Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 6/25/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8A2
ACTION:  Adopt a resolution approving and authorizing the issuance of The Industrial Development 
Authority of the City of Tempe Multifamily Housing Revenue Bonds in an original aggregate principal 
amount not to exceed $48,500,000 for the benefit of Residences at Dorsey, LLC, an Arizona limited 
liability company. (Resolution No. R2026.85)
FISCAL IMPACT:  The City is not obligated for any payments with respect to the bonds.
RECOMMENDATION:  Adopt Resolution No. R2026.85.
 
BACKGROUND INFORMATION:  The Industrial Development Authority of the City of Tempe, 
Arizona (“IDA”), proposes to issue its multifamily housing revenue bonds in one or more series in 
accordance with and pursuant to Title 35, Chapter 5, Arizona Revised Statutes, as amended, for the 
purpose of financing a qualified residential rental facility under Section 142(d) of the Internal Revenue 
Code of 1986, as amended, and will loan the proceeds of the bonds to Residences at Dorsey, LLC, to 
(i) finance a portion of the costs of the acquisition, construction and equipping of a 167 unit multifamily 
residential rental property to be located at the northeast corner of East Apache Boulevard and South 
Dorsey Lane in Tempe, Arizona, and (ii) pay certain costs and expenses related to the issuance of the 
bonds.
In accordance with Section 35-721.B of the Arizona Revised Statutes and Section 147(f) of the Internal 
Revenue Code of 1986, as amended, the Mayor and City Council are being requested to approve the 
IDA’s issuance of the bonds for all purposes under such laws, and to authorize and direct the appropriate 
officers and representatives of the City to do all things and deliver all documents on behalf of the City 
as may be necessary or desirable in connection with the issuance by the IDA of the bonds. In connection 
with the closing and issuance of the bonds, bond counsel will provide a legal opinion that the bonds are 
duly authorized and issued and are tax-exempt to the extent set forth in such opinion.  Applicable law 
provides that the bonds may only be issued, and will only have tax-exempt status, if approved by the 
Mayor and City Council.
The IDA acts as a “passthrough” bond-issuing entity, allowing ultimate borrowers such as Residences 
at Dorsey, LLC, to borrow funds at a lower interest rate than rates under traditional corporate bonds or 
bank loans. By using this passthrough structure, interest income on the bonds will be excludable from 
the bond investors’ gross income for federal income tax purposes. Because their interest income is not 
subject to federal income tax, such investors are willing to charge a lower interest rate. This reduced 
interest rate on the bonds fully insures to the benefit of Residences at Dorsey, LLC. As consideration 
for serving as the passthrough bond issuer, Residences at Dorsey, LLC will pay an annual fee to the 
IDA each year that the bonds are outstanding. In turn, at the discretion of the IDA Board, the IDA will 
invest its bond fee income into various programs and services to benefit the City of Tempe and its 
residents.
The Tempe IDA approved the resolution authorizing the issuance of bonds in an amount not to exceed 
$48,500,000 on June 10, 2026.  The IDA bond counsel will provide an opinion that the issuance is tax 
exempt and complies with state and federal laws.

2
ATTACHMENTS:    
1. CITY COUNCIL RESOLUTION-DORSEY STATION 2026-TEMPE IDA.DOCX
2. TEMPE IDA DORSEY PROJECT 2026 - RESOLUTION(725056196.1).PDF
3. TEMPE IDA TEFRA NOTICE DORSEY STATION 2026(724284354.1).PDF
4. TEMPE IDA DORSEY PROJECT 2026 - AFFIDAVIT OF TEFRA NOTICE(724961490.1).PDF
STAFF CONTACT(S):  Madalaine McConville, Economic Development Specialist, (480) 647-7293
Department Director:  Jeff Tamulevich, Community Development Director  
Legal review by:  Eric Anderson, City Attorney
Prepared by:  Madalaine McConville, Economic Development Specialist