HomeMy WebLinkAbout6/20/2001 - STAFF REPORTS (7) RESOLUTION NO. 1131
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS AUTHORIZING AND DIRECTING THE
ISSUANCE OF NOT TO EXCEED $6,000,000 PRINCIPAL
AMOUNT OF ITS 2001 HOUSING TAX ALLOCATION
BONDS, THE APPROVAL OF A PURCHASE CONTRACT
FOR THE PURCHASE THEREOF, AND AUTHORIZING
CERTAIN OTHER OFFICIAL ACTIONS AND PROVIDING
FOR OTHER MATTERS PROPERLY RELATING
THERETO
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs (the
"Agency") is a redevelopment agency, a public body, corporate and politic duly created,
established and authorized to transact business and exercise its powers, all under and pursuant to
the Community Redevelopment Law, being Part 1 of Division 24 (commencing with Section
33000) of the Health and Safety Code of the State of California (the "Law") and the powers of
such agency include the power to incur indebtedness for the purpose of financing and refinancing
redevelopment activities within and of benefit to its redevelopment project areas and to issue
bonds for any of its corporate powers; and
WHEREAS, the City of Palm Springs Financing Authority (the "Authority") is a Joint
Powers Authority (a public body, corporate and politic) duly created, established and authorized
to transact business and exercise its powers, all under and pursuant to the Joint Powers Law
(Articles 1 through 4 of Chapter 5, Division 7, Title 1 of the California Government Code); and
WHEREAS, $14,030,000 aggregate principal amount of the Authority's Revenue (Tax
Allocation) Bonds, 1991 Series B (Agency Loans) (the "1991 Bonds") were sold and delivered
on September 5, 1991; and
WHEREAS, the Authority loaned the proceeds of the 1991 Bonds to the Agency for
deposit in the Low and Moderate Income Housing Fund (the "Housing Loan") and for deposit in
the Redevelopment Fund (the "Project Loans") under and pursuant to a loan agreement, dated as
of September 1, 1991 (the "1991 Loan Agreement"); and
WHEREAS, a portion of the 1991 Bonds relating to the Project Loans were previously
refunded and the Agency now finds it desirable to issue its 2001 Housing Tax Allocation Bonds
(the "2001 Bonds") for the purpose, among others, of prepaying the Housing Loan under the
1991 Loan Agreement; and
WHEREAS, the prepayment under the 1991 Loan Agreement will result in the refunding
of the outstanding 1991 Bonds; and
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WHEREAS, the Agency finds and determines that it is within the authority of the
Agency and is a public purpose that the Agency approve the delivery and sale of the 2001 Bonds
for said purposes and that there are significant public benefits arising from the taking of such
action; and
WHEREAS, in connection with the marketing of the 2001 Bonds, it is now necessary and
desirable to approve the form of the Indenture, the Escrow Deposit Agreement, and the
Preliminary Official Statement with respect to the 2001 Bonds, and take certain other action with
regard to the marketing of the 2001 Bonds.
NOW, THEREFORE, BE IT RESOLVED, by the Community Redevelopment Agency
of the City of Palm Springs, as follows:
SECTION 1. The above recitals are true and correct.
SECTION 2. Pursuant to the Law, the Authority hereby approves the issuance of the
2001 Bonds in an aggregate principal amount of not to exceed $6,000,000.
SECTION 3. That the form of the Indenture, dated as of July 1, 2001, by and among
BNY Western Trust Company, as trustee (the "Trustee"), and the Agency, a copy of which is on
file with the Secretary of Agency, be and is hereby approved in substantially the form thereof or
with such changes as may be approved by the Chairperson or Vice Chairperson or Executive
Director or Treasurer of the Agency, said Chairperson's or Vice Chairperson's or Executive
Director's or Treasurer's execution thereof to constitute conclusive evidence of said officer's
approval of all such changes, and the Chairperson or Vice Chairperson or Executive Director or
Treasurer of the Agency be and is hereby authorized, together or alone, to execute and deliver
said Agreement.
