HomeMy WebLinkAboutRES FA-60RESOLUTION NO. FA-60
A RESOLUTION OF THE PALM DESERT FINANCING AUTHORITY
ACKNOWLEDGING A FINDING OF SIGNIFICANT BENEFIT AND
APPROVING AS TO FORM AND AUTHORIZING THE EXECUTION
AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION WITH
THE ISSUANCE, SALE AND DELIVERY OF THE AUTHORITY'S TAX
ALLOCATION (HOUSING SET -ASIDE) REFUNDING REVENUE
BONDS, SERIES 2007, AND AUTHORIZING CERTAIN OTHER
MATTERS RELATING THERETO
RECITALS:
WHEREAS, the Palm Desert Financing Authority (the "Authority") is a joint
powers authority duly organized and existing under and pursuant to Articles 1 through 4
(commencing with Section 6500), Chapter 5, Division 7, Title 1 of the California
Government Code (the "Act") and that certain Joint Exercise of Powers Agreement
dated as of January 26, 1989, by and between the City of Palm Desert and the Palm
Desert Redevelopment Agency (the "Agency"), and is authorized pursuant to Article 4 of
the Act to issue bonds for the purpose of making loans to the Agency to provide
financing and refinancing for public capital improvements; and
WHEREAS, the Authority desires to issue and sell its Tax Allocation
— (Housing Set -Aside) Refunding Revenue Bonds, Series 2007 (the "Bonds"); and
WHEREAS, the Bonds will be issued and secured pursuant to a certain
Indenture (defined below); and
WHEREAS, the proceeds of the Bonds will be applied to make a loan (the
"Loan") to the Agency, pursuant to a certain Loan Agreement (defined below); and
WHEREAS, a portion of the proceeds of the Loan, together with other
available funds, will be used to effect a refunding of a portion of the Authority's Tax
Allocation (Housing Set -Aside) Revenue Bonds, Series 1998; and
WHEREAS, a portion of the proceeds of the Loan will be used by the
Agency to provide financing for certain public capital improvements (collectively, the
"Projects") of benefit to the Agency's Project Area No. 1, As Amended, Project Area No.
2, Project Area No. 3 and Project Area No. 4 (collectively, the "Project Areas"),
including: (i) the acquisition and/or rehabilitation of several multi -family housing units; (ii)
the acquisition of land for the purposes of expanding existing Agency -owned multi-
family housing units and constructing new multi -family low/moderate income housing
units; and (iii) the provision of subsidies to facilitate the development of low/moderate
income housing units; and
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RESOLUTION NO. FA-60
WHEREAS, the City Council of the City of Palm Desert (the "City Council")
has made a finding, after a duly noticed public hearing pursuant to Section 6586.5 of the
California Government Code, that the issuance of the Bonds will result in significant
public benefit;
NOW, THEREFORE, THE PALM DESERT FINANCING AUTHORITY
DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Recitals. The above recitals, and each of them, are true and
correct.
Section 2. Acknowledgment of City Council Findings. The Authority
hereby acknowledges and concurs with the City Council's finding of significant public
benefit and hereby approves and authorizes the issuance and sale of the Bonds.
Section 3. Issuance of Bonds; Indenture. The Indenture of Trust (the
"Indenture"), proposed to be entered into by and between the Authority and the Trustee
(appointed in Section 4 below), in the form on file in the office of the Secretary of the
Authority (the "Secretary"), is hereby approved. The issuance of the Bonds, in an
aggregate principal amount not exceeding $99,000,000, pursuant to the Indenture is
hereby approved. Subject to Section 10 below, each of the President, the Chief
Administrative Officer and the Treasurer of the Authority, any deputy of such officers,
and any member of the Authority Commission (each, an "Authorized Officer"), acting
singly, is hereby authorized and directed, for and in the name and on behalf of the
Authority, to execute and deliver the Indenture in substantially said form, with such
additions or changes as the Authorized Officer executing the same may approve (such
approval to be conclusively evidenced by such Authorized Officer's execution and
delivery thereof).
Section 4. Appointment of Trustee and Escrow Agent. The
appointment of Wells Fargo Bank, National Association, as trustee (the "Trustee") under
the Indenture and as escrow agent (the "Escrow Agent") under the Escrow Agreement
described in Section 6 is hereby approved.
