REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Travis Hopkins, Acting City Manager
VIA: David Cain, Interim Chief Financial Officer
PREPARED BY: David Cain, Interim Chief Financial Officer
Subject:
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Conduct a Tax Equity and Financial Responsibility Act public hearing and adopt Resolution No. 2025-05 approving, authorizing, and directing execution of a Joint Exercise of Powers Agreement relating to the California Public Finance Authority and approving the Issuance by the California Public Finance Authority of Revenue Bonds in an amount not to exceed $325,000,000 for Marisol HB, LLC, with no City obligations, as well as a Payment in Lieu of Taxes Agreement
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Statement of Issue:
The City Council is asked to conduct a public hearing under the Tax Equity and Financial Responsibility Act (TEFRA) and adopt a resolution approving the issuance of Revenue Bonds by the California Public Finance Authority (CalPFA) on behalf of Marisol HB, LLC (Applicant), the sole member of which is The Bluhm Family Foundation, an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (Code), in the aggregate principal amount not to exceed $325,000,000, and approving the City becoming a member of CalPFA, a joint exercise of powers authority.
The Applicant is seeking to obtain financing for the acquisition, construction, expansion, remodeling, renovation, improvement, furnishing, and/or equipping of a rental senior living community to be located in Huntington Beach. The tax-exempt obligations will be issued by CalPFA. As a jurisdiction in which the facilities are located, the Council must hold a public hearing under the provisions of the TEFRA within the Code to receive any public testimony regarding the project in order for the Revenue Bonds issued by CalPFA to be issued on a tax-exempt basis.
The City must also become a member of the CalPFA, a joint exercise of powers au...
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