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HomeMy WebLinkAboutCalifornia Statewide Communities Development Authority - CSC Council/Agency Meeting Held:_ p Deferred/Continued to: AAp roved Z nditionall Approv dd ❑ Denied fit/ ler ' SignatU Council Meeting Date: April 5, 2010 Department ID Number: AD 10-013 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Fred A. Wilson, City Administrator PREPARED BY: Bob Hall, Deputy City Administrator SUBJECT: Resolution for CSCDA and Kohl's Solar Project Statement of Issue: The City of Huntington Beach is being asked to adopt a resolution approving of the issuance of tax-exempt bonds by the California Statewide Communities Development Authority (the "Authority") to finance the construction of a solar energy facility for SunEdison, LLC (the "Borrower"). Funding Source: Not Applicable, there is no direct or indirect financial impact to the City of Huntington Beach as a result of this proposed financing. Recommended Action: Motion to: Adopt Resolution No. 2010-32, "A Resolution of the City Council of the City of Huntington Beach Approving the Issuance by the California Statewide Communities Development Authority of Recovery Zone Facility Revenue Bonds for the SunEdison California Portfolio" in an aggregate principal amount not to exceed $1.0 million. Alternative Action(s): Do not approve the agreement and resolution and advise staff on how to proceed. Analysis: Kohl's department store plans to install solar panels on their store on Adams in Huntington Beach and has approached the city about serving as the intermediary for issuing tax exempt bonds to finance the project. This project represents 13% of the 2 MW commercial installation goal. Bonds are currently the primary means by which large scale solar installations are built. At this time there is no other financing available that is cost effective. In order to proceed, the City of Huntington Beach must adopt a resolution approving of the issuance of tax-exempt bonds by the California Statewide Communities Development Item 20. Authority (the "Authority") to finance the construction for SunEdison, LLC (the "Borrower"). Such approval is required for compliance with the federal tax laws under the Tax and Equity Fiscal Responsibility Act of 1982 ("TEFRA"), as well as Section 9 of the Authority's Amended and Restated Joint Powers Agreement (the "Agreement"). This approval will not constitute any other approval of the local agency. The Bonds would be tax-exempt private activity bonds for the purposes of the Internal Revenue Code and, as such, require the approval of the elected body of the governmental entity having jurisdiction over the area where the project to be financed is located. The City will not be under any obligation to repay the Bond indebtedness. In order for the Authority to issue such Bonds, the City must (1) conduct a public hearing allowing members of the public to comment on the proposed Project, and (2) approve of the Authority's issuance of Bonds on behalf of the proposed financing. With respect to the Authority, over 500 California cities, counties and special districts have entered into and executed the Agreement to become a member of the Authority, including the City of Huntington Beach. The Authority is authorized to assist in the financing of these types of projects. Environmental Status: N/A Strategic Plan Goal: Maintain, Improve and Obtain Funding for Public Improvements Attachment(s): o Desceiotion 1. A Resolution of the City Council of the City of Huntington Beach Approving the Issuance by the California Statewide Communities Development authority of Recovery Zone Facility Revenue Bonds for the SunEdison California Portfolio. 2. California Communities JPA letter dated March 1, 2010 3. Notice of Public Hearing/Order Confirmation M ENT # 1 RESOLUTION NO. 2010-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE ISSUANCE BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY OF RECOVERY ZONE FACILITY REVENUE BONDS FOR THE SUNEDISON CALIFORNIA PORTFOLIO WHEREAS, the California Statewide Communities Development Authority (the "Authority") is authorized pursuant to the provisions of California Government Code Section 6500 et seq. and the terms of an Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the "Agreement"), among certain local agencies throughout the State of California, including the City of Huntington Beach (the "City"), to issue revenue bonds for the purpose of promoting economic development in the State of California; and. SunEdison, LLC or related entities, has requested that