REPORT TO THE CITY COUNCIL
March 23, 2017
FROM: MICHAEL LIMA, Finance Director/City Controller
Finance Department
BY: PHILLIP L. HARDCASTLE, Principal Accountant - Debt Administration
Finance Department
SUBJECT
Title
Actions pertaining to Unwinding Of The Prior New Market Tax Credit transaction By Dissolving The Investment Fund And Repaying The Fresno Joint Powers Financing Authority's Loan To The Investment Fund:
1. RESOLUTION - Approving the unwinding of a New Market Tax Credit Transaction by authorizing the City Manager to (1) execute a Member Interest Purchase Agreement; (2) execute a confirmation and reaffirmation of Qalicb Guaranty; (3) dissolve FBB Investment Fund, LLC., and (4) distribute the assets of the FBB Investment Fund to the Fresno Joint Powers Financing Authority in exchange for cancellation of the loan made by the Fresno Joint Powers Financing Authority to the investment fund; and
2. RESOLUTION - Consenting to the redemption of FBB Investment Fund, LLC's interest in Clearinghouse NMTC (Sub-18), LLC., and accepting the assignment of FBB Investment Fund's assets as repayment of Joint Powers Financing Authority loan to FBB Investment Fund
Body
RECOMMENDATION
Staff recommends Council approval of the unwinding of the New Market Tax Credit transaction by authorizing the execution of the Member Interest Purchase Agreement and authorizing the City Manager, or designee to execute all necessary documents, subject to City Attorney approval as to form.
EXECUTIVE SUMMARY
In 2010, the City agreed to participate in a transaction utilizing New Market Tax Credits to facilitate the refinance of the former site of the Metropolitan Museum, commonly referred to as the Fresno Bee Building. As part of the New Market Tax Credit transaction, several entities were created to participate in the transaction. A new 501(c)(3) non-profit corporation, the City of Fresno Cultural Arts Properties (COFCAP), was created to own and lease the Fresno Bee Building. An ...
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