HomeMy WebLinkAboutEIP - Demand Lease Revenue Bonds Series 2009 CITY OF PALM DESERT
FINANCE DEPARTMENT
STAFF REPORT
REQUEST: RECOMMEND THAT THE CITY COUNCIL APPROPRIATE, AND
AUTHORIZE THE FINANCE DIRECTOR/TREASURER TO USE
AND APPLY, $2.1 MILLION FROM THE ENERGY
INDEPENDENCE FUND AND APPROXIMATELY $2.5 MILLION
FROM THE GENERAL FUND TO PREPAY THE LEASE
AGREEMENT WITH RESPECT TO, AND REDEEM, THE
OUTSTANDING PALM DESERT FINANCING AUTHORITY
ENERGY INDEPENDENCE PROGRAM, VARIABLE RATE
DEMAND LEASE REVENUE BONDS, SERIES 2009 (FEDERALLY
TAXABLE)
SUBMITTED BY: PAUL S. GIBSON, FINANCE DIRECTOR
DATE: June 26, 2014
Recommendation
By Minute Motion, that the City Council:
1. Appropriate, and authorize the Finance DirectorlTreasurer to use and
apply, $2.1 million from the Energy Independence Fund and
approximately $2.5 million from the General Fund to prepay the Lease
Agreement between the City and the Palm Desert Financing Authority with
respect to, and redeem, the outstanding Palm Desert Financing Authority
Energy Independence Program, Variable Rate Demand Lease Revenue
Bonds, Series 2009 (Federally Taxable); and
2. Authorize the Mayor, City Manager, and Finance Director/Treasurer to
execute any ancillary documents necessary to effectuate the actions taken
herewith.
Executive Summary
On May 27, 2014, the Audit, Investment & Finance Committee approved recommending
the City Council appropriate, and authorize the Finance Director/Treasurer to use and
apply, $2.1 million from the Energy Independence Fund and approximately $2.5 million
G:\FinanceUViamh ORega\Investment Committee�Ivtemos\Staff Report-Prepayment Of 2009 EIP L,ease Revenue Bonds(Palm Desert)(3).Docx
Staff Report
Prepayment - Palm Desert Financing Authority Energy Independence Program Bonds
June 26, 2014
Page 2 of 4
from the General Fund to prepay the Lease Agreement between the City and the Palm
Desert Finance Authority Energy Independence Program.
On August 31, 2009, the Palm Desert Financing Authority assisted the City's financing
of the Energy Independence Program (EIP) by issuing the Authority's Energy
Independence Program, Variable Rate Demand Lease Revenue Bonds, Series 2009
(Federally Taxable) (the "Bonds") in the original principal amount of $5,225,000. A five-
year interest rate collar ("Interest Rate Collar"), which is a minimum and maximum
interest rate achieved through a derivative agreement, was utilized as part of the
financing structure to mitigate the City's risk of increasing variable interest rates during
the first five years of the 20-year term of the Bonds. Early termination of the interest
rate collar requires a breakage fee payable by the City. The City is currently paying a
minimum interest rate of 1.93% on the Bonds due to the Interest Rate Collar and when
combined with the Letter of Credit and Remarketing Fees is paying around 3.10%, while
surplus City funds currently earn less than an average yield, as of the last monthly
report, of 0.25%.
In view of the September 1, 2014 expiration date of the Interest Rate Collar, staff
recommends that the City Council appropriate, and authorize the Finance
Director/Treasurer to use and apply, the following monies to prepay the Lease
Agreement with respect to the Bonds on September 2, 2014: (i) $2.1 million from the
Energy Independence Fund (leaving approximately $100,000 in the Energy
Independence Fund for remaining EIP costs and administration expenses), and (ii) the
balance of the prepayment amount (approximately $2.5 million) from the City's General
Fund. Prepayment by the City of the Lease Agreement with respect to the Bonds will, in
turn, cause a redemption and defeasance (i.e., retirement) of the Bonds, currently
outstanding in principal amount of $4,655,000. Because the prepayment and
redemption will occur after the September 1, 2014 expiration date of the Interest Rate
Collar, the City will incur no breakage fees, and there is also no redemption premium
incurred under the bond documents for redeeming the outstanding Bonds on
September 2, 2014. The City has also explored refinancing the Bonds at a fixed
interest rate on or after the expiration of the 5-year term of the Interest Rate Collar (i.e.,
September 1, 2014), staff has determined, in consultation with the City's financial
advisor, Del Rio Advisors, LLC, that the expected fixed interest rate the City would pay
of between 4% and 5.50% on the Bonds, as potentially refinanced in the current market,
would still exceed the average yield currently earned by the City on its surplus General
Fund monies, which as of the last monthly report, was 0.25%. Thus, staff recommends
the prepayment and redemption of the outstanding Bonds as fiscally prudent measure.
