HomeMy WebLinkAbout2010-11-09 - AGENDA REPORTS - RECOVERY ZONE BONDS (2)Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARING City Manager Approval:
Item to be presented by: Denise Lellan
DATE: November 9, 2010
SUBJECT: ISSUANCE OF STATE -ALLOCATED RECOVERY ZONE
FACILITY BONDS AND ISSUANCE OF THE CITY'S FULL
ALLOCATION OF RECOVERY ZONE FACILITY BONDS BY
THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY TO MARVIN ENGINEERING
CO., INC. AND/OR ITS AFFILIATE, AEROSPACE DYNAMICS
INTERNATIONAL
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council conduct public hearing and adopt resolutions approving the issuance of
State -allocated Recovery Zone Facility Bonds and the issuance of the City's full allocation of
Recovery Zone Facility Bonds by the California Statewide Communities Development Authority
to Marvin Engineering Co., Inc. and/or its affiliate, Aerospace Dynamics International and
rescinding previously approved resolutions 10-47 and 10-48 relating to the same topic, approved
on June 22, 2010.
BACKGROUND
At the June 22, 2010, City Council meeting, the Santa Clarita City Council adopted resolutions
approving the following two actions:
Issuance of State -allocated Recovery Zone Facility Bonds by the California Statewide
Communities Development Authority to Aerospace Dynamics International for a
proposed expansion project within the Santa Clarita Recovery Zone. The agenda item for
that action is attached.
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Adopted: a -- Sk
Issuance of the City's full allocation of Recovery Zone Facility Bonds by the California
Statewide Communities Development Authority to Aerospace Dynamics International for
a proposed expansion project within the Santa Clarita Recovery Zone. The agenda item
for that action is attached.
Aerospace Dynamics International has requested the City hold an additional public hearing for
these items in order to clarify the ownership and location of the proposed project.
The approval of the resolutions attached does not represent an approval of new or additional
bonds to be issued. Rather, it serves to clarify the entity that will hold the bonds to be Marvin
Engineering, Aerospace Dynamic International's parent company. Additionally, it will add one
additional location within the Valencia Industrial Center that will house equipment purchased
using the bonds which previously was not identified. Red -lined versions of the resolutions
approved in June that has been modified to include the proposed changes are attached.
ALTERNATIVE ACTIONS
Other actions as determined by City Council.
FISCAL IMPACT
The payment of all present and future costs in connection with issuing these obligations is the
sole responsibility of the borrower, Marvin Engineering. Additionally, the payment of 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 City or California Statewide Communities
Development Authority.
ATTACHMENTS
Resolution - State Allocation of RZFB
Resolution - City Allocation of RZFB
Agenda Item - 6/22/2010 - State Allocation of RZFB
Agenda Item - 6/22/2010 - City Allocation of RZFB
Red Lined Resolution - State Allocation of RZFB
Red Lined Resolution - City Allocation of RZFB
RESOLUTION 10-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA, RESCINDING
RESOLUTION 10-47 AND APPROVING THE ISSUANCE OF REVENUE
BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES
DEVELOPMENT AUTHORITY IN AN AGGREGATE PRINCIPAL
AMOUNT NOT TO EXCEED $7,000,000 FOR THE PURPOSE OF
FINANCING THE ACQUISITION, DESIGN; CONSTRUCTION AND
INSTALLATION OF CERTAIN RECOVERY ZONE PROPERTY FOR
THE BENEFIT OF MARVIN ENGINEERING CO., INC. AND/OR ITS
AFFILIATE, AEROSPACE DYNAMICS INTERNATIONAL, INC.
WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)
authorizes a new category of federally tax-exempt private activity bonds entitled "recovery zone
facility bonds" that have been codified in Sections 140OU-1 and 140OU-3 (collectively, the
"Recovery Zone Facility Act") of the Internal Revenue Code of 1986, as amended (the "Code");
and
WHEREAS, the Recovery Zone Facility Act permits the issuance of recovery zone
facility bonds to finance certain improvements in an area designated as a "recovery zone" by the
issuer of such bonds or the locality in which such improvements are located; and
WHEREAS, by resolution adopted on October 27, 2009, the City Council (the "City
Council") of the City of Santa Clarita (the "City") designated certain portions of the geographic
territory of the City as a "recovery zone" for purposes of the Recovery Zone Facility Act (the
"Recovery Zone Designation"); and
WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California (the "JPA Act"), certain public agencies (the "Members") have entered into a
Joint Exercise of Powers Agreement (as amended and restated as of June 1, 1988, the
"Agreement") in order to form the California Statewide Communities Development Authority
(the "Authority"), for the purpose of promoting economic, cultural and community development,
and in order to exercise any powers common to the Members, including the issuance of bonds,
notes or other evidences of indebtedness; and
WHEREAS, the City is a Member of the Authority; and
WHEREAS, the Authority is authorized pursuant to the JPA Act and the Agreement to
issue and sell revenue bonds, including recovery zone facility bonds, for the purpose, among
others, of financing recovery zone property for private companies, and is an eligible issuer of
recovery zone facility bonds pursuant to the Recovery Zone Facility Act; and
WHEREAS, Aerospace Dynamics International, Inc., a California corporation ("ADI"),
has requested that the Authority issue and sell recovery zone facility bonds in the maximum
3
principal amount of $7,000,000 (the "Bonds") for the purpose of making one or more loans to
ADI and/or its parent corporation, Marvin Engineering Co., Inc., a California corporation
("MEC" and together with ADI and the other affiliates thereof, the "Borrowers") to (1) finance a
portion of the cost of (a) designing, acquiring, constructing and equipping an approximately
110,000 square foot facility to be used in the design and production of aircraft parts, components
and assemblies, located in the City at 25575 Rye Canyon Road (Assessor's Parcel No.
