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HomeMy WebLinkAboutRes 2021-201 1 1 RESOLUTION NO. 2021-20 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 EMPLOYMENT OF CERTAIN FINANCING PROFESSIONALS IN CONNECTION WITH A TENDER BONDS ALTERNATIVE IN CONNECTION WITH THE REFUNDING PROGRAM FOR OUTSTANDING SPECIAL TAX BONDS, SERIES 2006A, OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) 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, on September 10, 2020, the City Council of the City authorized the reinstatement of the City's financing team, consisting of certain financing professionals, for the purpose of refunding the Prior CFD 2005-1 Bonds for cost savings (the "Refunding Program"), and the benefits of the Refunding Program will benefit the property owners within CFD 2005-1; and -1- W.\Staff Reports - Shared 21Staff Reports 05-13-202114 -City Clerk - 05-13-2021123 Resolutions Lennar Deposit and Tender Component102 Resolution Approving Lennar Deposit Agreement (Palm Desert CFD 2005-1 Urnv Park) 5 13.21 DOCX RESOLUTION NO. 2021-20 WHEREAS, as part of the Refunding Program and at the request of University Park Investor, LLC ("UPI") in connection with its proposed development of certain real property located within CFD 2005-1 and following a deposit of monies made by UPI pursuant to the CFD Policy to cover and reimburse the City for its costs in connection with UPI's request, the City Council has commenced proceedings, including the adoption of resolutions in March 2021 and April 2021, to form "City of Palm Desert Community Facilities District No. 2021-1 (University Park)" ("CFD 2021-1"), authorize the levy of special taxes therein, and authorize the issuance of special tax bonds by CFD 2021-1 to pay and defease a portion of Prior CFD 2005-1 bonds allocable to the UPI Property and finance additional public facilities required for the development of the UPI Property without affecting the special taxes for the other properties within CFD 2005-1; and WHEREAS, due to the Great Recession relating to real estate mortgage crisis beginning in 2007-08 and the recent severe recession relating to the global COVID- 19 pandemic, the property within CFD 2005-1 has been slow to develop following formation of CFD 2005-1, with significantly more property currently remaining undeveloped in CFD 2005-1 than having completed development; and WHEREAS, Lennar Homes of California, Inc. (the "Developer") is the developer of approximately 21.36 acres known as Assessor's Parcel Number 694-190- 046 (the "Project") of the approximately 260 total acres of land located within the City and CFD 2005-1; and WHEREAS, in connection with the Developer's proposed development of the Project and the Refunding Program, the Developer has requested the City to include in the Refunding Program a tender bonds alternative (the "Tender Bonds Alternative"), pursuant to the authority conferred by California Government Code Section 53344.1 and Resolution No. 05-87, adopted by the City Council on October 13, 2005 in connection with the formation proceedings for CFD 2005-1, to allow the purchase and tender of certain refunding bonds by owners of undeveloped property within the District to the District Treasurer in full payment of the CFD 2005-1 special taxes secured by such property, on such terms and conditions as the City may establish; and WHEREAS, the Tender Bonds Alternative will allow owners of parcels currently classified as "Undeveloped Property" under the rate and method of apportionment of special taxes for CFD 2005-1 (the "Rate and Method") to, in connection with the refunding of the Prior CFD 2005-1 Bonds and at the option of such property owners, extinguish the CFD 2005-1 special tax lien on their parcels in exchange for an amount paid to the District equal to their respective shares of the portion of Prior CFD 2005-1 Bonds allocable to their properties, which may be beneficial to development plans for Undeveloped Property which otherwise is precluded from prepaying special taxes under the Rate and Method; and WHEREAS, owners of parcels currently classified as "Developed Property" under the Rate and Method are permitted to prepay their CFD 2005-1 special tax obligation at any time and will benefit from the Refunding Program, regardless of inclusion -2- W 1Staff Reports - Shared 21Staff Reports 05-13-202114 -City Clerk - 05-13-2021123 Resolutions Lennar Deposit and Tender Component102 Resolution Approving Lennar Deposit Agreement (Palm Desert CFD 2005-1 Univ Park) 5.13.21.DOCX RESOLUTION NO. 2021-20 1 of the Tender Bonds Alternative on the terms and conditions proposed to be established by the City in consultation with the City's special tax administrator, Willdan Financial Services; 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 Tender Bonds Alternative; 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 for the City to pay or reimburse the City's costs incurred in connection with the establishment and implementation of the Tender Bonds Alternative as part of the Refunding Program, and to provide for the return of any unexpended or uncommitted portion of such funds advanced to the Developer; 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 establishment and implementation of the Tender Bonds Alternative as part of the Refunding Program, 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; Willdan Financial Services, as Special Tax Consultant; and Piper Sandler & Co., as placement agent, in connection with proposed establishment and implementation of the Tender Bonds Alternative as part of the Refunding Program are hereby approved and affirmed. -3- W\Staff Reports - Shared 2\Staff Reports 05-13-202114 -City Clerk - 05-13-2021123 Resolutions Lennar Deposit and Tender Component102 Resolution Approving Lennar Deposit Agreement (Palm Desert CFD 2005-1 Urnv Park) 5 13.21.DOCX RESOLUTION NO. 2021-20 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. 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 13th day of May, 2021, by the following vote, to wit: AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: i M. GLORIA CITY OF PAL ITY CLERK DESERT, 9ALI ORNIA ds1 KATHLEN KELLY; MAYTR'1 -4- W:lStaff Reports - Shared 21Staff Reports 05-13-202114 -City Clerk - 05-13-2021123 Resolutions Lennar Deposit and Tender Component102 Resolution Approving Lennar Deposit Agreement (Palm Desert CFD 2005-1 Unry Park) 5.13.21. DOCX