TITLE
Recommendation to receive supporting documentation into the record regarding the Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing, and adopt resolution approving the issuance of revenue bonds by the California Statewide Community Development Authority (CSCDA) to benefit SunEdison, LLC, in an amount not to exceed $1,000,000. (District 2)
DISCUSSION
SunEdison, LLC, a California limited liability corporation, has requested the California Statewide Communities Development Authority (CSCDA) issue bonds on its behalf in an aggregate amount not to exceed $1,000,000 to finance the construction of solar energy facilities at 95 S. Pine Avenue, Long Beach, CA.
The CSCDA will issue tax-exempt debt under the Recovery Zone Facility Bond program authorized by the American Recovery and Reinvestment Act (ARRA), which will be loaned to SunEdison, LLC, in an amount not to exceed $1,000,000. The funds will be used to finance solar energy systems for The Pike at Rainbow Harbor.
CSCDA is a joint exercise of powers authority consisting of over 500 California cities, counties and special districts, including the City of Long Beach. SunEdison, LLC, provides solar electricity to customers under a 20-year power purchase agreement. The long-term agreements provide financial benefits to its customers by assuring them of stable, reasonably priced electricity.
The Internal Revenue Service (IRS) Code requires that CSCDA seek approval from the City Council of the bonds issued, a portion of which will benefit facilities within the City. A TEFRA public hearing notification was published in the Press-Telegram on March 9, 2010. The TEFRA hearing was held on March 23, 2010 at 9:15 a.m. The public hearing, required by Federal tax law regulations, was conducted by the City Treasurer in the sixth floor conference room at City Hall. No public comment was presented.
This matter was reviewed by Assistant City Attorney Heather A. Mahood on March 29, 2010, and Budget Management ...
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