HomeMy WebLinkAbout2001-10-23 - AGENDA REPORTS - TEFRA HEARING MASTERS COLLEGE (2)CITY OF SANTA CLARITA
AGENDA REPORT
4e!�PUBLIC HEARING City Manager Approval
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Item to be presented 4 Steve Stark
DATE: October 23, 2001
SUBJECT: TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA)
HEARING FOR THE MASTER'S COLLEGE
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
Conduct the public hearing, and adopt a resolution, approving the issuance by the
California Statewide Communities Development Authority (CSCDA) revenue bonds in one
or more series in a maximum aggregate principal amount of $16,000,000.
The Master's College has asked the CSCDA to act as issuer in connection with the issuance
of tax exempt bonds. The Master's College intends to use the bond proceeds for financing
and refinancing costs associated with improvements on the campus. A number of campus
facilities will be improved, including the residence halls, classrooms, laboratories, music
practice rooms, administrative and faculty offices, parking lots, dining facilities, the HVAC,
electrical distribution and telecommunication systems, the library, the student center, and
sewer lines.
This request requires the City Council to hold a public hearing, take public testimony on
the proposed project, and approve a resolution authorizing the issuance of bonds by
CSCDA. There is no financial or legal obligation/liability to the City of Santa Clarita. The
City holds these hearings as a courtesy to the issuer, since the project(s) reside within the
City boundaries.
The CSCDA is a Joint Powers Authority (JPA) established by the California State
Association of Counties and the League of California Cities in 1987 to serve as a
public conduit issuer of private entities, such as manufacturers, non-profit agencies,
and low-income housing providers, all of which are eligible for tax-exempt financing.
Currently, the JPA has over 240 participants, one of which is the City. CSCDA assumes
the legal and administrative responsibility for financing, as an alternative to a City or
County serving as the conduit issuer. A conduit issuer acts as a pass-through, which
enables an agency to receive the tax-exempt status. This process is similar to the TEFRA
hearings the City did for the YMCA in 1993, the Bouquet Canyon Seniors Housing project
in 1997, the Child and Family Center in 2000, and Henry Mayo Newhall Memorial Hospital
in November of 2000.
Agenda Item:
Adopted: QL -t3j—
TEFRA HEARING FOR THE MASTER'S COLLEGE
October 23, 2001 — Page 2
In order for CSCDA to complete the financing, the City, as the local jurisdiction, has been
requested to hold a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing and adopt a
Resolution of support. The Internal Revenue Code requires that a public hearing be held
concerning the proposed financing. The required hearing must be preceded by a notice
published at least 14 days in advance of the hearing. Notice of the proposed hearing was
published in accordance with these requirements.
ALTERNATIVE ACTIONS
1. City Council may choose not to approve the issuance of bonds by CSCDA for Master's
College facilities.
2. Other action as determined by Council.
FISCAL IMPACT
There is no financial or legal obligation/liability to the City. The Master's College is
responsible for all payments of the bonds. The following is a summary of the College's
intended use of the funds:
$16 million (not to exceed)
$10,500,000 (Refinance of bank loans)
$ 3,500,000 (Finance renovations to existing buildings)
$ 1,000,000 (Finance infrastructure improvements - sewer lines)
$15,000,000 (actual amount needed)
ATTACHMENT
Resolution Approving Tax Exempt Bonds
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CITY OF SANTA CLARITA
NOTICE OF PUBLIC HEARING
REGARDING THE CITY OF SANTA CLARITA
HOLDING A TEFRA HEARING
ON BEHALF OF THE MASTER'S COLLEGE
ON THE ISSUANCE OF REVENUE BONDS
IN THE PRINCIPAL AMOUNT OF $16,000,000
PUBLIC NOTICE IS HEREBY GIVEN:
On October 23, 2001, a public hearing, as required by Section 147(f) of the Internal Revenue
Code of 1986, will be held with respect to the proposed issuance by the California Statewide
Communities Development Authority of its revenue bonds in one or more series in a
maximum aggregate principal amount of $16,000,000 (the `Bonds"). The proceeds of the
Bonds will be used to finance and refinance the costs of acquisition, construction,
improvement, renovation, remodeling, furnishing, and equipping of certain educational
facilities, including residence halls, classrooms, laboratories, music practice rooms,
administrative and faculty offices, dining facilities, parking lots, the library, the student
center, infrastructure improvements, and other related and appurtenant facilities at The
Master's College, located at 21726 Placerita Canyon Road, Santa Clarita, California 91321
(the "College"), a portion of the costs associated with preparing a master plan for the
College and one or more housing facilities to be located in the area bounded by Lyons
Avenue, San Fernando Road, Market Street, and Newhall Avenue in Santa Clarita,
California (collectively, the "Project"). The Project is or will be owned and operated by The
Master's College and Seminary (the "Corporation"), an organization described in
Section 501(c)(3) of the Internal Revenue Code of 1986.
The hearing will commence at 6:00 p.m. local time, or as soon thereafter as the matter can
be heard, and will be held at City Hall, 23920 Valencia Boulevard, in the City Council
Chambers. Interested persons wishing to express their views on the issuance of the Bonds
or on the nature or location of the facilities proposed to be financed or refinanced may
attend the public hearing or, prior to the time of the hearing, submit written comments to
23920 Valencia Boulevard, Santa Clarita, California 91355. Any inquiries may be directed
to Frank Oviedo, in the Administrative Services Department, at (661) 255-4371.
Dated: 10/3/01
Sharon L. Dawson, CMC
City Clerk
Publish Date: 10/8/01
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