O-2014-3525 issuance of private activity tax exempt obligations by Public Finance Authority

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ORDINANCE NO. Dated: June 9, 2014 The City Council of the City of La Porte, Texas met in regula session on the 9h day of June, 2014, with the following members present:z U-�%S• introduced the following ordinance and moved its passage: ORDINANCE GIVING APPLICABLE ELECTED REPRESENTATIVE APPROVAL IN CONNECTION WITH THE ISSUANCE OF TAX EXEMPT OBLIGATIONS BY THE PUBLIC FINANCE AUTHORITY. WHEREAS, Educational Media Foundation, a California nonprofit corporation (the 'Borrower"), intends to operate a non-commercial radio station (the "Radio Station"), the Federal Communications Commission (FCC) License (the "License") for which is assigned to the City of La Porte, Texas (the "City"), and the radio antenna and other related equipment for which is located approximately 11.3 miles northwest of Winnie, Texas, off F -M 1410 in Liberty County, Texas; and WHEREAS, the Radio Station will offer public affairs programming, contemporary Christian music, public service announcements and off -the -air personal counseling by phone to listeners; and WHEREAS, the License and the Radio Station will initially be owned and operated by the Borrower; and WHEREAS, the Borrower has requested the Public Finance Authority (the "Authority") to issue its tax exempt obligations (the 'Bonds") for the benefit of the Borrower, in one or more series and in the aggregate principal amount of approximately $30,000,000, a portion of which will be used to refinance (a) the cost of acquiring the License to operate the Radio Station, (b) the cost of acquiring certain related equipment and (c) certain costs of issuing the Bonds (collectively, the "Project"); and WHEREAS, in order to achieve interest savings, the Borrower desires that the Bonds be issued in compliance with the requirements of the Internal Revenue Code of 1986, as amended (the "Code"), so that interest on the Bonds may be excludible from the gross income of the owners of the Bonds; and WHEREAS, the City Council held a public hearing at or about 6:00 p.m. on June 9, 2014 after reasonable public notice was given in accordance with applicable law, and at such public hearing no objections were raised with respect to the proposed issuance of the Bonds or the financing of the Project; and WHEREAS, Section 147(f) of the Code requires, as a condition to receiving tax exempt treatment of the interest on the Bonds, that an authorized, elected representative