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City Council Memorandum <br />TO: HONORABLE MAYOR AND CITY COUNCIL DATE: August 10, 2010 <br />FROM: DEVELOPMENT DEPARTMENT ITEM NO: <br /> WARD: 1 <br />SUBJECT: PUBLIC HEARING - APPROVAL OF ASSOCIATE MEMBERSHIP AGREEMENT <br />WITH THE CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY, TAX <br />EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA) HEARING AND <br />ADOPTION OF A RESOLUTION ALLOCATING RECOVERY ZONE FACILITY <br />BOND VOLUME CAP AND APPROVING THE ISSUANCE OF $37,202,000 OF <br />CALIFORNIA ENTERPRISE DEVELOPMENT AUTHORITY REVENUE <br />OBLIGATIONS FOR THE BENEFIT OF REGIONAL PROPERTIES, INC. <br />ISSUES <br />The first issue before the City Council is whether to adopt a resolution authorizing application for <br />membership to CEDA (Exhibit “A”) and approval of an Associate Membership Agreement (Exhibit <br />“B”) with CEDA to facilitate future bond issuances. <br />The second issue before the City Council is whether to adopt a resolution (Exhibit “C”) authorizing <br />the California Enterprise Development Authority (CEDA) to issue bonds in the amount of <br />$37,202,000 to finance the construction of the Citrus Tower Office Project. <br />RECOMMENDATIONS <br />That the City Council: <br />1. Adopt the attached resolution authorizing the execution and delivery of an Associate <br />Membership Agreement between the City of Riverside and the California Enterprise <br />Development Authority. <br />2. Conduct the public hearing with respect to the approval of the issuance of the Obligations by <br />CEDA for the benefit of Regional Properties, Inc. for the Citrus Tower Office Project. <br />3. Adopt the attached resolution approving the allocation of recovery zone facility bond volume <br />cap and the issuance of the bonds by CEDA for the benefit of Regional Properties, Inc. <br />BACKGROUND <br />On April 27, 2010, the City Council approved the Citrus Tower Office Project, a six-story, 140,000 <br />square foot, Class “A” office building to be located on the southeast corner of University Avenue <br />and Lime Street (the “Project”). The Project is currently under construction and Regional <br />Properties, the Project developer, is pursuing Recovery Zone Facility Bond financing to fund its <br />completion. Regional Properties has applied to the California Enterprise Development Authority, a <br />joint powers authority (JPA) established by the California Association for Local Economic <br />Development (CALED) whose purpose is to issue low-cost, tax-exempt and taxable conduit <br />revenue bonds to fund commercial and industrial development projects within member jurisdictions <br />to facilitate economic development in California. Regional Properties, working through CEDA, <br />intends to sell bonds to generate the necessary funds to complete the Project. <br />