OBRES 2014-005RESOLUTION NO. OB 2014 - 005
RESOLUTION OF THE OVERSIGHT BOARD TO THE
SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY APPROVING THE ISSUANCE
AND SALE OF 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 Prior 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 No. 2 Redevelopment Plan, as amended, have been duly complied with;
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
Resolution No. OB 2014 -005
Tax Allocation Refunding Bonds
Adopted: March 19, 2014
Page 2
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, 2004 and a Second Supplemental Loan Agreement, dated as of March
1, 2011 (the "2011 Loan Obligation "); and
WHEREAS, the Successor Agency has previously issued $97,190,000
Successor Agency to the La Quinta Redevelopment Agency, La Quinta
Redevelopment Project Areas No. 1 and 2, Subordinate Tax Allocation Refunding
Bonds, 2013 Series A (the "2013 Series A Bonds ") and $23,055,000 Successor
Agency to the La Quinta Redevelopment Agency, La Quinta Redevelopment Project
Areas No. 1 and 2, Subordinate Tax Allocation Refunding Bonds, 2013 Taxable
Series B (the "2013 Taxable Series B" and collectively, the "2013 Bonds "); and
WHEREAS, the Successor Agency has determined that it is cost effective
and efficient to refund and defease the Loan Obligation in connection with the
2004 Housing Bonds ( the "Refunded Bonds ") on a senior basis to the 2011 Project
Area No. 2 Taxable Bonds, the 2011 Loan Obligation and the 2013 Bonds
(collectively, the "Subordinate 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 a total principal amount of approximately seventy two million three
hundred seventy five thousand dollars ($72,375,000), 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, Assembly Bill AB X1 26, effective June 29, 2011, together with
Assembly Bill 1484 ( "AB 1484 ") (collectively, the "Dissolution Act ") resulted in the
La Quinta Redevelopment Agency being dissolved as of February 1, 2012; and
WHEREAS, the authority, rights, powers, assets, duties and obligations of
the Prior Agency were transferred on February 1, 2012 to the Successor Agency;
and
Resolution No. OB 2014 -005
Tax Allocation Refunding Bonds
Adopted: March 19, 2014
Page 3
WHEREAS, AB1484 specifically authorizes the issuance of refunding bonds
by the Successor Agency to refund the bonds or other indebtedness of the Prior
Agency to provide savings to the Successor Agency, provided that (A) the total
interest cost to maturity on the refunding bonds plus the principal 'amount of the
refunding bonds shall not exceed the total remaining interest cost to maturity on
the bonds to be refunded plus the remaining principal of the bonds to be refunded,
and (B) the principal amount of the refunding bonds shall not exceed the amount
required to defease the refunded bonds, to establish customary debt service
reserves, and to pay related costs of issuance; and
WHEREAS, the Successor Agency desires to issue its La Quinta
Redevelopment Project Areas No. 1 and 2, Tax Allocation Refunding Bonds (Senior
Housing Lien), 2014 Series A (the "Bonds ") pursuant to the Indenture of Trust, by
and between the Successor Agency and U.S. Bank National Association, dated as
of March 1, 2014 (the "Indenture ") for the purpose of refunding the Refunded
Bonds, to fund a debt service reserve account and pay costs of issuance; and
WHEREAS, in order to provide for the authentication and delivery of the
Bonds, to establish and declare the terms and conditions upon which the Bonds are
to be issued and secured and to secure the payment of the principal thereof and
interest and redemption premium (if any) thereon, the Successor Agency will have
duly authorized the execution and delivery of the Indenture; and
WHEREAS, the Successor Agency certifies that all acts and proceedings
required by law necessary to make the Bonds, when executed by the Successor
Agency, and authenticated and delivered by the Trustee, the valid, binding and
legal special obligations of the Successor Agency, and to constitute the Indenture a
valid and binding agreement for the uses and purposes herein set forth in
accordance with its terms, have been done or taken.
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 for the purpose set forth in the recitals hereof
is hereby approved.
Resolution No. OB 2014 -005
Tax Allocation Refunding Bonds
Adopted: March 19, 2014
Page 4
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 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 Bonds, as the case may
be, shall not exceed $75,000,000 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 March 1, 2014, 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.
Resolution No. OB 2014 -005
Tax Allocation Refunding Bonds
Adopted: March 19, 2014
Page 5
PASSED, APPROVED, and ADOPTED at the meeting of the Oversight Board
of the Successor Agency to the La Quinta Redevelopment Agency held this 19th
day of March, 2014, by the following vote:
AYES: Board Members Maysels, McDaniel, Nelson, Osborne, Chair Pena
NOES: None
ABSENT: Board Members Howell, Marshall
ABSTAIN: None
J014 RVNA,`Chairperson
Oversight Board of the Successor Agency
to the La Quinta Redevelopment Agency
ATTEST:
Pam Nieto
Oversight Board Secretary