OBRES 2013-009:1 * *] 1010 M 0 1 ki Cox$] Apkil RII1111:I
A RESOLUTION OF THE OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE 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, Series 1998
(the "1998 Project Area No. 2 Bonds "); and
Resolution No. OB 2013 -009
Tax Allocation Refunding Bonds
Adopted: October 2, 2013
Page 2 of 5
WHEREAS, the Prior Agency has previously issued $48,000,000 aggregate
principal amount of 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 aggregate
principal amount of 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 aggregate
principal amount of 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 "2004 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, and the 2003 Project Area No. 1 Taxable
Bonds, (collectively, the "Refunded Bonds ") on a subordinate basis to the 2011
Project Area No. 2 Taxable Bonds, the 2004 Loan Obligation, and the 2011 Loan
Obligation (collectively, the 2011 Project Area No. 2 Taxable Bonds, the 2004
Loan Obligation and the 2011 Loan Obligation are referred to herein as the "Senior
Bonds "); and
Resolution No. OB 2013 -009
Tax Allocation Refunding Bonds
Adopted: October 2, 2013
Page 3 of 5
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, and the 2002 Project Area No. 1 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 (the "Refunded Taxable Bonds ") all on a basis
subordinate to the Senior Bonds. (The Refunded Tax - Exempt Bonds and the
Refunded Bonds are herein referred to as the "Refunded Bonds "); and
WHEREAS, for the corporate purposes of the Successor Agency, the
Successor Agency deems it necessary to issue tax allocation refunding bonds in
one or more series, which may be issued at the same time or from time to time, in
a total approximate principal amount of approximately one hundred twenty -five
million dollars ($125,000,000) (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 the
Successor Agency to the La Quinta Redevelopment Agency, 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 one or more tax exempt series which may
be issued at the same time or from time to time, of approximately $100,000,000
( "Tax Exempt Bonds ") along with one or more taxable series which may be issued
at the same time or from time to time, of approximately $25,000,000 ( "Taxable
Bonds ") but not to exceed a combined aggregate principal amount of
$130,000,000 (collectively, the 'Bonds ") for the purpose set forth in the recitals
hereof is hereby approved.
SECTION 3. The issuance of the Bonds is in the best interest of the Successor
Agency and the affected taxing agencies.
Resolution No. OB 2013 -009
Tax Allocation Refunding Bonds
Adopted: October 2, 2013
Page 4 of 5
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 Bonds may be issued as a single issue or from time to time in
separate series as the Successor Agency shall determine. The approval of the
issuance of the Bonds by the Successor Agency and the Oversight Board shall
constitute the approval of each and every separate series of tax exempt and
taxable bonds, without the need for any further approval from the Oversight Board
provided, however, the maximum amount of all series of Tax Exempt Bonds and /or
Taxable Bonds, as the case may be, shall not exceed the maximum amounts set
forth in Paragraph 1 above and each series of bonds shall satisfy the requirements
of Health & Safety Code Section 34177.5(a)(1).
SECTION 7. The Successor Agency is hereby authorized to recover its Costs of
Issuance, as defined in the Indenture of Trust, dated as of October 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 the La Quinta Redevelopment Agency held this 2nd
day of October, 2013, by the following vote:
AYES: Board Members Marshall, Maysels, Nelson, Osborne, Chairperson Pena
NOES: None
ABSENT: Board Member McDaniel
ABSTAIN: None
Resolution No. OB 2013 -009
Tax Allocation Refunding Bonds
Adopted: October 2, 2013
Page 5 of 5
Oversight Board of the Successor Agency
to the La Quinta Redevelopment Agency
ATTEST:
Pam Nieto
Oversight Board Secretary