HomeMy WebLinkAbout8/8/2017 - RESOLUTIONS - 047 RESOLUTION NO. 047
A RESOLUTION OF THE OVERSIGHT BOARD FOR THE SUCCESSOR
AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT
AGENCY DIRECTING PREPARATION OF PROCEEDINGS FOR THE
REFUNDING OF OUTSTANDING 2007 BONDS, APPROVING
ISSUANCE AND SALE OF REFUNDING BONDS, MAKING CERTAIN
DETERMINATIONS AND PROVIDING OTHER MATTERS RELATING
THERETO
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs
(the "Former Agency") was a public body, corporate and politic, duly established and
authorized to transact business and exercise powers under and pursuant to the
provisions of the Community Redevelopment Law of the State of California, constituting
Part 1 of Division 24 of the Health and Safety Code of the State (the "Code"), and
pursuant to Section 34172(a) of the Code, the Former Agency has been dissolved and
no longer exists as a public body, corporate and politic, and pursuant to Section 34173
of the Code the City of Palm Springs has become the successor entity to the Former
Agency (the "Successor Agency"); and
WHEREAS, prior to the dissolution of the Former Agency, the Former Agency
had issued the following bonds (collectively, the "Prior Bonds"):
(a) $12,770,000 aggregate principal amount of Community
Redevelopment Agency of the City of Palm Springs Merged Project
No. 1 Tax Allocation Bonds, 2007 Series A, and
(b) $6,495,000 aggregate principal amount of Community
Redevelopment Agency of the City of Palm Springs Merged Project
No. 2 Taxable Tax Allocation Bonds, 2007 Series C; and
WHEREAS, Section 34177.5(a)(1) authorizes the Successor Agency to
undertake proceedings for the refunding of outstanding bonds and other obligations of
the Former Agency in order to achieve debt service savings within the parameters set
forth in Section 34177.5(a)(1) (the "Savings Parameters"), and to issue bonds for such
purpose pursuant to Article 11 (commencing with Section 53580) of Chapter 3 of Part 1
of Division 2 of Title 5 of the Government Code (the "Refunding Law"); and
WHEREAS, pursuant to Section 34179 of the Code, this oversight board (the
"Oversight Board") has been established for the Successor Agency; and
WHEREAS, the City Council, acting as the governing board of the Successor
Agency, has adopted its resolution on July 26, 2017 (the "Successor Agency
Resolution") under which the Successor Agency has authorized the issuance of one or
more series of tax-exempt and taxable refunding bonds (collectively, the "Refunding
Resolution No.047 CRA Oversight Board Page 2
Bonds") under the Refunding Bond Law for the purpose of refunding all or a portion of
the Prior Bonds, provided that the Savings Parameters is achieved with respect to the
refunding of the Prior Bonds as set forth in Section 34177.5(a)(1) of the Code; and
WHEREAS, in the Successor Agency Resolution, the Successor Agency has
requested that the Oversight Board direct the Successor Agency to undertake
proceedings for the issuance of the Refunding Bonds; and
WHEREAS, following approval by the Oversight Board of the issuance of the
Refunding Bonds by the Successor Agency and upon approval by the California
Department of Finance, the Successor Agency is expected to sell the Refunding Bonds
on a negotiated basis to Stifel Nicolaus & Company, Incorporated, such sale to be
accomplished pursuant to a bond purchase agreement in the form approved by the
Successor Agency pursuant to the Successor Agency Resolution; and
WHEREAS, the Successor Agency has caused an analysis to be made of the
potential savings that will accrue to the Successor Agency and other affected taxing
entities as a result of the refunding of the Prior Bonds (the "Debt Service Savings
Analysis") and has presented the Debt Service Savings Analysis to the Oversight Board
for its consideration; and
WHEREAS, the Oversight Board has completed its review of the refunding
proceedings and wishes at this time to give its approval to the issuance and sale of the
Refunding Bonds by the Successor Agency and certain matters relating thereto;
NOW, THEREFORE, BE IT RESOLVED BY THE OVERSIGHT BOARD FOR
THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY, AS FOLLOWS:
Section 1. Debt Service Savings Analysis. The Successor Agency has filed
the Successor Agency Resolution and the Debt Service Savings Analysis with the
Oversight Board, which Debt Service Savings Analysis is hereby approved as
demonstrating the potential savings that may result from the refunding of the Prior
Bonds, in whole or in part.
Section 2. Direction to Refund. As requested by the Successor Agency in the
Successor Agency Resolution, the Oversight Board hereby directs the Successor
Agency to undertake the refunding of the Prior Bonds, in whole or in part. As set forth in
the Successor Agency Resolution, the Refunding Bonds shall only be issued to refund
the Prior Bonds in the event that the Savings Parameters set forth in Section
34177.5(a)(1) of the Code are met with respect to such refunding.
Section 3. Approval of Issuance and Sale of the Refunding Bonds. As
authorized by Sections 34177.5(f) and 34180 of the Code, the Oversight Board hereby
approves the Successor Agency Resolution and the issuance by the Successor Agency
of the Refunding Bonds pursuant to Section 34177.5(a)(1) of the Code and under the
Resolution No. 047 CRA Oversight Board Page 3
applicable provisions of the Refunding Law in the aggregate principal amount of not to
exceed $20,000,000, and as provided in the Successor Agency Resolution and the
Indenture of Trust and the respective Supplemental Indentures relating to the Refunding
Bonds (the "Refunding Bonds Indenture") as approved pursuant to the Successor
Agency Resolution, provided that the principal and interest payable with respect to the
Refunding Bonds shall comply in all respects with the requirements of the Savings
Parameters. The Oversight Board hereby approves the execution and delivery by the
Successor Agency of all of the agreements, certificates and other documents which are
approved pursuant to the Successor Agency Resolution.
Section 4. Determinations by the Oversight Board. The Oversight Board
hereby determines (upon which determination the Successor Agency may rely in
undertaking the refunding proceedings and the issuance and sale of the Refunding
Bonds) that the authorization and sale of the Refunding Bonds, and the application of
proceeds thereof to the refunding of all or a portion of the Prior Bonds and the payment
of costs of issuance, as provided in the Refunding Bond Indenture and authorized by
§34177.5(a)(1) of the Code, shall be implemented by the Successor Agency promptly
upon sale and delivery of the Refunding Bonds, without the requirement for further
approval from the Oversight Board, the California Department of Finance, the Riverside
County Auditor-Controller or any other person or entity other than the Successor
Agency.
Section 5. Actions to Effectuate Resolution. The members of the Oversight
Board and the staff of the Successor Agency are hereby authorized, jointly and
severally, to do all things which they may deem necessary or proper to effectuate the
purposes of this Resolution and the Refunding Bonds Indenture.
PASSED, APPROVED AND ADOPTED at a meeting of the Oversight Board on
the 8th day of August, 2017, by the following votes:
LISA HOW11C
Chair
ATTEST:
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KATHLEEN D. HART, MMC
Interim Clerk/Secretary
Resolution No. 047 CRA Oversight Board Page 4
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim Clerk/Secretary of the Oversight Board for the
Successor Agency of the Palm Springs Community Redevelopment Agency hereby
certify that Resolution No. 047 was adopted by the Oversight Board at a Special
Meeting held on the 8'" day of August, 2017, by the following vote:
AYES: Board Members Arthur, Ready, Van Horn, and Chair Howell
NOES: None
ABSENT: Board Member Foat, and Chair Vice Chair Marshall
ABSTAIN: None
Kathleen D. Hart, MMC
Interim Clerk/Secretary