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Statewide Community Infrastructure Program

Statewide Community Infrastructure Program A Program of the California Statewide Communities Development Authority. Post-RDA Economic Development. Cities have 5 BASIC TOOLS for Public Private Projects. These tools often work best when used together. 2.

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Statewide Community Infrastructure Program

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  1. Statewide Community Infrastructure Program A Program of the California Statewide Communities Development Authority

  2. Post-RDA Economic Development Cities have 5 BASIC TOOLS for Public Private Projects These tools often work best when used together 2

  3. What is the Statewide Communities Infrastructure Program? • Statewide Communities Infrastructure Program (SCIP) is a pooled tax exempt bond financing program which can finance impact fees and public improvements for private developments • The bonds are issued by the California Statewide Communities Development Authority (CSCDA) which is a JPA sponsored by the League of California Cities (LCC) and California State Association of Counties (CSAC) to promote bond programs of public benefit to its members • Any City/County/Special District can participate in SCIP • SCIP has issued $350 MM in bonds since its inception in 2003 • SCIP has expanded to include stand alone CFD financings

  4. Who Uses SCIP? • SCIP currently has 70 local agency members which consist primarily of cities and special districts • SCIP provides local agencies a means of offering competitive financing to all developers as a turn key solution which minimizes local agency staff time • Developers use SCIP for a variety of reasons: • Can be part of the capital mix of debt, equity, public financing • Provides off balance sheet/land secured non recourse debt • Can provide competitive advantages with respect to land acquisition costs • SCIP can finance projects which range in size from $250,000 up to $20,000,000 or higher • SCIP provides diversity to investors and economies of scale to its participants which ultimately translates to competitive interest rates and lower costs

  5. SCIP Program - Mechanics Bob Williams Reimbursement, Pre-Funding Programs and Acquisition Funding can be combined. 5

  6. What can be financed with SCIP?

  7. Local Agency Requirements • Must be a member of CSCDA • Adopt resolution consenting to use of the SCIP program • Contained in SCIP manual • Submit and Approve SCIP Applications • Each prospective project will submit an application with a local agency contact for approval • When tax-exempt bonds are issued, the local agency executes a bond closing certificate, which confirms that: • The infrastructure financed through SCIP with bond proceeds is public infrastructure • Property being assessed has valid entitlements • Funds will not be spent in violation of federal tax law • Local agency must approve Requisition of Funds for fees and/or improvements 7

  8. SCIP Tasks and Responsibility 8

  9. Project Breakdown Transaction Summary Case Study: SCIP Series 2014B $10,605,000 CSCDA SCIP Revenue Bonds, Series 2014B Challenge: Four separate projects located within two jurisdictions were not feasible to finance on a stand alone basis Solution: Pooled Assessment Bonds provided cost effective financing • Purpose: Finance Impact Fees and Improvements • Total Appraised Value: $63,430,000 • Overall Value-to-Lien: 8.39 • Assessment Distribution by Land Use: 100% Residential • Term: 30 Years • Average Interest Rate: 4.5% • Bond Ratings: Non-Rated 9

  10. 2016 Projects 10

  11. SCIP Local Agencies 11

  12. Contact Information California Statewide Communities Development Authority Jon Penkower1700 N. Broadway, Suite 405Walnut Creek, CA 94596ph: (925) 476-5887jpenkower@cscda.org California Statewide Communities Development Authority James Hamill1700 N. Broadway, Suite 405Walnut Creek, CA 94596ph: (925) 476-5644jhamill@cscda.org Orrick, Herrington & Sutcliffe LLP John Knox 405 Howard StreetSan Francisco, CA 94105ph: (415) 773-5626fax: (415) 773-5759jnknox@orrick.com RBC Capital Markets Bob WilliamsTwo Embarcadero Center Suite 1200San Francisco, CA 94104ph: (415) 445-8674fax: (415) 445-8679bob.williams@rbccm.com Orrick, Herrington & Sutcliffe LLP Patricia L. Eichar1120 NW Couch Street, Suite 200 Portland, OR 97209 ph: (503) 943-4860 fax: (503) 943-4801 peichar@orrick.com David Taussig & Associates Nathan Perez 2250 Hyde Street, 5th FloorSan Francisco, CA 94109 ph: (415) 962-1480fax: (415) 213-5964 nperez@taussig.com David Taussig & Associates David Taussig 5000 Birch Street, Suite 6000Newport Beach, CA 92660 ph: (949) 955-1500fax: (949) 955-1590 dtadavid@taussig.com Bond Logistix LLC Vo Nguyen777 S. Figueroa St., Suite 3200Los Angeles, CA 90017ph: (213) 612-2205fax: (213) 612-2499 vnguyen@bondlogistix.com

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