OBRES 2013-006RESOLUTION NO. OB 2013 - 006
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO LA QUINTA
REDEVELOPMENT AGENCY APPROVING THE
ISSUANCE AND SALE OF SUBORDINATE TAX
ALLOCATION REFUNDING BONDS BY THE
SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY AND AUTHORIZING
CERTAIN OTHER ACTIONS IN CONNECTION
THEREWITH
WHEREAS, the La Quinta Redevelopment Agency (the "Prior Agency ") was a
public body, corporate and politic, duly created, established and authorized to
transact business and exercise its powers under and pursuant to the provisions of the
Community Redevelopment Law (Part 1 of Division 24 (commencing with Section
33000) of the Health and Safety Code of the State of California) (the "Law "), and the
powers of the La Quinta Redevelopment Agency included the power to issue Bonds
for any of its corporate purposes; and
WHEREAS, a Redevelopment Plan for a redevelopment project known and
designated as the "La Quinta Redevelopment Project Area No. 1" has been
adopted and approved by Ordinance No. 43 of the City of La Quinta on November
29, 1983, and all requirements of the Law for and precedent to the adoption and
approval of the Project Area No. 1 Redevelopment Plan, as amended, have been
duly complied with; and
WHEREAS, a Redevelopment Plan for a redevelopment project known and
designated as the "La Quinta Redevelopment Project Area No. 2" has been
adopted and approved by Ordinance No. 139 of the City of La Quinta on May 16,
1989, and all requirements of the Law for and precedent to the adoption and
approval of the Project Area No. 2 Redevelopment Plan, as amended, have been
duly complied with; and
WHEREAS, the Prior Agency has previously issued $15,760,000 aggregate
principal amount of the La Quinta Redevelopment Agency, La Quinta
Redevelopment Project Area No. 1, Tax Allocation Refunding Bonds, Series 1998
(the "1998 Project Area No. 1 Bonds "); and
WHEREAS, the Prior Agency has previously issued $6,750,000 aggregate
principal amount of the La Quinta Redevelopment Agency, La Quinta
Redevelopment Project Area No. 2, Tax Allocation Refunding Bonds, Issue of
1998 (the "1998 Project Area No. 2 Bonds "); and
Resolution No. OB 2013 -006
Tax Allocation Refunding Bonds
Adopted: June 5, 2013
Page 2
WHEREAS, the Prior Agency has previously issued $48,000,000 La Quinta
Redevelopment Agency, La Quinta Redevelopment Project Area No. 1, Tax
Allocation Bonds, Series 2001 (the "2001 Project Area No. 1 Bonds"); and
WHEREAS, the Prior Agency has previously issued $40,000,000 La Quinta
Redevelopment Agency, La Quinta Redevelopment Project Area No. 1, Tax
Allocation Bonds, Series 2002 (the "2002 Project Area No. 1 Bonds "); and
WHEREAS, the Prior Agency has previously issued $26,400,000 La Quinta
Redevelopment Agency, La Quinta Redevelopment Project Area No. 1, Tax
Allocation Bonds, Taxable Series 2003 (the "2003 Project Area No. 1 Taxable
Bonds "); and
WHEREAS, the La Quinta Financing Authority (the "Authority ") on behalf of
the Prior Agency has previously issued $90,000,000 La Quinta Financing
Authority, Local Agency Revenue Bonds, 2004 Series A (the "2004 Housing
Bonds ") and loaned the proceeds to the Prior Agency pursuant to the terms of a
Loan Agreement dated February 3, 2004, as supplemented by a First
Supplemental Loan Agreement, dated as of June 1, 2004 (the "Loan Obligation ");
and
WHEREAS, the Prior Agency has previously issued $6,000,000 La Quinta
Redevelopment Agency, La Quinta Redevelopment Project Area No. 2
Subordinate Taxable Tax Allocation Bonds, Series 2011 (the "2011 Project Area
No. 2 Taxable Bonds "); and
WHEREAS, the Authority on behalf of the Prior Agency has previously
issued $28,850,000 La Quinta Financing Authority, Local Agency Subordinate
Taxable Revenue Bonds, 2011 Series A (the "2011 Taxable Housing Bonds ") and
loaned the proceeds to the Prior Agency pursuant to the terms of a loan
agreement dated February 3, 2011 and a Second Supplemental Loan Agreement,
dated as of March 1, 2011 (the "2011 Loan Obligation "); and
WHEREAS, the Successor Agency has determined that it is cost effective
and efficient to refund and defease, in their entirety, the 1998 Project Area No. 1
Bonds, the 1998 Project Area No. 2 Bonds, the 2001 Project Area No. 1 Bonds,
the 2002 Project Area No. 1 Bonds, the 2003 Project Area No. 1 Taxable Bonds,
and the Loan Obligation in connection with the 2004 Housing Bonds (collectively,
the "Refunded Bonds ") on a subordinate basis to the 2011 Project Area No. 2
Taxable Bonds and the 2011 Loan Obligation (collectively, the 2011 Project Area
No. 2 Taxable Bonds and the 2011 Loan Obligation, the "Senior Bonds "); and
Resolution No. OB 2013 -006
Tax Allocation Refunding Bonds
Adopted: June 5, 2013
Page 3
WHEREAS, the Successor Agency deems it necessary and proper to issue
tax exempt tax allocation bonds for the purpose of refunding and defeasing the
1998 Project Area No. 1 Bonds, the 1998 Project Area No. 2 Bonds, the 2001
