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Home My WebLink AboutRes 2021-021 1 1 RESOLUTION NO. 2021-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPROVING AND AUTHORIZING A DEPOSIT AND REIMBURSEMENT AGREEMENT AND APPROVING AND AFFIRMING THE ENGAGEMENT OF CERTAIN FINANCING PROFESSIONALS IN CONNECTION WITH THE FORMATION OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) AND THE PROPOSED ISSUANCE OF SPECIAL TAX BONDS TO REFUND CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) SPECIAL TAX BONDS, SERIES 2006A RECITALS: WHEREAS, pursuant to Section 53312.7 of the Mello -Roos Community Facilities Act of 1982 (California Government Code Section 53311 et seq.), as amended (the "Act"), the City Council (the "City Council") of the City of Palm Desert (the "City") on October 13, 2005, by Resolution No. 05-86, adopted the City's Goals and Policies for Community Facilities Districts (the "CFD Policy"); and WHEREAS, pursuant to the Act, the City Council previously conducted proceedings in 2005 and 2006 to establish the City of Palm Desert Community Facilities District No. 2005-1 (University Park) ("CFD 2005-1") and to authorize the levy of special taxes by CFD 2005-1 and the issuance of special tax bonds by CFD 2005-1 to finance certain public improvements and development fees used for public improvements, which proceedings included an election held on January 12, 2006, pursuant to which the qualified electors within CFD 2005-1 unanimously approved the levy of such special taxes and issuance of such special tax bonds by CFD 2005-1; and WHEREAS, the City Council of the City, pursuant to Resolution No. 06-33 adopted on March 23, 2006, approved the issuance by CFD 2005-1 of its Special Tax Bonds, Series 2006A (the "Prior CFD 2005-1 Bonds"), and on May 9, 2006, CFD 2005-1 issued the Prior CFD 2005-1 Bonds in the original aggregate principal amount of $50,000,000, of which $26,250,000 in aggregate principal amount presently remains outstanding; and WHEREAS, the boundaries of CFD 2005-1 are depicted on the boundary map for CFD 2005-1 recorded in Book 64 of the County of Riverside Maps of Assessment and Community Facilities Districts, at page 78, in the County Recorder's Office as Instrument No. 2005-0904136, on November 1, 2005, which map is hereby incorporated by reference; and WHEREAS, University Park Investor, LLC (the "Developer"), in connection with its proposed development of certain real property, comprised of parcels located within the City known as Assessor's Parcel Numbers 694-190-010, 694-190-053, 694- 190-055, 694-190-037, 694-190-070, 694-190-072, 694-190-079, 694-190-031, 694-200- P6401-1052\2486250v2.doc -1- RWG DRAFT 12/30/20 RESOLUTION NO. 2021-02 013, and 694-200-014 (the "Project"), has requested the City to form a community facilities district pursuant to the Act, to be designated "City of Palm Desert Community Facilities District No. 2021-1 (University Park)" ("CFD 2021-1"); and WHEREAS, the Developer intends to submit to the City an application or petition (the "Petition") requesting that the City consider the formation of CFD 2021-1, the levy of special taxes by CFD 2021-1, and the issuance of bonds in one or more series by CFD 2021-1 (collectively, the "CFD 2021-1 Bonds") under the Act in order to finance or refinance, as applicable, certain public improvements and development fees used for public improvements; and WHEREAS, the Project is located within CFD 2005-1 and comprises approximately 174 acres of the approximately 260 total acres of land within CFD 2005-1; and WHEREAS, in 2019, the Developer requested the City to refund the remaining outstanding Prior CFD 2005-1 Bonds for debt service savings, which was refunding process was subsequently postponed at the Developer's request; and WHEREAS, on September 10, 2020, at the Developer's request, the City Council authorized the City Manager and the Director of Finance to reinstate a team of financing professionals for the refunding of the Prior CFD 2005-1 Bonds for debt service savings, which financing plan was proposed by the Developer to include the formation of CFD 2021-1 encompassing the Project to facilitate the issuance of future new money bonds for facilities required for the Project without affecting the special taxes for the other properties within CFD 2005-1; and