2866-006-057), and (b) acquiring and installing certain related equipment and capital items to be
installed and located in the City at 25540 Rye Canyon Road and 25571 Rye Canyon Road
(collectively, the "Project"); and (2) pay certain expenses incurred in connection with the
issuance of the Bonds; and
WHEREAS, the Project is to be owned and/or operated by ADI and/or MEC; and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of
the Code requires that an "applicable elected representative" of the governmental unit, the
geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of
the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the
Bonds following such hearing; and
WHEREAS, the Authority has determined that the City Council is an "applicable elected
representative" for purposes of holding such hearing and approving such issuance; and
WHEREAS, as a condition to issuing bonds to assist in the financing of capital projects,
Section 9 of the Agreement requires the approval of the Member within the jurisdiction of which
the project is situated; and
WHEREAS, the Authority has requested that the City Council approve the issuance of
the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f)
of the Code and the requirements of Section 9 of the Agreement; and
WHEREAS, notice of such public hearing has been duly given as required by the Code,
and this City Council has heretofore held such public hearing at which all interested persons were
given an opportunity to be heard on all matters relative to the financing of the Project and the
Authority's issuance of the Bonds therefor; and
WHEREAS, it is in the public interest and for the public benefit that the City Council
approve the issuance of the Bonds by the Authority for the aforesaid purposes; and
WHEREAS, on June 22, 2010, the City Council adopted its Resolution No. 10-47 (the
"Prior Resolution") approving and authorizing the same matters authorized and approved by this
resolution; and
WHEREAS, the Prior Resolution did not make reference to one of the street addresses
for the Project and one of the owners or operators of the Project, and the City has been advised
by counsel to correct such omissions and to reapprove and reauthorize such matters in this
resolution; and
WHEREAS, the Borrowers have also requested the Authority to issue an additional
$13,720,000 principal amount of recovery zone facility bonds (the "Additional Bonds") to
finance additional recovery zone property at one or more of the aforesaid locations, and to apply
to the City for additional recovery zone facility bond volume cap to support such bond issuance,
and such Additional Bonds (if issued) will be separate and distinct from, and in addition to, the
Bonds approved hereunder;
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby
resolve as follows:
SECTION 1. The City Council hereby finds and determines that the foregoing
recitals are true and correct. The Prior Resolution is hereby rescinded and is superseded by this
resolution.
SECTION 2. The City Council hereby approves the issuance of the Bonds by the
Authority. It is the purpose and intent of the City Council that this resolution constitute approval
of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental
unit having jurisdiction over the area in which the Project is or is to be located in accordance
with Section 147(f) of the Code and (b) by the City Council in accordance with Section 9 of the
Agreement.
SECTION 3. The issuance of the Bonds shall be subject to the approval of the
Authority of all financing documents relating thereto to which the Authority is a party. The City
shall have no responsibility or liability whatsoever with respect to the Bonds.
SECTION 4_ The adoption of this Resolution shall not obligate the City to (i)
provide any financing to acquire or construct the Project or any refinancing of the Project; (ii)
approve any application or request for or take any other action in connection with any planning
approval, permit or other action necessary for the acquisition, design, construction, installation or
operation of the Project; (iii) make any contribution or advance any funds whatsoever to the
Authority; or (iv) take any further action with respect to the Authority or its membership therein.
SECTION 5. The executing officers, the City Clerk and all other proper officers
and officials of the City are hereby authorized and directed to execute such other agreements,
documents and certificates, and to perform such other acts and deeds, as may be necessary or
convenient to effect the purposes of this Resolution and the transactions herein authorized.
SECTION 6. This resolution shall take effect immediately upon its passage.
SECTION 7. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 2010.
MAYOR
5
ATTEST:
CITY CLERK
DATE:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 2010, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
7
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, , City Clerk of the City of Santa Clarita, do hereby
certify that this is a true and correct copy of the original Resolution 10-` adopted by the City
Council of the City of Santa Clarita, California on , 2010, which is now on file in my
office.
Witness my hand and seal of the City of Santa Clarita, California, this _ day of
2010.
City Clerk
By
Deputy City Clerk
RESOLUTION 10-
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF SANTA CLARITA, CALIFORNIA, RESCINDING RESOLUTION 10-48 AND
APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $13,270,000 FOR THE PURPOSE OF
FINANCING THE ACQUISITION, DESIGN, CONSTRUCTION AND INSTALLATION
OF CERTAIN RECOVERY ZONE PROPERTY FOR THE BENEFIT OF MARVIN
ENGINEERING CO., INC. AND/OR ITS AFFILIATE, AEROSPACE DYNAMICS
INTERNATIONAL, INC., AND ALLOCATING A LIKE AMOUNT OF RECOVERY
ZONE FACILITY BOND VOLUME CAP FOR SUCH PURPOSE
WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No.
111-5) authorizes a new category of federally tax-exempt private activity bonds entitled
"recovery zone facility bonds" that have been codified in Sections 140OU-1 and 140OU-3
(collectively, the "Recovery Zone Facility Act") of the Internal Revenue Code of 1986, as
amended (the "Code"); and
WHEREAS, the Recovery Zone Facility Act permits the issuance of recovery zone
facility bonds to finance certain improvements in an area designated as a "recovery zone" by the
issuer of such bonds or the locality in which such improvements are located; and
WHEREAS, by resolution adopted on October 27, 2009, the City Council (the "City
Council") of the City of Santa Clarita (the "City") designated certain portions of the geographic
territory of the City as a "recovery zone" for purposes of the Recovery Zone Facility Act (the
"Recovery Zone Designation"); and
WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California (the "JPA Act"), certain public agencies (the "Members") have entered into a
Joint Exercise of Powers Agreement (as amended and restated as of June 1, 1988, the
"Agreement") in order to form the California Statewide Communities Development Authority
(the "Authority"), for the -purpose of promoting economic, cultural and community development,
and in order to exercise any powers common to the Members, including the issuance of bonds,
notes or other evidences of indebtedness; and
WHEREAS, the City is a Member of the Authority; and
WHEREAS, the Authority is authorized pursuant to the JPA Act and the Agreement to
issue and sell revenue bonds, including recovery zone facility bonds, for the purpose, among
others, of financing recovery zone property for private companies, and is an eligible issuer of
recovery zone facility bonds pursuant to the Recovery Zone Facility Act; and
WHEREAS, Aerospace Dynamics International, Inc., a California corporation ("ADI"),
has requested that the Authority issue and sell recovery zone facility bonds in the maximum
principal amount of $13,270,000 (the "Bonds") for the purpose of making one or more loans to
ADI and/or its parent corporation, Marvin Engineering Co., Inc., a California corporation
("MEC" and together with ADI and the other affiliates thereof, the "Borrowers") to (1) finance a
portion of the cost of (a) designing, acquiring, constructing and equipping an approximately
110,000 square foot facility to be used in the design and production of aircraft parts, components
and assemblies, located in the City at 25575 Rye Canyon Road (Assessor's Parcel No.
