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HomeMy WebLinkAboutMINUTES - 06152010 - SD.4RECOMMENDATION(S): CONDUCT a public hearing, as required by Section 147(f) of the Internal Revenue Code of 1986, as amended, to hear and consider information concerning the proposed issuance by the California Statewide Communities Development Authority of refunding revenue bonds in an aggregate principal amount not to exceed $30,000,000; and ADOPT Resolution No. 2010/327, approving the tax-exempt financing and the issuance of refunding revenue bonds to be issued by the California Statewide Communities Development Authority to benefit Bentley School (a California not-for-profit corporation). FISCAL IMPACT: Pursuant to the Internal Revenue Code, the issuance of the Bonds must be approved by the County because the Facilities are located within the territorial limits of the County. There is no financial impact on the County. BACKGROUND: Bentley School, a California not-for-profit corporation, located at 1000 APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 06/15/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Federal D. Glover, District V Supervisor ABSENT:Susan A. Bonilla, District IV Supervisor Contact: Timothy Ewell, 925-335-1036 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: June 15, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: REDEVELOPMENT AGENCY - J. KENNEDY, TREASURER-TAX COLLECTOR - B. POLLACEK, COUNTY ADMINISTRATION - L. DRISCOLL, JONES HALL - S. FERGUSON, CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY - M. CHIN, AUDITOR-CONTROLLER - S. YBARRA SD. 4 To:Board of Supervisors From:David Twa, County Administrator Date:June 15, 2010 Contra Costa County Subject:CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY/TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA) HEARING - BENTLEY SCHOOL BACKGROUND: (CONT'D) Upper Happy Valley Road in Lafayette has requested that the California Statewide Communities Development Authority (the "CSCDA") participate in the issuance of refunding revenue bonds, in an aggregate principal amount not to exceed $30,000,000 (the "Bonds"). A portion of such Bond proceeds is intended to finance the following: (i) the renovation and construction of Bentley School’s high school campus, located at 1000 Upper Happy Valley Road, with an adjacent parcel located on Sunnybrook Drive and an adjacent parcel located on El Nido Ranch Road, in Lafayette, California, which include a gymnasium, classrooms, a performing arts facility, a parking lot and a circulation road, and (ii) certain improvements to Bentley School’s lower school campus located at 1 Hiller Drive in Oakland, California and at 245, 251 and 261 Tunnel Road in Berkeley, California, which include modifications to the main entrance, expansion of the existing library, and renovation of the administration building (collectively, the "Project"), all of which are owned and operated by Bentley School. In order for the interest on the bonds to be excluded from the gross income of the owner of the bonds (i.e. tax-exempt), an "applicable elected representative" of the government unit must approve the issuance of the bonds after a public hearing ("TEFRA hearing") following reasonable public notice. The proposed bond issuance by the CSCDA is classified as a private activity for purposes of the Internal Revenue Code. Because the CSCDA's Board of Directors is not an elected body, the Code provides that a government unit with elected representatives and jurisdiction over the area in which the project to be financed is located, in this case, the Board of Supervisors of Contra Costa County, is an "applicable elected representative" with respect to the bond issue. The Code requires that the Board of Supervisors hold a TEFRA public hearing regarding the issuance of the bonds and adopts a resolution approving the issuance of the bonds by the CSCDA. The County is already a member of the CSCDA, which allows the CSCDA jurisdiction to issue the bonds. Therefore, staff recommends that the Board of Supervisors hold the public hearing, consider public input, and adopt the resolution regarding the issuance of the bonds. This approval is with the expressed understanding that the County shall have no obligation whatsoever to pay any principal, interest, fees or any other costs associated with the Authority's issuance of these bonds for construction of improvements at the Bentley School. CLERK'S ADDENDUM CLOSED the hearing and ADOPTED Resolution No. 2010/327 approving the tax-exempt financing and the issuance of refunding revenue bonds in an aggregate principal amount not to exceed $30,000,000 to be issued by the California Statewide Communities Development Authority to benefit Bentley School. ATTACHMENTS Resolution No. 2010/327