pages: CityCouncil/2009-09-15.pdf, 4
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CityCouncil | 2009-09-15 | 4 | operation details. Mr. Collins stated the bond is for a twenty-five year period; the City would be obligated to ensure public use during the twenty-five year period; the City would have to have an agreement with the Boys & Girls Club for continued oversight. Councilmember Matarrese inquired whether EBRPD has had any applications or projects where money was provided to a private entity through EBRPD, a City, or special park district; further inquired whether $2 million in Measure WW funds would require $2 million in public equity. Mr. Collins responded Measure WW is very similar to Measure AA; stated if $4 million comes from one source and $2 million comes from Measure WW, one third of the use would have to be public use; funds would have a private business use restriction; EBRPD has not provided funds to private entities because of potentially violating the tax exempt nature of the bonds. Councilmember Matarrese questioned whether anything similar to what is being proposed was ever done in all the years of Measure AA. Mr. Collins noted non-profits are not private entities. Councilmember Matarrese inquired whether EBRPD has any experience with having an entity other than a public entity listed on the deed, to which Mr. Collins responded that he would need to check. The Interim City Manager stated everyone is struggling with whether or not the project meets the IRS rule for private activity bonds ; the test is two fold: 1) who owns the asset, and 2) the amount of use; bond counsel's opinion is vital. Councilmember Tam inquired whether a Joint Use Agreement would meet the criteria. Mr. Collins responded in the affirmative; stated EBRPD is modeled after the State Grant Program. Mayor Johnson inquired how the final determination [ for approval] is made, to which Mr. Collins responded the [EBRPD] Board appropriates funding based on confirmation of completed applications. Vice Mayor deHaan inquired whether Measure WW requires that a project be completed. Regular Meeting Alameda City Council September 15, 2009 | CityCouncil/2009-09-15.pdf |