`To: Board of Supervisors
From: John Kopchik, Director, Conservation and Development
Report Title: Tax-Exempt Revenue Bonds, TEFRA Hearing - Vineyard Academy Inc
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. ADOPT a resolution approving the issuance of Tax-Exempt Revenue Bonds (the “Bonds”) by California Enterprise Development Authority (CEDA) in an amount not to exceed $6,500,000 for the benefit of Vineyard Academy Inc., a nonprofit religious corporation duly organized and existing under the laws of the State of California (the “Borrower”) for the purpose of (a) financing, refinancing and/or reimbursing the cost of the acquisition, construction, installation, renovation and equipping of the real property and improvements located at 1770 Adams Lane, Brentwood, California 94513 (the “Facilities”); (b) funding a reserve fund for the Bonds, to the extent deemed necessary by the Borrower; and (c) pay certain costs of issuance and other transaction costs in connection with such financing (collectively, the “Project”).
2. FIND and DECLARE that the recitals contained in the proposed resolution are true and correct.
3. ACKNOWLEDGE that such approval and adoption is solely for the purposes of satisfying the requirements of the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) as codified in Section 147(f) of the Internal Revenue code of 1986, as amended (the “Code”) and California Government Code Section 6500 (the “Act”) to facilitate the Project.
4. ACKNOWLEDGE that adoption of this resolution does not relieve or exempt the Borrower from obtaining required permits or approvals, nor obligate the County to incur any obligation to provide financial assistance with respect to the Bonds or the Project.
5. AUTHORIZE and DIRECT the Director of the Department of Conservation and Development, or designee to take any and all actions and execute and deliver any and all certificates, agreements and other documents needed to document the approvals provided by the County for purposes of TEFRA and the Act.
FISCAL IMPACT:
No impact to the General Fund. The County will be reimbursed for any costs incurred in the process of conducting the Public Hearing and Board of Supervisors’ approval. The issuance authorization is for the sole purpose of satisfying the provisions of the Code. No County funds are pledged to secure the Bonds. The CEDA will issue tax-exempt bonds on behalf of the Borrower. Repayment of the Bonds is solely the responsibility of the Borrower.
BACKGROUND:
California Enterprise Development Authority (CEDA), serving as the municipal issuer of the Bonds for the benefit of Vineyard Academy Inc., has requested the County to conduct a Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA) hearing for the issuance of Tax-Exempt Revenue Bonds in an amount not to exceed $6,500,000. The proceeds of the Bonds will be used for the purpose of (a) financing, refinancing and/or reimbursing the cost of the acquisition, construction, installation, renovation and equipping of the real property and improvements located at 1770 Adams Lane, Brentwood, California 94513 (the “Facilities”); (b) funding a reserve fund for the Bonds, to the extent deemed necessary by the Borrower; and (c) pay certain costs of issuance and other transaction costs in connection with such financing (the “Project”).
The main purpose of the proposed resolution is to acknowledge that a public TEFRA hearing was held by the Department of Conservation and Development on July 9, 2024, where members of the community were given an opportunity to speak in favor of or against the issuance of the Bonds and the financing of the Project with the proceeds of the Bonds, and to meet other bond issuance requirements which are specified in Section 147(f) of the Internal Revenue Code. No public comments were received. A notice of the hearing was published in the East County Times (proof of publication attached) on July 2, 2024.
The County’s only role in this transaction was to hold the TEFRA hearing and to grant the limited approval described above. Additional actions related to the bond issuance will be the responsibility of CEDA and the Borrower.
CONSEQUENCE OF NEGATIVE ACTION:
Negative action would prevent CEDA from providing tax-exempt financing for Vineyard Academy Inc.’s Project in Contra Costa County.