2866-006-057), and (b) acquiring and installing certain related equipment and capital items to be
installed and located in the City at 25540 Rye Canyon Road and 25571 Rye Canyon Road
(collectively, the "Project"); and (2) pay certain expenses incurred in connection with the
issuance of the Bonds; and
WHEREAS, the Project is to be owned and/or operated by ADI and/or MEC; and
WHEREAS, pursuant to the Recovery Zone Facility Act, eligible issuers may issue
recovery zone facility bonds only upon the grant of a volume cap allocation to an eligible issuer
or to the ultimate beneficiaries of the recovery zone facility bonds; and
WHEREAS, pursuant to the Section 1400U-1(a)(3)(A) of the Recovery Zone Facility
Act and Internal Revenue Service Notice 2009-50, the City has received recovery zone facility
bond volume cap in the aggregate amount of $13,270,000, and may reallocate such volume cap
to an eligible issuer or the ultimate beneficiaries in any reasonable manner it determines in good
faith in its discretion; and
WHEREAS, a resolution of the City Council is a reasonable and appropriate manner to
reallocate such volume cap to an eligible issuer or the ultimate beneficiaries; and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(0 of
the Code requires that an "applicable elected representative" of the governmental unit, the
geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of
the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the
Bonds following such hearing; and
WHEREAS, the Authority has determined that the City Council is an "applicable elected
representative" for purposes of holding such hearing and approving such issuance; and
WHEREAS, as a condition to issuing bonds to assist in the financing of capital projects,
Section 9 of the Agreement requires the approval of the Member within the jurisdiction of which
the project is situated; and
WHEREAS, the Authority has requested that the City Council approve the issuance of
the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f)
of the Code and the requirements of Section 9 of the Agreement; and
WHEREAS, notice of such public hearing has been duly given as required by the Code,
and this City Council has heretofore held such public hearing at which all interested persons were
given an opportunity to be heard on all matters relative to the financing of the Project and the
Authority's issuance of the Bonds therefor; and
WHEREAS, it is in the public interest and for the public benefit that the City Council
approve the issuance of the Bonds by the Authority for the aforesaid purposes; and
WHEREAS, on June 22, 2010, the City Council adopted its Resolution No. 10-48 (the
"Prior Resolution") approving and authorizing the same matters authorized and approved by this
resolution; and
WHEREAS, the Prior Resolution did not make reference to one of the street addresses
for the Project and one of the owners or operators of the Project, and the City has been advised
by counsel to correct such omissions and to reapprove and reauthorize such matters in this
resolution; and
WHEREAS, the Borrowers have also requested the Authority to issue an additional
$7,000,000 principal amount of recovery zone facility bonds (the "Additional Bonds") to finance
additional recovery zone property at one or more of the aforesaid locations, and to apply to the
State of California for additional recovery zone facility bond volume cap to support such bond
issuance, and such Additional Bonds (if issued) and such state volume cap allocation (if
received) will be separate and distinct from, and in addition to, the Bonds approved and the
volume cap granted hereunder;
NOW, THEREFORE, the City Council of the City of Santa Clarita does hereby
resolve as follows:
SECTION 1. The City Council hereby finds and determines that the foregoing
recitals are true and correct. The Prior Resolution is hereby rescinded and is superseded by this
resolution.
SECTION 2. The City Council hereby approves the issuance of the Bonds by the
Authority. It is the purpose and intent of the City Council that this resolution constitute approval
of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental
unit having jurisdiction over the area in which the Project is or is to be located in accordance
with Section 147(f) of the Code and (b) by the City Council in accordance with Section 9 of the
Agreement.
SECTION 3. The issuance of the Bonds shall be subject to the approval of the
Authority of all financing documents relating thereto to which the Authority is a party. The City
shall have no responsibility or liability whatsoever with respect to the Bonds.
SECTION 4. The City Council hereby grants recovery zone facility bond volume
cap in the aggregate amount of $13,270,000 to the Borrowers, provided that said volume cap is to
be used for the issuance of recovery zone facility bonds by the Authority to finance a portion of
the costs of the Project._ _
SECTION 5. The adoption of this Resolution shall not obligate the City to (i)
provide any financing to acquire or construct the Project or any refinancing of the Project; (ii)
approve any application or request for or take any other action in connection with any planning
approval, permit or other action necessary for the acquisition, design, construction, installation or
9
operation of the Project; (iii) make any contribution or advance any funds whatsoever to the
Authority; or (iv) take any further action with respect to the Authority or its membership therein.
SECTION 6. The executing officers, the City Clerk and all other proper officers
and officials of the City are hereby authorized and directed to execute such other agreements,
documents and certificates, and to perform such other acts and deeds, as may be necessary or
convenient to effect the purposes of this Resolution and the transactions herein authorized.
SECTION 7. This resolution shall take effect immediately upon its passage.
SECTION 8. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED this day of 2010.
