APFA2016/11/22ANAHEIM PUBLIC FINANCING AUTHORITY
REGULAR MEETING OF NOVEMBER 22, 2016
The Anaheim Public Financing Authority regular meeting was called to order at 5:22 P.M. in City
Council Chambers located at 200 S. Anaheim Blvd. for a joint public comment session with the
Anaheim City Council. The meeting notice, agenda and related materials were duly posted on
November 18, 2016.
PRESENT: Chairman Tom Tait and Authority Members: Jordan Brandman, Lucille Kring, Kris
Murray and James Vanderbilt.
STAFF PRESENT: City Manager Paul Emery, Interim City Attorney Arturo Fierro and Secretary
Linda Andal.
ADDITIONS/DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS: No public comments made during the joint City Council/Public Financing
Authority meeting related to the Public Financing Authority agenda.
CONSENT CALENDAR: At 6:47 P.M., Vice Chair Kring moved to approve the consent
calendar as presented, seconded by Authority Member Brandman. ROLL CALL VOTE:
AYES — 5: (Chairman Tait and Authority Members: Brandman, Kring, Murray and Vanderbilt).
Motion Carried.
PFA187 1. Approve minutes of Public Financing Authority meeting of August 9, 2016.
END OF CONSENT CALENDAR:
2. RESOLUTION NO. APFA2016-002 A RESOLUTION OF THE ANAHEIM
B137.1 PUBLIC FINANCING AUTHORITY consenting to the transfer of its outstanding Taxable
Lease Revenue Bonds (Anaheim Arena Financing Project) 2003 Series A; approving a
Supplemental Indenture; and authorizing the execution of related documents and
certificates and the taking of related actions ($25,000,000 principal amount of Taxable
Lease Revenue Bonds (from HS Partners Holdings III, L.P. to Nautilus I, LLC, a
California limited liability company).
Debbie Moreno, Finance Director, reported this item sought consent to a request from HS
Partners Holdings III (HSP) to transfer an outstanding principal balance in the amount of $25
million of taxable lease revenue bonds from the 2003 Honda Center bonds to Nautilus One LLC,
further explaining that HSP was a charitable remainder trust which, by its terms, must distribute
all of its assets prior to January 2020. Ms. Moreno explained that in connection with Anaheim
Arena Management (AAM) becoming the manager of the Honda Center on 12/16/2003, the
APFA issued the 2003 bonds to refund the debt related to the construction of the Honda Center
on behalf of AAM. She continued that HSP was a related entity to AAM and was the sole
purchaser of the 2003 bonds, where were non-recourse debt to the Authority and to the City and
solely payable from the amounts pledged under an indenture consisting of the net revenues
generated by the Honda Center and amounts due under the Facility Management Agreement,
concluding that neither the faith and credit nor taxing power of the Authority or City was pledged
to the payment of the 2003 bonds.
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Anaheim Public Financing Authority Minutes of November 22, 2016
Page 2 of 2
DISCUSSION: In response to Chairman Tait, Ms. Moreno confirmed there was no financial risk
to the City as if there was not enough money on hand from Honda Center revenues, the
manager was required to obtain a loan to make those payments and Authority action was only
approving a transfer of ownership.
MOTION: Authority Member Murray moved to approve RESOLUTION NO. APFA2016-002
A RESOLUTION OF THE ANAHEIM PUBLIC FINANCING AUTHORITY consenting to the
transfer of its outstanding Taxable Lease Revenue Bonds (Anaheim Arena Financing Project)
2003 Series A; approving a Supplemental Indenture; and authorizing the execution of related
documents and certificates and the taking of related actions ($25,000,000 principal amount of
Taxable Lease Revenue Bonds (from HS Partners Holdings III, L.P. to Nautilus I, LLC, a
California limited liability company), seconded by Authority Member Brandman. APPROVED
VOTE: 5-0. Motion carried.
ADJOURNMENT:
There being no further business, Chairman Tait adjourned the meeting of the Anaheim Public
Financing Authority at 6:51 P.M.
Linda N. Andal, CMC
Secretary, Anaheim Public Financing Authority