To: Board of Supervisors
From: Treasurer/Tax Collector
Agenda Section: Consent
SUBJECT:
title
Resolution Authorizing the Leasing of the County Jail and the Prepayment of the County's 2012 Facilities Sublease in order to Finance Various Capital Improvement Projects
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve Resolution # _____ (Attachment 1) to authorize the leasing of the county jail and the prepayment of the county's 2012 Facilities Sublease in order to finance various capital improvement projects.
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SOURCE OF FUNDING:
County Treasury Pool
DISCUSSION:
Your Board approved the 2020 Interim Period Lease Finance plan ('Finance Plan') on June 2, 2020 with Resolution # 20-47 (Attachment 2) and approved Resolution No. 20-68 (Attachment 3) on July 28, 2020 authorizing the county to enter into a lease transaction to finance various capital improvements projects, including furniture and equipment for various county buildings (collectively, the 'Project') by leasing the county Courthouse.
Subsequent to those approvals it was determined by Bond Counsel for the Finance Plans that Government Code Section 70344 puts limits on the ability of the county to lease the county Courthouse so it will be more beneficial to the county to finance the Project by simultaneously refinancing the county's obligation to make lease payments under the Facility Sublease dated as of June 1, 2012 (the "2012 Lease") and leasing Phase One and Phase Two of the county Jail in accordance with the terms of financing approved under Resolution No. 20-68.
Your Board's approval of the Resolution will allow the Humboldt County Public Property Leasing Corporation (HCPPLC), a California nonprofit public benefit corporation that the county has utilized to facilitate prior financings, to be the lessor of the Jail for the term of the financing with the county leasing back that property from the HCPPLC. The rent payments paid by the county to the corp...
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