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Home My WebLink AboutRes 2021-21RESOLUTION NO. 2021-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, FOR ITSELF AND ACTING AS LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK), APPROVING AND AUTHORIZING A TENDER BONDS ALTERNATIVE COMPONENT OF THE REFUNDING PROGRAM FOR OUTSTANDING SPECIAL TAX BONDS, SERIES 2006A, OF THE DISTRICT, AND APPROVING A NOTICE AND PARTICIPATION FORM AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH RECITALS: WHEREAS, pursuant to the Mello -Roos Community Facilities Act of 1982 (California Government Code Section 53311 et seq.), as amended (the "Act"), the City Council of the City of Palm Desert (the "City") 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 WHEREAS, as part of the Refunding Program, 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 W1Staff Reports - Shared 21Staff Reports 05-13-202114 -City Clerk - 05-13-2021123 Resolutions Lennar Deposit and Tender Component104 Resolution Authorizing Tender Bonds Alternative (Palm Desert CFD 2001-1 Ref STBs 2021) 5.13.21.DOCX RESOLUTION NO. 2021-21 Park)" ("CFD 2021-1") to encompass a portion of the property within CFD 2005-1 consisting of approximately 174 acres, 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 property within CFD 2021-1 and finance additional public facilities required for the development of the property within CFD 2021- 1 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, to facilitate development of other property remaining undeveloped within CFD 2005-1, the City Council desires to add to 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 CFD 2005-1 to the CFD 2005-1 Treasurer in full payment of the CFD 2005-1 special tax obligation 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 CFD 2005-1 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 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 City Council desires to approve and authorize the Tender Bonds Alternative as part of the Refunding Program and approve a Notice of Tender Bonds Alternative and Undeveloped Property Owner Participation Form (the "Notice and Participation Form"), the form of which is on file with the City Clerk of the City, in connection therewith; -2- W \Staff Reports - Shared 21Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\23 Resolutions Lennar Deposit and Tender Component104 Resolution Authorizing Tender Bonds Alternative (Palm Desert CFD 2001-1 Ref STBs 2021) 5.13 21 DOCX RESOLUTION NO. 2021-21 1 1 1 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, FOR ITSELF AND ACTING AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK), 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. Tender Bonds Alternative Authorized. The Tender Bonds Alternative is hereby approved and authorized to be established as a component of the Refunding Program for the Prior CFD 2005-1 Bonds. Section 3. Notice and Participation Form. The Notice and Participation Form, proposed to be provided to the owners of Undeveloped Property within CFD 2005- 1, in the form presented at this meeting and on file with the City Clerk, is hereby approved. Piper Sandler & Co., as Placement Agent for the Tender Bonds Alternative component of the Refunding Program, is hereby authorized and directed to mail the Notice and Participation Form to the owners of parcels currently classified as "Undeveloped Property" under Rate and Method at their respective mailing addresses as shown on the County Assessor's tax roll, or such other more current address known to the City, in substantially said form, with such additions or changes as may be required or deemed advisable by Bond Counsel. Section 4. Bond Purchase Contract. The City Manager of the City, the Assistant City Manager of the City, and the Director of Finance of the City are hereby directed to develop, with the assistance of Bond Counsel, a form of Bond Purchase Contract for the Tender Bonds Alternative component of the Refunding Program. The form of Bond Purchase Contract shall be presented to the City Council of the City, acting as legislative body of CFD 2005-1, for approval in connection with consideration of approval of the issuance of the refunding bonds by CFD 2005-1 and the related bond and disclosure documents. Section 5. Other Acts. The City Manager of the City, the Assistant City Manager of the City, 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, the establishment and implementation of Tender Bonds Alternative as a component of the Refunding Program for the Prior CFD 2005-1 Bonds, and the Notice and Participation Form, and any such actions previously taken by such officers are hereby ratified and confirmed. Section 6. Effective Date. This Resolution shall take effect immediately upon adoption. -3- W.\Staff Reports - Shared 21Staff Reports 05-13-202114 -City Clerk - 05-13-2021123 Resolutions Lennar Deposit and Tender Component104 Resolution Authorizing Tender Bonds Alternative (Palm Desert CFD 2001-1 Ref STBs 2021) 5 13 21 DOCX RESOLUTION NO. 2021-21 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: HARN1K, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: M. GLORIA SANC Z, ACTI G CITY CLERK CITY OF PALM DESERT; CA IFORNIA KATHLEKELLY', MAY , -4- W\Staff Reports - Shared 21Staff Reports 05-13-202114 -City Clerk - 05.13-2021123 Resolutions Lennar Deposit and Tender Component104 Resolution Authorizing Tender Bonds Alternative (Palm Desert CFD 2001-1 Ref STBs 2021(5.13.21.DOCX