DATE: January 26, 2016
TO: Mayor and City Council
FROM: Director of Finance
SUBJECT
Title
Tax Equity and Fiscal Responsibility Act (TEFRA) Hearing for Financing of Airport Development Improvements by APP Properties, Inc.
End
RECOMMENDATION
Recommendation
That Council conducts a TEFRA hearing and adopts the attached Resolution approving the issuance, by the California Statewide Communities Development Authority (CSCDA), of Tax-Exempt Obligations to APP Properties, Inc. (APP) in an aggregate amount not to exceed $6,000,000.
Body
BACKGROUND
On December 15, 2009, Council approved the purchase and lease assignment of the Volo Holdings LLC leasehold (previously Hayward Jet Center) to Hayward FBO LLC, wholly owned by Airport Property Partners LLC, predecessor in interest to APP. This leasehold is now doing business as APP Jet Center and has a term through December 15, 2053. Council previously held a Tax Equity and Fiscal Responsibility Act (TEFRA) hearing for APP in 2009 in connection with the issuance by CSCDA of $5 million of Airport Revenue Bonds for APP Jet Center and also held a TEFRA hearing for APP in 2010 in connection with the issuance by CSCDA of $7 million of Airport Revenue Bonds for additional facilities at the APP Jet Center.
APP is a Maryland Corporation that owns and operates Fixed Base Operations at three U.S. airports, as well as one hangar complex. An FBO is a business that sells aviation fuel and provides services and storage for private and business aviation customers. APP's FBO locations are in Manassas, Virginia, Fort Pierce, Florida and Hayward, California. In addition, APP owns and operates approximately 65,000 square feet of hangars at Centennial Airport in Denver, Colorado.
The original company was formed in 2009 as Airport Property Partners LLC, and was converted to APP, a corporation taxable as a Real Estate Investment Trust, in May 2014. Mr. Thom Harrow is the Chief Executive Office...
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