OBRES 2016-005RESOLUTION NO. OB 2016 - 005
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 $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 Indenture, dated as of March 1, 2011
(the "2011 Loan Obligation"); and
Resolution No. OB 2016-005
Tax Allocation Refunding Bonds
Adopted: July 6, 2016
Page 2 of 5
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 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 to the La Quinta Redevelopment Agency (the
"Successor Agency") has determined that it is cost effective and efficient to refund
and defease, in their entirety, the 2011 Project Area No. 2 Taxable Bonds and the Loan
Obligation, (collectively, the "Refunded Bonds") on a subordinate basis to the
$65,600,000 Successor Agency to the La Quinta Redevelopment Agency, La Quinta
Redevelopment Project Areas No. 1 and 2, Tax Allocation Refunding Bonds, 2014
Series A (the "2014 Bonds or the "Senior Bonds") and on a parity basis with the
$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 the $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 Series B Bonds") (collectively, the "2013 Series A Bonds and the 2013 Series
B Bonds, the "2013 Bonds" or the "Parity Bonds"); and
WHEREAS, the Successor Agency deems it necessary and proper to issue
taxable tax allocation refunding bonds to refund and defease the Refunded 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
principal amount of not to exceed Thirty -Nine million dollars ($39,000,000) (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
Resolution No. OB 2016-005
Tax Allocation Refunding Bonds
Adopted: July 6, 2016
Page 3 of 5
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 wishes to approve
the issuance of the Bonds and authorize the execution and delivery of the Second
Supplemental Indenture of Trust; and
WHEREAS, pursuant to Section 34179 of the Law, an oversight board (the
"Oversight Board") has been established for the Successor Agency and the Successor
Agency has requested that the Oversight Board approve the issuance of the Bonds by
the Successor Agency, as authorized by Section 34177.5(f) of the Law; and
WHEREAS, the Successor Agency has certified 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 Successor Agency has approved all matters relating to the
.issuance and sale of the b.onds; 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 of the Bonds not to exceed
aggregate principal amount of $39,000,000 (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.
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 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
Resolution No. OB 2016-005
Tax Allocation Refunding Bonds
Adopted: July 6, 2016
Page 4 of 5
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 the maximum amounts set forth in Section 2 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, as amended and
supplemented, 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 to the
Successor Agency to the La Quinta Redevelopment Agency held this 6th of July 2016, by
the following vote:
AYES: Board Members Henderson, Marshal, Maysels, Nelson, Chair Osborne
NOES None
ABSENT: Board Members Howell and Novak
ABSTAIN: None
f(SBORNE, C airperson
versight Board of the Successor Agency to the
La Quinta Redevelopment Agency
Resolution No. OB 2016-005
Tax Allocation Refunding Bonds
Adopted: July 6, 2016
Page 5 of 5
ATTEST:
Pam Nieto
Oversight Board Secretary