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AGENDA ITEM REVIEW FORM |
6.G.
Special City Council Meeting
- Meeting Date:
- 11/26/2018
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2060. A resolution of the City Council of the City of San Luis, Arizona, approving the issuance of a tax-exempt healthcare revenue loan or loans by the Industrial Development Authority (IDA) of the City of San Luis, Arizona, the proceeds of which are to be lent to the Regional Center for Border Health, Inc. in an aggregate principal amount not to exceed $35,000,000 (the “financing”). (Glenn Gimbut, Assistant City Attorney)
SUMMARY:
Regional Center for Border Health, Inc., an Arizona non-profit corporation, proposes to develop a medical mall in San Luis, Arizona. This is a $35,000,000 million dollar project that will bring good employment to San Luis. To do this project, they propose to borrow monies using lending issued through the Industrial Development Authority of San Luis (“IDA”). IDAs have the legal power to issue loans that are, within certain restrictions, exempt from federal and state taxes. Therefore the interest rates paid by the borrower are more favorable than loans where interest is taxable. By statute, the city is not liable in any manner for this lending. (ARS §35-742). While there are multiple lenders, monies are principally coming from USDA. A public hearing was held before the City Council since it is the elected body created the IDA and which appoints the members of the board of directors of the IDA.
RECOMMENDATION / SUGGESTED MOTION:
| I HEREBY MOVE TO ADOPT RESOLUTION NO. 2060. |
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- No
- CITY/STATE/FEDERAL FUNDS:
- N/A
- TOTAL:
- N/A
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
There is no fiscal impact to the City of San Luis nor to the San Luis Industrial Development Authority. The Regional Center for Border Health, Inc. is responsible for payment of the loan.