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
and for Special Districts, Agencies and Authorities Governed by the Board
body
IN THE MATTER OF
A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA APPROVING THE ISSUANCE BY THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY OF ITS REVENUE BONDS FOR THE BENEFIT OF VINEYARD ACADEMY INC. IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $6,500,000 FOR THE PURPOSE OF FINANCING OR REFINANCING THE COST OF ACQUISITION, DEVELOPMENT, CONSTRUCTION, INSTALLATION, EQUIPPING AND FURNISHING OF CERTAIN FACILITIES, AND OTHER MATTERS RELATING THERETO
WHEREAS, Vineyard Academy Inc., a nonprofit religious corporation (the “Borrower”), duly organized and existing under the laws of the State of California (the “State”), has requested that the California Enterprise Development Authority (the “Authority”) issue, from time to time, pursuant to a plan of finance, its tax-exempt and/or taxable revenue bonds in an aggregate principal amount not to exceed $6,500,000 (the “Bonds”) for the benefit of the Borrower, pursuant to Chapter 5 of Division 7 of Title 1 of the Government Code of the State (commencing with Section 6500) (the “Act”) to (a) finance, refinance and/or reimburse the cost of the acquisition, construction, installation, renovation and equipping of the real property and improvements located at 1770 Adams Lane, Brentwood, California 94513 (the “Facilities”); (b) fund a reserve fund for the Bonds, to the extent deemed necessary by the Borrower; and (c) pay certain costs of issuance and other transaction costs in connection with such financing (the “Project”); and
WHEREAS, the Borrower is an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”) and will own and operate the Facilities in connection with its mission of creating an accepting, stimulating, challenging and worthwhile learning environment for its students; and
WHEREAS, the issuance of the Bonds must be approved by the governmental unit on behalf of which the Bonds are issued and a governmental unit having jurisdiction over the territorial limits in which the Facilities are located pursuant to the public approval requirement of Section 147(f) of the Code; and
WHEREAS, the Facilities are located within the territorial limits of the County of Contra Costa (the “County”), and the Board of Supervisors (the “Board of Supervisors”) is the elected legislative body of the County and is an “applicable elected representative” required to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the Authority and the Borrower have requested that the Board of Supervisors approve the issuance of the Bonds and the financing, refinancing and/or reimbursing the cost of the Facilities with the proceeds of the Bonds solely for purposes of complying with Section 147(f) of the Code; and
WHEREAS, a public hearing was held by the Board of Supervisors on the 9th day of July, 2024, by the Assistant Deputy Director of the Department of Conservation and Development of the County, following duly published notice thereof in the East Bay Times, a newspaper of general circulation in Contra Costa County, and all persons desiring to be heard have been heard; and
WHEREAS, it is intended that this Resolution shall comply with the public approval requirements of Section 147(f) of the Code; provided, however, that this Resolution is neither intended to nor shall it constitute an approval by the Board of Supervisors of the Facilities for any other purpose, including, but not limited to, compliance with the California Environmental Quality Act (California Public Resources Code, Section 21100, et seq.) (“CEQA”);
NOW, THEREFORE, BE IT RESOLVED by the Board of Supervisors of the County of Contra Costa, State of California as follows:
Section 1. The Board of Supervisors hereby finds and determines that all of the recitals are true and correct. The Board of Supervisors, as the “applicable elected representative” of the governmental unit on behalf of which the Bonds will be issued and having jurisdiction over the area in which the Facilities are located, hereby approves the issuance of the Bonds by the Authority, which Bonds may be tax-exempt and/or taxable as approved by the Authority in its resolution, in an amount not to exceed $6,500,000 to finance, refinance and/or reimburse the cost of the Facilities. This resolution shall constitute approval of the issuance of the Bonds within the meaning of Section 147(f) of the Code and shall constitute the approval of the issuance of the Bonds within the meaning of the Act; provided, however, that this Resolution shall not constitute an approval by the Board of Supervisors of the Facilities for any other purposes or land use entitlements for the Facilities, including compliance thereof with the California Environmental Quality Act (“CEQA”), nor does it constitute an approval of the underlying credit or financial structure of the Bonds. The Board of Supervisors shall not bear any responsibility for the issuance of the Bonds, the tax-exempt status of the Bonds, the repayment of the Bonds or any other matter related to the Bonds.
Section 2. The adoption of this Resolution does not (i) relieve or exempt the Borrower from obtaining any permits or approvals that are required by, or determined to be necessary from, the County in connection with the Project, nor (ii) obligate the County to incur any obligation or provide financial assistance with respect to the Bonds or the Project.
Section 3. All actions heretofore taken by the officers and agents of the County with respect to the financing of the Project and the issuance of Bonds are hereby approved, ratified and confirmed, and the Chair of the Board of Supervisors, the Vice-Chair of the Board of Supervisors, the County Administrator, the Director of the Department of Conservation and Development, the Assistant Deputy Director of the Department of Conservation and Development, the County Counsel and the Clerk of the Board are each hereby authorized and directed, for and in the name and on behalf of the County, to take such actions and execute and deliver certificates and other documents as appropriate to document the approval set forth in this Resolution.
Section 4. The adoption of this Resolution shall not obligate the County or any department thereof to (i) provide any financing for the Facilities; (ii) approve any application or request for or take any other action in connection with any land use entitlements, permit or other action necessary for the acquisition, rehabilitation or operation of the Facilities; or (iii) make any contribution or advance any funds whatsoever to the Authority.
Section 5. This Resolution shall take effect immediately upon its adoption.
end