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BACKGROUND The City Council is being asked to adopt a resolution that would approve the issuance of tax-exempt revenue bonds by the California Statewide Communities Development Authority (CSCDA) in one or more series in a maximum aggregate principal amount of $40,000,000 (the "Bonds") for the purpose of financing the development of a 168-unit mixed-income apartment complex. The complex, Anton Hacienda, will be located on a 5.60 acre site at 5729 West Las Positas Boulevard in Pleasanton. Anton Hacienda will be owned and managed by St. Anton Partners and will include 35 apartments for rent by very low income households at 50% or less of the Area Median Income (AMI). The City has been requested to conduct a TEFRA public hearing and approve the issuance of the Bonds for purposes of federal law. The Bonds are special, limited obligations of CSCDA payable solely by St. Anton Partners and MI not be direct obligations of CSCDA, the City or any member of CSCDA. State law provides the ability for cities and counties to join together under cooperative agreements to form joint powers authorities to issue debt obligations to fund projects that provide a public benefit and serve the needs of residents within the jurisdictions of the participating members. Federal law allows these obligations to be issued on a tax- exempt basis under certain circumstances. Cities and counties in California have the ability to act as issuers of conduit bonds and other obligations, but many jurisdictions utilize joint powers authorities such as CSCDA, primarily for economies of scale and to access specialized transaction knowledge and resources. CSCDA was established 25 years ago to stimulate economic development throughout California by financing privately owned projects that provide public benefit by creating jobs, health care, affordable housing, infrastructure, schools and other fundamental services that enrich and improve the quality of life in local communities. Today it serves over 500 local agencies in California (the City of Pleasanton is a member) and provides financing programs that directly benefit local governments as well. It is not permitted to issue bonds or notes for a project without first conducting a public (TEFRA) hearing and obtaining permission from the governing board of the jurisdiction in which the project is located, in this case the Pleasanton City Council. DISCUSSION St. Anton Partners will use the proceeds of the Bonds to pay the costs of developing the 168-unit Anton Hacienda apartment complex. The financing for St. Anton Partners involves the issuance of tax-exempt bonds and may be completed through CSCDA if the City approves the financing, as the City is a member of CSCDA. The purpose of this TEFRA hearing is to receive public comment and request approval of the financing, as required by the Internal Revenue Code of 1986, as amended. Bond Counsel in this transaction, Orrick, Herrington & Sutcliffe LLP, has worked with the City Clerk to properly notice this public hearing and has assisted in the preparation of the attached resolution for approval. Page 2 of 5