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. I I . . - F. Council Member Hartnett reported on the recent meetings "coordinated through our Library Director with U.C. Berkeley, Canada College, Redwood City Elementary School - District and others who have an educational presence downtown, or will have, and their attempt to coordinate their efforts so that none is competing with the other, and each is supporting the other with some synergy." Council Member Hartnett said his discussions with the Library Director instigated the meetings, and he had been invited to participate on the staff level. He said he would like to bring this subject back to the Council for further discussion. MEMO 2/20/98 ___n______-------------------------------______n_____----------______n______--------------------------------__n__n__- 8. STAFF REPORTS A. Woodside Terrace Retirement Facility Conduit Revenue Bonds: City of Redwood City Senior Living Facilities Revenue Bonds (Woodside Terrace) Series 1998; (505) REPORT: Director of Financial Planning and Finance Ponty, February 9,1998 Director Ponty presented the staff report asking the Council to approve the bond documents pertaining to the issuance of the multifamily revenue bonds on behalf of Woodside Senior Care Company, a non-profit organization that would like to purchase the Woodside Terrace Retirement Facility on Woodside Road. He advised that two weeks ago the Council approved the first reading of an Ordinance that established the legal - ITamework within which the bonds could be issued, and on tonight's Consent Calendar the Council approved the second reading of the Ordinance. He said that the Ordinance would be effective 30 days ITom today, and "the City would have the ability to issue those bonds, if the Council elected to approve the bond documents as to form this evening." Director Ponty summarized the previous presentation to Council: The City has been asked to issue bonds on behalf of a non-profit, permissible under the Internal Revenue Code. The non-profit will use the proceeds to purchase the Woodside Terrace Retirement Facility ITom the Hillsdale Group. The City will not be legally responsible for the bonds, the new non-profit will be responsible for making the principal and interest payments to the bond holders. The City would receive an up ITont fee of $75,000 and on-going fees, including about $46,000 per year increasing at 2% a year, to make the City whole for any loss of property taxes when the ownership transfers to a non-profit. The City will also receive a fee of $50,000 a year increasing at 2% a year along with a fee equal to 1/8 of 1% of the outstanding principal on the bonds. Each of the latter three fees would occur over the 30 year life of the bonds. If the bonds were paid off sooner the payments would stop. He said these funds may be appropriated by the City Council for any general governmental purpose allowed by law. Director Ponty apologized for not previously stressing one item: Under the terms of the applicable Internal Revenue Code regulations, the non-profit buyer will be required to set - REGULAR COUNCIL MEETING MINUTE BOOK NO. 56 FEBRUARY 9, 1998 MINUTES Page No. 267 PAGE 25