TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Onyx Jones, Interim Finance Director
Libby Bretthauer, Financial Services Manager
SUBJECT:Title
Consideration of a Request from Sunrise Senior Living to Utilize Tax-Exempt Bond Financing for the Approved Project at 250, 350, and 400 North Sepulveda Boulevard (Interim Finance Director Jones).
(Estimated Time: 30 Mins.)
A) DISCUSS AND PROVIDE DIRECTION
B) CONSIDER ADOPTING RESOLUTION NO. 24-0129
Body
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RECOMMENDATION:
Staff recommends that the City Council discuss and provide direction regarding the request from Sunrise Senior Living (the "Developer"). Approval of the request would require adoption of Resolution No. 24-0129.
FISCAL IMPLICATIONS:
There are no fiscal implications associated with the recommended action. If issued, the bonds would be issued by the California Public Finance Authority ("CalPFA"), and not the City. Therefore, the bonds would not be a debt of the City, nor would they obligate the City in any way.
BACKGROUND:
In 1982, the federal government passed the Tax Equity and Fiscal Responsibility Act (TEFRA). The Act amended the Internal Revenue Code and placed a public approval requirement for private activity bonds (PABs) to qualify as tax-exempt. As a result of TEFRA, tax-exempt bond financing requires compliance with the requirements of Section 147(f) of the Internal Revenue Code of 1986. Section 147(f) of Internal Revenue Code is a provision that addresses the approval process for the issuance of tax-exempt bonds for PABs. This section requires that, in order for a tax-exempt bond to qualify as a PAB under the Code, it must receive approval from both the relevant State or local government and, in some cases, the affected local community.
The key components of Section 147(f) are as follows:
1. Public Approval Requirement: Section 147(f) mandates that the issuance of bonds for a pr...
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