Pursuant to the Internal Revenue Code, the issuance of the Bonds must be approved by the County because the Facilities are located within the territorial limits of the County. There is no financial impact on the County.
The Home for Jewish Parents, a California nonprofit public benefit corporation, has requested that the California Economic Development Authority (the "Authority") participate in the issuance of bonds, in an aggregate principal amount not to exceed $10,750,000 (the "Bonds").
A portion of such Bond proceeds is intended to (i) refinance outstanding Association of Bay Area Governments (ABAG) Finance Authority Certificates of Participation (Home for Jewish Parents), Series 1997, the proceeds of which were used to construct, install, equip and furnish assisted living, skilled nursing and specialized care facilities located at 4000 Camino Tassajara, Danville, California 94506 (the “Refinanced Facilities”), (ii) finance the costs of acquisition, construction, installation, rehabilitation, equipping and furnishing of assisted living, skilled nursing and specialized care facilities at one or more of the following locations: 348 Rheem Boulevard, Moraga, California, 3721 Mt. Diablo Boulevard, Lafayette, California, 1625 Oak Park Boulevard, Pleasant Hill, California 94523, and 11 Altarinda Road, Orinda, California (the “New Facilities” and, together with the Refinanced Facilities, the “Facilities”), and (iii) pay certain costs of issuance in connection with the financing.
The resolution states that the bond issuance could be composed of tax exempt and/or taxable bonds, depending on which option is in the best financial interest of the Home for Jewish Parents. In order for tax-exempt bonds to be issued, an "applicable elected representative" of the government unit must approve the issuance of the bonds after a public hearing ("TEFRA hearing") following reasonable public notice. Because the Authority's Board of Directors is not an elected body, the Internal Revenue Code provides that a government unit with elected representatives and jurisdiction over the area in which the project to be financed is located, in this case, the Board of Supervisors of Contra Costa County, is an "applicable elected representative" with respect to the bond issue.
The Internal Revenue Code requires that the Board of Supervisors hold a TEFRA public hearing regarding the issuance of the bonds and adopt a resolution approving the issuance of the bonds by the Authority. Staff recommends that the Board of Supervisors hold the public hearing, consider public input, and adopt the resolution regarding the issuance of the bonds. This approval is with the expressed understanding that the County shall have no obligation whatsoever to pay any principal, interest, fees or any other costs associated with the Authority's issuance of these bonds.
The California Enterprise Development Authority will not be able to issue bonds on behalf of the Home for Jewish Parents delaying or canceling planned improvements to facilities in multiple locations within the county (identified in the Background section).
CLOSED public hearing; ADOPTED Resolution No. 2010/590 approving the issuance of bonds by the California Enterprise Development Authority to benefit the Home for Jewish Parents.