SA Resolution 2014-004RESOLUTION NO. SA 2014 - 004
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY AUTHORIZING THE
ISSUANCE AND SALE OF TAX ALLOCATION
REFUNDING BONDS, APPROVING THE FORM OF AN
INDENTURE OF TRUST, OFFICIAL STATEMENT, BOND
PURCHASE CONTRACT, CONTINUING DISCLOSURE
AGREEMENT, FORM OF ESCROW AGREEMENT, AND
RELATED DOCUMENTS 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
Resolution No. SA 2014 -004
Tax Allocation Refunding Bonds
Adopted: March 18, 2014
Page 2
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, 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 (collectively, 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 Authority, 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. SA 2014 -004
Tax Allocation Refunding Bonds
Adopted: March 18, 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 No. 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 Board of Directors of the Successor Agency to the La Quinta
Redevelopment Agency wishes at this time to approve all matters relating to the
issuance and sale of the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the La
Quinta Redevelopment Agency, as follows:
SECTION 1. The Indenture of Trust, by and between the Successor Agency and
U.S. Bank National Association, dated as of March 1, 2014, in substantially the
form submitted at this meeting and made a part hereof as though set forth in full
herein (the "Indenture "), is hereby approved. The Chair and the Secretary of the
Resolution No. SA 2014 -004
Tax Allocation Refunding Bonds
Adopted: March 18, 2014
Page 4
Successor Agency are hereby authorized and directed to execute and deliver the
Indenture in the form presented at this meeting with such changes insertions and
omissions as may be requested by Bond Counsel and approved by the Chair, said
execution being conclusive evidence of such approval.
SECTION 2. Subject to the provisions of the Indenture referred to in Section 1
hereof, the issuance of the Bonds in the approximate aggregate principal amount of
one seventy two million three hundred seventy five thousand dollars
($72,375,000) on the terms and conditions set forth in, and subject to the
limitations specified in, the Indenture, is hereby authorized and approved. The
Bonds will be dated, will bear interest at the rates, will mature on the dates, will be
issued in the form, will be subject to redemption, and will be as otherwise provided
in the Indenture, as the same will be completed as provided in this Resolution. The
proceeds of the sale of the Bonds shall be applied as provided in the Indenture.
SECTION 3. The Bond Purchase Contract (the 'Bond Purchase Contract ") between
the Successor Agency and Southwest Securities, Inc. (the "Underwriter "), in
substantially the form submitted at this meeting and made a part hereof as though
set forth in full herein, is hereby approved. The Executive Director of the
Successor Agency is hereby authorized and directed to execute the Bond Purchase
Contract in the form presented at this meeting with such changes, insertions and
omissions as may be approved by the Executive Director, said execution being
conclusive evidence of such approval; provided, however, that the Bond Purchase
Contract shall be signed only if the terms of the agreement are such that (i) the
existing indebtedness is not accelerated, except to the extent necessary to achieve
substantially level debt service, (ii) the principal amount of the Bonds will not
exceed the amount required to finance the refunding of the Refunded Bonds and
including establishing a customary debt service reserve fund and paying related
costs of issuance, (iii) the Underwriter's Discount not including original issue
discount, shall not exceed 0.600 percent (0.600 %) of the par value of the Bonds;
and (iv) the net present value savings amount generated from the issuance of the
Bonds, expressed as a percentage of the aggregate principal amount of the
Refunded Bonds, will be at least 3.00 %.
SECTION 4. The Preliminary Official Statement relating to the Bonds (the
"Preliminary Official Statement "), in the form presented and on file with the
Secretary, is hereby approved. The Executive Director is hereby authorized and
directed, for and in the name and on behalf of the Successor Agency, to cause the
Preliminary Official Statement in substantially said form, with such additions or
changes therein as the Executive Director may approve, to be deemed final for the
purposes of Rule 15c2 -12 of the Securities and Exchange Act of 1934 ( "Rule
15c2 -12 "). The Underwriter is hereby authorized to distribute the Preliminary
Resolution No. SA 2014 -004
Tax Allocation Refunding Bonds
Adopted: March 18, 2014
Page 5
Official Statement to prospective purchasers of the Bonds in substantially the form
hereby approved, together with such additions thereto and changes therein as are
determined necessary by the Executive Director to make the Preliminary Official
Statement final as of its date for purposes of Rule 15c2 -12, including, but not
limited to, such additions and changes as are necessary to make all information set
forth therein accurate and not misleading.
