RESOLUTION NO. 24-__
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
FONTANA, CALIFORNIA, APPROVING THE ISSUANCE OF REVENUE
BONDS BY THE CALIFORNIA E NTERPRISE DEVELOPMENT
AUTHORITY IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO
EXCEED $55,500,000 FOR THE PURPOSE OF FINANCING CERTAIN
EDUCATIONAL FACILITIES AND CERTAIN OTHER MATTERS
RELATING THERETO FOR THE BENEFIT OF REAL JOURNEY
ACADEMIES, INC.
A. Recitals.
(i) On November 10, 2015, the City Council adopte d resolution 2015-074 to become a n associate member of the California E nterprise Development Authority (“Authority”) in order to participate in economic developme nt financing programs for the b enefit of businesses and non profit entiti es within its jurisdiction.
(ii) The Authority is authorized t o is sue a nd sell revenue bo nds for the purpose, among others, of financing or refinancing the acquisition, construction, renovation, equipping and furnishing of capital projects. (iii) REAL Journey Academies, Inc., a nonprofit corporation (the “School”) and an orga nization described in Section 501(c)(3) of the Inte rnal Reven ue Code of 1986, as amended (the “Code”), has requested that the California Enterprise Development Authority (the “Authority”) issue and sell revenue bonds (the “Bonds”) in the maximum principal amount not to e xceed $55,500,000 for the purpose of making a loan to the School to (i) finance the cost of acquisition, renovation, equipping and f urnishing of certain educational and ancillary facilities located at the Borro wer’s campuses at (a) 7775 Sierra Ave ., Fontana, CA 92336, consisting of approximately 51,000 square feet designed to serve approximately 525 students in preschool and in grades 9 through 12 in an amount not to exceed $50,000,000 (the “Entrepreneur High School Fontana” and the “Fontana Project”), and (b) 3333 Concours St., Building 9, Ontario, California 91764, consisting of approximately 8,700 square feet designed to ser ve as administrative offices in an amount not to exceed $ 5,500,000, (together with the Fontan a Project , the “Project”), (ii) fund a debt service reserve fund; (ii) pay capitalized interest; and (iii) pay certain costs of issuance and other related costs in connection with the issuance of the Bonds. (iv) The Fontana Project is owned by the School, used for the educational purposes thereof, and is located entirely within the territoria l limits of the City.
Resolution No. 24-__
May 28, 2024
2 (v) Pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City becaus e a portion of the Project constituting the Fontana Project is located within the territorial limits of the City.
(vi) The Council of the City ( the “City Council”) is the elected legislative body of the Cit y and is one of the “applicable elected representatives ” required to approve the issuance of the Bonds under Section 147(f) of the Code. (vii) The Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisf y the public approval requirements of Section 147(f) of the Code.
(viii) A public hearing was held by the Ci ty Council on May 28, 202 4, at the meeting which commenced at 2:00 p.m., at the Grover W. Taylor Council Chambers located at the Fontana City Hall, 8353 Sierra Avenue, Fontana, CA 92335 , following duly published notice thereof in a newspaper of general c irculation in the City of Fontana, on May [21], 202 4, and all persons desiring to be heard have been heard.
(ix) The City Council now desires to approve the issuance of the Bonds by the Authority.
B. Resolution.
NOW, THEREFORE , the City Council of the City of Fontana, California, doe s hereby resolve, declare, determine and order as follows:
1. The foregoing recitals are true and correct.
2. The City Council hereby approves the refinancing of the Fontana Project and the issuance of the Bonds by the Authority. It is the purpose and intent o f the City Council that this Resolution const itute approval of the plan of finance for the Fontana Project and the issuance of the Bonds for the purposes of : Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which th e Fontana Project is located, in accordance with said Section 147(f); provided, however, that this Resolution shall not constitute an approval by the City Council of the Project for any other purpose.
3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party.
The C ity Co uncil sh all have no responsibility or liability whatsoever with respect to the Bonds.
4. The o fficers of th e City ar e hereby authorize d and directed, joint ly and severally, to do any and all things and t o execute and de liver any and all documents which they deem necessary or advisable in order to carry out, Resolution No. 24-__
May 28, 2024
3 give effect to and comply with the terms and intent of this Resolution and the financing transaction approved hereby.
5. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 28th day of May, 2024.
______________________________
Mayor
ATTEST:
I, Germaine Key, City Clerk of the City of Fontana, do hereby certify that the foregoing Resolution No. 24 -__ was adopted at a regular meeting of the City Council of the City of Fontana held on the 28th day of May, 2024 by the following roll call vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
______________________________
Germaine Key, City Clerk