CC Resolution 2010-043RESOLUTION NO. 2010 - 043
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, APPROVING THE
SUBORDINATION OF STATUTORY PASS-THROUGH
PAYMENTS ALLOCATED TO THE CITY OF LA QUINTA
IN CONNECTION WITH THE DESERT COMMUNITIES
REDEVELOPMENT PROJECT AREA TO THE COUNTY OF
RIVERSIDE REDEVELOPMENT AGENCY'S PAYMENT
OBLIGATIONS FOR ITS TAX ALLOCATION BOND ISSUE
2010A AND 20106
WHEREAS, California Health and Safety Code Section 33607.51e) provides
that a redevelopment agency may, with a taxing entity's approval, subordinate
amounts payable from tax increments of a redevelopment project area ("Statutory
Pass-Through Payments") to bonds issued by the redevelopment agency for the
same project area; and
WHEREAS, the redevelopment agency must present the taxing entity with
substantial evidence that sufficient funds will be available to pay both the debt
service on the bonds and Statutory Pass-Through Payments; and
WHEREAS, the affected taxing entity shall approve or disapprove the
subordination request within 45 days after receipt of a redevelopment agency's
request; and
WHEREAS, the Redevelopment Agency for the County of Riverside ("County
RDA") requested, on May 10, 2010, that the City of La Quinta agree to
subordinate the Statutory Pass-Through Payments it receives from the County
RDA's Desert Communities Redevelopment Project Area to the debt service on the
County RDA Tax Allocation Bond Issue 2010A and 20108; and
WHEREAS, the County RDA has provided a Fiscal Report for the County
RDA Tax Allocation Bond Issue 2010A and 20106; and
WHEREAS, the City's Economic Development/Redevelopment Consultant has
reviewed the Fiscal Report, and has deemed the County RDA will have sufficient
tax increment revenues available to pay both the debt service on the County RDA
Tax Allocation Bond Issue 2010A and 20108 and the City of La Quinta's Statutory
Pass-Through Payments.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
La Quinta, California, as follows:
Approves the subordination of Statutory Pass-Through Payments allocated to the
City of La Quinta in connection with the Desert Communities Redevelopment
Resolution No. 2010-043
Desert Communities Redevelopment Project Area
Subordination of Statutory Pass-Through Payments
Adopted: June 15,2010
Page 2
Project Area to the Redevelopment Agency for the County of Riverside
Redevelopment Agency's debt service obligations for its Tax Allocation Bond Issue
2010A and 20106.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
City Council held on this 15`" day of June 2010 by the following vote:
AYES: Council Members Evans, Franklin, Henderson, Sniff, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
Y
DON ADOLP ,May r
City of La Quinta, California
ATTEST:
Q
ERONICA J ` ONTECINO, CMC, City Jerk
City of La inta, California
(CITY SEAL) ""%"
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APPROVED AS TO FORM:
(~ /~
M. KATH RINE JENS ,City Attorney
City of La Quinta, California