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HomeMy WebLinkAbout2007-11-13 - AGENDA REPORTS - VILLAGE CHRISTIAN BONDS (2)PUBLIC HEARING DATE: SUBJECT: DEPARTMENT: Agenda Item: CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by November 13, 2007 Carmen Magana ISSUANCE OF BONDS BY THE COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY FOR VILLAGE CHRISTIAN SCHOOLS Administrative Services RECOMMENDED ACTION City Council: 1) Conduct Public Hearing. 2) Adopt a resolution approving the issuance of bonds by the Colorado Educational Facilities Authority for Village Christian Schools. The City has received a request from the Colorado Educational and Cultural Facilities Authority (the "Authority") to conduct a public hearing as required by the Internal Revenue Code in order to issue tax-exempt revenue bonds (the "Bonds") in an aggregate amount not to exceed $20 million on behalf of Village Christian Schools, a California nonprofit .corporation (the "Borrower"). The Authority is authorized by Colorado law to issue revenue bonds and other forms of indebtedness to finance or refinance educational facilities located within or outside the State of Colorado. In order to initiate such a financing, the member participant of the Authority in which the. proposed facilities will be located must 1) conduct a public hearing, and 2) approve the Authority's issuance of indebtedness. Therefore, although the Authority will be the issuer of the tax-exempt revenue obligations for the Borrower, the financing cannot proceed without the City of Santa Clarita's approval of the financing. op © iso. o-7 03 The Borrower will use the bond proceeds to: a) finance the costs of the acquisition of the assets of Friends of Legacy, Inc. and the business/school of Legacy Christian Academy (aka Legacy Private Academy), a grades K-6 educational facility located at 27680 Dickason Drive, Santa Clarita, California 91355 (the "Valencia Facilities") in an amount not expected to exceed $9,000,000, which assets include, a one-story building of approximately 26,614 square feet, paved parking of 21 spaces, fencing, playground equipment, and a covered shade lunch area, including all classroom/office furnishings and equipment, all situated on approximately 2.45 acres of land. b) finance the costs of the expansion of the Valencia Facilities by adding classrooms and ancillary facilities for grades 7 and 8, in an amount not expected to exceed $2,000,000 (the "Additional Valencia Facilities"). c) finance certain development and construction costs towards a refurbishment and expansion to the Borrower's grades K-12 educational facilities known as Village Christian Schools, located at 8930 Village Avenue, Sun Valley, California 91352, such pre -development costs to include all aspects for the development of a campus Master Plan, including architectural fees, pre -development engineering fees, application and approval fees to local city and county governmental authorities, and the construction of a "right turn only lane" (the "Sun Valley Facilities"), in an amount not expected to exceed $3,460,000. d). refinance the acquisition of three parcels of land adjacent to or near the Sun Valley Facilities, located at 10355 La Tuna Canyon Road, Los Angeles, CA 91352 (with two buildings of approximately 3,180 and 3,600 square feet, respectively, situated thereon, and estimated Blind proceeds to purchase being $1,040,000), 8960 Village Avenue, Sun Valley, CA 91352 (with an approximately 1,728 single-family residence situated thereon, and estimated Bond proceeds to purchase being $200,000); and 10342 Penrose Street, Los Angeles, CA 91352 (with two single-family residences of approximately 2,699 and 660 square feet, respectively, feet situated thereon, and estimated Bond proceeds to purchase being $800,000) (together with the Valencia Facilities, the additional Valencia Facilities and the Sun Valley Facilities, the "Facilities"). e) fund capitalized interest on the Bonds, if any. 0 fund any required debt service reserve fund. g) pay certain costs of issuance of the Bonds, including initial costs of any credit enhancement (collectively, the "Project"). The proceeds of the bonds will be loaned to ACSI Capital Corporation, which will in turn loan the proceeds to the Borrower. The Borrower, or one or more affiliates controlled by the Borrower, will be the owner, operator, and manager of the Facilities. ALTERNATIVE ACTIONS Other action as determined by Council. FISCAL IMPACT The Borrower is Village Christian Schools 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 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 NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that on November 13, 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 Colorado Educational and Cultural Facilities Authority (the "Authority") of its Adjustable Rate Demand Revenue Bonds, Series 2007 (Village Christian Schools