Backqround
By proceedings undertaken in 2008 pursuant to Chapter 29 of Part 3 of Division 7 of the
California Streets and Highways Code, including the adoption of Resolution No. 08-89
on August 28, 2008, the City Council established the EIP. Among other things,
G:\Finance�lViamh Ortega\Investment CommitteeV�femos\Staff Report-Prepayment Of 2009 EIP Lease Revenue Bonds(Palm Desert)(3).Docx
Staff Report
Prepayment - Palm Desert Financing Authority Energy Independence Program Bonds
June 26, 2014
Page 3 of 4
Resolution No. 08-89 established a special trust fund held by the City called the "Energy
Independence Fund." As authorized by Resolution No. 08-89, the EIP was initially
funded by a transfer of monies from the General Fund to the Energy Independence
Fund in the amount of $2.5 million.
As noted above, the Authority issued and delivered the Bonds on August 31, 2009. The
Bonds were issued to (i) reimburse the City for the entire amount of its $2.5 million
advance to initially fund the Energy Independence Fund; (ii) finance the acquisition and
construction or installation of distributed generation renewable energy sources and
energy efficiency improvements on or in properties in the City pursuant to the EIP; and
(iii) pay certain costs related to the issuance of the Bonds.
As lease revenue bonds, the Bonds are secured by base rental payments from the City
to the Authority under the Lease Agreement, equal to the principal and interest coming
due on the Bonds. The City's base rental payments, in turn, are a General Fund
obligation as to each year's base rental, equivalent to annual debt service requirements
under the bond documents. The leased assets are 73-710 and 73-720 Fred Waring
Drive located next to the Civic Center and adjacent to the City Civic Center Park.
Each EIP assessment earns interest at a rate of 7%, which is included in the amounts
levied for the assessments. The Bonds were issued at a weekly variable interest rate,
on account of the fixed interest rate market in 2009 being too high for an economically
desirable fixed-rate bond issuance. Given the 7% interest rate paid on EIP
assessments by property owners, the Bonds needed to be issued with a lower interest
rate in order for the EIP not to operate at a loss.
Wells Fargo provided the Interest Rate Collar, which is a minimum and maximum
interest rate, as part of the financing structure. The Interest Rate Collar allocates to
Wells Fargo Bank the obligation to pay the actual variable interest rate on the Bonds,
determined in accordance with the Indenture for the Bonds, while during the 5-year term
of the Interest Rate Collar, the City pays to Wells Fargo Bank an interest rate on the
Bonds ranging from a low interest rate (to be established at the time of the sale of the
Bonds) of approximately 1.93% to a maximum interest rate of 5.25% per annum. The
purpose of the Interest Rate Collar is to protect the City from increases in the variable
interest rate on the Bonds above 5.25% per annum. In exchange for this risk mitigation,
when the interest rates are below the 1.93% floor of the Interest Rate Collar, the City
pays to Wells Fargo a minimum interest rate of 1.93%, which is paid in part by Wells
Fargo to the owners of the Bonds (at the actual variable interest rate at the time) and
retained in part by Wells Fargo (for the difference between the actual interest rate and
1.93%). Since variable rates have remained extremely low, the City is paying the floor
rate of 1.93%. When you include both Letter of Credit and Remarketing Fees the City is
paying an estimated interest rate of 3.10%, while surplus City funds currently earn less
than an average yield, as of the last monthly report, of 0.25%. If the Interest Rate Collar
is terminated prior to the expiration of the 5-year term on September 1, 2014, a
breakage fee is payable to Wells Fargo.