ATTEST:
CITY CLERK
DATE:
MAYOR
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
I, Sarah P. Gorman, City Clerk of the City of Santa Clarita, do hereby certify that the
foregoing Resolution was duly adopted by the City Council of the City of Santa Clarita at a
regular meeting thereof, held on the day of 2010, by the following vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
CITY CLERK
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF SANTA CLARITA )
CERTIFICATION OF
CITY COUNCIL RESOLUTION
I, , City Clerk of the City of Santa Clarita, do hereby
certify that this is a true and correct copy of the original Resolution 10- adopted by the City
Council of the City of Santa Clarita, California on , 2010, which is now on file in my
office.
Witness my hand and seal of the City of Santa Clarita, California, this day of
2010.
City Clerk
By
Deputy City Clerk
6 if
Agenda Item: 4�-R 0
CITY OF SANTA CLARITA
AGENDA REPORT
PUBLIC HEARING City Manager Approval:
Item to be presented by: Jason Crawford
DATE: June 22, 2010
SUBJECT: ISSUANCE OF STATE ALLOCATED RECOVERY ZONE
FACILITY BONDS BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY TO
AEROSPACE DYNAMICS INTERNATIONAL FOR A
PROPOSED EXPANSION PROJECT WITHIN THE SANTA
.CLARITA RECOVERY ZONE
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council conduct public hearing and adopt resolution approving the issuance of State
allocated Recovery Zone Facility Bonds by the California Statewide Communities Development ._
Authority.
BACKGROUND
On February 17, 2009, President Barack Obama signed into law the American Recovery and
Reinvestment Act (Recovery Act) of 2009 which, among other actions, amended the Internal
Revenue Code to create a new method of federally subsidized financing available to private
borrowers for economic development called Recovery Zone Facility Bonds (RZFBs).
States, counties, and large municipalities (population over 100,000) were given a direct
allocation of bonds to be used by January 1, 2011, to finance certain qualified economic
development purposes for use within a designated "Recovery Zone." As a result of the direct
allocation, the United States Department of Treasury awarded the City of Santa Clarita an
allocation of $13,270,000 in Recovery Zone Facility Bonds (RZFBs).
In addition to the allocation received directly by the City, businesses have the option to apply to
the State of California to receive funds for projects in designated Recovery Zones. The funds
available from the State include allocations from cities and counties that chose not to participate
in this.program, and voluntarily waived those funds back to the State or those cities and counties
that had their allocations deemed waived.
These tax-exempt, private activity bonds are economic development bonds to assist local
agencies in stimulating economic growth by supporting selected private development projects.
The City or other local or state agency serves as the conduit issuer of the bonds for projects that
meet the requirements of the Recovery Act and such conduit issuer is not liable or obligated to
pay any debt incurred as a result.
On April 28, 2009, the City Council unanimously approved the 21 -Point Business Plan for
Progress, a broad -reaching economic development stimulus program to strengthen our local
economy for both the short- and long-term. The 21 -Point Business Plan for Progress will enhance
local business partnerships, encourage quality job creation in the area through business retention,
expansion and attraction, bolster retail spending, and attract external dollars to the community.
A component of the plan included maximizing the funds available to the City as a result of
President Obama's stimulus package and aggressively pursuing opportunities that would
maximize job creation.
In October 2009, the City Council approved a "Recovery Zone" for the purposes of accessing
these funds. The Santa Clarita Recovery Zone was approved to include the same boundaries as
the Santa Clarita Enterprise Zone, whereby the goals to reduce poverty and increase employment
are similar.
The City received a request from the California Statewide Communities Development 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 $7
million on behalf of Aerospace Dynamics International (the "Borrower"). The Borrower will use
the proceeds of the bonds to finance designing, acquiring, and constructing a 100,000 square foot
building to be used in the design and production of aircraft parts, components and assemblies,
located at 25575 Rye Canyon Road in the City of Santa Clarita, California, and acquiring and
installing certain related equipment and capital items to be installed and located at 25540 Rye
Canyon Road (collectively "The Project"). The $7 million being requested by the Borrower
represents additional funds, above the City's allocation, that the Borrower will be requesting from
the State of California.
Aerospace Dynamics International is an aerospace manufacturing company headquartered in
Santa Clarita. They occupy over 245,000 square feet of space in the City in order to provide
engineering, manufacturing, and inspection technology to their two largest clients: Boeing and
Lockheed. ADT is also one of the largest employers in Santa Clarita Valley, currently providing
over 400 job opportunities. The expansion project proposed to be funded through these bonds is
expected to create an additional 200 jobs,
In order for the Authority to issue such Bonds, the City must:
IN
1. Conduct a public hearing allowing members of the public to, comment on the proposed
Project; and
2. Approve the Authority's issuance of Bonds on behalf of the proposed financing.
Although the Authority (not the City) will be the issuer of the tax-exempt revenue bonds for the
Project, the financing cannot proceed without the City being,a member of the Authority and, as
the governmental entity having jurisdiction over the site, approving of the Authority's issuance of
indebtedness. The City has been a member of the Authority since July 22, 1993.
The Authority is a California joint exercise of powers authority, organized and existing under the
laws of the State of California (specifically, California Government Code Section 6500 and
following), and is sponsored by the League of California Cities and the California State
Association of Counties. Under the California Government Code, cities and counties are
authorized to form by agreement a governmental entity that combines the powers of such entities
to perform certain governmental functions specifically outlined in the Agreement. With respect
to the Authority, over 460 California cities, counties, and special districts have entered into and'
executed the Agreement to become a member of the Authority.
ALTERNATIVE ACTIONS
Other action as determined by City Council.