Project), in the aggregate principal amount not to exceed $20,000,000 (the "Bonds"). The proceeds of the Bonds will be used for the purpose of providing funds to Village Christian Schools, a California nonprofit corporation (the "Borrower"), to: (a) finance the costs of the acquisition of the assets of Friends of Legacy, Inc and the business/school of Legacy Christian Academy (a/k/a Legacy Private Academy), a grades K-6 educational facility located at 27680 Dickason Drive, Valencia, California 91355 (the "Valencia Facilities") in an amount not expected to exceed $9,000,000, which assets include a one-story building of approximately 26,614 square feet, paved parking of 21 spaces, fencing, playground equipment, and a covered shade lunch area, including all classroom/office furnishings and equipment, all situated on approximately 2.45 acres of land; (b) finance the costs of the expansion of the Valencia Facilities by adding classrooms and ancillary facilities for grades 7 and 8, in an amount not expected to exceed $2,000,000 (the "Additional Valencia Facilities"); (c) finance certain development and construction costs towards a refurbishment and expansion to the Borrower's grades K-12 educational facilities known as Village Christian Schools, located at 8930 Village Avenue, Sun Valley,, Californi a 91352, such pre -development costs to include all aspects for the development of a campus Master Plan, including architectural fees, pre -development engineering fees, application and approval fees to local city and county governmental authorities, and the construction of a "right turn only lane" (the "Sun Valley Facilities"), in an amount not expected to exceed $3,460,000; (d) refinance the acquisition of three parcels of land adjacent to or near the Sun Valley Facilities, located at 10355 La Tuna Canyon Road, Los Angeles, CA 91352 '(with two buildings of approximately 3,180 and 3,600 square feet, respectively, situated thereon,'and estimated Bond proceeds to purchase being $1,040,000), 8960 Village Ave, Sun Valley, CA 91352 (with an approximately 1,728 single family residence situated thereon, and estimated Bond proceeds to purchase being $200,000); and 10342 Penrose St. Los Angeles, CA 91352 (with two single family residences of approximately 2,699 and 660 square feet, respectively, feet situated thereon, and estimated Bond proceeds to purchase being $800,000) (together with the Valencia Facilities, the Additional Valencia Facilities and the Sun Valley Facilities, the "Facilities"); (e) fund capitalized interest on the Bonds, if any; (f) fund any required debt service reserve fund; and (g) pay certain costs of issuance of the Bonds, including initial costs of any credit enhancement. The proceeds of the Bonds will be loaned to ACSI Capital Corporation which will in turn loan the proceeds to the Borrower. The Borrower, or one or more affiliates controlled by the Borrower, will be the owner, operator and manager of the Facilities. The 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 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 Administrative Services Department, City of Santa Clarita, 23920 Valencia Boulevard, Suite 295, Santa Clarita, California 91355. I A� 1 Dated: October 30, 2007 r CITY OF SANTA CLARITA By: /s/ Sharon L. Dawson Sharon L. Dawson, CMC, City Clerk 1 RESOLUTION NO. 07- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, APPROVING THE ISSUANCE OF COLORADO EDUCATIONAL AND CULTURAL FACILITIES AUTHORITY REVENUE BONDS IN A MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF $20,000,000 FOR THE PURPOSES OF FINANCING AND REFINANCING THE COSTS OF ACQUISITION, CONSTRUCTION, IMPROVEMENT, RENOVATION, REMODELING, FURNISHING AND EQUIPPING OF CERTAIN EDUCATIONAL FACILITIES AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, the Colorado Educational and Cultural Facilities Authority (the "Authority") is authorized by Colorado law to issue revenue bonds and other forms of indebtedness to finance or refinance educational facilities located within or outside the State of Colorado; and WHEREAS, Village Christian Schools, a California nonprofit corporation and an organization described in Section 501(c)(3) of the internal Revenue Code of 1986 (the "Borrower"), has requested that the Authority issue revenue bonds in a maximum aggregate principal amount of $20,000,000 (the "Bonds") to (a) finance the costs of the acquisition of the assets of Friends of Legacy, Inc and the business/school of Legacy Christian Academy (a/k/a Legacy Private Academy), a grades K-6 educational facility located at 27680 Dickason Drive, Valencia, California 91355 (the "Valencia Facilities") in an amount not expected to exceed $9,000,000, which assets include a one-story building of approximately 26,614 square feet, paved parking of 21 spaces, fencing, playground equipment, and a covered shade lunch area, including all classroom/office furnishings and equipment, all