G:�Finance�Niamh Ortega\Investment CommitteeU�temos\Staff Report-Prepayment Of 2009 EIP I.ease Revenue Bonds(Palm Desert)(3).Dcex
Staff Report
Prepayment - Palm Desert Financing Authority Energy Independence Program Bonds
June 26, 2014
Page 4 of 4
Thus, although the actual variable interest rates on the Bonds have been below the
1.93% floor of the Interest Rate Collar since the Bonds were issued in 2009, the City
has had an economic disincentive (i.e., the breakage fee) to prepay the Bonds during
the 5-year term of the Interest Rate Collar. Now that the scheduled expiration date of
the Interest Rate Collar of September 1, 2014 is approaching, the prepayment and
redemption of the outstanding Bonds is available to the City and the Authority without
any Interest Rate Collar breakage fees, redemption premiums, or other prepayment
fees relating to the Bonds.
Moreover, as authorized by the City Council last year, the City is no longer accepting
new EIP applications as of January 2014 and has opted to participate in the regional
property assessed clean energy (PACE) program recently formed by the Coachella
Valley Association of Governments (CVAG).
Although it was originally contemplated that the City might refinance the Bonds at a
fixed interest rate on or after the expiration of the 5-year term of the Interest Rate Collar
(i.e., September 1, 2014), staff has determined, in consultation with the City's financial
advisor, Del Rio Advisors, LLC, that the expected fixed interest rate the City would pay
of between 4% and 5.50% on the Bonds, as potentially refinanced in the current market,
would still exceed the average yield currently earned by the City on its surplus General
Fund monies, which as of the last monthly report, was 0.25%. Thus, staff recommends
the prepayment and redemption of the outstanding Bonds as fiscally prudent measure.
Fiscal Impact
Prepayment of the Lease Agreement between the City and the Palm Desert Financing
Authority with respect to the outstanding Palm Desert Financing Authority Energy
Independence Program will benefit the General Fund by earning a higher rate of return
from 0.25% to 7%. In addition, the outstanding debt will be eliminated.
Submitted by: Approval:
�� � ��tcr
Paul S. Gibson John . Wohlmuth
City Treasurer/ Director of Finance City Manager
CiTY COUNCILA�'iON
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VERIFIED BY:
Original on File with City erk's Office
G:\Finance�lYiamh Ortega\Investment CommitteeU�Iemos\Staff Report-Prepayment Of 2009 E�Lease Revenue Bonds(Palm Desert)(3).Docx
NOTICE OF REDEMPTION
PALM DESERT FINANCING AUTHORITY
ENERGY INDEPENDENCE PROGRAM
VARIABLE RATE DEMAND LEASE REVENUE BONDS, SERIES 2009
(FEDERALLY TAXABLE)
NOTICE IS HEREBY GNEN to the owners of the above-captioned bonds,dated August 31,2009(the"Bonds"),
of the Palm Desert Financing Authority (the "Authority") in accordance with that certain Indenture, dated as of
August 1, 2009(the"Indenture"), by and between the Authority and Wells Fargo Bank, National Association(the
"Trustee"), pursuant to which such Bonds were originally issued on August 31, 2009, that all of the outstanding
Bonds (except for the portion to be redeemed earlier by mandatory sinking fund redemption on September 1,
2014) in the aggregate principal amount of$4,485,000, have been called for redemption on September 2, 2014
(the"Redemption Date"), subject to the provisions of the succeeding paragraphs of this notice, and pursuant to the
provisions of the governing documents of the Bonds.
The Bonds called for redemption have the stated maturity dates, principal amounts, stated interest rates, and
CUSIP numbers as set forth below:
Maturity
(September 1) Principal Amount Interest Rate CUSIP
2029 $4,485,000 Variable 69661P AN9
Pursuant to the Indenture, on the Redemption Date, the principal, at 100°Io, and interest accrued to the
Redemption Date on such Bonds, without redemption premium (the "Redemption Price"), shall become due and
payable,and from and after the Redemption Date, interest on the Bonds shall cease to accrue and be payable.
