L.A. Will Issue Bonds to Assist Jewish Center

The Los Angeles City Council voted Tuesday to issue $9.5 million in tax-exempt bonds to help pay for construction of a Jewish community center in Canoga Park.

It is the first time that a nonprofit institution other than a hospital has received tax-exempt financing from the city for a project, said David Brodsly, an analyst in the city administrative office. He suggested that few groups are aware of the provision of federal tax law that allows cities to issue tax-exempt bonds to finance projects by nonprofit groups that benefit the public.

The project “does not come at any expense to the city,” Zev Yaroslavsky, chairman of the City Council’s Finance and Revenue Committee, said in an interview. “The city is strictly a vehicle through which these nonprofit organizations are able to get better financing for their projects.”

Although the Jewish Community Campus is nearing completion, sale of the bonds will enable the Jewish Federation Council of Greater Los Angeles to refinance the project at a lower interest rate than if it borrowed the money from a bank, said City Administrative Officer Keith Comrie. He said there is no financial risk to the city.

Social Services

The 165,000-square-foot facility, being built on 6 1/2 acres on Vanowen Street between Fallbrook and Shoup avenues, will house about a dozen agencies that will provide child care, family counseling, job referral and other social services to non-Jews as well as Jews. It also will have community meeting rooms and recreational facilities open to the public, including an indoor swimming pool and aerobics and weight rooms.

Comrie’s office earlier had raised questions about whether the project conflicted with the constitutional requirement for separation of church and state. The administrative officer, however, recommended approval on the basis that the center would serve the public “on a non-discriminatory basis.”

“In respect to the church/state issue, the JFC itself is not a religious organization,” said a report to the council from the city administrative office. “While sponsored and offered to the Jewish community, the various organizations which will be tenants are not primarily sectarian. The tenants will not be allowed to conduct religious services or other religious activities in the facility.”

The administrative office also noted that the city provides federal funds to organizations affiliated with religious organizations to provide social services to the community. “The principal concern with such funding has been the nature of the services provided, and that there were no discrimination in their delivery,” the report said.

The bonds are purchased by private investors who receive tax-free interest. They will be repaid from funds raised by the Jewish Federation Council.