R11540City Council Meeting: July 18, 2023 Santa Monica, California
RESOLUTION NUMBER 11540 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY OF SANTA MONICA CITY COUNCIL APPROVING
THE ISSUANCE BY THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY
OF ITS REVENUE OBLIGATIONS FOR THE BENEFIT OF NEW ROADS SCHOOL
AND/OR A RELATED ENTITY IN AN AGGREGATE AMOUNT NOT TO EXCEED
$25,000,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE COST OF
ACQUISITION, DEVELOPMENT, CONSTRUCTION, INSTALLATION, EQUIPPING
AND FURNISHING OF CERTAIN FACILITIES, AND OTHER MATTERS RELATING
THERETO
WHEREAS, New Roads School, a nonprofit public benefit corporation (the
“Borrower”), duly organized and existing under the laws of the State of California (the
“State”), has requested that the California Enterprise Development Authority (the
“Authority”) issue, from time to time, pursuant to a plan of finance, its tax-exempt and/or
taxable revenue obligations in an aggregate principal amount not to exceed $25,000,000
(the “Obligations”) for the benefit of the Borrower, pursuant to Chapter 5 of Division 7 of
Title 1 of the Government Code of the State (commencing with Section 6500) (the “Act”)
to (a) finance or refinance the cost of acquisition, construction, development,
improvement, renovation, furnishing and equipping of the Borrower’s educational campus
consisting of (i) an approximately 2.6 acre campus located at 3131 Olympic Boulevard,
Santa Monica, California 90404 and bordered by Olympic Boulevard to the south,
Nebraska Avenue to the north, Franklin Street to the east and Berkeley Street to the west,
including approximately 73,150 square feet of improvements including classrooms, a
theater, science labs, offices, outdoor play and sports areas, parking, and related and
ancillary facilities, and (ii) an approximately 9,700 square foot building located at 1836
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Franklin Street, Santa Monica, California 90404 (collectively, the “Facilities”), and (b) pay
certain costs of issuance in connection with such financing or refinancing; and
WHEREAS, the Borrower is an organization described in Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended (the “Code”) and will own and operate the
Facilities in connection with its philosophy of providing an inspired college preparatory
program for students in grades K-12 where an authentically diverse student population
develops personal dedication to learning, a respect to independent thinking and an
expanding curiosity about the world and its people; and
WHEREAS, the issuance of the Obligations must be approved by the
governmental unit on behalf of which the Obligations are issued and a governmental unit
having jurisdiction over the territorial limits in which the Facilities are located pursuant to
the public approval requirement of Section 147(f) of the Code; and
WHEREAS, the Facilities are located within the territorial limits of the City of Santa
Monica (the “City”), and the City Council (the “City Council”) is the elected legislative body
of the City and is the “applicable elected representative” required to approve the issuance
of the Obligations under Section 147(f) of the Code; and
WHEREAS, the City originally approved issuance of such bonds at a public
hearing held by the City Council on October 26, 2021, and
WHEREAS, the bonds were not issued within the time period after approval
specified under Section 147 of the Code, and
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WHEREAS, the Authority and the Borrower have requested that the City Council
again approve the issuance of the Obligations and the financing or refinancing of the
Facilities with the proceeds of the Obligations solely for purposes of complying with
Section 147(f) of the Code; and
WHEREAS, a public hearing was held by the City Council on July 18, 2023, at the
meeting which commenced at the hour of 5:30 p.m., City Hall Council Chamber, 1685
Main Street, Santa Monica, California, following a duly published notice thereof in a
newspaper of general circulation in the City of Santa Monica, and all persons desiring to
be heard have been heard; and
WHEREAS, it is intended that this Resolution shall comply with the public approval
requirements of Section 147(f) of the Code; provided, however, that this Resolution is
neither intended to nor shall it constitute an approval by the City Council of the Facilities
for any other purpose, including, but not limited to, compliance with the California
Environmental Quality Act (California Public Resources Code, Section 21100, et seq.)
(“CEQA”);
NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the
City Council of the City of Santa Monica, State of California as follows:
SECTION 1. The City Council hereby finds and determines that all of the recitals
are true and correct. The City Council, as the “applicable elected representative” of the
governmental unit on behalf of which the Obligations will be issued and having jurisdiction
over the area in which the Facilities are located, hereby approves the issuance, from time
to time, pursuant to a plan of finance, of the Obligations by the Authority, which
Obligations may be tax-exempt and/or taxable as approved by the Authority in its
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resolution, in an amount not to exceed $25,000,000 to finance or refinance the costs of
the Facilities. This resolution shall constitute approval of the issuance of the Obligations
within the meaning of Section 147(f) of the Code and shall constitute the approval of the
issuance of the Obligations within the meaning of the Act; provided, however, that this
Resolution shall not constitute an approval by the City Council of the Facilities for any
other purposes, including compliance thereof with CEQA, nor does it constitute an
approval of the underlying credit or financial structure of the Obligations. The City Council
shall not bear any responsibility for the issuance of the Obligations, the tax-exempt status
of the Obligations, the repayment of the Obligations or any other matter related to the
Obligations.
SECTION 2. All actions heretofore taken by the officers, employees and agents
of the City with respect to the approval of the issuance of the Obligations are hereby
approved, confirmed and ratified, and the officers and employees of the City and their
authorized deputies and agents are hereby authorized and directed, jointly and severally,
to do any and all things and to execute and deliver any and all certificates and documents
which they or bond counsel may deem necessary or advisable in order to consummate
the issuance of the Obligations and otherwise to effectuate the purposes of this
Resolution.
SECTION 3. The adoption of this Resolution shall not obligate the City or any
department thereof to (i) provide any financing for the Facilities; (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
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of the Facilities; or (iii) make any contribution or advance any funds whatsoever to the
Authority.
SECTION 4. This Resolution shall take effect from and after its adoption.
APPROVED AS TO FORM:
Douglas Sloan, City Attorney
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Adopted and approved this 18th day of July 2023.
Gleam Davis, Mayor
I, Nikima Newsome, Assistant City Clerk of the City of Santa Monica, do
hereby certify that Resolution No. 11540 (CCS) was duly adopted at a meeting of
the Santa Monica City Council held on the 18th day of July 2023, by the following
vote:
AYES: Councilmembers Torosis, Parra, Zwick
Mayor Pro Tem Negrete, Mayor Davis
NOES: None
ABSENT: Councilmembers de la Torre, Brock
ATTEST:
Nikima Newsome, Assistant City Clerk
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