Owners of the Bonds should surrender said Bonds on the Redemption Date at the following addresses:
First Class/Reeistered/Certified Air Courier In Person
Wells Fargo Bank.N.A. Wells Fargo Bank.N.A. Wells Fargo Bank.N.A.
Corporate Trust Operations Corporate Trust Operations Northstar East Building
P.O.Box 1517 N9303-121 608 2nd Ave.So., 12�'Fl.
Minneapolis,MN 55480-1517 6th&Marquette Avenue Minneapolis,MN
Minneapolis,MN 55479
For Bonds surrendered by mail,the use of registered or certified mail is suggested.
lMPORTANT NOTICE: ALL HOLDERS SUBMITTING THEIR BONDS MUST ALSO SUBMIT A FORM W-9. FAILURE
TO PROVIDE A COMPLETED FORM W-9 MAY RESULT !N THE TWENTY-EIGHT PERCENT (28%) BACK UP
WlTHHOLDING PURSUANT TO THE JOBS AND GROW7'H TAX RELIEF RECONCILIATION ACT OF 2003 AND
BROKER REPORTING REQUIREMENTS. THE FORM W-9 MAY BE OBTAINED FROM THE INTERNAL REVENUE
SERVICE.
Neither the Authority nor the Trustee shall be held responsible for the selection or use of the CUSIP number, nor is any
representation made as to its correctness indicated in this Notice of Redemption. It is included solely for convenience of the
owners of the Bonds. Any error in the CUSIP number shall not affect the validity of the proceedings for redemption of the
Bonds.
DATED: July_, 2014
WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Trustee on behalf of the Palm Desert Financing Authority
P6401-1039\1709887v1.doc
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. 73-510 FRED WARING DRIVE �
PALM DESERT, CALIFORNIA 9 2 2 C�O-2 5�H
TBL: ']C)O 346-06�z
. info@cityofpalmdesert.org
July 2, 2014
Attn: Ms. Lynn Love, Vice President—Sr. Relationship Manager
Wells Fargo Bank,National Association
Government& Institutional Banking
333 S. Grand Avenue
Fifth Floor, Suite SA
Los Angeles, California 90071
Re: Palm Desert Financing Authority Energy Independence Program, Variable Rate Demand Lease
Revenue Bonds, Series 2009; Letter of Credit No.NZS6435]5
Dear Ms. Love:
In connection with the above-captioned bonds(the"Bonds")of the Palm Desert Financing Authority(the
"Authority"),the City of Palm Desert(the "City") and Wells Fargo Bank,National Association (the
"Credit Entity")entered into that certain Reimbursement Agreement, dated as of August 1, 2009,as
amended by the First Amendment to Reimbursement Agreement, dated as of June 14, 2012(as amended,
the "Reimbursement Agreement"). Among other things, the Reimbursement Agreement provided for the
issuance by the Credit Entity, on August 31, 2009, of its Letter of Credit No. NZS643515, as amended on
June 20, 2012(as amended,the"Letter of Credit"). Pursuant to Section 2(e)of the Reimbursement
Agreement, the City hereby provides written notice to the Credit Entity of its election to terminate the
Letter of Credit on September 2,2014.
Capitalized terms used but not defined herein have the respective meanings ascribed to such terms in the
Reimbursement Agreement.
Please call if you have any questions with this notice of termination.
