RES FA-55RESOLUTION NO. FA-55
— A RESOLUTION OF THE PALM DESERT FINANCING AUTHORITY
ACKNOWLEDGING A FINDING OF SIGNIFICANT BENEFIT AND
AFFIRMING THE AUTHORITY'S APPROVAL OF DOCUMENTS AND
CERTAIN OTHER MATTERS RELATING TO THE ISSUANCE, SALE
AND DELIVERY OF THE AUTHORITY'S TAX ALLOCATION REVENUE
BONDS (PROJECT AREA NO. 1, AS AMENDED), 2006 SERIES A,
AND TAX ALLOCATION REFUNDING REVENUE BONDS (PROJECT
AREA NO. 1, AS AMENDED), 2006 SERIES B (TAXABLE)
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 (the "City") 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
Revenue Bonds (Project Area No. 1, As Amended), 2006 Series A (the "Series 2006A
Bonds") and Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As
Amended), 2006 Series B (Taxable) (the "Series 2006E Bonds," and together with the
Series 2006A Bonds, the "Bonds") to be issued and secured pursuant to an indenture of
trust (the "Indenture"); and
WHEREAS, proceeds of the Series 2006A Bonds are to be applied to
make a loan to the Agency pursuant to a loan agreement (the "Loan Agreement") for the
object and purpose of, among other things, assisting in the financing of certain public
capital improvements of benefit to Project Area No. 1, As Amended, of the Agency; and
WHEREAS, proceeds of the Series 2006B Bonds are to be applied to
make a second loan to the Agency pursuant to the Loan Agreement for the object and
purpose of, among other things, effecting the refunding of the portion of the Authority's
Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), Series 1997,
scheduled to mature on April 1, 2023; and
WHEREAS, on April 27, 2006, the City Council of the City of Palm Desert
adopted its Resolution No. 06-56 ("City Council Resolution No. 06-56), making certain
findings, including a finding of significant benefits, with respect to (i) the refinancing to
be accomplished through the issuance of the Series 2006E Bonds, and (ii) the financing
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RESOLUTION NO. FA-55
of certain capital improvement projects through the issuance of the Series 2006A
Bonds; and
WHEREAS, on April 27, 2006, the Authority adopted Resolution No. FA-
51 and Resolution No. FA-53, approving the forms of documents relating to the
issuance of the Bonds, authorizing the execution and delivery thereof and setting forth
certain parameters with respect to the terms of the Bonds; and
WHEREAS, City Resolution No. 06-56 identified certain projects proposed
to be financed with the proceeds of the Series 2006A Bonds; and
WHEREAS, upon further review, Agency Staff has proposed to modify the
projects, to include the following (collectively, the "Projects"): (i) core commercial areas
projects (including public infrastructure, parking improvements and other improvements
at and around Westfield shopping center, Highway 111 and El Paseo); (ii)
improvements to frontage roads along Highway 111 — Alessandro Alleyway (including
street landscaping, parking improvements and other improvements); (iii) renovation and
improvement of parking facilities at President's Plaza; (iv) El Paseo (west of Highway
74) extension and upgrade (including median work, landscaping, lighting and other
related improvements); (v) development of a multi -purpose community center at El
Paseo and Highway 111; (vi) construction of Portola Avenue Bridge across the
Whitewater Channel; (vii) widening of Monterey Avenue from Magnesia Falls Drive to
Gerald Ford Drive; (viii) widening of Portola Avenue between Fred Waring Drive and
Magnesia Falls Drive; and (ix) undergrounding of neighborhood utilities throughout the
Project Area; and
WHEREAS, on June 8, 2006, after a duly held public hearing, the City
Council adopted a new resolution, (i) finding that the financing of the Projects, as now
proposed by the Agency Staff, through the issuance by the Authority of the Series
2006A Bonds will result in significant public benefits to the constituents of the Agency
and the City of Palm Desert, and (ii) affirming the City Council's approval of the
issuance of the Bonds by the Authority;
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 Citv Council Findings. The Authority
hereby acknowledges and concurs with the City Council's finding of significant public
benefits and hereby approves and authorizes the issuance and sale of the Bonds.
Section 3.Affirmation of Resolution No. FA-51 and Resolution No. FA-53.
Except as set forth in the next sentence, the Authority hereby affirms Resolution No.
FA-51 and Resolution No. FA-53 (the "Prior Resolutions") in their entirety, including the
approval, authorization and direction for the issuance of the Bonds, the execution and
delivery of the Indenture, Loan Agreement, the Escrow Agreement, the Official
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RESOLUTION NO. FA-55
Statement and the Purchase Agreement. The Authority hereby further affirms the
parameters for the terms of the Bonds as set forth in Section 10 of Prior Resolutions,
except that the true interest cost with respect to the Series 2006A Bonds shall not
exceed 6.25 percent.
Section 4.Other Acts. The 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 and the Prior Resolutions, and any such actions
previously taken by such officers are hereby ratified and confirmed.
Section 5. Effective Date. This Resolution shall take effect immediately
upon adoption.
APPROVED AND ADOPTED this 8th day of June 2006 by following vote to wit:
AYES: BENSON, CRITES, KELLY, SPIEGEL, and FERGUSON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
JIM FEI�GLf$Q'N, PRESIDENT
ATTEST:
HELLE D. KLASSEK SECRETARY'
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