FISCAL IMPACT
The Borrower, Aerospace Dynamics International, 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
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
A�vPUBLIC HEARING City Manager Approval:
Item to be presented by: Jason Crawford
DATE: June 22, 2010
SUBJECT: ISSUANCE OF THE CITY'S FULL ALLOCATION OF
RECOVERY ZONE FACILITY BONDS BY THE CALIFORNIA
STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY
TO AEROSPACE DYNAMICS INTERNATIONAL FOR A
PROPOSED EXPANSION PROJECT WITHIN THE SANTA
CLARITA RECOVERY ZONE
DEPARTMENT: City Manager's Office
RECOMMENDED ACTION
City Council conduct public hearing and adopt resolution approving the issuance of the City's
full allocation of Recovery Zone Facility Bonds by the California Statewide Communities
Development Authority,
BACKGROUND
On February 17, 2009, President Barack Obama signed into law the American Recovery and
Reinvestment Act (Recovery Act) of 2009 which, among other actions, amended the Internal
Revenue Code to create a new method of federally subsidized financing available to private
borrowers for economic development called Recovery Zone Facility Bonds (RZFBs).
States, counties, and large municipalities (population over 100,000) were given a direct
allocation of bonds to be used by January 1, 2011, to finance certain qualified economic
development purposes for use within a designated "Recovery Zone." As a result of the direct
allocation, the United States Department of Treasury awarded the City of Santa Clarita an
allocation of $13,270,000 in Recovery Zone Facility Bonds (RZFBs).
These tax-exempt, private activity bonds are economic development bonds to assist local
Mopted.-_]Ze-so. lo -Y 2,
agencies in stimulating economic growth by supporting selected private development projects.
The City or other local or state agency serves as the conduit issuer of the bonds for projects that
meet the requirements of the Recovery_Act and such conduit issuer is not liable or obligated to
pa, any debt incurred as a result.
On April 28, 2009, the City Council unanimously approved the 21 -Point Business Plan for
Progress, a broad -reaching economic development stimulus program to strengthen our local
economy for both the short- and long-term. The 21 -Point Business Plan for Progress will enhance
local business partnerships, encourage quality job creation in the area through business retention,
expansion and attraction, bolster retail spending, and attract external dollars to the community.
A component of the plan included maximizing the funds available to the City as a result of
President Obama's stimulus package and aggressively pursuing opportunities that would
maximize job creation.
In October 2009, the City Council approved a "Recovery Zone" for the purposes of accessing
these funds. The Santa Clarita Recovery Zone was approved to include the same boundaries as
the Santa Clarita Enterprise Zone, whereby the goals to reduce poverty and increase employment
are similar.
The City received a request from the California Statewide Communities Development 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
$13,270,000 million on behalf of Aerospace Dynamics International (the "Borrower"). The
Borrower will use the proceeds of the bonds to finance designing, acquiring and constructing a
100,000 square foot building to be used in the design and production of aircraft parts,
components and assemblies, located at 25575 Rye Canyon Road in the City of Santa Clarita,
California, and acquiring and installing certain related equipment and capital items to be installed
and located at 25540 Rye Canyon Road (collectively "The Project").
Aerospace Dynamics International is an aerospace manufacturing company headquartered in
Santa Clarita. They occupy over 245,000 square feet of space in the City in order to provide
engineering, manufacturing, and inspection technology to their two largest clients: Boeing and
Lockheed. ADI is also one of the largest employers in Santa Clarita Valley, currently providing
over 400 job opportunities. The expansion project proposed to be funded through these bonds is
expected to create an additional 200 jobs.
In order for the Authority to issue such Bonds, the City must:
1. Grant all of the City's Recovery Zone Facility Bond volume cap in the amount of
$13,270,000 to the Borrower to be used for the issuance of the Bonds;
2. Conduct a public hearing allowing members of the public to comment on the proposed
Project; and
3. Approve the Authority's issuance of Bonds on behalf of the proposed financing.
Although the Authority (not the City) will be the issuer of the tax-exempt revenue bonds for the
Project, the financing cannot proceed without the City being a member of the Authority and, as
the governmental entity having jurisdiction over the site, approving of the Authority's issuance of
indebtedness. The City has been a member of the Authority since July 22, 1993.
The Authority is a California joint exercise of powers authority, organized and existing under the
laws of the State of California (specifically, California Government Code Section 6500 and
following), and is sponsored by the League of California Cities and the California State
Association of Counties. Under the California Government Code, cities and counties are
authorized to form by agreement a governmental entity that combines the powers of such entities
to perform certain governmental functions specifically outlined in the Agreement. With respect
to the Authority, over 460 California cities, counties, and special districts have entered into and
executed the Agreement to become a member of the Authority.
ALTERNATIVE ACTIONS
Other action as determined by City Council.
FISCAL IMPACT
The Borrower, Aerospace Dynamics International, 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
RESOLUTION NO.
RESOLUTION O l'1 .E (-°HN 01" SANTA (:;.LAl I' A .1.ECI:NDING
RI ` 11; ''ION NO. 1.0-47 AND—APPROVING THE ISSUANCE _ OF
REVENUE BONDS BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $7,000,000 FOR THE
PURPOSE OF FINANCING THE ACQUISITION, DESIGN,
CONSTRUCTION AND INSTALLATION OF CERTAIN RECOVERY
ZONE PROPERTY FOR THE BENEFIT OF.',,\1A.RV1.N ENGINEERING
('C). INC. AN.11/OR ITS AFEI.I.I.A.J.E, AEROSPACE DYNAMICS
INTERNATIONAL, INC.
WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)
authorizes a new category of federally tax-exempt private activity bonds entitled "recovery zone
facility bonds" that have been codified in Sections 140OU-1 and 140OU-3 (collectively, the
"Recovery Zone Facility Act") of the Internal Revenue Code of 1986, as amended (the "Code");
and
WHEREAS, the Recovery Zone Facility Act permits the issuance of recovery zone
facility bonds to finance certain improvements in an area designated as a "recovery zone" by the
issuer of such bonds or the locality in which such improvements are located; and
WHEREAS, by resolution adopted on October 27, 2009, the City Council (the "City
Council") of the City of Santa Clarita (the "City") designated certain portions of the geographic
territory of the City as a "recovery zone" for purposes of the Recovery Zone Facility Act (the
"Recovery Zone Designation"); and
WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California (the "JPA Act"), certain public agencies (the "Members") have entered into a
Joint Exercise of Powers Agreement (as amended and restated as of June 1, 1988, the
"Agreement") in order to form the California Statewide Communities Development Authority
(the "Authority"), for the purpose of promoting economic, cultural and community development,
and in order to exercise any powers common to the Members, including the issuance of bonds,
notes or other evidences of indebtedness; and
WHEREAS, the City is a Member of the Authority; and
WHEREAS, the Authority is authorized pursuant to the JPA Act and the Agreement to
issue and sell revenue bonds, including recovery zone facility bonds, for the purpose, among
others, of financing recovery zone property for private companies, and is an eligible issuer of
recovery zone facility bonds pursuant to the Recovery Zone Facility Act; and
WHEREAS, Aerospace Dynamics International, Inc., a California corporation (tl
`133rt�� has requested that the Authority issue and sell recovery zone facility bonds in
the maximum principal amount of $7,000,000 (the "Bonds") for the purpose of making a--l(Nin- iii
;4/
or ruorcloa:tts to th���3D 11 t~ �� ,,,, � 01. ,, , t�,COS {a}fl�i��iH�x—�f}t�rrn-A_r)I:.
.
and/or its L)aront: Ai�-ti)rwion, e�larvin. l n�. nLci na Co.,i���.. <� t'1�li�«r��i i c}�t;l����;�ti�:�r� t` 4it t._".
�thet ��_r_ h ��)_I...and the other affil.i,��t€:s t1�eivo_t, the ` orr.i7���':rs) to ....(i,D..l:t,6_)4�� ce �I...i�ot.ti011
c 9` tl,r ost eel ' $ cle.si rink, < c�luiring— constructing and equip i .g -an approximately 4-001.10,000
square foot facility to be used in the design and production of aircraft parts, components and
assemblies, located in the City at 25575 Rye Canyon Road (.1s e;sor`s Lirc-cl No. 28O(i-006)-
l5 )., and (b) acquiring and installing certain related equipment and capital items to be installed
and located in the City at 25540 Rye Canyon Road and 2`S7�1 Rye C:rtrori Road (collectively,
the "Project"); and (2) pay certain expenses incurred in connection with the issuance of the
Bonds; and
WHEREAS,the Project is to be awned <rnd or operated by ilk nd of 4EC - and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of
the Code requires that an "applicable elected representative" of the governmental unit, the
geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of
the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the
Bonds following such hearing; and
WHEREAS, the Authority has determined that the City Council is an "applicable elected
representative" for purposes of holding such hearing and approving such issuance; and
WHEREAS, as a condition to issuing bonds to assist in the financing of capital projects,
Section 9 of the Agreement requires the approval of the Member within the jurisdiction of which
the project is situated; and
WHEREAS, the Authority has requested that the City Council approve the issuance of
the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f)
of the Code and the requirements of Section 9 of the Agreement; and
WHEREAS, notice of such public hearing has been duly given as required by the Code,
and this City Council has heretofore held such public hearing at which all interested persons
were given an opportunity to be heard on all matters relative to the financing of the Project and
the Authority's issuance of the Bonds therefor; and
WHEREAS, it is in the public interest and for the public benefit that the City Council
approve the issuance of the Bonds by the Authority for the aforesaid purposes; and
WHEREAS, on ,l_LLt.tn� 22, 2010, the Borrow-ef-Cite Council adibptecl ifs 1�� `i=lrrl. 11 No. 1.4)-
�__
47 and authorizinf� the s,r sic, matters autliorized and avoi- ved
b'y this re.:o.lution; and
VHl!wIZT;, ti the Prior k0solution slid not make reference to onle of the sti-ed add'esse:s
Wfor .._tlie llroiect,._,utd ono of the crwt eLs o�r ators € f' Clic i'rf:> ei t- and Ilii C_it:v, has been advised
by cowisCl to certG�-f..._su li omissions _a7d to te.�xl,w-o e, and tkelr niatters in 1ht5
.. .... . ........... _
t-esc�ltttiat�; <ttrcf
WHEREAS. the Borrowers have also requested the Authority to issue an additional
$13,720,000 principal amount of recovery zone facility bonds (the "Additional Bonds") to
finance additional recovery zone property at one or more of the aforesaid locations, and to apply
to the City for additional recovery zone facility bond volume cap to support such bond issuance,
and such Additional Bonds (if issued) will be separate and distinct from, and in addition to, the
Bonds approved hereunder;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AS
FOLLOWS,
Section 1. The City Council hereby finds and determines that the foregoing recitals
are true and correct. The Prior lZesolution is hereby rescinded a d is ��rl,�.rs�cic�:# by l:lris
Section 2. The City Council hereby approves the issuance of the Bonds by the
Authority. It is the purpose and intent of the City Council that this resolution constitute approval
of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental
unit having jurisdiction over the area in which the Project is or is to be located in accordance
with Section 147(f) of the Code and (b) by the City Council in accordance with Section 9 of the
Agreement.
Section 3. The issuance of the Bonds shall be subject to the approval of the Authority
of all financing documents relating thereto to which the Authority is a party. The City shall have
no responsibility or liability whatsoever with respect to the Bonds.
Section 4. The adoption of this Resolution shall not obligate the City to (i) provide
any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve
any application or request for or take any other action in connection with any planning approval,
permit or other action necessary for the acquisition, design, construction, installation or operation
of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or
(iv) take any further action with respect to the Authority or its membership therein.
Section 5. The executing officers, the City Clerk and all other proper officers and
officials of the City are hereby authorized and directed to execute such other agreements,
documents and certificates, and to perform such other acts and deeds, as may be necessary or
convenient to effect the purposes of this Resolution and the transactions herein authorized.
