To: Honorable Mayor and Members of City Council
From: Molly Rattigan, Community Resources and Development Director
Prepared By: Neal Harrison, Economic Development Manager
TITLE:
Title
NorthBay HealthCore Napa TEFRA Hearing
LABEL
RECOMMENDED ACTION:
Recommendation
1) Conduct the public hearing under the requirements of the Tax and Equity Fiscal Responsibility Act (“TEFRA”) and the Internal Revenue Code of 1986, as amended (the “Code”).
2) Adopt a resolution approving the issuance by the California Municipal Finance Authority of revenue bonds in an aggregate amount not to exceed $14,000,000 for the benefit of Northbay HealthCore for the purpose of financing the acquisition, rehabilitation, improvement and equipping of a medical outpatient services and urgent care building and adjacent land, located at 3273 Claremont Way, Napa, California 94558.
Body
DISCUSSION:
This public hearing is conducted under the Tax and Equity Fiscal Responsibility Act (“TEFRA”) in connection with the proposed issuance of revenue bonds by the California Municipal Finance Authority (the “CMFA”), a joint exercise of powers authority and public entity of the State of California, to Northbay HealthCore (The “Borrower”) in an amount not to exceed $14,000,000, (the “Bonds”), to finance the acquisition, rehabilitation, improvement and equipping of a medical outpatient services and urgent care building and adjacent land, located at 3273 Claremont Way, Napa, California 94558 (the “Project”).
The Project site is an existing medical office facility located in north Napa. The adoption of the resolution is for the sole purpose of satisfying the requirements of TEFRA, the Code and the California Government Code Section 6500 (and following).
The Borrower requested that the CMFA serve as the municipal issuer of the Bonds. The CMFA was created on January 1, 2004 pursuant to a joint exercise of powers agreement to promote economic, cultural and community development, through the financing of economic development and charitable activities throughout California. To date, over 350 municipalities have become members of CMFA. The CMFA was formed to assist local governments, non-profit organizations and businesses with the issuance of taxable and tax-exempt bonds aimed at improving the standard of living in California. The CMFA’s representatives and its Board of Directors have considerable experience in bond financings.
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower, and the City will have no financial, legal, moral obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California but are to be paid for solely from funds provided by the Borrower.
In order for the Bonds to qualify as tax-exempt bonds, the City of Napa (the “City”) must conduct a public hearing (the “TEFRA Hearing”) providing for the members of the community an opportunity to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. Prior to such TEFRA Hearing, reasonable notice must be provided to the members of the community. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its 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.
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of Napa, it is expected that that a portion of the issuance fee attributable to the City will be granted by the CMFA to the general fund of the City. Such grant may be used for any lawful purpose of the City.
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 September 24, 2026 in the Napa Valley Register.