Sincerely,
John M. Wohlmuth
City Manager, City of Palm Desert
cc: Karla Suarez, Wells Fargo Bank,N.A. [Fax No. (213)253-7267]
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PALM DESERT, CALIFORNIA 9 2 2 C�0-2 5 7 g
TEL: ]60 34G—oG��
. infoL�cityofpalmdesert.org
July 2, 201
Attn: Mr. Robert Schneider, Vice President
Wells Fargo Bank,National Association
333 S. Grand Avenue
Fifth Floor, Suite SA
Los Angeles, California 90071
Re: Palm Desert Financing Authority Energy Independence Program, Variable Rate Demand Lease
Revenue Bonds, Series 2009, maturing on September l, 2029
Dear Mr. Schneider:
In connection with the issuance of the above-captioned bonds(the `Bonds"), the Palm Desert Financing
Authority(the"Authority")and the City of Palm Desert(the "City")entered into that certain Lease
Agreement, dated as of August l, 2009(the "Lease Agreement"). Pursuant to Section 5.05(b)of the
Lease Agreement,the City hereby provides written notice to Wells Fargo Bank,National Association, as
trustee(the"Trustee"), of its election and execution of the option granted by the Authority pursuant to
Section 5.05(b)to prepay in whole,on September 2, 2014,the principal components of the Base Rental
payments relating to the Leased Property(except for the Base Rental payment due on September 1, 2014,
which shall be paid on the earlier due date). In connection herewith,the City has deposited with the
Trustee, by wire transfer,the amounts referred to in Section 5.05(b), consisting of(1) accrued interest on
the principal component of Base Rental payments to be prepaid to the date of redemption of Bonds with
the proceeds of such prepayment, plus(2)the principal component of any Base Rental payments to be
prepaid, plus(3)the applicable redemption premium described in Section 4.03 of the Indenture, dated as
of August 1, 2009, with respect to the Bonds(the"Indenture"), and plus(4)the amount of Collar
Payments that will be due in connection with such prepayment. Capitalized terms used but not defined
herein have the respective meanings ascribed to such terms in the Indenture.
In connection with such prepayment,the Authority hereby requests the Trustee, on behalf of and at the
expense of the Authority,to send no earlier than July 7, 2014 and no later than August 1, 2014, a notice of
redemption to the Securities Depositories,the Information Services, and the respective registered Owners
of the Bonds, at their respective addresses appearing on the Bond registration books maintained by the
Trustee, all pursuant to Section 4.06 of the Indenture, for redemption on September 2, 2014.
In consideration of the Trustee's agreement to issue the notice of redemption,the Authority agrees to
indemnify and hold the Trustee harmless against any and all adverse claims, expenses and costs (except
for any such claims, expenses and costs arising out of the negligence or misconduct of the Trustee)
associated witM the Trustee's issuance of such notice of redemption.
Please call if you have any questions with this notice of prepayment and instruction letter.
Sincerely,
John M. Wohlmuth
City Manager, City of Palm Desert
Chief Administrative Officer, Palm Desert Financing Authority
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�� ��{}��,�„1039\1709898v1.doc
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Recording Requested by and
when recorded return to:
City of Palm Desert
c/o Richards, Watson& Gershon
355 S. Grand Ave.,40�'Floor
Los Angeles, California 90071
Attention: Diana K. Chuang, Esq.
(Space above this is for Recorder's use)
Exempt from Recording Fees pursuant to California Government Code § 6103
Exempt from Documentary Transfer Tax pursuant to
California Revenue and T�ation Code §§ 11922
QUITCLAIM DEED AND
MEMORANDUM REGARDING TERMINATION OF SITE LEASE,
LEASE AGREEMENT,MEMORANDUM OF LEASE AGREEMENT,
AND A5SIGNMENT AGREEMENT
This QUITCLAIM DEED AND MEMORANDUM REGARDING
TERMINATION OF SITE LEASE, LEASE AGREEMENT, MEMORANDUM OF LEASE
AGREEMENT, AND ASSIGNMENT AGREEMENT, dated as of September 2, 2014 (this
"Quitclaim and Memorandum of Termination"), is entered into by and among the PALM
DESERT FINANCING AUTHORITY, a joint powers agency duly organized and existing
pursuant to the laws of the State of California (the "Authority"), the CITY OF PALM DESERT,
a municipal corporation duly formed and existing under the laws of the State of California (the
"City"), and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association duly organized and existing under the laws of the United States, as Trustee under the
hereinafter mentioned Indenture(the "Trustee").
