CC Resolution 2014-010RESOLUTION NO. 2014 - 010
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LA QUINTA, CALIFORNIA, AUTHORIZING THE
ISSUANCE AND SALE OF TAX ALLOCATION
REFUNDING BONDS, 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
Taxable Tax Allocation Bonds, Series 2011 (the "2011 Project Area No. 2 Taxable
Bonds "); and
Resolution No. 2014 -010
Tax Allocation Refunding Bonds
Adopted: March 18, 2014
Page 2
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
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
Resolution No. 2014 -010
Tax Allocation Refunding Bonds
Adopted: March 18, 2014
Page 3
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 No. 1 and La Quinta Redevelopment Project Area 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 City Council of the City of La Quinta wishes at this time to
approve all matters relating to the issuance and sale of the Bonds;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of La
Quinta, California, as follows:
SECTION 1. The issuance of the Series A Bonds in the aggregate principal amount
of approximately 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 2. The Mayor, Mayor Pro Tern and the City Manager, and any other
proper officer of the City, acting singly, be and each of them hereby is authorized
Resolution No. 2014 -010
Tax Allocation Refunding Bonds
Adopted: March 18, 2014
Page 4
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 and things necessary
or proper for carrying out the transactions contemplated by the Indenture, the Bond
Purchase Contract, the Official Statement, the Continuing Disclosure Agreement,
the Escrow Agreement, this Resolution and any such agreements.
SECTION 3. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
City Council held on this 18th day of March, 2014, by the following vote:
AYES: Council Members Evans, Franklin, Henderson, Osborne, Mayor Adolph
NOES: None
ABSENT: None
ABSTAIN: None
DON AIJOLPH, yor
City of La Quinta, California
ATTEST:
SUSAN MAYSELS, City Clirk
City'of La Quinta, California
(CITY SEAL) '
- '`A00Dn %1Cn.A6 Tn COLDM.
M KA H[ RIN JENSON, ' y Attorney
City of La Quinta, Californi