HomeMy WebLinkAboutRESO 9314Resolution No. 9314
Resolution of the Council of the City of Palo Alto Regarding Approval of
the Issuance of Tax-Exempt Obligations by the California Enterprise
Development Authority to Refinance Bonds Previously Issued to
Acquire, Construct, Install and Equip a Community Center and Certain
Other Matters Related Thereto
RECITALS
A. The ABAG Finance Authority For Nonprofit Corporations, a joint exercise of
powers agency established under the laws of the State of California, previously issued and sold
its variable rate demand revenue bonds in an aggregate face amount of $134,915,000 (the
"Prior Bonds") for the purpose of making a loan to Oshman Jewish Community Center, a
California nonprofit public benefit corporation (the "Borrower"); and
B. The Borrower used the proceeds of the Prior Bonds loaned to it to finance the
acquisition of land and construction of a 142,000 square foot community center that included a
social/cultural hall, pre-school, studios/meeting rooms, indoor and outdoor pools, a fitness
center, gymnasium, teen center, cafe, gift center and regional offices located at 3921 Fabian
Way (the "Project") in the City of Palo Alto (the "City"); and
C. The Prior Bonds and the Project had. been approved in accordance with Section
147(f) of the Internal Revenue Code of 1986, as amended (the "Code");
D. Interest on the Prior Bonds qualified for tax exemption under Section 103 of the
Code; and
E. The Borrower wishes to refinance the Prior Bonds with tax-exempt refunding
bonds or other obligations with a longer maturity (the "Refunding Obligations") to be issued by
the California Enterprise Development Authority (the "Authority");
F. The City has jurisdiction over the entire area in which the Project is located; and
G. The City Council (the "Council") is the elected legislative body of the City, and as
such is required to approve the issuance of the Bonds under Section 147(f) of the Code, and the
Authority has requested the Council to approve the issuance and sale ofthe Refunding
Obligations in order to satisfy th·e public approval requirements of Section 147(f) of the Code;
and
H. The City has caused a notice of public hearing to be held by the Council with
respect to the issuance of the Refunding Obligations, which notice has been published once in a
newspaper of general circulation in the City at least 14 days prior to the date set for the hearing
and which notice provided a reasonable opportunity for persons of differing views to appear
and be heard at the hearing; and
1
130123 Jb 0131029
I. The Council has duly held the public hearing described above on the date of
adoption of this Resolution, and a reasonable opportunity was provided for all persons present
to be heard and to comment on the issuance and sale of the Refunding Obligations and the
Project.
The Council of the City of Palo Alto RESOLVES as follows:
SECTION 1. Recitals. This City Council does hereby find and declare that the
above referenced recitals are true and correct.
SECTION 2. Public Hearing. Pursuant to Section 147(f) of the Code, the City
Council held a public hearing on January 14, 2013 and provided an opportunity to present
arguments both for and against the issuance of the Refunding Obligations and the nature and
location ofthe Project. The City Council has further considered all testimony and comments
submitted in connection with the issuance of the Refunding Obligations arid the nature and
location of the Project at the public hearing.
SECTION 3. Approval of Refunding Obligation Issue. After consideration of
comments received at the public hearing, the City Council hereby approves the issuance and
sale of the Refunding Obligations by the Authority for the purpose of providing refinancing for
the Project. It is the purpose and intent of the Council that this Resolution constitute approval
of the Refunding Obligations by the applicable elected representative of the governmental unit
(a) on behalf of which the Refunding Obligations will be issued, and (b) having jurisdiction over
the area in which the Project is located, in accordance with Section 147(f) of the Code.
II
II
II
II
II
II
II
II
II
II
II
2
130123 Jb 0131029
SECTION 4. Authorization. The officers ofthe 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 5. Limitation of Liability. The debts, liabilities and obligations of the
Authority and the Borrower shall not be the debts, liabilities and obligations ofthe City.
INTRODUCED AND PASSED: January 14, 2013
AYES: BERMAN, BURT, KLEIN, KNISS, PRICE, SCHARFF, SCHMID, SHEPHERD
NOES: HOLMAN
ABSENT:
ABSTENTIONS:
i!-t Mayor
3
130123 jb 0131029