HomeMy WebLinkAboutCC RES 97-045i �� r�ry ; ����'�c� ;
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RESOLUTION NO. 97-45
A RESOLUTION OF THE CITY COIINCIL OF THE CITY
OF PALM DESERT ESTABLISHING CF3RTAIN COVENAN'rS
IN CONNECTION WITH THE SALE AND ISSUANCE OF
TAX ALLOCATION REFUNDING REVENIIE HONDS
(PROJECT AREA NO. 1, AS AMENDED), SERIES
1997, OF THE PALM DESERT FINANCING AUTHORITY
WHEREAS, the Palm Desert Financing Authority (t}ie
"Authority") has determined to sell and issue its Tax Allocation
Refunding Revenue Bonds (Project Area No. 1, As Amended), Ser�es
1997 (the "Refunding Bonds"); and
WHEREAS, proceeds of the Refunding Bonds are to be
applied for the purpose of making a loan to the Palm Desert
Redevelopment Agency (the "Agency"), pursuant to a certain Loan
Agreement (the "Loan Agreement") by and among the Agency, First
Trust of California, National Association as trustee (the
"Trustee") and the Authority, for the object and purpose of
assisting in the refinancing of certain public capital
improvements, including the refinancing of certain costs of
constructing and improving the Desert Willow Golf Course (the
"Golf Course"); and
WHEREAS, such costs were initially financed with
proceeds of the Authority's Tax Allocation Revenue Bonds (Project
Area No. 1, As Amended) 1992 Series A(the "Prior Bonds"); and
WHEREAS, in order to assist the Authority and the
Agency in such refinancing and in furtherance of the covenants of
the Authority and the Agency to maintain the exclusion of the
interest on the Prior Bonds and on the Refunding Bonds from gross
income for purposes of Federal income taxation, this City Council
desires to establish certain covenants of the City for the
benefit of the owners of the Prior Bonds and of the Refunding
Bonds;
NOW, THEREFORE, the City Council of the City of Palm
Desert DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:
Section 1. Recitals. The above recitals, and each of
them, are true and correct.
3?�613 P6402-01078 e:+s 7773018 (li
RESOLUTION NO. 97-45
Section 2. Govenants with respect to the Golf Course.
The City hereby covenants and agrees, so long as any Prior Bonds
or Refunding Bonds remain outstanding and unpaid, as follows:
(a) Prior to entering into any agreement or other
arrangement with respect to the use of the Golf Course by any
person or entity, the City shall notify the Authority and the
Agency of its intention to do so; and
(b) Unless in the written opinion of a firm of
attorneys of favorable reputation in the field of municipal bond
law such agreement or other arrangement would not result in a
loss of exclusion of the interest on the Prior Bonds or on the
Refunding Bonds from gross income for Federal income tax
purposes, the City shall not enter into such agreement or other
arrangement until the City receives notice from the Agency that
the Agency has exercised its option under Section 2.04(b) of the
Loan Agreement and that the Authority has provided for the call
and redemption, within six months after the date of such notice,
of all Refunding Bonds allocable to the Golf Course.
Section 3. Benefits of Resolution. This Resolution is
adopted for the benefit of the Authority, the Agency, the
Trustee, the owners from time to time of the Prior Bonds and of
the Refunding Bonds, and the issuer of any insurance policy or
other credit instrument securing payment of the Prior Bonds or of
the Refunding Bonds. This Resolution shall not be repealed or
rescinded so long as any Prior Bonds or Refunding Bonds remain
outstanding and unpaid.
Section 4. Other Acts. The 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.
97C613 PE402 0=C2b �as 1113]_8 (1; 2
RESOLUTION NO. 97-45
Section 5. Effective Date. This Resolution shail take
effect immediately upon adoption.
APPROVED and ADOPTED this 26th day of June, 1997.
AYES
NOES
BENSON, SNYDER, SPIEGEL, KELLY
NONE
ABSENT: CRITES
ABSTAIN: NONE
ATTEST:
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SHEILA R.�GILLIG�NJ, CITY CLERK
57UEls P64C2-0171E sas :113018 (1) 3