REPORT TO THE CITY COUNCIL
November 8, 2018
FROM: MICHAEL LIMA, Finance Director/City Controller
Finance Department
BY: PHILLIP HARDCASTLE, Principal Accountant - Debt Administration
Finance Department
SUBJECT
Title
TEFRA HEARING - To hear and consider information concerning the proposed issuance of Revenue Bonds by California Municipal Finance Authority for the purpose of financing or refinancing the acquisition, rehabilitation, improvement and equipping of Hotel Fresno Apartments
1. ***RESOLUTION - Approving a tax-exempt bond financing to be issued by CMFA to benefit Hotel Fresno Apartments, LP or a partnership created by APEC International, LLC in the aggregate principal amount not to exceed $20 million for Hotel Fresno Apartments (Subject to Mayor's veto)
Body
RECOMMENDATION
Staff recommends that the Council first hold a Tax Equity and Financial Responsibility Act (TEFRA) public hearing and then, upon conclusion, adopt the accompanying Resolution approving the issuance of the Revenue Bonds by California Municipal Finance Authority (CMFA) on behalf of the Hotel Fresno Apartments, LP (Applicant) or a partnership created by APEC International, LLC (Developer), in the aggregate principal amount not to exceed $20 million for Hotel Fresno Apartments (Project).
EXECUTIVE SUMMARY
The Applicant is seeking to obtain financing for the acquisition, rehabilitation, improvement and equipping of the Project, a 79-unit multifamily rental housing project located in downtown Fresno. The new tax exempt bonds will be issued by CMFA. As a jurisdiction in which the facilities are located, the Council must hold a public hearing in accordance with Section 147(f) of the Internal Revenue Code for the purpose of receiving any public testimony regarding the projects before it considers authorizing CMFA to issue obligations for such purposes.
Should the City authorize the issuance of Bonds, the City would have no obligation or liability associate...
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