HomeMy WebLinkAboutRes 95-101 Indian Ridge CFD PALM DESERT REDEVELOPMENT AGENCY
INTEROFFICE MEMORANDUM
DATE: NOVEMBER 9, 1995
TO: CITY MANAGER, HONORABLE MAYOR AND MEMBERS OF CITY
COUNCIL
FROM: EXECUTIVE DIRECTOR, REDEVELOPMENT AGENCY
SUBJECT: INDIAN RIDGE COMMUNITY FACILITIES DISTRICT
Recommendation:
That the City Council consider the following resolutions and actions in the Parity Bond
Issue for the Indian Ridge Community Facilities District, and approve Resolution No. 95
101 a resolution approving form of second supplement providing for the form,
execution and issuance of Series 1995 Special Tax Bonds; approving the form of
purchase contract; approving the form of and distribution of a preliminary official
statement; and authorizing City Staff to take necessary actions and to prepare
necessary documents in connection with the issuance and sale of the 1995 Special Tax
Bonds.
Background:
In March of 1992, following a request from the Sunrise Company, the owner and
developer of approximately 640 acres of land in the City, the City Council approved the
formation of Community Facilities District 91-1 and the issuance of bonds secured by
taxes levied against the land within the District. Proceeds from the bonds are
authorized to be used to finance the acquisition and construction of a variety of
infrastructure improvements, such as roads, curbs and sewer and water facilities, as
well as impact fees payable to the Desert Unified School District, the Coachella Valley
Water District and the City.
In July of 1992, the City issued $11,870,000 principal amount of its Special Tax Bonds
to finance public improvements necessitated by the development, as well as to
establish a bond reserve fund and pay capitalized interest on and costs of issuance
with respect to the bonds. We have been advised by the developer that almost all of
the proceeds from the Series 1992 bonds have been spent or committed. The
developer is scheduled to begin construction on another phase of the Indian Ridge
project; accordingly, the developer has requested that the City issue an additional
series of bonds to finance more public improvements and fees.
Resolution No. 95-101
•
The Fiscal Agent Agreement, which the City entered into with Bank of America, sets
forth the terms and conditions under which new bonds may be issued. Essentially, the
City must find that the land within the District has a market value at least equal to three
times the amount of bonds outstanding and that there are sufficient special taxes to
service debt service on all the bonds.
Resolution of Issuance
The enclosed Resolution authorizes the issuance of the new bonds and the execution
of the bond documents. The City Manager and other staff is given the authority within
certain parameters to execute final documents, including the Bond Purchase Contract.
Since the District has already been formed, there is no public hearing or public vote
requirement with respect to this action.
Second Supplement
The enclosed Second Supplement amends the original Fiscal Agent Agreement to
describe the terms and conditions of the 1995 bonds. The maturities and interest rates
on the bonds will be filled in following the pricing of the bonds by the underwriter and
the execution of the Bond Purchase Contract. You will note that the Council agrees not
to issue any further bonds secured on a parity basis with the 1992 bonds and the new
1995 bonds. The City is also agreeing to abide by the requirements of a Continuing
Disclosure Agreement, the form of which is attached to the draft of the Bond Purchase
Contract. The Continuing Disclosure Agreement is required by SEC Rule 15c2-12(b)
which became effective on July 3, 1995. It is anticipated that the City will retain its
financial advisor to assist in compliance with this agreement.
CITY COUNCIL ,ACTION:
APPROVED v DENIED RECEIVED OTHER _
Carlos L. Ortega MEE' IAr LATE
Executive Director NOES _ '
ABSENT: ..y�A-
CLO:DY:mh ABSTAIN: - �
VERIFIED BY:F( .7fZ
Attachments (as noted) Original on lie with City Clerk's Office
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