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PUBLIC HEARING
City of San Bernardino
Request for Council Action
Date: April 15, 2026
To: Honorable Mayor and City Council Members
From: Gabriel Elliott, Director, Community Development & Housing Department: Community Development & Housing
Subject: Approval of the Issuance of Revenue Obligation Bonds in an Amount to Exceed $15,000,000 by the California
Enterprise Development Authority for TIP Property Caritas LLC (Ward 1)
Recommendation:
It is recommended that the Mayor and City Council of the City of San Bernardino, California, take the following actions:
1. Hold a public hearing; and
2. Adopt Resolution No. 2026-036 approving the issuance of revenue obligations by the California Enterprise Development Authority (CEDA) in an amount not to exceed $15,000,000 for TIP Property Caritas, LLC, a California limited liability company, and/or a related or successor entity (the Borrower) at 662, 678 and 696 South Tippecanoe Avenue, San Bernardino, in accordance with the requirements of the Federal Tax Equity and Fiscal Responsibility Act (“TEFRA”) and Internal Revenue Code of 1986 as amended (“Code”); and
3. Authorize the City Manager or designee to take any further actions and execute any additional documents necessary to effectuate the Tax-Exempt bond issuance for TIP Property Caritas LLC.
City Manager's Comments
No recommendation.
Executive Summary
CEDA is a Joint Powers Authority (JPA) created in 2006 to address gaps in economic development financing, and is committed to providing alternative financing options to manufacturers, 501(c)(3) non-profits, and California communities, with the ultimate mission of supporting economic development. CEDA facilitates the issuance of private 3 2
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activity bonds for the purpose of economic and community development. The City became an Associate Member of CEDA on January 23, 2017.
Background
As required by the Tax Equity and Fiscal Responsibility Act of 1982 (TEFRA), in order for the obligations to qualify as tax-exempt bonds, the City of San Bernardino must conduct a public hearing (the “TEFRA Hearing”) providing the members of the community an opportunity to comment on the use of tax-exempt bonds for the financing of the Project. Prior to conducting the TEFRA Hearing, reasonable notice must be provided to the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit with jurisdiction over the Project must provide its approval of the issuance of the obligations for the financing of the Project, which is provided for in Resolution No. 2026-036.
Discussion
The proceeds of the obligations will be applied by the Borrower, for the purpose of (a) financing, refinancing, and/or reimbursing the cost of the acquisition, construction, improvement, furnishing and equipping of property located at 662, 678 and 696 South Tippecanoe Avenue, San Bernardino, California 92408 (the “Facilities”); and (b) paying costs of issuance and other related transaction costs in connection with the issuance of the obligations.
The Borrower will lease the Project to Community Action Partnership of San Bernardino (“CAPSBC”), a related entity, in connection with the administration of a variety of human service programs serving the needs of low-income residents of San Bernardino County, and the City of San Bernardino in connection with its governmental operations. CAPSBC is the designated Community Action Agency for San Bernardino County and is one of over 1,000 Community Action Agencies nationwide dedicated to assisting low-income individuals and families become stable and self-reliant.
The City of San Bernardino is not a party to this agreement nor a beneficiary of the proceeds from the bonds. The City’s obligation lies within the requirements of the Federal Tax Equity and Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986 as amended (“Code”).
City Strategic Targets and Goals
Adopting the Resolution for approval of the issuance by the Authority of tax-exempt revenue bonds, to support the acquisition, construction, renovation, equipping and furnishing of the San Bernardino Facility to be used as a health clinic aligns with Mayor and City Council, Key Target No. 4 Improved Quality of Life by providing quality healthcare to the community.
Fiscal Impact
There will be no impact on the General Fund. The proposed obligations to be issued by CEDA will be the sole responsibility of the Borrower, and the City will have no financial or legal obligation for repayment. No financial obligations are placed on the 3 2
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City for project financing costs or debt repayment.
Conclusion
It is recommended that the Mayor and City Council of the City of San Bernardino, California, take the following actions:
1. Hold a public hearing; and
2. Adopt Resolution No. 2026-036 approving the issuance of revenue obligations by the California Enterprise Development Authority (CEDA) in an amount not to exceed $15,000,000 for TIP Property Caritas, LLC, a California limited liability company, and/or a related or successor entity (the Borrower) at 662, 678 and 696 South Tippecanoe Avenue, San Bernardino, in accordance with the requirements of the Federal Tax Equity and Fiscal Responsibility Act (“TEFRA”) and Internal Revenue Code of 1986 as amended (“Code”); and
3. Authorize the City Manager or designee to take any further actions and execute any additional documents necessary to effectuate the Tax-Exempt bond issuance for TIP Property Caritas LLC.
Attachments
Attachment 1 Resolution No. 2026-036
Attachment 2 Newspaper Publication
Attachment 3 Proof of Publication
Ward:
First Ward
Synopsis of Previous Council Actions:
None.
CC: Eric Levitt, City Manager