CC Resolution 2016-029RESOLUTION NO. 2016 - 029
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LA
QUINTA, CALIFORNIA, AUTHORIZING THE ISSUANCE AND
SALE OF SUBORDINATE 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 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
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
Resolution No. 2016-029
Issuance And Sate Of Subordinate Tax Allocation Refunding Bonds
Adopted: July 5, 2016
Page 2 of 4
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 of 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 2011
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
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
Resolution No. 2016-029
Issuance And Sale Of Subordinate Tax Allocation Refunding Bonds
Adopted: July 5, 2016
Page3of4
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(0 of the Law; and
WHEREAS, the Successor Agency hereby 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 as follows:
SECTION 1. The issuance of the Bonds in the aggregate principal amount of not to
exceed Thirty -Nine million dollars ($39,000,000) on the terms and conditions set forth
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 applicable 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 Tem and the City Manager, and any other proper
officer of the City, 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 each series thereof, and to do and cause to be done any and all acts
and things necessary or proper for carrying out the transactionsEcontemplated by the
Indenture, the First Supplemental Indenture, the Second Supplemental Indenture, the
Bond Purchase Contract, the Official Statement, the Continuing Disclosure Agreement,
the Escrow Agreement, this Resolution and any such agreements, all as defined in
Resolution No. SA 2016-003.
SECTION 3. This Resolution shall take effect immediately upon its adoption.
Resolution No. 2016-029
Issuance And Sale Of Subordinate Tax Allocation Refunding Bonds
Adopted: July 5, 2016
Page 4 of 4
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta City
Council held on this 5TH day of July 2016, by the following vote:
AYES: Council Members Franklin, Osborne, Pena, Radi, Mayor Evans
NOES: None
ABSENT: None
ABSTAIN: None
LINDA EVANS, Mayor
City of La Quinta, California
ATTEST:
SUSAN MAYSELS, City C rk
City of La Quinta, California
(CITY SEAL)
APPROVED AS TO FORM:
WILLIAM IHRKE, City Attorney
City of La Quinta, California