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COUNTY OF SAN MATEOInter-Departmental Correspondence |
Office of the County Manager |
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DATE: |
May 6, 2003 |
BOARD MEETING DATE: |
May 6, 2003 |
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TO: |
Honorable Board of Supervisors |
FROM: |
Paul Scannell, Assistant County Manager |
SUBJECT: |
CSCDA Financing for Notre Dame de Namur University |
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Recommendation |
Adopt a resolution subsequent to a public hearing approving the issuance of bonds by the California Statewide Communities Development Association ("CSCDA") for financing and refinancing the construction of a residence hall and other educational facilities at Notre Dame de Namur University in Belmont. |
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Background |
The County is a member of CSCDA. CSCDA is a joint powers authority formed by various cities and counties in California. CSCDA assists local agencies by issuing bonds to finance projects that provide significant public benefits.
Under the provisions of the joint powers agreement with CSCDA, the CSCDA will not issue bonds unless the governing body of the program participant in whose jurisdiction the project is located approves the project.
Notre Dame de Namur University (the "University") has requested CSCDA to issue the Series 2003 Revenue Bonds (the "Bonds") to finance and refinance the construction of a residence hall and other educational facilities ("the Project"). The University will use the proceeds of the Bonds to refund outstanding prior bonds and finance the construction of the Project. The bond proceeds will be given to the University in exchange for loan payments to be made by the University, and secured by pledge of gross revenues of the University and a Deed of Trust, pursuant to which the University will grant a first mortgage lien on much of the facilities of the University to a trustee. The Bonds will be unrated and sold only to Qualified Institutional Buyers. |
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Discussion |
CSCDA will undertake this financing on behalf of the University. However, in order to comply with Section 9 of the joint powers agreement, the County of San Mateo is requested to approve the issuance of the bonds. This County action is necessary under Section 9 because the Project is located within the boundaries of San Mateo County. |
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Vision Alignment |
This item keeps the commitments of responsive, effective and collaborative government through goal number 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County. |
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Fiscal Impact |
The proposed Bonds are payable solely from the University revenues and are not payable from or secured by any revenues of the County. Therefore, the County's approval of the Bonds will have no short-term or long-term budgetary implications for the County. |
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cc: [Thomas F. Casey III], County Counsel |