R10868City Council Meeting March 17, 2015 Santa Monica, California
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(CITY COUNCIL SERIES)
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL
FINANCE AUTHORITY REVENUE BONDS (THE CROSSROADS SCHOOL
FOR ARTS AND SCIENCES) SERIES 2015 IN AN AGGREGATE
PRINCIPAL AMOUNT NOT TO EXCEED $32,000,000 FOR THE PURPOSE
OF FINANCING AND REFINANCING THE ACQUISITION,
CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF EDUCATIONAL
FACILITIES AND RELATED PROPERTIES AND CERTAIN OTHER
MATTERS RELATING THERETO
WHEREAS, the California Municipal Finance Authority (the "Authority ")
was formed under a Joint Exercise of Powers Agreement Relating to the
California Municipal Finance Authority, dated as of January 1, 2004 (the
"Agreement "), among certain local agencies in accordance with the provisions
of the California Joint Exercise of Powers Act, California Government Code
section 6500 et seq.; and
WHEREAS, on or about September 14, 2010, the City Council of the
City of Santa Monica (the "City Council ") adopted Resolution Number 10526
(CCS) approving, authorizing and directing execution of the Agreement; and
WHEREAS, Resolution No. 10526 further approved the issuance of the
California Municipal Finance Authority Bonds (The Crossroads School for Arts and
Sciences) Series 2010 (the "2010 Bonds "); and
WHEREAS, the Crossroads School for the Arts and Sciences, a nonprofit
corporation organized and existing under the laws of the State of California (the
"Borrower "), has requested that the Authority participate in the issuance of one or more
series or subseries of revenue bonds in an aggregate principal amount not to exceed
$32,000,000 (the "Bonds ") for the purpose of making a loan to the Borrower, to enable
the Borrower to (1) refund the 2010 Bonds; and (2) finance or refinance the costs of the
acquisition, construction, improvement and equipping of the educational facilities
located within the City of Santa Monica (the "City "), as more fully described in the public
hearing notice attached hereto as Exhibit A (the "Project'); and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986
(the "Code "), the issuance of the Bonds by the Authority must be approved by the City
because the Project is located within the territorial limits of the City; and
WHEREAS, the City Council is the elected legislative body of the City and is one
of the "applicable elected representatives" required to approve the issuance of the
Bonds under Section 147(f) of the Code; and
WHEREAS, Section 4 of the Agreement requires the written approval of the City
prior to the issuance of the Bonds, and such approval may be evidenced by resolution;
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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 4 of the
Agreement; and
WHEREAS, pursuant to Section 147(f) of the Code, the City Council has,
following notice duly given, held a public hearing regarding the issuance of the Bonds,
and now desires to approve the issuance of the Bonds by the Authority.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
RESOLVES AS FOLLOWS:
SECTION 1. 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 by the Authority, for purposes of:
(i) Section 147(f) of the Code by the applicable elected representative of the
governmental unit having jurisdiction over the area in which the Project is located, in
accordance with said Section 147(f); and (ii) Section 4 of the Agreement.
SECTION 2. 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 whatsoever with respect to the Bonds.
SECTION 3. The adoption of this resolution shall not obligate the City or any
department thereof to: (i) provide any financing to acquire or construct the project or
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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, rehabilitation, or operation of the Project; (iii) make any contribution
or advance any funds whatsoever to the Authority; or (iv) take any action with respect to
the Authority or its membership therein.
SECTION 4. The Mayor, the City Clerk, and all proper officers and officials 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 5. The City Clerk shall certify to the adoption of this resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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Exhibit A
NOTICE OF PUBLIC HEARING REGARDING ISSUANCE OF REVENUE BONDS FOR THE
CROSSROADS SCHOOL FOR ARTS AND SCIENCES: NOTICE IS HEREBY GIVEN that, at
5:30 p.m., or as soon thereafter as the matter can be heard, on Tuesday, March 17, 2015, at the
City Hall Council Chamber, 1685 Main Street, Santa Monica, California, the City Council of the
City of Santa Monica (the "City ") will conduct a public hearing as required by Section 147(f) of
the Internal Revenue Code of 1986, as amended, (the "Code "), at which it will hear and consider
information concerning a proposed plan of financing providing for the issuance by the California
Municipal Finance Authority (the "Authority ") of revenue bonds in one or more series or
subseries issued from time to time, in an aggregate principal amount not to exceed $32,000,000
(the 'Bonds ").
The Bonds are to be issued for the purposes of making a loan to The Crossroads School for
Arts and Sciences, a nonprofit public benefit corporation described in Section 501(c)(3) of the
Code, (the 'Borrower") in order to (1) refund the California Municipal Finance Authority Revenue
Bonds (The Crossroads School for Arts and Sciences) Series 2010, the proceeds of which were
used to finance or refinance the acquisition, construction, renovation, improvement and
equipping of educational facilities and related properties owned or leased by the Borrower
located at 1715 Olympic Boulevard (and generally along Olympic Boulevard between 17th and
18th Street), 1728 21St Street, 1730 21st Street, 1732 21St Street, 1734 21s' Street, 1748 21s' Street
and 1753 21St Street (and generally along 21st Street between Olympic Boulevard and Michigan
Avenue), all in Santa Monica, County of Los Angeles, California 90404, and (2) finance or
refinance the acquisition, construction, renovation, improvement and equipping of educational
facilities and related properties located at 1701 21" Street, 1704 22°' Street, 1728 22nd Street,
1728 21St Street, 1730 21" Street, 1732 21St Street, 1713 -15 201h Street, 1729 and 1731 201h
Street, all in Santa Monica, County of Los Angeles, California 90404 (collectively, the "Project').
The Project is owned and operated by the Borrower.
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.
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 and refinanced may attend the public
hearing or, prior to the time of the hearing, submit written comments, which must be received by
the City prior to the hearing.
Additional information concerning the above matter may be obtained from, and written
comments should be sent to, City of Santa Monica, Finance Department, at 1717 4th Street,
Room 250, Santa Monica, California 90401, Attention: Finance Director.
Dated: February 26, 2015 CITY CLERK CITY OF SANTA MONICA
Adopted and approved this 17th day of March, 2015.
Kevin McKeown, Mayor
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10868 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 17th day of March, 2015, by the following vote:
AYES: Councilmembers: Himmelrich, O'Connor, Winterer
Mayor McKeown, Mayor Pro Tern Vazquez
NOES: Councilmember: None
ABSENT: Councilmember: Davis, O'Day
ATTEST:
Sarah P. Gorman, City Clerk