WHEREAS, to refund the outstanding Prior CFD 2005-1 Bonds for debt service savings, the benefits of which will accrue to the property owners within CFD 2005- 1 through reduced special taxes, the Developer and the City desire to implement a coordinated plan of refunding consisting of the issuance of an initial series of CFD 2021- 1 Bonds (the "Initial CFD 2021-1 Bonds") and the concurrent issuance by CFD 2005-1 of its Special Tax Refunding Bonds, Series 2021 (the "CFD 2005-1 Series 2021 Bonds"); and WHEREAS, the CFD Policy requires the Developer to advance and deposit funds with the City to compensate the City for its non -contingent costs incurred in connection with the Developer's proposed financing plan, including the Petition, the formation of CFD 2021-1, and the issuance of CFD 2021-1 Bonds and the CFD 2005-1 Series 2021 Bonds; and WHEREAS, pursuant to Section 53314.9 of the Act and the CFD Policy, the City and the Developer desire to enter into a Deposit and Reimbursement Agreement (the "Deposit Agreement") in order to provide for the advance of funds by the Developer to cover the City's costs incurred in connection with the Petition, the formation of the CFD 2021-1, and the issuance of CFD 2021-1 Bonds and the CFD 2005-1 Series 2021 Bonds, and to provide for the repayment to the Developer of such funds advanced, without -2- P6401-1052\2486250v2.doc RESOLUTION NO. 2021-02 1 1 1 interest, from the proceeds of the CFD 2021-1 Bonds or the CFD 2005-1 Series 2021 Bonds, as applicable, or if and to the extent that such costs are paid directly from the proceeds of the CFD 2021-1 Bonds or the CFD 2005-1 Series 2021 Bonds, as applicable, for the return to the Developer of any unexpended or uncommitted portion of such funds advanced; and WHEREAS, the form of the proposed Deposit Agreement is on file with the City Clerk of the City (the "City Clerk"); and WHEREAS, to facilitate the formation of CFD 2021-1 and the preliminary work required for the issuance of the Initial CFD 2021-1 Bonds and the CFD 2005-1 Series 2021 Bonds, the City Council desires to approve and affirm the appointment and employment of a team of financing professionals; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Deposit Agreement. The Deposit Agreement, proposed to be entered into by and between the City and the Developer, in the form presented at this meeting and on file with the City Clerk, is hereby approved. Each of the Mayor, the Mayor Pro Tem (in the Mayor's absence), the City Manager, the Assistant City Manager (in the City Manager's absence), and any deputy of such officers (each, an "Authorized Officer"), acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Deposit Agreement in substantially said form, with such additions or changes as the Authorized Officer executing the same may approve in consultation with the City Attorney and Bond Counsel (such approval to be conclusively evidenced by such Authorized Officer's execution and delivery thereof). Section 3. Appointment of Financing Team. The appointments of Del Rio Advisors, LLC, as municipal advisor; Richards, Watson & Gershon, A Professional Corporation, as bond counsel; Best Best & Krieger LLP, as disclosure counsel; Willdan Financial Services, as Special Tax Consultant; Capital Realty Analysts, as appraiser; Empire Economics, Inc., as Absorption Consultant; and Piper Sandler & Co, Inc., as underwriter, in connection with proposed formation of CFD 2021-1 and the proposed issuance of the Initial CFD 2021-1 Bonds and the CFD 2005-1 Series 2021 Bonds are hereby approved and affirmed. Section 4. Other Acts. The Authorized Officers, the Director of Finance, and the other officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to effectuate the purposes of this Resolution and the Deposit Agreement, and any such actions previously taken by such officers are hereby ratified and confirmed. P6401-105212486250v2. doc RESOLUTION NO. 2021-02 Section 5. Effective Date. This Resolution shall take effect immediately upon adoption. PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, on this 14th day of January, 2021, by the following vote, to wit: AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: / GR CE L. ROCHA, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA bwr �4 KATHLEE ELLY,11IAY1 -4- P64OI-I052\2486250v2.doe