SECTION 4. That the form of Escrow Deposit and Trust Agreement, dated as of July 1,
2001, by and between BNY Western Trust Company, as Escrow Bank, the Agency and the
Authority, a copy of which is on file with the Secretary of the Agency, be and is hereby approved
in substantially the form thereof, or with such changes as may be approved by the Chairperson or
Vice Chairperson or Executive Director or Treasurer of the Agency, said Chairperson's or Vice
Chairperson's or Executive Director's or Treasurer's execution thereof to constitute conclusive
evidence of said officer's approval of all such changes, and the Chairperson or Vice Chairperson
or Executive Director or Treasurer of the Agency be and is hereby authorized, together or alone,
to execute and deliver said Agreement.
SECTION 5. That the form of Contract of Purchase relating to the purchase of the 2001
Bonds by Stone & Youngberg, LLC, a copy of which is on file with the Secretary of the Agency,
be and is hereby approved in the form thereof, or with such changes as may be approved by the
Chairperson or any Vice Chairperson or Executive Director or Treasurer of the Agency, said
Chairperson's and Vice Chairperson's or Executive Director's or Treasurer's execution thereof
to constitute conclusive evidence of said officer's approval of all such changes, and the
Chairperson or any Vice Chairperson or Executive Director or Treasurer of the Agency be and is
hereby authorized, together or alone, to execute and deliver said Agreement and to insert in each
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of the aforesaid Agreement the dollar amount which reflects the provisions of said Contract of
Purchase. Provided, however, that (1) the aggregate principal amount of the 2001 Bonds shall
not exceed $6,000,000; and (2) the Agency shall have received from Stone & Youngberg, LLC,
prior to the sale of the 2001 Bonds, its written confirmation that the 2001 Bonds will have a True
Interest Cost of not more than 7%, with an initial underwriter's discount of no more than
1.50%Code.
SECTION 6. That the Preliminary Official Statement relating to the 2001 Bonds is
approved for distribution by the underwriter, to municipal bond broker-dealers, to banking
institutions, and to members of the general public who may be interested in purchasing the 2001
Bonds. The Executive Director or Assistant Executive Director or Treasurer is authorized to
approve the amendment of the Preliminary Official Statement, from time to time, pending
distribution of the Preliminary Official Statement as shall be required to cause such Preliminary
Official Statement to contain any further information necessary to accurately describe the 2001
Bonds and the Agency's Executive Director or Assistant Executive Director or Treasurer is
authorized to deem final the Preliminary Official Statement as of its date for the purpose of Rule
15c2-12 under the Securities Exchange Act of 1934 as amended. The final Official Statement
relating to the 2001 Bonds shall be submitted to the Executive Director or the Assistant
Executive Director or Treasurer of the Agency for approval.
SECTION 7. That the form of the Continuing Disclosure Agreement, dated as of July 1,
2001, executed and delivered by the Agency and BNY Western Trust Company, as Trustee and
acting in its capacity as Dissemination Agent thereunder, a copy of which is on file with the
Secretary of the Agency, be and is hereby approved in substantially the form thereof, or with
such changes as may be approved by the Chairperson or Vice Chairperson or Executive Director
or Treasurer of the Agency, said Chairperson's or Vice Chairperson's or Executive Director's or
Treasurer's execution thereof to constitute conclusive evidence of said officer's approval of all
such changes, and the Chairperson or Vice Chairperson or Executive Director or Treasurer of the
Agency be and is hereby authorized, together or alone, to execute and deliver said Agreement.
SECTION 8. The financing consultant firm of Harrell & Company Advisors, LLC,
Orange, California, is hereby appointed as financial advisor to the Agency with respect to the
2001 Bonds.
SECTION 9. The law firm of Burke, Williams & Sorensen, LLP, Irvine, California, is
hereby appointed as Bond Counsel with respect to the 2001 Bonds.
SECTION 10. The law firm of Jones Hall, San Francisco, California, is hereby appointed
as Disclosure Counsel with respect to the 2001 Bonds.
SECTION 11. That the Chairperson, Vice Chairperson, Secretary, Treasurer and
Executive Director and other authorized officers of the Agency be and are hereby each
authorized to execute and deliver such certificates, requests, statements, agreements and other
documents and to take such other action as may be necessary to consummate the transactions
contemplated by each aforesaid Agreement.
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SECTION 12. This resolution shall take effect and be enforceable immediately upon its
adoption.
ADOPTED THIS _day of June 2001.
AYES: Members
NOES: Members
ABSENT: Members
ATTEST: COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM
SPRINGS
By:
Secretary Chairperson
REVIEWED & APPROVED
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