situated on approximately 2.45 acres of land; (b) finance the costs of the expansion of the Valencia Facilities by adding classrooms and ancillary facilities for grades 7 and 8, in an amount not expected to exceed $2,000,000 (the "Additional Valencia Facilities"); (c) finance certain development and construction costs towards a refurbishment and expansion to the Borrower's grades K-12 educational facilities known as Village Christian Schools, located at 8930 Village Avenue, Sun Valley, California 91352, such pre -development costs to include all aspects for the development of a campus Master Plan, including architectural fees, pre -development engineering fees, application and approval fees to local city and county governmental authorities, and .the construction of a "right turn only lane" (the "Sun Valley Facilities"), in an amount not expected to exceed $3,460,000; (d) refinance the acquisition of three parcels of land adjacent to or near the Sun Valley Facilities, located at 10355 La Tuna Canyon Road, Los Angeles, CA 91352 (with two buildings of approximately 3,180 and 3,600 square feet, respectively, situated thereon, and estimated Bond proceeds to purchase being $1,040,000), 8960 Village,Ave, Sun Valley, CA 91352 (with an approximately 1,728 single family residence situated thereon, and estimated Bond proceeds to purchase being $200,000); and 10342 Penrose St. Los Angeles, CA 91352 (with two single family residences of approximately 2,699 and 660 square feet, respectively, feet situated thereon, and estimated Bond proceeds to purchase being $800,000) (together with the Valencia Facilities, the Additional Valencia Facilities and the Sun Valley Facilities, the "Facilities"); (e) fund capitalized interest on the Bonds, if any; (f) fund any required debt service reserve fund; and (g) pay certain costs of issuance of the Bonds, including initial costs of any credit enhancement (collectively, the "Project"), and WHEREAS, the Valencia Facilities and the Additional Valencia Facilities are or will be owned and operated by the Borrower (or an affiliate of the Borrower controlled by the Borrower) and located in the City of Santa Clarita (the "City"); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), prior to their issuance, the Bonds are required to be approved by the "applicable elected representative" of the governmental unit on whose behalf the Bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by the Bonds is to be located, after a public hearing held following reasonable public notice; and WHEREAS, the Valencia Facilities and the Additional Valencia Facilities to be financed and refinanced with proceeds of the Bonds are located within the territorial limits of the City; and WHEREAS, the members of the City Council are the applicable elected representatives of the City; and WHEREAS, there has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on the date hereof, and WHEREAS, such public hearing was conducted on this date by the City Council, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and WHEREAS, it is intended that this resolution shall constitute the approval of the issuance of the Bonds and the Project required by Section 147(f) of the Code. NOW THEREFORE, the City Council of the City of Santa Clarita does hereby resolve as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority and the Project to be financed and refinanced thereby. It is the purpose and intent of the City Council that this resolution constitute approval of the Bonds for the purposes of Section 147(f) of the Code. The City does not bear any responsibility for the tax-exempt status of the Bonds, the debt service on the Bonds or any other matter related to the Bonds. SECTION 3. 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 4. This resolution shall take effect immediately upon its adoption. IPA SECTION 5. The City Clerk shall certify to the adoption of this Resolution. PASSED, APPROVED AND ADOPTED this 13th day of November, 2007. MAYOR ATTEST: CITY CLERK STATE OF CALIFORNIA ) COUNTY. OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Sharon L. Dawson, CMC, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Resolution was duly adapted by the City Council of the City of Santa Clarita at a regular meeting thereof, held on the 13th day of November, 2007, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: 3 CITY CLERK STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) CERTIFICATION OF CITY COUNCIL RESOLUTION I, Sharon L. Dawson, City Clerk of the City of Santa Clarita, do hereby certify that this is a true and correct copy of the original Resolution No. 07- , adopted by the City Council of the City of Santa Clarita, California on November 13, 2007, which is now on file in my office. Witness my hand and seal of the City of Santa Clarita, California, -this day of November, 2007. Sharon L. Dawson, CMC City Clerk By Susan Caputo Deputy City Clerk rd