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file:///S:/Council Agendas/CITY COUNCIL DRAFT FOLDERS/201... <br />From: White, Margo [MargoWhite@andrewskurth.com] <br />Sent: Wednesday, February 12, 201411:04 AM <br />To: Dolby, Michael <br />Cc: Alexander, Corby <br />Subject: RE: Educational Media Foundation - Public Hearing and Approval Request <br />Michael, <br />The transmittal letter accurately reflects the reasons for the approval and the liability and responsibility of the City <br />(i.e., none). <br />Section 147(f) of the Internal Revenue Code (the relevant portion of which is excerpted below) requires certain <br />approvals in connection with tax-exempt private activity bonds. It is that approval requirement that the PFA is trying <br />to satisfy. <br />(f) Public approval required for private activity bonds <br />(1) In general <br />A private activity bond shall not be a qualified bond unless such bond satisfies the <br />requirements of paragraph (2). <br />(2) Public approval requirement <br />(A) In general <br />A bond shall satisfy the requirements of this paragraph if such bond is issued <br />as a part of an issue which has been approved by— <br />(i) the governmental unit— <br />(I) <br />nit(I) which issued such bond, or <br />(II) on behalf of which such bond was issued, and <br />(ii) each governmental unit having jurisdiction over the area in which <br />any facility, with respect to which financing is to be provided from the net <br />proceeds of such issue, is located (except that if more than 1 governmental <br />unit within a State has jurisdiction over the entire area within such State in <br />which such facility is located, only 1 such unit need approve such issue). <br />(B) Approval by a governmental unit <br />For purposes of subparagraph (A), an issue shall be treated as having been <br />approved by any governmental unit if such issue is approved— <br />(i) by the applicable elected representative of such governmental unit <br />after a public hearing following reasonable public notice, or <br />(ii) by voter referendum of such governmental unit. <br />(C) Special rules for approval of facility <br />If there has been public approval under subparagraph (A) of the plan for <br />financing a facility, such approval shall constitute approval under subparagraph (A) <br />for any issue— <br />(i) which is issued pursuant to such plan within 3 years after the date of <br />the 1 st issue pursuant to the approval, and <br />(ii) all or substantially all of the proceeds of which are to be used to <br />1 of 4 6/3/2014 8:11 AM <br />