the Authority adopt a plan of financing providing for the issuance of recovery zone facility revenue bonds (the "Bonds") in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $1,000,000 in outstanding aggregate principal amount, to finance the construction of a solar energy facility located at the following address in the City and generally known as SunEdison California Portfolio (the "Project"): 9811 Adams Avenue, City of Huntington Beach, California; and The Bonds or a portion thereof will be "private activity bonds" for purposes of the Internal Revenue Code of 1986 (the "Code"); and Pursuant to Section 147(f) of the Code, prior to their issuance, private activity bonds are required to be approved by the "applicable elected representative of the governmental units on whose behalf such bonds are expected to be issued and by a governmental unit having jurisdiction over the entire area in which any facility financed by such bonds is to be located, after a public hearing held following reasonable public notice; and The members of this City Council ("City Council") are the applicable elected representatives of the City; and There has been published, at least 14 days prior to the date hereof, in a newspaper of general circulation within the City, a notice that a public hearing regarding the Bonds would be held on a date specified in such notice; and Such public hearing was conducted on such date, at which time an opportunity was provided to interested parties to present arguments both for and against the issuance of the Bonds; and The Authority is also requesting that the City Council approve the issuance of any refunding bonds hereafter issued by the Authority at no time to exceed $1,000,000 for the purpose of refinancing the Bonds which financed the Project (the "Refunding Bonds"), but only 10-2385.001144995 1 Resolution No. 2010-32 in such cases where federal tax laws would not require additional public hearings, consideration or approval by the City Council; and It is intended that this resolution shall constitute the approval of the issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: 1. The above recitals are true and correct. 2. The City Council hereby approves the issuance of the Bonds and the Refunding Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the Bonds for the purposes of (a) Section 147(f) of the Code and (b) Section 9 of the Agreement. 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 that 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 approved hereby. 4. The City Clerk shall forward a certified copy of this Resolution and a copy of the affidavit of publication of the hearing notice to: Justin Cooper, Esq. Orrick, Herrington& Sutcliffe LLP 405 Howard Street San Francisco, California 94 105 5. This resolution shall take effect immediately upon its passage. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 5th day of April , 20 10 Ma INITI VIEWED AND APPROVED: Ci m' istrator ty Attorney 10-2385.001/44995 2 Res. No. 2010-32 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on April 5, 2010 by the following vote: AYES: Carchio, Coerper, Hardy, Green, Dwyer, Hansen NOES: None ABSENT: Bohr ABSTAIN: None y Clerk and ex-offic Clerk of the City Council of the City of Huntington Beach, California %=» > xx\ � ���� - - - - © - � -j » y z \ �: < : = a + - _ -m - ° � < < ., = _ � : . : - 2 ./ � « w _ � : c _ a.,�,tit,+�rrres .a JA J Csl. . ',fG S A U "T,R i l_ C _ cm-"1,7.:. _'T March 1, 2010 VIA EMAIL Aaron Klemm City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re: Public Hearing request for SunEdison Dear Aaron: SunEdison, LLC (the "Applicant") has submitted to the California Statewide Communities Development Authority (the "Authority") an application (the "Application") for the financing of the construction of a solar energy facility (the "Project") through the issuance of tax-exempt obligations in an aggregate principal amount not to exceed $1.0 million. The Project is located at 9811 Adams Avenue in the City of Huntington Beach. The purpose of this letter is to request the assistance of the City of Huntington Beach in conducting on Monday April 5th, 2010 a public hearing with respect to the proposed financing. As you are aware, the Authority is a joint exercise of powers authority consisting of numerous California cities, counties and special districts, including the City of Huntington Beach. The Authority, pursuant to its Amended and Restated Joint Exercise of Powers Agreement, is authorized to assist in the financing of facilities for exempt facilities. In order