Section 6. This resolution shall take effect immediately upon its passage.
�3
PASSED AND ADOPTED by the City Council of the City of Santa Clarita at a regular
meeting of the City Council held on the22. -nQ�b day of 3niw-.November, 2010, by the following
vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
City Clerk
Mayor
RESOLUTION NO.
RESOLUTION OF "1`111 CITY OF SAN l A C:;I ARIT;k .ISI C INIIIN ',
I .I SI: t:.I ' 1 NO. 10-48 AND APPROVING THE ISSUANCE OF
REVENUE BONDS BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $13,270,000 FOR THE
PURPOSE OF FINANCING THE ACQUISITION, DESIGN,
CONSTRUCTION AND INSTALLATION OF CERTAIN RECOVERY
ZONE PROPERTY FOR THE BENEFIT OF N'IARVI: 1, C:ANl-ER NG
Co., INC;. : NIIxm I"I`S AFF11.1,VF+1 _AEROSPACE DYNAMICS
INTERNATIONAL, INC AND ALLOCATING A LIKE AMOUNT OF
RECOVERY ZONE FACILITY BOND VOLUME CAP FOR SUCH
PURPOSE
WHEREAS, the American Recovery and Reinvestment Act of 2009 (Pub. L. No. 111-5)
authorizes a new category of federally tax-exempt private activity bonds entitled "recovery zone
facility bonds" that have been codified in Sections 140OU-1 and 140OU-3 (collectively, the
"Recovery Zone Facility Act") of the Internal Revenue Code of 1986, as amended (the "Code");
and
WHEREAS, the Recovery Zone Facility Act permits the issuance of recovery zone
facility bonds to finance certain improvements in an area designated as a "recovery zone" by the
issuer of such bonds or the locality in which such improvements are located; and
WHEREAS, by resolution adopted on October 27, 2009, the City Council (the "City
Council") of the City of Santa Clarita (the "City") designated certain portions of the geographic
territory of the City as a "recovery zone" for purposes of the Recovery Zone Facility Act (the
"Recovery Zone Designation"); and
WHEREAS, pursuant Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California (the "JPA Act"), certain public agencies (the "Members") have entered into a
Joint Exercise of Powers Agreement (as amended and restated as of June 1, 1988, the
"Agreement") in order to form the California Statewide Communities Development Authority
(the "Authority"), for the purpose of promoting economic, cultural and community development,
and in order to exercise any powers common to the Members, including the issuance of bonds,
notes or other evidences of indebtedness; and
WHEREAS, the City is a Member of the Authority; and
WHEREAS, the Authority is authorized pursuant to the JPA Act and the Agreement to
issue and sell revenue bonds, including recovery zone facility bonds, for the purpose, among
others, of financing recovery zone .property for private companies, and is an eligible issuer of
recovery zone facility bonds pursuant to the Recovery Zone Facility Act; and
A-5
WHEREAS, Aerospace Dynamics International, Inc., a California corporation (th-e
has requested that the Authority issue and sell recovery zone facility bonds in
the maximum principal amount of $13,270,000 (the "Bonds") for the purpose of making a
loar€_olle of .€r€o€c Qc .I€ s to
aeflt�iT+r�g 11)1. and: :.... t 1 < €� rat ...c€t i €s€ski€€€€€.. : l z€ E i; , i € a'r€e € m,, Co_ .�iic-,....' C s�.i€�t€1111'19,
DI apd the odic€- aff�1Mtis t1��.roof�. the `J-->orrox r L to
�glgj<z_tior i `I1 C' •� c _, i7 then 'itl r �...
LL) -_fzji;€,i rt.Jon _ �► t1a c°rest t i' z ni les €�i3 Hca:€iris; constructing jr d c_c ij*iig_an
approximately -1001 10,000 square foot facility to be used in the design and production of aircraft
parts, components and assemblies, located in the City at 25575 Rye Canyon Road_Lksses«.€f's
Plare•1 No. 2866.006-057), and (b) acquiring and installing certain related equipment and capital
items to be installed and located in the City at 25540 Rye Canyon Road z€,nd 25'� ? 1 Rve C_Gial)vo r€
&I id _(collectively, the "Project"); and (2) pay certain expenses incurred in connection with the
issuance of the Bonds; and
W REI AS,ji,c 13r(IL,,ct is to he oN),jvcd and/or operated hADI alid or NJEC,. rz€ d
WHEREAS, pursuant to the Recovery Zone Facility Act, eligible issuers may issue
recovery zone facility bonds only upon the grant of a volume cap allocation to an eligible issuer
or to the ultimate 13#4eiavienc licuic4 of the recovery zone facility bonds; and
WHEREAS, pursuant to the Section 1400U-1(a)(3)(A) of the Recovery Zone Facility
Act and Internal Revenue Service Notice 2009-50, the City has received recovery zone facility
bond volume cap in the aggregate amount of $13,270,000, and may reallocate such volume cap
to an eligible issuer or anibc ultimate beneAe:'ar sl �ti #€� ja_i in any reasonable manner it
determines in good faith in its discretion; and
WHEREAS, a resolution of the City Council is a reasonable and appropriate manner to
reallocate such volume cap to an eligible issuer or rnrt;l.. ultimate brrf+ci:z+ry:3ii i tri s,; and
WHEREAS, in order for the interest on the Bonds to be tax-exempt, Section 147(f) of
the Code requires that an "applicable elected representative" of the governmental unit, the
geographic jurisdiction of which contains the site of facilities to be financed with the proceeds of
the Bonds, hold a public hearing on the issuance of the Bonds and approve the issuance of the
Bonds following such hearing; and
WHEREAS, the Authority has determined that the City Council is an "applicable elected
representative" for purposes of holding such hearing and approving such issuance; and
WHEREAS, as a condition to issuing bonds to assist in the financing of capital projects,
Section 9 of the Agreement requires the approval of the Member within the jurisdiction of which
the project is situated; and
WHEREAS, the Authority has requested that the City Council approve the issuance of
the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f)
of the Code and the requirements of Section 9 of the Agreement; and
WHEREAS, notice of such public hearing has been duly given as required by the Code,
and this City Council has heretofore held such public hearing at which all interested persons
were given an opportunity to be heard on all matters relative to the financing of the Project and
the Authority's issuance of the Bonds therefor; and
WHEREAS, it is in the public interest and for the public benefit that the City Council
