Joint Meeting with the Fresno Joint Powers Financing Authority (JPFA)
May 25, 2017
FROM: MICHAEL LIMA, Finance Director/City Controller
Finance Department
BY: PHILLIP L. HARDCASTLE, Principal Accountant - Debt Administration
Finance Department
SUBJECT
Title
1. Actions Pertaining to Repayment of Loan from City of Fresno (City) to Fresno Joint Powers Financing Authority (Authority):
a. RESOLUTION of Authority authorizing the assignment of the Authority's interest in two promissory notes from the City of Fresno Cultural Arts Properties, Inc. to the City as repayment for City's loan in the amount of $12,690,500 and directing the execution of all documents and taking all actions necessary to accomplish assignment. (Authority action)
b. Acceptance of assignment of Authority's interest in two promissory notes from the City of Fresno Cultural Arts Properties, Inc. in full repayment of loan to Authority and direct the City Manager or designee to execute all documents and take all actions necessary to accomplish assignment. (City action)
Body
RECOMMENDATION
Staff recommends: (1) Authority approval of the assignment of Authority's interest in two promissory notes from the City of Fresno Cultural Arts Properties, Inc. to the City as repayment for City's original loan to the Authority in the amount of $12,690,500 and the execution of all documents and taking all actions necessary to accomplish assignment; and (2) City acceptance of assignment and the execution of all documents and taking all actions necessary to accomplish assignment by the City Manager or designee.
EXECUTIVE SUMMARY
In March 2010, the City agreed to participate in a New Market Tax Credit (NMTC) transaction to be able to infuse additional funds into the repurposing of the Fresno Bee Building and reduce the City's financial obligation related to the project. To accomplish this task, the City lent the Authority $12,690,500. The Authority loaned the $12,690,500 to the Investment ...
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