AgdaPkt 2017-07-24 Closed and Joint SA FPA

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Verity Health is requesting the assistance of CaIPFA for the issuance of up to $25,000,000 in tax-exempt bonds to provide working capital to support the operations of Verity. ANALYSIS The 2017 Notes to be issued by CaIPFA will be tax-exempt private activity bonds for the purposes of the Internal Revenue Code. In accordance with Section 147(f) of the Internal Revenue Code, the elected body of the governmental entity that has jurisdiction over the area in which any facility is to be financed must first approve of the issuance of notes following a public hearing. Squire Patton Boggs, serving as bond counsel, has concluded that the City of Redwood City is the governmental unit that has jurisdiction over the facilities with respect to which financing is to be provided from the net proceeds of the 2017 Notes because the Verity Health headquarters are located at 203 Redwood Shores Parkway in the City of Redwood City. Therefore, in order for the CaIPFA to issue such 2017 Notes on behalf of Verity Health, the City of Redwood City must (1) conduct a public hearing allowing members of the public to comment on the proposed use of funds for working capital, and (2) approve of the CaIPFA's issuance of 2017 Notes. The City of Redwood City has no financial obligation and incurs no financial liability in the issuance of the 2017 Notes to be issued by the CaIPFA. The 2017 Notes will be special obligations of the CaIPFA, not the City of Redwood City, and the 2017 Notes, together with the interest and premium, if any, will not constitute a debt of the City of Redwood City or pledge of faith and credit of the City of Redwood City, as confirmed in Section 8 of the CaIPFA Joint Exercise of Powers Agreement. The 2017 Notes will be issued in the name of and by CaIPFA, not the City. The 2017 Note proceeds will be loaned by CaIPFA to Verity Health. The 2017 Notes will be payable solely from loan repayments made by Verity Health and the other Members of the Obligated Group. Moreover, the 2017 Notes are for working capital purposes only and the proceeds will not be used for any construction or expansion purposes by Verity Health that would otherwise require land use entitlements or permits from the City of Redwood City. The California Public Finance Authority (CaIPFA) is a political subdivision of the State of California established under the Joint Exercise of Powers Act for the purpose of issuing tax-exempt conduit bonds and notes for public and private entities throughout California. CaIPFA is empowered to promote economic, cultural, and community development opportunities that create temporary and permanent jobs, affordable housing, community infrastructure and improve the overall quality of life in local communities. In addition, CaIPFA's Community Benefit Program provides for the sharing of 15% of its annual administrative fee with the public agency that conducts the TEFRA hearing in an effort