OB RIVCO Resolution No. 2020-038 - Refunding Bonds City of La Quinta SA1
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COUNTYWIDE OVERSIGHT BOARD
FOR THE COUNTY OF RIVERSIDE
SUCCESSOR AGENCY TO THE
LA QUINTA REDEV AGENCY
RESOLUTION NO. 2020 - 038
RESOLUTION OF THE COUNTYWIDE OVERSIGHT BOARD FOR THE
COUNTY OF RIVERSIDE APPROVING THE ISSUANCE OF
REFUNDING BONDS, THE DEFEASANCE OF CERTAIN
OUTSTANDING BONDS OF SUCCESSOR AGENCY TO THE LA QUINTA
REDEVELOPMENT AGENCY, MAKING CERTAIN
DETERMINATIONS WITH RESPECT TO THE REFUNDING BONDS
AND PROVIDING OTHER MATTERS RELATING THERETO
WHEREAS, the California state legislature enacted Assembly Bill 1x 26, as modified by
Assembly Bill No. 1484, as further modified by Senate Bill No. 107, as such may be further
amended (collectively, the “Dissolution Act”), adding or amending Parts 1.8 and 1.85 to Division
24 of the Health and Safety Code, to dissolve redevelopment agencies formed under the
Community Redevelopment Law of the State of California, constituting Part 1 of Division 24 of
the Health and Safety Code of the State (the “Law”);
WHEREAS, pursuant to Section 34172(a) of the California Health and Safety Code
(unless otherwise noted, all Section references hereinafter being to such Code), the Redevelopment
Agency for the City of La Quinta (the “Prior Agency”) has been dissolved and no longer exists,
and pursuant to Section 34173, effective February 1, 2012, the Successor Agency to the La Quinta
Redevelopment Agency (the “Successor Agency”), a separate legal entity, was formed to and
charged with paying the enforceable obligations, disposing of the properties and other assets, and
unwinding the affairs of the dissolved Former Agency;
WHEREAS, upon dissolution of the Former Agency, all authority, rights, powers, duties
and obligations previously vested with the Former Agency (except for the Former Agency’s
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housing assets and functions) under the Law vested in the Successor Agency;
WHEREAS, Health and Safety Code Section 34179 provides for the appointment of a
countywide oversight board (the “Countywide Oversight Board”) with specific duties to approve
certain Successor Agency actions pursuant to Health and Safety Code section 34180 and to direct
the Successor Agency in certain other actions pursuant to Health and Safety Code section 34181;
WHEREAS, the Countywide Oversight Board is informed that 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, the Countywide Oversight Board is informed that a Redevelopment Plan for
a redevelopment project known and designated as the “La Quinta Redevelopment Project No. Area
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 Countywide Oversight Board is informed that the Successor Agency
previously issued $97,190,000 aggregate principal amount of the Successor Agency to the La
Quinta Redevelopment Agency, La Quinta Redevelopment Project Area Nos. 1 and 2,
Subordinate Tax Allocation Refunding Bonds, 2013 Series A (the “2013 Series A Bonds”); and
WHEREAS, the Countywide Oversight Board is informed that the Successor Agency
previously issued $23,055,000 aggregate principal amount of the Successor Agency to the La
Quinta Redevelopment Agency, La Quinta Redevelopment Project Area Nos. 1 and 2,
Subordinate Tax Allocation Refunding Bonds, 2013 Taxable Series B (the “2013 Series B
Bonds”); and
WHEREAS, the Countywide Oversight Board is informed that the Successor Agency
determined it necessary and proper to issue taxable tax allocation refunding bonds to refund and
defease the 2013 Series A Bonds and the 2013 Series B Bonds (the “Refunded Bonds”); and
WHEREAS, Section 34177.5 authorizes the Successor Agency to issue refunding bonds
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pursuant to Article 11 (commencing with Section 53580) of Chapter 3 of Part 1 of Division 2 of
Title 5 of the Government Code (the “Refunding Law”) for the purpose of achieving debt service
savings within the parameters set forth in Section 34177.5(a)(1) (the “Savings Parameters”);
WHEREAS, to determine compliance with the Savings Parameters for purposes of the
issuance by the Successor Agency, the Successor Agency has caused its underwriter, Hilltop
Securities Inc. (the “Underwriter”), to prepare an analysis of the potential savings that will accrue
to the Successor Agency and to applicable taxing entities as a result of the use of the proceeds to
refund and defease the Refunded Bonds (the “Debt Service Savings Analysis”);
WHEREAS, pursuant to Resolution No. 2020-001, adopted on October 6, 2020 (the
“Successor Agency Resolution”), the Successor Agency approved the issuance of the Successor
Agency to the La Quinta Redevelopment Agency, La Quinta Redevelopment Project Area No. 1
and 2, Subordinate Tax Allocation Refunding Bonds, 2021 Taxable Series A (the “Refunding