SECTION 5. The preparation and delivery of an Official Statement, and its use by
the Successor Agency and the Underwriter, in connection with the offering and
sale of the Bonds, is hereby authorized and approved. The Official Statement shall
be in substantially the form of the Preliminary Official Statement with such
changes, insertions and omissions as may be requested by Bond Counsel or the
Underwriter and approved by the Chair of the Successor Agency, such approval to
be conclusively evidenced by the execution and delivery thereof. The Executive
Director is hereby authorized and directed to execute the final Official Statement
and any amendment or supplement thereto, in the name of and on behalf of the
Successor Agency, and thereupon to cause the final Official Statement and any
such amendment or supplement to be delivered to the Underwriter.
SECTION 6. The form of the Continuing Disclosure Agreement in substantially the
form submitted at this meeting and made a part hereof as though set forth in full
herein, is hereby approved. The Executive Director of the Successor Agency is
hereby authorized and directed to execute and deliver the Continuing Disclosure
Agreement(s) in the form presented at this meeting with such changes insertions
and omissions as may be requested by Bond Counsel and approved by the Chair,
said execution being conclusive evidence of such approval.
SECTION 7. The form of the Escrow Agreement, by and among the Successor
Agency, the Authority and U.S. Bank National Association, dated as of March 1,
2014, in substantially the form submitted at this meeting and made a part hereof
as though set forth in full herein, is hereby approved. The Executive Director and
the Secretary of the Successor Agency are hereby authorized and directed to
execute and deliver the Escrow Agreement relating to the Refunded Bonds in the
general form presented at this meeting with such changes insertions and omissions
as may be requested by Bond Counsel and approved by the Executive Director, said
execution being conclusive evidence of such approval.
SECTION 8. The Chair of the Successor Agency, the Executive Director of the
Successor Agency, the Secretary of the Successor Agency, and any other proper
officer of the Successor Agency, acting singly, be and each of them hereby is
authorized and directed to execute and deliver any and all documents and
instruments, relating to the Bonds and to do and cause to be done any and all acts
Resolution No. SA 2014 -004
Tax Allocation Refunding Bonds
Adopted: March 18, 2014
Page 6
and things necessary or proper for carrying out the transactions contemplated by
the Indenture, the Bond Purchase Contract, the Preliminary Official Statement, the
Continuing Disclosure Agreement, the Escrow Agreement, this Resolution and any
such agreements.
SECTION 9. U.S. Bank National Association is hereby appointed as Trustee and
Escrow Bank, Rutan & Tucker, LLP is hereby appointed as Bond Counsel, Stradling
Yocca Carlson & Rauth, a Professional Corporation is hereby appointed as
Disclosure Counsel. Harrell & Company Advisors is hereby appointed as Financial
Advisor and the Executive Director of the Successor Agency is authorized. to
execute contracts for any or all such services pursuant to proposals on file with the
Executive Director, and Willdan Financial Services is hereby appointed as
Dissemination Agent and the Executive Director of the Successor Agency is
authorized to execute contracts for any or all such services pursuant to proposals
on file with the Executive Director.
SECTION 10. The Successor Agency is hereby authorized to recover its costs of
issuance with respect to the Bonds, including staff time and costs.
SECTION 11. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, and ADOPTED at a regular meeting of the Successor
Agency to the La Quinta Redevelopment Agency held on this 18th day of March,
2014, by the following vote:
AYES: Agency Members Evans, Franklin, Henderson, Osborne, Chair Adolph
NOES: None
ABSENT: None
ABSTAIN: None 1 '4
1 Nw
DON ADOLPH, Ch6lperson
City of La Quinta Acting as Successor
Agency to the La Quinta Redevelopment
Agency
Resolution No. SA 2014 -004
Tax Allocation Refunding Bonds
Adopted: March 18, 2014
Page 7
ATTEST:
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SUSAN MAYSELS, SecVetary
City of La Quinta Acting as Successor Agency
To the La Quinta Redevelopment Agency
(CITY SEAL)
APPRCWED AS 40
NJ K4TH "RINE"JENSGN Suc ssor Agency Counsel
City of La Quinta Acting as Successor Agency
To the La Quinta Redevelopment Agency