HomeMy WebLinkAbout2007-05-22 - AGENDA REPORTS - MASTERS COLLEGE BONDS (2)Agenda Item•
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARING City Manager Approval:
Item to be presented by: Darren Hernrandez
DATE: May 22, 2007
SUBJECT: ISSUANCE OF BONDS BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY FOR MASTERS
COLLEGE
DEPARTMENT: Administrative Services
RECOMMENDED ACTION
City Council:
1) Conduct Public Hearing.
2) Adopt a resolution approving the issuance of bonds by the California Statewide
Communities Development Authority for The Masters College.
BACKGROUND
The Master's College (the "Applicant") has submitted to the Authority an application (the
"Application") for the financing of certain campus facilities (the "Project") through the issuance
of tax-exempt obligations in an aggregate principal amount not to exceed $15 million. The
Project will utilize the bonds for its main campus located at 21726 Placerita Canyon Road in the
City of Santa Clarita. The Project includes new campus facilities and a new campus entrance.
The public hearing and approval in no way shall vest or grant approval on any structures,
infrastructure, or facilities of the Master Plan that are currently under reviewed by City Staff.
The entitlement requests and environmental review must be reviewed and considered by the City
(Planning Commission and City Council) prior to City approval.
The Authority is a joint exercise of powers authority consisting of over 480 California cities,
counties and special districts, including the City of Santa Clarita. The Authority pursuant to its
Amended and Restated Joint Exercise of Powers Agreement is authorized to assist in the
financing of facilities for nonprofit organizations.
Adopted:�P�-3---
In order to initiate such a financing, the member participant of the Authority in which the
proposed facilities will be located must (i) conduct a public hearing and (ii) approve the
Authority's issuance of indebtedness. Therefore, although the Authority will be the issuer of the
tax-exempt revenue obligations for the Applicant, the financing cannot proceed without the City
of Santa Clarita's approval of the financing.
ALTERNATIVE ACTIONS
Other action as determined by Council.
FISCAL IMPACT
The Borrower is The Master's College and shall be responsible for the payment of all present and
future costs in connection with the issuance of the obligations. The payment of the principal and
purchase price of and interest on the obligations shall be solely the responsibility of the
Borrower. The obligations shall not constitute a debt or obligation of the Authority or the City.
ATTACHMENTS
Resolution Approving the Issuance of Bonds by the CSCDA for The Masters College
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on May 22, 2007, 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 $15,000,000 (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, parking facilities, a
library, a student center to be known as the MacArthur Center, a guard station, one or more
roads, infrastructure improvements and other related and appurtenant facilities located on the
campus of The Master's College (collectively, the "Project"), with a street address of 21726
Placerita Canyon Road, Santa Clarita, California 91321. A portion of the Project will be located
on currently unimproved land adjacent to the Master's College and bounded by Dockweiler
Drive to the east, Newhall Creek to the west and to the south and Placerita Canyon Road to the
north. 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 Intemal Revenue Code of
1986 (the "Code" ).
Tli6 hearing will commence at 6:00 p.m. or as soon thereafter as the matter can be
heard and will be held at City Hall, 23920 Valencia Boulevard, in the first -floor City Council
Chamber. 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 Administrative
Services Department, City of Santa Clarita, 23920 Valencia Boulevard, Suite 295, Santa Clarita,
California 91355. Please note that any approval provided by the City with respect to Section
147(f) of the Code will not constitute approval of the Corporation's proposed Master Plan
Development.
Dated: May 8, 2007
Sharon L. Dawson, CMC
City Clerk
Publish on Tuesday, May 8, 2007
TEFRA Masters College
OHS WESr:260225516.2