Bonds”) authorized the execution and delivery of the Third Supplemental Indenture of Trust, by
and between the Successor Agency and U.S. Bank National Association, as trustee, providing for
the issuance of the Refunding Bonds (the “Third Supplemental Indenture”);
WHEREAS, in the Successor Agency Resolution, the Successor Agency has determined
to sell the Refunding Bonds to Hilltop Securities Inc. (the “Original Purchaser”) pursuant to the
terms of a Bond Purchase Agreement to be entered into by and among the Successor Agency, the
Authority and the Original Purchaser;
WHEREAS, following approval by the Oversight Board of the issuance of the Refunding
Bonds by the Successor Agency and upon submission of the Oversight Board’s resolution
providing such approvals to the California Department of Finance the Successor Agency will, with
the assistance of their Disclosure Counsel, the Municipal Advisor and the Underwriter, cause to
be prepared a form of Official Statement for the Refunding Bonds and containing material
information relating to the Successor Agency, and the Refunding Bonds, the preliminary form of
which will be submitted to the Successor Agency for approval for distribution by the Original
Purchaser to persons and institutions interested in purchasing the Refunding Bonds;
WHEREAS, the accompanying staff report, attached hereto and incorporated herein by
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this reference, provides supporting information upon which the actions set forth in this Resolution
are based;
WHEREAS, the Countywide Oversight Board has completed its review of the defeasance
and refunding proceedings and the Debt Service Savings Analysis and wishes at this time to give
its approval to the foregoing; and
WHEREAS, Pursuant to the California Environmental Quality Act (CEQA), based upon
a review of the evidence and information presented on the matter as it relates to the refunding of
the Refunded Bonds, the Countywide Oversight Board has determined that such approval is
exempt from the California Environmental Quality Act (CEQA) Section 15061(b)(3) as it can be
seen with certainty that there is no possibility that this proposal will have a significant impact on
the environment.
NOW, THEREFORE, BE IT RESOLVED, FOUND, DETERMINED AND
ORDERED by the Countywide Oversight Board, in regular meeting assembled on November 5,
2020, in Riverside, California, as follows:
Section 1. Recitals. The Recitals set forth above are true and correct and are
incorporated into this Resolution by this reference.
Section 2. Determination of Savings. The Countywide Oversight Board has
determined that there are significant potential savings available to the Successor Agency and to
applicable taxing entities in compliance with the Savings Parameters by the issuance by the
Successor Agency of the Refunding Bonds to refund and defease the Refunded Bonds, all as
evidenced by the Debt Service Savings Analysis on file with the Secretary of the Oversight Board,
which Debt Service Savings Analysis is hereby approved.
Section 3. Approval of Issuance of the Bonds. As authorized by Section 34177.5(f)
and Section 34180, the Countywide Oversight Board hereby directs and approves the issuance by
the Successor Agency of the following:
(a) the Refunding Bonds pursuant to Section 34177.5(a)(1) and under other applicable
provisions of the Law and the Refunding Law and as provided in the Successor Agency
Resolution and the Third Supplemental Indenture in the aggregate principal amount of not to
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exceed $100,000,000, on a taxable basis for federal tax purposes, provided that the principal and
interest payable with respect to the Refunding Bonds complies in all respects with the
requirements of the Savings Parameters with respect thereto, as shall be certified to by the
Municipal Advisor upon delivery of the Refunding Bonds or any part thereof.
Section 4. Sale and Delivery of Refunding Bonds in Whole or in Part. The Oversight
Board hereby approves the sale and delivery of the Refunding Bonds in whole, provided that there
is compliance with the Savings Parameters. However, if such Savings Parameters cannot be met
with respect to the whole of the Refunding Bonds, or for any other reason the Refunding Bonds
cannot be issued in whole, then the Oversight Board approves the sale and delivery of the
Refunding Bonds from time to time in part. In the event the Refunding Bonds are initially sold in
part, the Successor Agency is hereby authorized to sell and deliver additional parts of the
Refunding Bonds without the prior approval of the Countywide Oversight Board provided that in
each such instance the Refunding Bonds so sold and delivered in part are in compliance with the
Savings Parameters.
