To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources and Development Director
Prepared By: Stephanie Gaul, Housing Manager
TITLE:
Title
The Meadows of Napa Valley TEFRA Hearing
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt a resolution approving the issuance by the California State Communities Development Authority of revenue bonds in an aggregate amount not to exceed $125,000,000 for the purpose of financing or refinancing the acquisition, construction and rehabilitation of the Meadows of Napa Valley located at 1800, 1900, and 2000 Atrium Way.
Body
DISCUSSION:
The Meadows of Napa Valley is an existing 236 unit retirement community facility consisting of independent living, assisted living, and skilled nursing units and related support facilities located at 1800, 1900, and 200 Atrium Way (the “Project”). The Project is owned by Odd Fellows Home of California, a California nonprofit public benefit corporation (the “Borrower”) and the Borrower desires to make certain future capital improvements to the Project.
The Borrower is proposing to finance or refinance the acquisition, construction, equipping, improvement, renovation, rehabilitation, remodeling and/or equipping of projects needed to improve the Project, as well as other facilities in Santa Clara County, through up to $125,000,000 in tax exempt bonds issued through California State Communities Development Authority (“CSCDA” or the “Authority”). The Authority is a joint powers authority sponsored by the League of California Cities (“CalCities”) and the California State Association of Counties (“CSAC”). CSCDA was created by CalCities and CSAC in 1988 to enable local government and eligible private entities access to low cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth, and improve the overall quality of life in local communities throughout California. CSCDA is comprised of more than 530 city, county, and special district members, including City of Napa. CSCDA has issued more than $75 billion through 1,600 plus financings since 1988.
The City needs to conduct a hearing in compliance with the Tax and Equity Fiscal Responsibility Act (“TEFRA”), to consider input from the public prior to authorizing the Authority to issue the bonds. The County of Santa Clara conducted its own TEFRA hearing on February 4, 2026. The issuance of the bonds would be the responsibility of the Authority. The repayment of the bonds would be the sole responsibility of the Borrower. The City would have no financial, legal, moral obligation, liability, or responsibility for the Project or the repayment of the bonds. All financing documents with respect to the issuance of the bonds would contain clear disclaimers that the bonds are not obligations of the City or the State of California, but are to be paid solely by the Borrower.
In order for all or a portion of the bonds to qualify as tax-exempt, the City of Napa must conduct the TEFRA hearing giving community members an opportunity to speak in favor or against the use of tax-exempt bonds for the financing of the Project, provide reasonable notice to the members of the community prior to the meeting, and provide approval of the issuance of the bonds for the financing of the Project.
FINANCIAL IMPACTS:
There is no financial impact to the City for this item nor is the City a party to any of the financing documents related to the Bond issuance.
CEQA:
The Community Development Director has determined that the Recommended Action described in this Agenda Report is not subject to California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Resolution
NOTIFICATION:
A legal notice of the public hearing was published on February 19, 2026 in the Napa Valley Register. Additionally, Odd Fellows Home of California, CSCDA, and Orrick, bond counsel for CSCDA, were all notified of the agenda item.