06-09-14 Regular Meeting of La Porte City Council

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White, Margo \[MargoWhite@andrewskurth.com\]White, Margo \[MargoWhite@andrewskurth.com\] From:From: Wednesday, February 12, 2014 11:04 AMWednesday, February 12, 2014 11:04 AM Sent:Sent: Dolby, MichaelDolby, Michael To:To: Alexander, CorbyAlexander, Corby Cc:Cc: RE: Educational Media Foundation RE: Educational Media Foundation --Public Hearing and Approval RequestPublic Hearing and Approval Request Subject:Subject: Michael,Michael, The transmittal letter accurately reflects the reasons for the approval and the liability and responsibility of The transmittal letter accurately reflects the reasons for the approval and the liability and responsibility of the City (i.e., none).the City (i.e., none). Section 147(f) of the Internal Revenue Code (the relevant portion of which is excerpted below) requires Section 147(f) of the Internal Revenue Code (the relevant portion of which is excerpted below) requires certain approvals in connection with taxcertain approvals in connection with tax--exempt private activity bonds. It is that approval requirement that exempt private activity bonds. It is that approval requirement that the PFA is trying to satisfy.the PFA is trying to satisfy. (f) Public approval required for private activity bonds(f) Public approval required for private activity bonds (1) In general(1) In general A private activity bond shall not be a qualified bond unless such bond A private activity bond shall not be a qualified bond unless such bond satisfies the requirements of paragraph (2)satisfies the requirements of paragraph (2).. (2) Public approval requirement(2) Public approval requirement (A) In general(A) In general A bond shall satisfy the requirements of this paragraph if such bond A bond shall satisfy the requirements of this paragraph if such bond is issued as a part of an issue which has been approved byis issued as a part of an issue which has been approved by (i) the governmental unit(i) the governmental unit (I) which issued such bond, or(I) which issued such bond, or(I) which issued such bond, or(I) which issued such bond, or (II) on behalf of which such bond was issued, (II) on behalf of which such bond was issued, andand (ii) each governmental unit having jurisdiction over the area in (ii) each governmental unit having jurisdiction over the area in which any facility, with respect to which financing is to be provided which any facility, with respect to which financing is to be provided from the net proceeds of such issue, is located (except that if more from the net proceeds of such issue, is located (except that if more than 1 governmental unit within a State has jurisdiction over the than 1 governmental unit within a State has jurisdiction over the entire area within such State in which such facility is located, only 1 entire area within such State in which such facility is located, only 1 such unit need approve such issue).such unit need approve such issue). (B) Approval by a governmental unit(B) Approval by a governmental unit For purposes of subparagraph (A), an issue shall be treated as For purposes of subparagraph (A), an issue shall be treated as having been approved by any governmental unit if such issue is having been approved by any governmental unit if such issue is approvedapproved (i) by the applicable elected representative of such (i) by the applicable elected representative of such governmental unit after a public hearing following reasonable public governmental unit after a public hearing following reasonable public