to initiate such a financing, the member participant of the Authority in which the proposed facilities will be located must (i) conduct a public hearing and (ii) approve the Authority's issuance of indebtedness. Therefore, although the Authority will be the issuer of the tax- exempt revenue obligations for the Applicant, the financing cannot proceed without the City of Huntington Beach's approval of the financing. I have attached for your review a copy of the Application filed with the Authority. You will be receiving shortly a letter from Justin Cooper of Orrick, Herrington & Sutcliffe, serving as bond counsel, describing the public hearing process and the requirements under C ITIES a_St'>k< ".___ —2— March 14, 2010 state and federal laws, including the Tax Equity and Fiscal Responsibility Act (TEFRA). This letter will include for your review the form of Notice of Public Hearing and the form of City Council Resolution evidencing that the City has approved of the financing. Thank you for your attention to the matter. Please contact me at your earliest convenience to discuss the City's willingness in the scheduling of such public hearing. Sincerely, Terrence Murphy CC : Justin Cooper; Orrick, Herrington & Sutcliffe;jcooper@orrick.com Enclosures 3-- AR E !�M� NEr � 'TA .� ,. * w.' 4 NOTICE OF PUBLIC HEARING REGARDING ISSUANCE OF RECOVERY ZONE FACILITY REVENUE BONDS FOR SUNEDISON CALIFORNIA PORTFOLIO NOTICE IS HEREBY GIVEN that, at 6 p.m., or as soon thereafter as the matter can be heard, on Monday, April 5, 2010 in the Council Chambers, 2000 Main Street, Huntington Beach, California, the City of Huntington Beach (the "City") will conduct a public hearing as required by Section 147(f) of the Internal Revenue Code of 1986, at which it will hear and consider information concerning a proposed plan of financing providing for the issuance by the California Statewide Communities Development Authority of recovery zone facility revenue . bonds in one or more series issued from time to time, including bonds issued to refund such revenue bonds in one or more series from time to time, and at no time to exceed $1,000,000 in outstanding aggregate principal amount, to finance the construction of a solar energy facility (collectively, the "Project") located at the following address in the City: 9811 Adams Avenue, City of Huntington Beach, California. The Project will be owned and operated by SunEdison, LLC or related entities. Those wishing to comment on the proposed financing and the nature and location of the Project may either appear in person at the public hearing or submit written comments, which must be received by the City prior to the hearing. Written comments should be sent to 2000 Main Street, City of Huntington Beach, California 92648 Attention: City Clerk. CITY CLERK CITY OF HUNTINGTON BEACH Dated: March 22, 2010 APPIZOVED AS TO FORM F�NIFER McGRATH,City Attorney y Paul&Alessanaw Assistant City Attorney OIIS West:260847951.1 Mar 09 , 14 : 42 PST by: cindy (14 : 43 ) Page I of I O R D E R C O N F I R M A T I O N Metropolitan News Company P.O. Box 60859 Los Angeles, CA 90060 Phone: (213)346-0033 Fax: (213) 687-388.6 2 :42 PM, March 9, 2010 PAUL TOLAND ORRICK HERRINGTON & SUTCLIFFE THE ORRICK BUILDING 405 HOWARD ST SAN FRANCISCO CA 94105 FAX: 14157735759 Dear Ladies and Gentlemen: We have received the following order for processing. If you have any questions our staff would be pleased to assist you. Please note, we are extending credit to you--not to your client. You are liable for timely payment of all charges. Your Reference Num Other Reference Num Our Reference Num 00834625 Order Start Date 03/22/10 Projected Cost Run Dates 03/22/10 Type of Pub/Service NOTICE OF PUBLIC HEARING Business/Case Name SUNEDISON CALIFORNIA PORTFOLIO Publisher/Servicer ORANGE COUNTY REGISTER Thank you for your business. City of Huntington Beat ' 2000 Main Street ® Huntington Beach, CA 0268 ' OFFICE OF THE CITY CLERIC JOAN L. FLYNN i CITY CLERK April 8, 2010 Justin Cooper, Esq. Orrick, Herrington & Sutcliffe, LLP 405 Howard Street San Francisco, CA 94105 Dear Mr. Cooper The City Council of the City of Huntington Beach at the meeting held April 5, 2010, adopted Resolution No. 2010-32 approving the issuance by the California Statewide Communities Development Authority of Recovery Zone Facility Revenue Bonds for the SunEdison California portfolio. Enclosed is a certified copy of the resolution for your records. Sincerely, J n L. Flynn, CIVIC City Clerk Enclosure JF:pe Sister Cities: Anjo, Japan Waitakere, New Zealand (Telephone:714-536-5227)