City of Alexandria, Virginia
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MEMORANDUM
DATE: SEPTEMBER 4, 2013
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: RASHAD M. YOUNG, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution Authorizing the Issuance of Refunding Bonds by the Industrial Development Authority for Volunteers of America. [ROLL-CALL VOTE]
BODY
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ISSUE: Resolution authorizing the issuance of refunding bonds by the Industrial Development Authority of the City of Alexandria (AIDA) in an amount not to exceed $4.8 million to assist Volunteers of America, Inc., a not-for-profit 501(c)(3) corporation, in refunding all or a portion of the outstanding amount of Pooled Loan Program Revenue Bonds, Series A of the Authority issued to finance the costs of acquisition, renovation and equipping of the organization's facilities located at 1660 Duke Street.
RECOMMENDATION: That City Council adopt the attached Resolution (Attachment 1) as recommended by the AIDA.
DISCUSSION: On August 6, 2013, the AIDA passed a resolution (Attachment 2) authorizing the issuance of AIDA revenue refunding bonds in an amount not to exceed $4.8 million for the purpose of assisting Volunteers of America, Inc. (VOA) in (a) refinancing certain of the costs of replacement of the roof and other renovations of the approximately 32,000 square foot four-story office building owned by VOA and serving primarily as their corporate headquarters, located at 1660 Duke Street, Alexandria, Virginia (the "Facility"), (b) refunding those certain outstanding Pooled Loan Program Revenue Bonds, Series A of the Authority issued on September 1, 1999 to finance the costs of acquisition, renovation and equipping of the Facility and related expenditures and (c) financing bond issuance costs and other eligible expenditures.
FISCAL IMPACT: The AIDA has the authority under State law to issue tax-exempt Industrial Revenue Bonds for certain nonprofit organizations and has done so frequently in the past. An administrative fee is charged to applicants for the bond financing. The fee is used to partially fund the operating costs of the Alexandria Economic Development Partnership (AEDP). The AIDA will receive a fee of up to $8,600 depending on the ultimate size of the financing.
Since these are conduit revenue bonds, the City is not obligated to repay the bonds or the interest on the bonds. The bonds do not contain any pledge of the City's faith and credit. The obligation rests solely with Volunteers of America, Inc. Under federal and State law, eligible non-profits such as this organization can avail themselves of tax-exempt financing for financing real property acquisition, if such non-profits finance their projects through public authorities such as the AIDA.
ATTACHMENTS:
Attachment 1 - Proposed Council Resolution
Attachment 2 - Notice and Certification of Public Hearing
Attachment 3 - Fiscal Impact Statement
Attachment 4 - August 6, 2013, Resolution of the Industrial Development Authority of the
City of Alexandria
STAFF:
Laura B. Triggs, Chief Financial Officer & Director, Department of Finance
Stephanie Landrum, Executive Vice President & COO, Alexandria Economic Development Partnership