HomeMy WebLinkAboutRES FA-66RESOLUTION NO. FA-66
A RESOLUTION OF THE PALM DESERT FINANCING AUTHORITY
AUTHORIZING THE EXECUTION AND DELIVERY OF A HOUSING BOND
ESCROW AGREEMENT IN CONNECTION WITH THE REFUNDING OF
BONDS PREVIOUSLY ISSUED BY THE AUTHORITY AND TAKING
RELATED ACTIONS
RECITALS:
A. The former Palm Desert Redevelopment Agency (the "Former Agency")
was a duly constituted redevelopment agency pursuant to provisions of the Community
Redevelopment Law (the "Redevelopment Law") set forth in Section 33000 et seq. of
the Health and Safety Code ("HSC") of the State of California (the "State").
B. The Former Agency undertook a program to redevelop four project areas.
C. The Former Agency and the City of Palm Desert (the "City") executed and
delivered a Joint Exercise of Powers Agreement, dated as of January 26, 1989 (the
"Joint Powers Agreement"), which Joint Powers Agreement created and established the
Palm Desert Financing Authority (the "Authority").
D. To finance and refinance affordable housing projects, the Former Agency
entered into certain loan agreements, including the following (together, the "Loan
Agreements"):
(i)
the 2002 Housing Project Loan Agreement, dated as of August 1,
2002, by and among the Former Agency, the Authority and BNY
Western Trust Company (as succeeded by U.S. Bank National
Association), as trustee, pursuant to which the Former Agency
incurred a loan (the "2002 Loan"); and
(ii) the 2007 Housing Project Loan Agreement, dated as of February 1,
2007, by and among the Former Agency, the Authority and Wells
Fargo Bank, National Association (as succeeded by U.S. Bank
National Association), as trustee, pursuant to which the Former
Agency incurred a loan (the "2007 Loan," and together with the
2002 Loan, the "Agency Loans").
E. To provide funding for the Agency Loans, the Authority issued two series
of bonds (the "Authority Bonds"):
(i)
Authority's Tax Allocation (Housing Set -Aside) Revenue Bonds,
Series 2002, in the original principal amount of $12,400,000 (the
"2002 Bonds"), pursuant to the Indenture of Trust, dated as of
August 1, 2002 (the "2002 Indenture"), by and between the
Authority and BNY Western Trust Company (as succeeded by U.S.
Bank National Association), as trustee; and
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RESOLUTION NO. FA-66
(ii) The Authority's Tax Allocation (Housing Set -Aside) Refunding
Revenue Bonds, Series 2007, in the original principal amount of
$86,155,000 (the "2007 Bonds"), pursuant to the Indenture of Trust,
dated as of February 1, 2007 (the "2007 Indenture," and together
with the 2002 Indenture, the "Prior Indentures"), by and between
the Authority and Wells Fargo Bank, National Association (as
succeeded by U.S. Bank National Association), as trustee.
F. As of the date of this resolution, a portion of the principal amount of each
Agency Loan and, correspondingly, an equivalent portion of the principal amount of
each series of the Authority Bonds remain outstanding.
G. Pursuant to AB X1 26 (enacted in June 2011), and the State Supreme
Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et
al., 53 Cal. 4th 231 (2011), the Former Agency was dissolved as of February 1, 2012,
and the Successor Agency of the Palm Desert Redevelopment Agency (the "Successor
Agency") was constituted.
H. The Successor Agency has determined to issue bonds ("Refunding
Bonds") pursuant to HSC 34177.5 and Article 11 (commencing with Section 53580) of
Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code (the
"Refunding Bond Law") to prepay the Agency Loans and cause a corresponding
refunding of the Authority Bonds.
I. In connection with the proposed refunding and defeasance of the Agency
Loans and the Authority Bonds, there has been presented to the Authority, the form of a
Housing Bonds Escrow Agreement, by and among the Authority, the Successor Agency
and U.S. Bank National Association, as trustee and escrow agent (the "Escrow
Agreement").
NOW, THEREFORE, THE AUTHORITY COMMISSION OF 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. Escrow Agreement. The Escrow Agreement, in the form on file in
the office of the Authority Secretary, is hereby approved. Each of the 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 individually, is hereby authorized to execute and deliver,
for and in the name of the Authority, the Escrow Agreement in substantially such form,
with changes therein as the Authorized Officer may approve (such approval to be
conclusively evidenced by the execution and delivery thereof).
Section 3. Other Acts. The members of this Authority Commission and the
Authorized Officers, and all other officers of the Authority, are hereby authorized, jointly
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RESOLUTION NO. FA-66
and severally, to execute and deliver any and all necessary documents and
instruments and to do all things which they may deem necessary or proper to
effectuate the purposes of this Resolution and assist the Successor Agency with the
refunding described herein and any such actions previously taken by such officers are
hereby ratified and confirmed.
AYES:
NOES:
APPROVED and ADOPTED this 13th day of October, 2016.
HARNIK, JONATHAN, TANNER, WEBER, and SPIEGEL
NONE
ABSENT: NONE
ABSTAIN: NONE
ROBERT A. SPI GEL. ES ROBERT A. SPI GEL, ;RESIDENT
ATTEST:
L D. KLASSEN( SECRETARY
PALM DESERT FINANCING AUTHORITY
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RESOLUTION NO. FA-66
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