approve the issuance of the Bonds by the Authority for the aforesaid purposes; and
WHEREAS, t;)ta June 22. M10. the Bt�rtt*ty Coucllot d its esolation No 10-
,,... w
48 (the Resoluth<?tired aml
bv thi ; €-eS01LJ:tian, WId
WIIEJI.I AS, the Prior Resolution did iio( rnalce re,icrenc.e to one of ilre street: ac: dre sses
for the 1'roi cr a ,.d one o the owners ers cit orlerators of the Proiect and the C; itv has bec:rt._advised
by counscl to correct such onilssion, and to rcappro e and such ina.ttcrs. M_t�li_s
W'IJE . �AS, t:lze. Borrowcr.-s have also requested the Authority to issue an additional
$7,000,000 principal amount of recovery zone facility bonds (the "Additional Bonds") to finance
additional recovery zone property at one or more of the aforesaid locations, and to apply to the
State of California for additional recovery zone facility bond volume cap to support such bond
issuance, and such Additional Bonds (if issued) and such state volume cap allocation (if
received) will be separate and distinct from, and in addition to, the Bonds approved and the
volume cap granted hereunder;
NOW, ` THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL AS
FOLLOWS;
Section 1. The City Council hereby finds and determines that the foregoing recitals
are true and correct. T19e Prior (t :solution is lierebv re>cirrcl :c1 and is stA)erseded by this
res{4111101).
Section 2. The City Council hereby approves the issuance of the Bonds by the
Authority. It is the purpose and intent of the City Council that this resolution constitute approval
of the issuance of the Bonds (a) by the "applicable elected representative" of the governmental
unit having jurisdiction over the area in which the Project is or is to be located in accordance
with Section 147(f) of the Code and (b) by the City Council in accordance with Section 9 of the
Agreement.
Section 3. The issuance of the Bonds shall be subject to the approval of the Authority
of all financing documents relating thereto to which the Authority is a party. The City shall have
no responsibility or liability whatsoever with respect to the Bonds.
Section 4. The City Council hereby grants recovery zone facility bond volume cap in
the aggregate amount of $13,270,000 to the Borrowers, provided that said volume cap is to be
used for the issuance of recovery zone facility bonds by the Authority to finance a portion of the
costs of the Project.
Section 5. The adoption of this Resolution shall not obligate the City to (i) provide
any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve
a 7
any application or request for or take any other action in connection with any planning approval,
permit or other action necessary for the acquisition, design, construction, installation or operation
of the Project; (iii) make any contribution or advance any funds whatsoever to the Authority; or
(iv) take any further action with respect to the Authority or its membership therein.
Section 6. The executing officers, the City Clerk and all other proper officers and
officials of the City are hereby authorized and directed to execute such other agreements,
documents and certificates, and to perform such other acts and deeds, as may be necessary or
convenient to effect the purposes of this Resolution and the transactions herein authorized.
Section 7. This resolution shall take effect immediately upon its passage.
PASSED AND ADOPTED by the City Council of the City of Santa Clarita at a regular
meeting of the City Council held on the ??nth'�th day of ��.. r wr, 2010, by the following
vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
ATTEST:
City Clerk
Mayor
4'A?0f1 -
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that on November 9, 2010, 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 (the "Authority") of its revenue bonds in one or more series in an amount not
to exceed $20,270,000 (the "Bonds"). The proceeds of the Bonds will be used to: (1)
finance a portion of the cost of (a) designing, acquiring, constructing and equipping an
approximately 110,000 square foot facility to be used in the design and production of
aircraft parts, components and assemblies, located at 25575 Rye Canyon Road
(Assessor's Parcel No. 2866-006-057) in the City of Santa Clarita, California, and (b)
acquiring and installing certain related equipment and capital items to be installed and
located at 25540 Rye Canyon Road and 25571 Rye Canyon Road in the City of Santa
Clarita, California (collectively, the "Project"); and (2) pay certain expenses incurred in
connection with the issuance of the Bonds. The Project is to be owned by Marvin
Engineering Co., Inc., a California corporation, and/or its affiliate, Aerospace Dynamics
International, Inc., a California corporation (the "Borrower"). The Project is to be
operated by Marvin Engineering Co., Inc. and/or Aerospace Dynamics International, Inc.
The Borrower has submitted an application to the Authority for the financing of the
Project through the issuance of the Bonds, and reference is made to such application for
further particulars.
The Bonds and the obligation to pay principal of and interest thereon and any
redemption premium with respect thereto do not constitute indebtedness or an obligation of
the Authority, the State of California or any political subdivision thereof, within the meaning
of any constitutional or statutory debt limitation, or a charge against the general credit or
taxing powers of any of them. The Bonds shall be a limited obligation of the Authority,
payable solely from certain revenues duly pledged therefor and generally representing
amounts paid by the Borrower.
The hearing will commence at 6:00 p.m. or as soon thereafter as the matter can be
heard, and will be held in the City Council Chambers, City Hall, First Floor, 23920 Valencia
Blvd., Santa Clarita, California. Interested persons wishing to express their views on the
issuance of the Bonds or on the nature and location of the facilities proposed to be financed
may attend the public hearing or, prior to the time of the hearing, submit written comments.
Additional information concerning the above matter may be obtained from, and
written comments should be addressed to, Denise Lellan, Administrative Analyst, City of
Santa Clarita, 23920 Valencia Blvd., Santa Clarita, CA 91355.
Dated: October 22, 2010
a