CITY OF LOS ANGELES CALIFORNIA
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1 JUNE lagmay City Clerk HOllY i, WOLCOTT Executive Officer When making inquiries relative to this matter, please refer to the Council File No. CITY OF LOS ANGELES CALIFORNIA ERIC GARCETTI MAYOR Office of the CITY CLERK Council and Public Services Room 395, City Hall Los Angeles, CA General Information - (213) Fax: (213) SHANNON HOPPES Council and Public Services Division August 1, 2013 To All Interested Parties: The City Council adopted the action(s), as attached, under Council File No , at its meeting held July 26,2013. d~ City Clerk kw An Equal Employment Opportunity - Affirmative Action Employer
2 Mayo~:S_Time Stamp V) ;'!,' I C r: T!i r:;' 2013JUL 26 Pi'1 3: 59 CITY OFLC'; i"i C FORTHWITH SUBJECT TO THE MAYOR'S APPROVAL COUNCIL FILE NO S1 COUNCIL DISTRICT COUNCIL APPROVAL DATE JULY 26, 2013 RE: PURSUANT TO THE TAX AND EQUITY AND FISCAL RESPONSIBILITY ACT OF 1982 (TEFRA) RELATIVE TO REVENUE BONDS IN THE AMOUNT OF $55 MILLION TO FINANCE AND REFINANCE THE COSTS FOR ACQUISITION, CONSTRUCTION AND IMPROVEMENTS TO BE USED BY SOUTH CENTRAL LOS ANGELES REGIONAL CENTER FOR DEVELOPMENTALLY DISABLED PERSONS, INC. LOCATED AT 2500 SOUTH WESTERN AVENUE AND 1999 WEST ADAMS BOULEVARD, LOS ANGELES, CALIFORNIA LAST DAY FOR MAYOR TO ACT AUG (10 Day Charter requirement as per Charter Section 341) DO NOT WRITE BELOW THIS LINE - FOR MAYOR USE ONLY *DISAPPROVED DATE OF MAYOR APPROVAL MAYOR kw OR DISAPPROVAL *Transmit objections in writing pursuant to Charter Section 341 (9...J m, 9? c CD
3 ~~ r~ IJ~ tjotf;;;' Community I JUL " 2 20\3 MOTION I =F-~" TO CITY Cl[ FOR PLACEMENT ON NOO'.ac~ I REGULAR COUlqctL AGENDA TO BE POSTED "I'f'~'j Impact Development II, LLC, a DeTia;;;wiTiaureewllTImjTe;eCf1i1!a[5i'J! ill y"vwffl1~"tilmt~ri:s-...l-...-.' Friends of South Central Los Angeles Regional Center for Developmentally Disabled Persons!\/!, (Borrower) has requested the California Municipal Finance Authority (CMFA) to issue revenue bonds in i ~ the amount of $55 million to finance and refinance the costs of the acquisition, construction, l improvement, renovation, furnishing and equipping of a headquarters and other infrastructure improvements to be used by South Central Los Angeles Regional Center for Developmentally Disabled Persons, Inc. (SCLARC) located at 2500 South Western Avenue and 1999 West Adams Boulevard (Project). On February 22, 2013 (C.F ), the Council held a public hearing and adopted a Resolution to approve the issuance of $48 million for the Project in accordance with the Federal Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA). However, due to various delays associated with the economic downturn and the financing needs of SCLARC, the bond amount has been increased. Therefore, the bond transaction was not finalized within the one-year timeframe provided by the Internal Revenue Service and it is necessary for the City to conduct a new TEFRA hearing. To allow the bond issuance to proceed, the Council should instruct the City Clerk to conduct a public hearing and adopt the attached Resolution to consider the hearing results during the Friday, July 26, 2013 City Council meeting. The bond debt is payable solely from revenues or other funds provided by the Borrower. The City does not incur penalty for repayment of the bonds. The City is a pass-through for the bond issuance, and is required to review and approve all projects within its jurisdiction and conduct a public hearing. I THEREFORE MOVE that the Council: I. Conduct a TEFRA hearing on Friday, July 26, 2013 for Community Impact Development II, LLC, whose member is Friends of South Central Los Angeles Regional Center for Developmentally Disabled Persons, a California public benefit corporation, for revenue bonds in an aggregate principal amount not to exceed $55 million the proceeds of which will be used to finance and refinance the costs of the acquisition, construction, improvement, renovation, furnishing and equipping of a headquarters and other infrastructure improvements, and/or certain other matters related to South Central Los Angeles Regional Center for Developmentally Disabled Persons, Inc. located at 2500 S. Western Avenue and 1999 West Adams Boulevard, Los Angeles, California within Council District Eight. 2. Instruct the City Clerk to schedule a TEFRA Hearing on the agenda for the City Council Meeting to be held Friday, July 26,2013 located at the John Ferraro Council Chamber, Room 340, City Hall, 200 North Spring Street, Los Angeles, California Instruct the City Clerk to place on the Agenda for the City Council Meeting to be held on Friday, July 26,2013 consideration of the TEFRA hearing results and adoption of the TEFRA hearing resolution to follow the conduct of the public hearing. 4. Authorize Orrick, Herrington & Sutcliffe LLP, bond counsel, to publish the required public hearing notice in a qualified local newspaper, on behalf of the City Council, with publication cost to be reimbursed by Friends of South Central Los Angeles Regional Center for Developmentally Disabled Persons. ~~L ~~~hjj3y:~ q;tei;,~a-&t-l'itf) JWH:S(~:::~':ii ADOPTE - 11 Du~ mt::u BERNARD C. PARKS.!:,1, lr JUL JUL:2 () 20;3 ~ councilme~d1:ct BMR LOS ANGELES CITY COUNti ANl]drfHlfc~lf ~<1'-. "'--'-'. "-V--"-'--""---"==--:::="""' It l\."{o\t VOR"n\Wl't1:l mtlm"..t..ynd IIII -i;,o~~