RECITALS
A. Pursuant to the Site Lease, dated as of August l, 2009 (the "Site Lease"),
by and between the City and the Authority, the Authority leased from the City certain real
property described in Exhibit A attached hereto (the "Real Property").
B. Pursuant to the Lease Agreement, dated as of August 1, 2009 (the "Lease
Agreement"), by and between the Authority and the City, and the Memorandum of Lease
Agreement, dated as of August l, 2009 (the "Memarandum of Lease Agreement"), by and
between the Authority and the City, the City subleased the Real Property, including the
commercial office complex and all the other facilities and improvements thereon (collectively,
the"Leased Property"), from the Authority.
C. The Authority has issued its Energy Independence Program, Variable Rate
Demand Lease Revenue Bonds, Series 2009 (the "Bonds") pursuant to the Indenture, dated as of
P6401-1039\1709916v1.doc
August 1, 2009 (the "Indenture"), by and between the Authority and Wells Fargo Bank, National
Association, as trustee(the"Trustee").
D. Pursuant to the Assignment Agreement, dated as of August 1, 20009 (the
"Assignment Agreement"), by and between the Authority and the Trustee, the Authority has
assigned to the Trustee all of the right, title and interest of the Authority in the Lease Agreement
(except for the Authority's rights to indemnification and payment or reimbursement for any costs
or expenses thereunder), including the Authority's rights to receive "Base Rental" payments (as
defined in the Lease Agreement) scheduled to be paid by the City under and pursuant to the
Lease Agreement.
E. Each of the Site Lease, the Memorandum of Lease Agreement, and the
Assignment Agreement have been recorded at the offices of the County Recorder of the County
of Riverside on August 28, 2009, as Document Nos. 2009-0450284, 2009-0450285, and 2009-
0450286,respectively.
F. The City has now provided for the prepayment of Base Rental payments,
in full, to effect a redemption of all of the remaining outstanding Bonds prior to the recordation
hereof.
G. Upon the prepayment by the City of Base Rental payments, in full, the
Site Lease, Lease Agreement, Memorandum of Lease Agreement, and Assignment Agreement
have terminated, and the parties hereto desire to record this Quitclaim and Memorandum of
Termination in connection with such termination.
NOW, THEREFORE, THE PARTIES HERETO ACKNOWLEDGE AND
AGREE AS FOLLOWS:
1. Termination.
The Site Lease, the Lease Agreement, the Memorandum of Lease Agreement, and
the Assignment Agreement each have terminated on September 2, 2014.
2. uitclaim.
To the extent that the Trustee has any remaining right, title and interest in the
Leased Property (including the land and any and all improvements on such land) whether
through the Indenture or any other prior instrument, the Trustee releases and quitclaims such
rights, title and interest to the City.
3. Governin�.
This Quitclaim and Memorandum of Termination shall be governed and
construed by the laws of the State of California.
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P6401-1039\1709916v1.doc
4. Counterparts.
This Quitclaim and Memorandum of Termination may be executed in
counterparts, and all such executed counterparts shall constitute the same instrument. It shall be
necessary to account for only one set of such counterparts in proving this Quitclaim and
Memorandum of Termination.
IN WITNESS WHEREOF, the parties hereto have entered into this Quitclaim and
Memorandum of Termination by their authorized signatories as of the date first written above.
PALM DESERT FINANCING AUTHORITY
By
John M. Wohlmuth
Chief Administrative Officer
CITY OF PALM DESERT
By
Van Tanner
Mayor
WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Trustee
By
Robert Schneider
Authorized Officer
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P6401-1039\1709916v1.doc
EXHIBIT A
Legal Description of the Real Property
PARCEL 1:
ALL THAT PORTION OF TRACT NO. 19074-1, IN THE CITY OP PALM DESERT, AS
SHOWN BY MAP ON FILE IN BOOK 141 PAGES 58 THROUGH 64, INCLUSIVE, OF
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHEAST CORNER OF LOT "A" OF SAID TRACT NO.
