About this bond issuance
The El Gabilan Library will be a two story structure (21,076 square feet), including a main lobby, community meeting rooms, outdoor learning spaces, a digital arts studio and an Internet cafe.
The project was unanimously approved by the Salinas City Council in May of 2018. Construction on the project is expected to take 16 months and will begin in July 2018.
IssuerOften the obligor. However, sometimes issuers partner with an authorized conduit financing non-profit within their state or city to issue the bonds.
Salinas Public Facilities Inc.
AuthorityBefore an issuer can raise money for a project, they must first have the legal authority to do so. This authority is sometimes preceded by a general election, and awarded after the successful passing of a bond measure.
The Bonds are being issued pursuant to the Nonprofit Public Benefit Corporation Law of the State (Corporations Code Sections 5110 et seq.) and the Public Leaseback Act of the State (Government Code Sections 54240 et seq.). The Issuer's Board of Directors approved the Project Lease and authorized the Issuer to issue the Bonds by resolution dated May 24, 2018. By ordinance adopted on March 6, 2018 and subsequent action at its May 15, 2018 meeting, the City Council of the City (the "City Council") approved the Project, the Ground Lease, the Project Lease, the Subordination, Non-Disturbance and Attornment Agreement (the "Nondisturbance Agreement"), the Indenture and the issuance of the Bonds by the Issuer, and agreed to accept unencumbered titled to the Premises upon retirement of the Bonds, solely for the purposes of meeting the requirements of the Ruling.
SecurityThe security section is a breakdown of the funds an issuer is planning to use to repay its investors. This repayment can come from a variety of sources, including local taxes.
The Bonds are special, limited obligations of the Issuer that are payable solely from and secured solely by a pledge of the Trust Estate (consisting of all rents, issues, income, revenues and receipts derived by the Issuer from the Project Lease and certain other money and property) as provided in the Indenture. See the caption "SECURITY AND SOURCES OF PAYMENT FOR THE BONDS." No revenue, income, receipts, donations, earnings, property or assets of the Issuer, other than the Trust Estate, will be subject to any lien or claim for the payment of the Bonds or the performance of any other obligation of the Issuer under the Indenture. The Issuer is a limited-purpose entity whose activities are confined to development and management of the Project and the Public Safety Facility, is not a governmental unit and has no taxing power. The Issuer has no source of funds available to pay debt service on the Bonds other than the Trust Estate.
TrusteeThe trustee is a third-party, often a large bank or financial institution, responsible for all payment flows between an issuer and an investor. This trustee is in charge of processing coupon payments.
The Bank of New York Mellon Trust Company, N.A.