In order for all or a portion of the Bonds to qualify as tax-exempt Bonds, the County of Yolo must conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing to provide members of the community an opportunity to speak in favor of or against the use of tax-exempt Bonds for the financing of the project described below. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an applicable elected representative of the governmental unit hosting the Project must provide its approval of the issuance of the Bonds for the financing of the project.

Financial Considerations
 
There is no direct or indirect financial impact to the County of Yolo as a result of this proposed financing. The Authority will issue tax-exempt bonds on behalf of the project. The tax-exempt bonds are payable solely out of the revenues derived by the Borrower form the applicable project. No financial obligations are placed on the County for project financing costs or debt repayment.
 
CommuniCare Health Centers, a nonprofit public benefit corporation (the “Borrower”), has requested that CEDA participate in the issuance of one or more series of taxable or tax-exempt revenue obligations in an aggregate principal amount not to exceed $32,500,000 (the “Obligations”).  The proceeds of the Obligations loaned to the Borrower will be applied to: (a) (1) refinance the cost of acquiring, constructing, installing and equipping an approximately 21,000 square foot healthcare facility located at 215 West Beamer Street, Woodland, California 95695 in the approximate amount of $1,000,000, (2) finance and refinance the cost of acquiring, constructing, improving, renovating, equipping and furnishing an approximately 13,200 square foot administrative and healthcare facility located at 2051 John Jones Road, Davis, California 95616 in the approximate amount of $5,000,000, (3) refinance the cost of acquiring, constructing, improving, renovating, equipping and furnishing an approximately 4,500 square foot healthcare facility located at 453 1st Street, 455 1st Street and 619 Lincoln Avenue, Woodland, California in the approximate amount of $500,000; and (4) finance the cost of acquiring, constructing, improving, renovating, equipping and furnishing an approximately 20,000 square foot administrative facility and an approximately 35,000 square foot healthcare facility located at one or more of the following locations and in the approximate amount set forth for each such location: (A) the southern portion of the real property located at 215 West Beamer Street, Woodland, California 95695 identified as Parcel 064-010-041 in the approximate amount of $6,000,000; (B) the southwest corner of parcel 036-060-029 north of 2051 John Jones Road, Davis, California in the approximate amount of $6,000,000; (C) 1298 West Capitol Avenue, West Sacramento, California in the approximate amount of $20,000,000; (D) 900 F Street, West Sacramento, California in the approximate amount of $20,000,000 and/or (E) 851 Sacramento Avenue, West Sacramento, California in the approximate amount of $20,000,000 (collectively, the “Facilities”); and (b) paying certain costs of issuance of the Obligations (such purposes are referred to herein collectively as the “Project”); and

California Enterprise Development Authority
The County is an associate member of CEDA, a joint powers authority established by the California Association for Local Economic Development whose purpose is to issue tax-exempt and taxable conduit revenue bonds to fund commercial and industrial development projects within member jurisdictions.

The Joint Powers Act, comprising Articles 1, 2, 3 and 4 of Chapter 5 of Division 7 of Title 1 (commencing with Section 6500) of the Government Code of the State of California and Internal Revenue Code Section 145 provide for the issuance of tax-exempt "private activity" obligations by a conduit governmental issuer on behalf of a 501(c)(3) corporation to finance facilities owned by such entity. For interest on such private activity obligations to be tax-exempt, Section 147(f) of the Code requires, among other things, the obligations and the facilities financed thereby must be approved by both the governmental unit which will issue the obligations (in this case, CEDA) and the governmental unit in which the obligation-financed facilities are located (County of Yolo). 

The assets to be financed and refinanced with the proceeds of the Obligations are located within the jurisdiction of the County. Therefore, the County has been asked to conduct the public hearing, and to approve the Obligations as the host governmental unit. The County has effectuated proper notice of the hearing via publication at least 7 days in advance.

The Obligations will be payable solely from amounts received pursuant to the terms and provisions of the loan agreement to be executed by CEDA and the Borrower. The County will not be a party to the loan agreement or any other documents in connection with the reissuance of the Obligations. The Obligations will not be secured by any form of taxation or by any obligation of either the County or CEDA. The Obligations do not represent or constitute a general obligation of either the County or CEDA.