Section 5. Loan Aareement. The 2007 Housing Project Loan
Agreement (the "Loan Agreement"), proposed to be entered into by and among the
Agency, the Authority and the Trustee, in the form on file in the office of the Secretary,
is hereby approved. Each Authorized Officer, acting singly, is hereby authorized and
directed, for and in the name and on behalf of the Authority, to execute and deliver the
Loan Agreement in substantially said form, with such changes therein as the Authorized
Officer executing the same may approve (such approval to be conclusively evidenced
by such Authorized Officer's execution and delivery thereof).
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RESOLUTION NO. FA-60
Section 6. Escrow Agreement. The Escrow Agreement (the "Escrow
Agreement"), proposed to be entered into by and among the Agency, the Authority and
the Escrow Agent, in the form on file in the office of the Secretary, is hereby approved.
Each Authorized Officer, acting singly, is hereby authorized and directed, for and in the
name and on behalf of the Authority, to execute and deliver the Escrow Agreement in
substantially said form, with such changes therein as the Authorized Officer executing
the same may approve (such approval to be conclusively evidenced by such Authorized
Officer's execution and delivery thereof).
Section 7. Preliminary Official Statement. The Preliminary Official
Statement relating to the Bonds (the "Preliminary Official Statement"), in the form on file
with the Secretary, is hereby approved. Each Authorized Officer, acting singly, is
hereby authorized and directed, for and in the name and on behalf of the Authority, to
cause the Preliminary Official Statement in substantially said form, with such changes
therein as such Authorized Officer may approve, to be deemed final for the purposes of
Rule 15c2-12 promulgated under the Securities and Exchange Act of 1934. The
distribution by Hutchinson, Shockey, Erly & Co. (the "Underwriter") of copies of the
Preliminary Official Statement to potential purchasers of the Bonds is hereby approved.
Section 8. Official Statement. Each Authorized Officer, acting singly, is
hereby authorized and directed to cause the Preliminary Official Statement to be
brought into the form of a final Official Statement (the "Official Statement"), and to
execute the same for and in the name and on behalf of the Authority, with such changes
therein as such Authorized Officer may approve (such approval to be conclusively
evidenced by such Authorized Officer's execution and delivery thereof). The distribution
and use of the Official Statement by the Underwriter in connection with the sale of the
Bonds are hereby approved.
Section 9. Bond Purchase Aareement. The Bond Purchase Agreement
(the "Purchase Agreement"), proposed to be entered into by and among the Agency,
the Authority and the Underwriter, in the form on file in the office of the Secretary and
the sale of the Bonds pursuant thereto upon the terms and conditions set forth therein
are hereby approved. Subject to the provisions of Section 10 below, each Authorized
Officer, acting singly, is authorized and directed, for and in the name and on behalf of
the Authority, to execute and deliver the Purchase Agreement in substantially said form,
with such changes therein as the officer executing the same may require or approve,
including such matters as are authorized by Section 10 hereof (such approval to be
conclusively evidenced by such Authorized Officer's execution and delivery thereof).
Section 10. Terms of Sale of Bonds. Each Authorized Officer, acting
singly, is hereby authorized and directed to act on behalf of the Authority to establish
and determine (i) the aggregate principal amount of the Bonds, which amount shall not
exceed $99,000,000; (ii) the interest rates on the Bonds, provided that the true interest
cost shall not exceed 5.5 percent; (ii) the Underwriter's compensation (i.e., underwriter's
discount) with respect to the Bonds, which shall not exceed one percent of the
aggregate principal amount of the Bonds; and (iv) such provisions as may be required
by the terms of any bond insurance policy or debt service reserve surety bond
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RESOLUTION NO. FA-60
purchased in connection with the issuance of the Bonds. The authorization and powers
delegated to such officer by this Section 9 shall be valid for a period of 120 days from
the date of adoption of this Resolution.
Section 11. Other Acts. The Authorized Officers and all other officers of
the Authority are hereby authorized and directed, jointly and severally, to do any and all
things, to execute and deliver any and all documents which they may deem necessary
or advisable in order to consummate the issuance, sale and delivery of the Bonds, or
otherwise to effectuate the purposes of this Resolution, the Indenture, the Loan
Agreement, the Escrow Agreement, the Purchase Agreement and the Official
Statement, and any such actions previously taken by such officers are hereby ratified
and confirmed.
Section 12. Effective Date. This Resolution shall take effect immediately
upon adoption.
APPROVED AND ADOPTED this 14th day of December, 2006.
AYES: BENSON, FERGUSON, FINERTY, SPIEGEL, and KELLY
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
//er
RIC. KELLCY, P • SIDENT /
ATTEST:
CHELLE D. KLASSEN, SECRETARY
PALM DESERT FINANCING AUTHORITY
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