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Home My WebLink AboutCC RES 2016-08RESOLUTION NO. 2016-08 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, AS LEGISLATIVE BODY OF THE CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK), AUTHORIZING THE USE OF UNSPENT PROJECT FUND MONIES TO OPTIONALLY REDEEM OUTSTANDING SPECIAL TAX BONDS OF THE COMMUNITY FACILITIES DISTRICT RECITALS WHEREAS, the City Council (the "City Council") of the City of Palm Desert (the "City"), located in Riverside County, California (hereinafter sometimes referred to as the "legislative body of the District"), has heretofore pursuant to Resolution No. 06-6 adopted on January 12, 2006, formed the City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5 of the Government Code of the State of California (the "Act"), to finance certain public facilities which the District is authorized to finance; and WHEREAS, pursuant to Resolution Nos. 06-8 and 06-9 adopted by the legislative body of the District on January 12, 2006, certain bond propositions and a proposition to levy a special tax within the District, among other things, were submitted to the qualified electors within the District, and were approved by more than two-thirds of the votes cast at the elections held within the District on January 12, 2006; and WHEREAS, based upon Resolution Nos. 06-8 and 06-9 and the elections and in accordance with Section 53340 of the Act, the legislative body of the District adopted Ordinance No. 1107 on February 9, 2006, authorizing the levy of a special tax (the "Special Tax") on the taxable property within the District at the maximum rates described therein; and WHEREAS, based upon Resolution Nos. 06-8 and 06-9 and the elections, and pursuant to Resolution No. 06-33, adopted by the legislative body of the District on March 23, 2006, and Resolution No. 07-13, adopted by the legislative body of the District on March 8, 2007, the District issued, respectively, its Special Tax Bonds, Series 2006A (the "2006A Bonds"), in an aggregate initial principal amount of $50,000,000, and its Special Tax Bonds, Series 2007 (the "2007 Bonds", and together with the 2006A Bonds, the "Bonds"), in an aggregate initial principal amount of $17,915,000, pursuant to the Act to finance authorized public facilities, the repayment of which is secured by the net Special Tax received by the District, as further described in the indenture with respect to the Bonds (as heretofore amended and supplemented, the "Indenture"); and WHEREAS, $38,045,000 in aggregate principal amount of 2006A Bonds are presently outstanding, and $13,970,000 in aggregate principal amount of 2007 Bonds are presently outstanding; and -1- Resolution No. 2016- 08 WHEREAS, due to the country's economic downturn in 2008 and ensuing protracted recession in the City, certain residential projects within the District reasonably expected at the issuance of the 2006A Bonds and the 2007 Bonds to be developed have been delayed significantly, and certain public improvements authorized to be financed by the District and associated with such residential projects have not yet been constructed; and WHEREAS, as a result, approximately $21,363,420 in project fund monies held under the Indenture remain unspent (the "Unspent Project Fund Monies"), approximately $6,452,482 of which derive from the 2006A Bonds (the "Unspent 2006A Project Fund Monies") and approximately $14,910,938 of which derive from the 2007 Bonds (the "Unspent 2007 Project Fund Monies"); and WHEREAS, although residential property values have been recovering within the City over the past few years, the proposed development of the remaining residential real property within the District recently has been additionally complicated by new challenges due to factors beyond the control of the residential developers, the City and the District — in particular the enactment of new laws in the State of California which dissolved the former Palm Desert Redevelopment Agency and now require the Successor Agency to the Palm Desert Redevelopment Agency to dispose of, and sell for the benefit of other taxing entities, undeveloped real property adjacent to the District which otherwise was intended by the City to be developed for complementary, and not competing, uses to the planned residential development within the District; and WHEREAS, therefore, the District and the City desire to authorize the optional redemption, on March 1, 2016, of (i) a portion of the outstanding 2006A Bonds from the Unspent 2006A Project Fund Monies and related funds to be released from the Reserve Account of the Special Tax Fund held under the Indenture in connection with such optional redemption, and (ii) all of the outstanding 2007 Bonds from the Unspent 2007 Project Fund Monies and related funds to be released from the Reserve Account of the Special Tax Fund held under the Indenture in connection with such optional redemption; and WHEREAS, the optional redemption of a portion of outstanding 2006A Bonds and all of the outstanding 2007 Bonds from the Unspent Project Fund Monies will result in a corresponding reduction in the Special Tax to be levied on properties within the District commencing Fiscal Year 2016-17. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT ACTING AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Each of the above recitals is true and correct. Section 2. The City Council, acting in its capacity of legislative body of the District and on its own behalf, hereby authorizes the optional redemption, on March -2- Resolution No. 2016- 08 1, 2016, of (i) a portion of outstanding 2006A Bonds from the Unspent 2006A Project Fund Monies and related funds to be released from the Reserve Account of the Special Tax Fund held under the Indenture in connection with such optional redemption, and (ii) all of the outstanding 2007 Bonds from the Unspent 2007 Project Fund Monies and related funds to be released from the Reserve Account of the Special Tax Fund held under the Indenture in connection with such optional redemption (together, the "March 1, 2016 Optional Redemption"). Section 3. All actions heretofore taken by the officers and agents of the City and the District with respect to the March 1, 2016 Optional Redemption are hereby approved, confirmed, and ratified. Each of the Mayor of the City, the City Manager of the City, and the Finance Director/Treasurer of the City and the officers and staff of the City and the District responsible for the fiscal affairs of the District are hereby authorized and directed to take any actions, and execute and deliver any and all documents as are necessary to accomplish the March 1, 2016 Optional Redemption. Section 4. This Resolution shall take effect upon its adoption. The City Clerk of the City shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions. PASSED, APPROVED, AND ADOPTED this 14th day of January, 2016, by the following vote to wit: AYES: HARNIR, JONATHAN, TANNER, WEBER, and SPIEGEL NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: RA E L D. KL SEEN;-C;ITY CLERK CITY OF PALM DESERT, CALIFORNIA ...4 ROBERT A. SPIEG L, Mpt -3-