19074-1;
THENCE SOUTH 89° 51' 00"WEST ALONG THE NORTH LINE OF SAID LOT "A", A
DISTANCE OF 406.00 FEET;
THENCE LEAVING SAID NORTH LINE, NORTH 00° 09' 17"EAST ALONG A LINE
PARALLEL WITH THE EAST LINE OF SAID TRACT NO. 19074-1, A DISTANCE OF
201.00 FEET TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING NORTH 00° 09' 17"EAST ALONG SAID PARALLEL LINE A
DISTANCE OF 181.00 FEET;
THENCE SOUTH 89° 50' 43"EAST,A DISTANCE OF 42.00 FEET;
THENCE NORTH 00° 09' 17" EAST, ALONG A LINE PARALLEL WITH SAID EAST LINE
OF SAID TRACT NO. 19074-1, A DISTANCE OF 76.00 FEET;
THENCE NORTH 43°47' 18" EAST,A DISTANCE OF 147.81 FEET;
THENCE SOUTH 89° 50' 43"EAST,A DISTANCE OF 228.00 FEET TO A POINT IN A
LINE PARALLEL WITH AND DISTANT 34.00 FEET WESTERLY OF MEASURED AT
RIGHT ANGLES TO THE EAST LINE OF SAID TRACT NO. 19074-1;
THENCE SOUTH 00° 09' 17"WEST ALONG SAID PARALLEL LINE A DISTANCE OF
362.00 FEET TO A POINT IS NORTH 00° 09' 17" EAST, A DISTANCE OF 201.00 FEET
FROM SAID NORTH LINE OF SAID LOT "A";
THENCE SOUTH 89° 51' 00" WEST ALONG A LINE PARALLEL WITH AND DISTANT
201.00 FEET NORTHERLY OF, MEASURED AT RIGHT ANGLES TO SAID NORTH LINE
OF SAID LOT "A", A DISTANCE OF 372.00 FEET, TO THE TRUE POINT OF
BEGINNING.
PARCEL 2:
ALL THAT PORTION OF TRACT NO. 19074-1, IN THE CITY OF PALM DESERT, AS
SHOWN BY MAP ON FILE IN BOOK 141 PAGES 58 THROUGH 64, INCLUSIVE, OF
MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY
DESCRIBED AS FOLLOWS:
COMMENCING AT THE NORTHEAST CORNER OF SAID LOT "A" OF SAID TRACT NO.
19074-1;
A-1
P6401-1039\1709916v1.doc
THENCE SOUTH 89° 51' 00"WEST ALONG THE NORTH LINE OF SAID LOT "A", A
DISTANCE OF 34.00 FEET TO THE TRUE POINT OF BEGINNING;
THENCE CONTINUING SOUTH 89° 51' 00"WEST ALONG SAID NORTH LINE A
DISTANCE OF 372.00 FEET;
THENCE LEAVING SAID NORTH LINE, NORTH 00° 09' 17"EAST, ALONG A LINE
PARALLEL WITH THE EAST LINE OF SAID TRACT NO. 19074-1, A DISTANCE OF
201.00 FEET;
THENCE NORTH 89° 51' 00" EAST,ALONG A LINE PARALLEL WITH THE NORTH
LINE OF SAID LOT "A", A DISTANCE OF 372.00 FEET TO THE INTERSECTION WITH
A LINE PARALLEL WITH AND DISTANT 34.00 FEET WESTERLY OF, MEASURED AT
RIGHT ANGLES TO THE EAST LINE OF SAID TRACT NO. 19074-1;
THENCE SOUTH 00° 09' 17"WEST ALONG SAID PARALLEL LINE A DISTANCE OF
201.00 FEET TO THE TRUE POINT OF BEGINNING.
APN: 622-260-081 and 622-260-083
TRA 018-011
A-2
P6401-1039U 709916v l.doc
State of California )
County of )
On ,before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
State of California )
County of )
On , before me, ,
(inseR name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
P6401-1039\1709916v1.doc
State of California )
County of )
On , before me, ,
(insert name and title of the officer)
Notary Public, personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument
the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that
the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature (Seal)
P6401-1039\1709916v1.doc