4 RESOLUTION RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LOS ANGELES APPROVING THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY REVENUE BONDS (SOUTH CENTRAL LOS ANGELES REGIONAL CENTER FOR DEVELOPMENTALLY DISABLED PERSONS), SERIES 2013 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $55,000,000 FOR THE PURPOSE OF FINANCING THE ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF A NEW HEADQUARTERS AND CERTAIN OTHER MATTERS RELATING THERETO WHEREAS, Friends of South Central Los Angeles Regional Center for Developmentally Disabled Persons, a California non-profit public benefit corporation and an organization described in Section 501(c)(3) of the Intemal Revenue Code of 1986 organized and existing under the laws of the State of California ("Fliends"), has requested that the California Municipal Finance Authority (the "Authority") participate in the issuance of one or more series of revenue bonds in an aggregate principal amount not to exceed $55,000,000 (the "Bonds") the proceeds of which will be used to: (I) make a loan to Community Jmpact Development IT, LLC, a Delaware limited liability company (the "Company"), to finance and refinance the costs of the acquisition, construction, improvement, renovation, furnishing and equipping of a headquarters and other infrastructure improvements for use by the South Central Los Angeles Regional Center for Developmentally Disabled Persons, Inc., an affiliated California non-profit public benefit corporation ("SCLARC"), located or to be located within the City of Los Angeles (the "City") at the northeast comer of Adams Street Boulevard and Western Avenue, which has a street address of 2500 S: Western Boulevard and 1999 West Adams Boulevard, Los Angeles, California (the "Project"); and (2) pay certain expenses incurred in connection with the issuance of the Bonds. WIIEREAS, the Project entails the development of a new structure with parking and office space, and the renovation of a historic office building for a combined leasable area of 103,610 square feet. WHEREAS, the new structure will have an approximately 300 space parking structure for SCLARC's consumers, staff, and vendors, as well as 56,960 square feet of new space on two floors. The new structure will comply with the City of Los Angeles' requirements for zoning, setback, and height, as well as be built under the new Cal Green Building Standards Code. The existing office building of 46,650 square feet, known as the Golden State Mutual Life Insurance Building, a desiguated landmark, will undergo tenant improvements to return it to functional use but exterior renovations will be minimal. WHEREAS, in connection with the issuance of the Bonds, all existing members of the Company other than Friends will withdraw from the Company and the sole member of the Company will be Friends. WIIEREAS, the Project will be developed, constructed and owned by the Company, with SCLARC leasing the Project from the Company pursuant to a long-term lease. The Project is located within SCLARC's service area and close proximity to its thousands of consumers, staff, and vendors. WHEREAS, by reutilizing the Golden State Building, combined with a new parking and office building, SCLARC has achieved a legacy plan which is econornical, ensures stability for the organization, and will reinvigorate a historic part of SCLARC's service area. 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 to be located within the territorial limits of the City; and WHEREAS, the City Council (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, 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 l47(f) of the Code and the 1
5 requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January I, 2004 (the "Agreement"), among certain local agencies, including the City; 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, BE IT RESOLVED, by the City Council of the City of Los Angeles as follows: Section 1. The foregoing resolutions are true and correct. Section 2. 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 the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the goverrunental unit having jurisdiction over the area in which the Project is to be located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement. Section 3. The officers 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 4. TIns resolution shall take effect immediately upon its passag~,, PASSED AND ADOPTED by the Council of the City of Los Angeles thidkday of ~ AYES: \3 NOES: 0- ABST~ ABSENT: "2- APPROVED AS TO FORM MIKE FEUER, City Attorney By: Assistant City Attorney ~I cs\"\at the foregoing Resolution was adopted by the Council of the City of Los Angeles at its meeting onj ~013.,
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