REPORT TO COUNCIL
SUBJECT
Title
Adopt a Resolution approving the California Municipal Finance Authority's Issuance of Tax-Exempt Bonds for the Purpose of Refinancing Indebtedness of Santa Clara University
Report
BACKGROUND
Santa Clara University (the "Borrower") has requested that the California Municipal Finance Authority (CMFA) issue revenue bonds in the maximum principal amount of $4,900,000 for the purpose of refinancing indebtedness of the Borrower that was incurred in 2003 to finance and refinance the acquisition, construction, improvement, rehabilitation, renovation and equipping of educational facilities owned by the Borrower and located on the Borrower's campus at 500 El Camino Real, Santa Clara, California (the "Project").
For all or a portion of the bonds to qualify as tax-exempt bonds, the City of Santa Clara (City) must conduct a public hearing under the Tax Equity and Fiscal Responsibility Act (the "TEFRA Hearing") to provide the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for financing the Project. Public notice must be provided to the community prior to the TEFRA Hearing. Following the close of the TEFRA Hearing, the City must provide its approval prior to the issuance of the bonds for financing the Project.
California Municipal Finance Authority
The CMFA was created on January 1, 2004, pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA's representatives and its Board of Directors have considerable experience in bond financings.
To date, over 300 municipalities have become members of CMFA. For the CMFA to have the authority to serve as ...
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