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Committee approves referral for CMFA financing to refinance San Francisco Art Institute debt
Summary
The committee heard Controller’s Office staff describe TEFRA‑required approval to allow the California Municipal Finance Authority to issue up to $7 million in tax‑exempt obligations (and up to $13 million taxable obligations, total up to $20 million) to refinance and fund improvements for the San Francisco Art Institute; the committee referred the matter to the full Board with a positive recommendation.
The Budget and Finance Committee heard a presentation from the Controller’s Office on TEFRA‑required approval for bond financing that would permit the California Municipal Finance Authority (CMFA) to issue tax‑exempt obligations in an amount not to exceed $7,000,000, and taxable obligations up to $13,000,000 (for a total not to exceed $20,000,000), on behalf of the San Francisco Art Institute. Vishal Trivedi of the controller’s Office of Public Finance outlined the public hearing process and emphasized that the City and County of San Francisco would not be obligated for payment on the bonds; the action is required by federal tax law because the jurisdiction where the project is located must approve tax‑exempt issuance.
Trivedi said the financing would refinance a portion of outstanding debt originally used for acquisition, construction, equipping and furnishing of facilities, and could also finance additional improvements at facilities including the project at 800 Chestnut Street and a project at Herbst Pavilion (Fort Mason) in District 2. Bond counsel for the transaction is Squire Patton Boggs LLP. The presenter said the legislation is sponsored by Supervisor Farrell and that approval would have no fiscal impact to the city and county. There were no public comments. Supervisor Yee moved the item to the full Board as a committee report; the motion passed without objection.
The item will be heard by the full Board on Sept. 26 per the committee referral schedule.
