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Item No. 1 (continued) James Hildebrand, of Wilson Morton Assaf and McElligott, bond counsel, stated that the hearing is required under the Tax Equity and Fiscal Responsibility Act of 1982; that the bonds under consideration are known as IDB (Industrial Development Bonds) and can be issued for not only housing, but a number of other types of activities; that to establish some needed restraints, Congress decided that if elected public officials were required for tax deductibility of the bonds to hold a public hearing, the questionable types of projects would not be subject to the issuance of the bonds. He advised that very little was required of Council in the way of making findings, and that all that is necessary is to hold the public hearing, that the hearing be advertised, and the public invited to be heard. Mayor Britschgi declared the public hearing open at 7:40 p.m. Affidavit of Publication of Notice is on file, and no communications have been received. Mayor Britschgi invited anyone present who wished to speak to do so. No one wished to speak. M /S: Stangel /Mosher to close the public hearing. Carried unanimously by voice vote and public hearing closed at 7:40 p.m. Title read. M /S: Stangel /Chandler RESOLUTION NO. 9894 OF APPROVAL OF PROJECT AND OF PROJECT OWNER (PARAGON - REDWOOD SHORES PROJECT) adopted unanimously by roll call vote. City Manager Smith advised that the established limit on this type of bond has been reached and that although supplemental legislation increased the amount, that has also been allocated; that prior to establishment of a new base at the end of the year, there are some alternatives Council might consider, and a more formal report and recommendation will be made at a later time. Housing Officer Church stated that one option to be considered would be establishment of a housing finance agency, which could be done by resolution, which would enable bonds to be issued under a different section of the IRS code and would not have a State limit; that among the time constraints the developer is under is that this kind of financing may not be available after the first of next year because of proposed changes in the tax laws relating to tax exempt bonds, and also because of options the developer has running on the land in Redwood Shores. He advised that another option would be establishment of a community development commission which he described as an amalgum of a redevelopment agency and housing finance authority. Reg.Mtg. 6/10/85 Page 2 MINUTE BOOK NO. 45 Page No. 456