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HomeMy WebLinkAbout2019-02-26 - RESOLUTIONS - APPROVING THE ISSUANCE BY THE CA PUBLIC FIN AUTHOR (2)RESOLUTION NO. 19-7 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE ISSUANCE BY THE CALIFORNIA PUBLIC FINANCE AUTHORITY OF ITS EDUCATIONAL FACILITIES REVENUE BONDS, SERIES 2019 (TRINITY CLASSICAL ACADEMY PROJECT) IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000 WHEREAS, Trinity Classical Academy, a California nonprofit religious corporation (Borrower), has requested that the California Public Finance Authority (Authority), a joint powers authority organized and existing pursuant to the laws of the State of California, issue its Educational Facilities Revenue Bonds, Series 2019 (Series 2019 Bonds), in an aggregate principal amount not to exceed $20,000,000, and loan the proceeds thereof to the Borrower to finance, refinance or reimburse costs of acquisition by the Borrower, of all but the northwest 2.25 acres of an approximate 11 acre site and the 48,559 square foot two-story building located thereon, all located at 28310 Kelly Johnson Parkway, Valencia (Santa Clarita), California 91355 (Facilities), and other costs and reserves in connection with such acquisition and the issuance of the Bonds (collectively, Project). The Facilities will initially be owned and operated by the Borrower and used as a grade K-12 college preparatory academy known as Trinity Classical Academy (School), and is currently operating the School in the building being acquired with Bond proceeds. The Borrower expects to lease a portion of the acquired property back to the seller of the property, Northpark Community Church of Santa Clarita, Inc. (Northpark), for a period of time for use in connection with Northpark's church, pre-school and other related activities; and WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, the Series 2019 Bonds are required to be approved by the "applicable elected representative" of a governmental unit having jurisdiction over the area in which the Series 2019 Project is located, after a public hearing held following reasonable public notice; and WHEREAS, the City Council (City Council) of the City of Santa Clarita, California (City) is the "applicable elected representative" of the City under the Code for the the Series 2019 Project located within the City; and WHEREAS, the Borrower has requested that the City Council approve the Authority's issuance of the Series 2019 Bonds and the financing of the Series 2019 Project located within the City in order to satisfy the requirements of Section 147(f) of the Code; and WHEREAS, the City Council, following notice duly given in the form attached hereto as Exhibit A (TEFRA Notice), held a public hearing today regarding the Authority's issuance of the Series 2019 Bonds and the financing of the Series 2019 Project and now desires to approve the Authority's issuance of the Series 2019 Bonds and the financing of the Series 2019 Project in accordance with the Code; and Page 1 of 4 WHEREAS, the Series 2019 Bonds shall not be deemed to constitute a debt of the City or a pledge of the faith and credit of the City, but shall be special limited obligations of the Authority payable solely from the loan repayments to be made by the Borrower to the Authority, and shall contain on the face thereof a statement to the effect that neither the faith and credit nor the taxing power of the City is pledged to the payment of the principal of or interest on the Series 2019 Bonds; and WHEREAS, the City Council has determined that approval of the issuance of the Series 2019 Bonds is to satisfy the requirements of Section 147(f) of the Code, and shall in no event constitute an endorsement of the Series 2019 Bonds or the Series 2019 Project or the creditworthiness of the Borrower, nor shall such approval in any event be construed to obligate the City for the payment of the principal of or premium or interest on the Series 2019 Bonds or for the performance of any pledge, mortgage or obligation or agreement of any kind whatsoever which may be undertaken by the Authority, or to constitute the Series 2019 Bonds or any of the agreements or obligations of the Authority an indebtedness of the City, within the meaning of any constitutional or statutory provision whatsoever. NOW THEREFORE, the City Council of the City of Santa Clarita, California, does hereby resolve as follows: SECTION 1. APPROVAL: Pursuant to and in accordance with the requirements of Section 147(f) of the Code, the City Council hereby approves (a) the Authority's issuance of the Series 2019 Bonds in an aggregate principal amount not to exceed $20,000,000, and (b) the financing of the Series 2019 Project. SECTION 2. NO LIABILITY: The City has no responsibility for the payment of the principal of or interest on the Series 2019 Bonds or for any costs incurred by the Borrower with respect to the Series 2019 Bonds or the Series 2019 Project. SECTION 3. NO OTHER OBLIGATIONS: The adoption of this resolution shall not obligate the City to (a) approve any application or request for or take any other action in connection with any planning, approval, permit or other action necessary for any project or (b) make any contribution or advance any funds to the Authority or the Borrower. SECTION 4. AUTHORIZATION: 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 5. EFFECTIVE DATE: This resolution is effective immediately on its passage. 2 1 PASSED, APPROVED AND ADOPTED this 261h day of February, 2019. ATTEST: CIT7v' CLERK DATE STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) MA I, Mary Cusick, City Clerk of the City of Santa Clarita, California, do hereby certify that the foregoing Resolution No. 19-7 was duly adopted by the City Council of the City of Santa Clarita, California, at a regular meeting thereof, held on the 26th day of February, 2019, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS Miranda, Weste, Kellar, McLean None Smyth 3 CITY CLERK EXHIBIT A CITY OF SANTA CLARITA NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN: A Public Hearing as required by Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), will be conducted before the City Council of the City of Santa Clarita in the City Hall Council Chambers, 23920 Valencia Boulevard, 1St floor, Santa Clarita, California, on the 26th day of February 2019, at or after 6:00 p.m., to consider the proposed issu nce by the California Public Finance Authority (the "Issuer") of its revenue bonds, in one or more series from time to time, in an aggregate amount not to exceed $20,000,000 (the `,'Bonds"). The proceeds from the sale of the Bonds will be loaned to Trinity Classical Academy, a California nonprofit religious corporation (the `Borrower"), and used to finance, refinance or reimburse costs of acquisition by the Borrower of all but the northwest 2.25 acres of an approximate 11 acre site and the 48,559 square foot two-story building located thereon, all located at 28310 Kelly Johnson Parkway, Valencia (Santa Clarita), California 91355 (the "Facilities"), and other costs and reserves in connection with such acquisition and the issuance of the Bonds (collectively, the "Project"). The Facilities will initially be owned and operated by the Borrower and used as a grade K-12 college preparatory academy known as Trinity Classical Academy (the "School"). The Borrower is currently operating the School in the building being acquired with Bond proceeds. The Borrower expects to lease a portion of the acquired property back to the seller of the property, Northpark Community Church of Santa Clarita, Inc. ("Northpark"), for a period of time for use in connection with Northpark's church, pre-school and other related activities The Bonds will be paid from repayments by the Borrower. The Bonds will not constitute a general debt, liability or obligation of the City of Santa Clarita (the "City"), the County of Los Angeles (the "County") or the State of California (the "State"), or of any political subdivision or agency thereof, or a pledge of the faith and credit the City, the County, the State, or of any political subdivision or agency thereof. The Bonds shall be payable solely from revenues provided therefore in certain financing documents to be executed in connection therewith, and the Issuer will not be obligated to pay the Bonds or the interest thereon except from the revenues and proceeds pledged therefore and from funds provided by the Borrower. Those wishing to comment on the proposed financing and the nature and location of the Project may either appear in person at the public hearing or submit written comments, which must be received by the City prior to the hearing. Written comments should be sent to City of Santa Clarita, 23920 Valencia Boulevard, Suite 120, Santa Clarita, California 91355, Attention: City Clerk by February 26, 2019. Dated: February 7, 2019 Mary Cusick City Clerk Publish Date: February 12, 2019 !1