FA Resolution 2016-002RESOLUTION NO. FA 2016 — 002
A RESOLUTION OF THE LA QUINTA FINANCING
AUTHORITY AUTHORIZING THE EXECUTION OF THE
ESCROW AGREEMENT
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 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, Assembly Bill AB XI 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, AB 1484 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 principal amount of the refunding bonds shall
Resolution No. FA 2016-002
Escrow Agreement
Adopted: July 5, 2016
Page 2 of 3
not exceed the total remaining interest cost to maturity on the bonds to the 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 deems it necessary and proper to issue
taxable tax allocation refunding bonds to refund and defease the Refunded Bonds.
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, as part of the issuance of the bonds and the refunding of the 2011
Taxable Housing Bonds, there has been prepared an Escrow Agreement to which the
Authority is a party; and
WHEREAS, the Board of Directors of the La Quints Financing Authority wishes
at this time to approve certain matters relating to the refunding of the Loan
Obligations;
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Financing Authority to
adopt, as follows:
SECTION 1. The Chairperson, Vice -Chairperson and Executive Director, and any
other proper officer of the Authority, acting singly, be and each of them hereby is
authorized and directed to execute and deliver any and all necessary documents and
instruments, relating to the refunding of a portion of the 2011 Taxable Housing Bonds,
including, without limitation any necessary Escrow Agreement, the form of which
Escrow Agreement, by and among the Successor Agency, the Authority and U.S. Bank
National Association, has been submitted at this meeting and made a part hereof as
though set forth in full herein; and
SECTION 2. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta
Financing Authority held on this 5th day of July, 2016, by the following vote:
Resolution No. FA 2016-002
Escrow Agreement
Adopted: July 5, 2016
Page 3 of 3
AYES: Authority Members Franklin, Osborne, Pena, Radi Chairperson Evans
NOES: None
ABSENT: None
ABSTAIN: None
LINDA EVANS, Chairperson
La Quinta Financing Authority
ATTEST:
SUSAN MAYSELS, Secretary
La. Quintafinancing Authority
(Authiirity Seal)-
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APPROVED AS TO FORM:
WILLIAM IHRKE, Authority Counsel
La Quinta Financing Authority