Section 5. Determinations by the Oversight Board. As requested by the Successor
Agency, the Oversight Board makes the following determinations upon which the Successor
Agency shall rely in undertaking the refunding proceedings and the issuance of the Refunding
Bonds:
(a) The Successor Agency is authorized, as provided in Section 34177.5(f), to recover
its costs related to the issuance of each of the Refunding Bonds from the proceeds of the
Refunding Bonds, including the costs to accomplish the defeasance of the Refunded Bonds and
the cost of reimbursing its administrative staff for time spent with respect to the authorization,
issuance, sale and delivery of such Refunding Bonds;
(b) The Successor Agency shall be entitled to receive its full Administrative Cost
Allowance under Section 34181(a)(3) without any deductions with respect to continuing costs
related to each of the Refunding Bonds, such as trustee’s fees, auditing and fiscal consultant fees
and continuing disclosure and rating agency costs (collectively, “Continuing Costs of Issuance”),
and such Continuing Costs of Issuance shall be payable from property tax revenues pursuant to
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Section 34183. In addition and as provided by Section 34177.5(f), if the Successor Agency is
unable to complete the issuance of any of the Refunding Bonds, or defeasance of the Refunded
Bonds, in each case for any reason, the Successor Agency shall, nevertheless, be entitled to
recover its costs incurred with respect to the refunding and defeasance proceedings with respect to
the Refunding Bonds, and the 2013 Bonds from such property tax revenues pursuant to
Section 34183 without reduction in its Administrative Cost Allowance.
Section 6. Effective Date. Pursuant to Health and Safety Code Section 34177(f) and
Section 34179(h), this Resolution shall be effective five (5) business days after proper notification
hereof is given to the California Department of Finance unless the California Department of
Finance requests a review of the actions taken in this Resolution, in which case this Resolution
will be effective upon approval by the California Department of Finance.
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PASSED, APPROVED, AND ADOPTED by the Oversight Board for the County of
Riverside on November 5, 2020.
I hereby certify the forgoing to be a true copy of a resolution passed and adopted by the
Countywide Oversight Board for the County of Riverside at a regular meeting thereof held on
November 5, 2020, by the following vote:
AYES: 6 BOARD MEMBERS: Phil Williams, Kathleen Kelly, Tina Daigneault,
Aaron Brown, Niamh Ortega, Tami Scott
NOES: BOARD MEMBERS:
ABSTAIN: BOARD MEMBERS:
ABSENT: 1 BOARD MEMBERS: Chuck Washington
Phil Williams, Chairperson Countywide Oversight Board
ATTEST:
Kimberly Rector, Clerk Countywide Oversight Board
APPROVED AS TO FORM: Rafael Yaquian, Legal Counsel Countywide Oversight Board
Attachments incorporated by reference: A. Successor Agency Resolution No. 2020-001 B._Debt Service Savings Analysis C. Indentures D. Bond Purchase Contracts____
Resolution No. 2020-038 - Refunding Bonds
City of La Quinta SA_
Final Audit Report 2020-11-05
Created:2020-11-05
By:Rafael Yaquian (ryaquian@goldfarblipman.com)
Status:Signed
Transaction ID:CBJCHBCAABAAgVJd5nXEyeQtNNjGkO79t28uIi_7PhG7
"Resolution No. 2020-038 - Refunding Bonds City of La Quinta S
A_" History
Document created by Rafael Yaquian (ryaquian@goldfarblipman.com)
2020-11-05 - 5:59:51 PM GMT- IP address: 52.24.211.40
Document emailed to Phil Williams (phil@philthebroker.com) for signature
2020-11-05 - 6:00:19 PM GMT
Email viewed by Phil Williams (phil@philthebroker.com)
2020-11-05 - 8:54:00 PM GMT- IP address: 47.180.21.132
Document e-signed by Phil Williams (phil@philthebroker.com)
Signature Date: 2020-11-05 - 8:54:18 PM GMT - Time Source: server- IP address: 47.180.21.132
Document emailed to Kimberly Rector (krector@rivco.org) for signature
2020-11-05 - 8:54:20 PM GMT
Email viewed by Kimberly Rector (krector@rivco.org)
2020-11-05 - 9:26:23 PM GMT- IP address: 158.61.6.88
Document e-signed by Kimberly Rector (krector@rivco.org)
Signature Date: 2020-11-05 - 9:27:12 PM GMT - Time Source: server- IP address: 158.61.6.88
Agreement completed.
2020-11-05 - 9:27:12 PM GMT