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Date: May 26, 2026
STAFF REPORT
City of Lancaster
PH 1
5/26/2026
TN
To: Mayor Parris and City Council Members
From: Patti Garibay, Director – Community Development
Becky Bartlett, Manager – Housing
Subject: Approval of the issuance of bonds related to TEFRA financing for the Bartz- Altadonna Community Health Center
Recommendations:
1. Conduct the public hearing under the requirements of the Tax Equity and Fiscal Responsibility Act (TEFRA) and the Internal Revenue Code of 1986, as amended.
2. Adopt Resolution No. ____ approving the issuance of the bonds by the California Enterprise Development Authority (CEDA) for the benefit of Bartz-Altadonna Community Health Center and/or a related or successor entity, for the financing of the facilities located at 43322 Gingham Avenue; 43210 Gingham Avenue; and 42933 Business Center Parkway.
G.C. Section 84308: No
Fiscal Impact:
None. The bonds to be issued by the CEDA for the Project will be the sole responsibility of the Borrower.
Background:
CEDA was created in 2006 pursuant to a joint exercise of powers agreement to address gaps in economic development financing and to promote economic and community development throughout California. CEDA facilitates the issuance of private activity bonds and has significant experience assisting with the financing of economic development and community-based projects. CEDA is committed to providing alternative financing options to manufacturers, 501(c)(3) nonprofit organizations, and local communities. The City of Lancaster is a founding member of CEDA pursuant to the joint exercise of powers agreement for CEDA, dated as of June 1, 2006, among the City of Selma and the City of Eureka.
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The Bartz-Altadonna Community Health Center (BACHC), the Borrower, has requested that CEDA serve as the municipal issuer of tax-exempt bonds to finance the Project's healthcare facilities in an aggregate principal amount not to exceed $20,000,000. Proceeds of the bonds will be used to: (1) finance, refinance, and/or reimburse the costs associated with the acquisition, construction, improvement, furnishing, and equipping of facilities located at 43322 Gingham Avenue in the approximate amount of $2,200,000; 43210 Gingham Avenue in the approximate amount of $2,200,000;, and 42933 Business Center Parkway in the approximate amount $15,400,000; and (2) pay costs of issuance and other related transaction costs in connection with the issuance of the bonds (Project). The financing will also assist the Borrower in strengthening its long-term financial stability and expanding access to healthcare services throughout the Antelope Valley region.
The Borrower, founded in 1993 in Lancaster, California, is the Antelope Valley’s first Federally Qualified Health Center, achieving FQHC designation in 2010. The Borrower provides comprehensive healthcare services, including primary care, OB/GYN services, mental and behavioral health services, substance abuse counseling, HIV support, and dental care. These services are delivered to underserved, low-income, and homeless populations throughout the Antelope Valley, including facilities in Lancaster, Palmdale, California City, and Boron, as well as through mobile healthcare units. The facilities included in the refinancing and improvement project serve critical healthcare needs throughout the Antelope Valley. The facility located at 43322 Gingham Avenue in Lancaster currently a BACHC clinical facility providing primary care and pharmacy services, while the adjacent facility located at 43210 Gingham Avenue provides OB/GYN and other specialty care services.
A portion of the bond proceeds will specifically fund Phase 2 of the Borrower’s campus expansion project located at 42933 Business Center Parkway. The Phase 2 expansion is intended to increase the organization’s clinical capacity and support the addition of critical healthcare services needed throughout the Antelope Valley region. Planned improvements include expanded outpatient primary care capacity and space to support additional services such as dental care, diagnostic radiology and imaging, dialysis services, and other specialty healthcare services. These improvements are expected to significantly increase access to comprehensive healthcare services for underserved residents throughout the region.
Through this financing and expansion effort, the Project will support the continued delivery of accessible, high-quality healthcare services to underserved residents throughout the Antelope Valley, helping to meet growing community healthcare needs and improve the overall well-being of the region for years to come.
BB/ ah
Attachment:
Resolution No. 26-___