Project Area No. 1 Bonds, the 2002 Project Area No. 1 Bonds, and approximately
seventy -five percent (75 %) of the Loan Obligation in connection with the 2004
Housing Bonds (the "Refunded Tax Exempt Bonds ") all on a basis subordinate to
the Senior Bonds; and
WHEREAS, the Successor Agency deems it necessary and proper to also
issue taxable tax allocation refunding bonds to refund and defease the 2003
Project Area No. 1 Taxable Bonds and the remaining approximate twenty -five
percent (25 %) of the Loan Obligation in connection with the 2004 Housing Bonds
(the "Refunded Taxable Bonds ") all on a basis subordinate to the Senior Bonds;
and
WHEREAS, for the corporate purposes of the Successor Agency, the
Successor Agency deems it necessary to issue at this time tax allocation
refunding bonds in two series in a total approximate principal amount of
approximately one hundred ninety seven million, five hundred seventy five
thousand dollars ($197,575,000) (the 'Bonds "), and to irrevocably set aside a
portion of the proceeds of such Bonds in a separate segregated trust fund which
will be used to refund the outstanding Refunded Bonds of the Prior Agency, to
pay costs in connection with the issuance of the Bonds, and to make certain
other deposits as required by the Indenture (defined herein); and
WHEREAS, the Successor Agency has approved all matters relating to the
issuance and sale of the Bonds; and
WHEREAS, the Oversight Board desires to approve all matters relating to
the issuance and sale of the Bonds as required by Sections 34177.5 (f) and
34180 of the Health and Safety Code of the State of California.
NOW THEREFORE, BE IT RESOLVED, by the Oversight Board of Successor
Agency to La Quinta Redevelopment Agency, does hereby resolve as follows:
SECTION 1 . Each of the foregoing recitals is true and correct.
SECTION 2 . The issuance by the Successor Agency to the La Quinta
Redevelopment Agency of the Bonds in a tax exempt series of approximately
$ 154,625,000 but not to exceed, along with Series B Bonds, two hundred million
dollars ($200,000,000) ( "Series A Bonds ") and a taxable series of approximately
$42,950,000 but not to exceed, along with Series A Bonds, two hundred million
dollars ($200,000,000) ( "Series B Bonds ") in an aggregate principal amount of
Resolution No. OB 2013 -006
Tax Allocation Refunding Bonds
Adopted: June 5, 2013
Page 4
approximately one hundred ninety seven million, five hundred seventy five
thousand dollars ($197,575,000) (collectively, the 'Bonds ") for the purpose set
forth in the recitals hereof.
SECTION 3 . The issuance of the Bonds is in the best interest of the Successor
Agency and the affected taxing agencies.
SECTION 4 . The Chair of the Oversight Board and the other officers and members
of staff having responsibility for the affairs of the Successor Agency to the La
Quinta Redevelopment Agency are hereby authorized to execute such
agreements, documents, and certificates necessary to assist the Successor
Agency in the issuance of the Bonds.
SECTION 5 . The application of the proceeds of the Bonds by the Successor
Agency to the refunding of the Refunded Bonds, as well as the payment by the
Successor Agency of the Costs of Issuance of the Bonds, as provided in the
Indenture, shall be implemented by the Successor Agency promptly upon delivery
of the Bonds, notwithstanding Section 34177.3 of the Law or any other provision
of law to the contrary, without the approval of the Oversight Board, the California
Department of Finance, the Riverside County Auditor - Controller or any other
person or entity other than the Successor Agency.
SECTION 6 . The Successor Agency shall enter the amounts of the final debt
service determined upon sale and delivery of the Bonds into the Indenture and the
amounts so entered shall be final and conclusive upon the Oversight Board, the
California Department of Finance and all other interested persons and entities and
the debt service schedule shall not be amended except as provided in the
Indenture.
SECTION 7 . The Successor Agency is hereby authorized to recover its Costs of
Issuance, as defined in the Indenture of Trust, dated as of June 1, 2013, by and
between the Successor Agency and U.S., Bank National Association, including,
without limitation, staff time, staff costs and bond insurance premiums.
SECTION 8 . This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, AND ADOPTED at the meeting of the Oversight
Board of the Successor Agency to La Quinta Redevelopment Agency held this 5th
day of June, 2013, by the following vote:
Resolution No. OB 2013 -006
Tax Allocation Refunding Bonds
Adopted: June 5, 2013
Page 5
AYES: Board Members Ellis, Maysels, Nelson, Osborne, Chair Pena
NOES: None
ABSENT: Board Members Marshall, McDaniel
ABSTAIN: None
l
JUNN t A, irperson
Oversig Boar f the Successor Agency
to La Quinta Redevelopment Agency
ATTEST:
n . cl- �b
AM NIETO
Oversight Board Secretary