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<br /> <br />6D <br /> <br />pLEA.SANTONo <br /> <br />SUBJECT <br /> <br />City Council <br />Staff Report <br /> <br />May 2, 2006 <br />Finance Department <br /> <br />APPROVAL OF THE CALIFORNIA STATEWIDE COMMUNITIES <br />DEVELOPMENT AUTHORITY TAX-EXEMPT BOND FINANCING TO <br />BENEFIT KAISER FOUNDATION HOSPITALS <br /> <br />STAFF RECOMMENDATION: <br /> <br />SUMMARY <br /> <br />SR:06:128 <br /> <br />Staff recommends that the City Council approve the California Statewide <br />Communities Development Authority (California Communities) issuance of <br />indebtedness. <br /> <br />California Communities is a joint exercise of powers authority consisting of <br />numerous cities, counties and special districts, including the City of <br />Pleasanton. California Communities is authorized to assist in the financing <br />of facilities for nonprofit organizations. Kaiser Foundation Hospitals has <br />submitted an application to California Communities for an $800 million tax- <br />exempt financing, the proceeds of which will be combined with equity <br />contributions to provide for acquisitions and capital improvements at four <br />Kaiser facilities in northern California. Approximately $91 million of the <br />proposed tax-exempt debt is for Kaiser's acquisition of the former Oracle <br />Corporation building located at 4460-4480 Hacienda Drive, now converted <br />to the Kaiser Pleasanton Information Technology Campus. Because a part <br />of the proposed acquisitions and improvements are located in the City of <br />Pleasanton, the issuance of the debt by California Communities would have <br />to be approved by the City. The City's only role would be to conduct the <br />public hearing and approve the sale of indebtedness. There is no financial <br />impact to the City as a result of the California Communities issuance of <br />debt. <br />