Law") er�t��nto a joint exercise of powers agreernent with one or more � othe��lic agencies pursuant to which such contracting parties may jointly exercise any power com�� them; and 1 ! y ;�t ;i�,�, ' �a � V�`��3�i��ty ar�� [��gencies wish to jointly participate in economic � development �'��`��+��'progra��"��e ben��;��businesses and nonprofit entities within their jurisdictions offered by me��ip in the Ca��nia Enterprise D�evelopment Autharity (the "Authority") pursuant to � ��sociate membe�;�� agreement and Joint Exercise of Powers Agreement Relating to the��fornia Enterprise��elopment Authority (the "Agreement"); and f ��` t � WHEREAS under �� PA Law,�� e s A r , } g ��t, the Authority is a public entity separate and apart from the pa�+��fi� �� ement��k��'��liabilities and obligations of � the Authority will not be the debts;��i'�ies or o��,��i�ns of th� �� or the other members of the Authority; and ,�� , .. 4 � y ,, � ,� � WHEREAS the form of Associate ��,�shi A reeme �� , p g r�, �� "Ass��iate Membership ` �� ,� Agreement") between the City and the��'rix�� attached; ar��' �._� , F lt , i' � , J 5 W�IE1tEAS, the City is willing��ecome an ��,��inber of��.�uthority subject to the provisions of the Associate Membership Agreement.� �''�� '� , }'13} } NOW THEREFORE BE IT RESOLVED that the Cit � �unci � � � � � � � ��' ��, �i�y;.,of Redding, hereby finds, determines and declares as follows: �, t i ' , � Section 1. The City Council hereby specifi�� 1��°�'��eclares that the actions � �� authorized hereb� constitute public affairs of the City. �`��"�ouncil further finds that the statements, findings and determinations of the City set forth in the preambles above are true and � correct. Q � ��., Section 2. The Associate Membership Agreement on file with the City Clerk is hereby � approved. The Ciry Manager, or his designee, is hereby authorized and directed, for and on v� behalf of the City, to execute and deliver the Associate Membership Agreement in substantially � O � � 4825-8409-67731 1 � � � said form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof. Section 3. The City Manager, or his designee, is hereby authorized to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate, carry out, give effect to and comply with the terms and intent of this resolution and the Associate Membership Agreement. All such actions heretofore taken by the City Mana��c��s designee, are hereby confirmed, ratified and approved. �t � 5.;� � t� ?4 Se��'�his reso��i��hall take effect immediately upon its passage. , � ; s r�� , � }3 . I H��,��Y CERTIFY that the ��`��omg Resolution was introduced and read at a regular �� mee��'of the Cit� Council of th�� of Redding on the 17th day of February, 2015, and was dul}��pted at said meeting by tl��llowing vote: , � AYE�� ,' ,;, COUNCIL MEMBERS: McArthur, Schreder, Weaver, & Sullivan NOES � }� COUNCIL�EMBERS: Cad� ABSENT '�° ��`��,;,��:�MBER�� ,��` , ABSTAIN: ��:��MB��x':�t�ne ', ; , , , , } , t' � }� � � � � v � ' • �� F ='��ULLIVAN, Mayor , , �; ., - i � � � ` = 3 . i y't { ;' '��.� �� E��S r: ,if��. � • s ,� �' ��" , I, � `/. �- �, � ��y ; �� I .._ � � S � , � '^a �� / � � : r:''��i r.. r PAMELA MIZ�,�r'itv erk , , � �,�CHA��u��JVER� �, City Attorney , . - ,>� 3 s • ' } { i . t d �; � � �� S t 1 � t 1 u ; j rv� } }t� t } 1 4 � JJ„ 4825-8409-67731 2 �- • CERTIFICATE OF CLERK OF THE CITY COUNCIL CITY OF REDDING I, Pamela Mize, City Clerk of the City of Redding, hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at the meeting of the City Council of the City of Redding duly and regularly held in the Council Chambers on February 17, 2015, of which meeting all of the members of said City Council had due notice. I furth�r�� ,� have carefully compared the foregoing copy with the original minutes of�,�� g t�� d of record in my office; that said copy is a full, true and correct cc��'�t�ie original res+��i�n adopted at said meeting and entered in said minutes; and that sa��, ��i�ution has not been �;��ded, modified, rescinded or revoked in any manner since the d��.��its adoption, and the san�;��now in full force and effect. � , �1 WITNESS WHEREO�'�r`� have executed this certificate this _ day of February, 201� � ' , ,,� ,;� ;, r, ,� � � , 3 � , , , ' Pamela Mize, City Clerk . ., ,.,, ' t f s� �City of Redding , .t } 1,i t l iv � �� I/ l i i/% f t , s :,� ll�,i' ti 3 �i.; i� 5 '� t . . �� l .�� ; s.:�.. .;'''ll t 1 t t.�,. t 1 t.' F t y 1 t; iy`'� ti 1 A .. S' S ; t t r l k�-- „� � ' r 1 . t ti.I 1 ,.�i' 4 a,. . . j,, t SG.1 3 } 1 1.,. r y i ...�;;�t'.. 4825-8409-6773.1 3