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SUCCESSOR AGENCY STAFF REPORT
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DATE: JULY 26, 2017 NEW BUSINESS
SUBJECT: AUTHORIZE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS
FROM: DAVID H. READY, CITY MANAGER
BY: SUZANNE HARRELL, CITY FINANCIAL ADVISOR
SUMMARY
When the Palm Springs Redevelopment Agency was dissolved, there were six series of
tax allocation bonds previously issued and outstanding. The Dissolution Act permits
successor agencies to refinance outstanding bonds or other obligations of a former
redevelopment agency under certain circumstances.
If approved, the resolution would authorize refunding two of the remaining three series
of outstanding bonds issued by the former agency, with an expected total savings of
$3.8 million over 17 years, of which approximately $1.1 million is the City's share
($70,000 annually).
RECOMMENDATION:
Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS
THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY APPROVING THE ISSUANCE OF 2017 TAX
ALLOCATION REFUNDING BONDS TO REFUND CERTAIN OUTSTANDING
OBLIGATIONS OF THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, APPROVING THE EXECUTION AND DELIVERY OF
A FIRST SUPPLEMENT TO INDENTURE OF TRUST, A SECOND SUPPLEMENT TO
INDENTURE OF TRUST, ESCROW AGREEMENTS, BOND PURCHASE
AGREEMENT AND PRELIMINARY AND FINAL OFFICIAL STATEMENTS AND
PROVIDING OTHER MATTERS RELATING TO THE ISSUANCE OF THE
REFUNDING BONDS."
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SUCCESSOR AGENCY STAFF REPORT
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DATE:DATE: JULY 26, 2017 NEW BUSINESS
SUBJECT: AUTHORIZE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS
FROM: DAVID H. READY, CITY MANAGER
BY: SUZANNE HARRELL, CITY FINANCIAL ADVISOR
SUMMARY
When the Palm Springs Redevelopment Agency was dissolved, there were six series of
tax allocation bonds previously issued and outstanding. The Dissolution Act permits
successor agencies to refinance outstanding bonds or other obligations of a former
redevelopment agency under certain circumstances.
If approved, the resolution would authorize refunding two of the remaining three series
of outstanding bonds issued by the former agency, with an expected total savings of
$3.8 million over 17 years, of which approximately $1.1 million is the City's share
($70,000 annually).
RECOMMENDATION:
Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS
THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY APPROVING THE ISSUANCE OF 2017 TAX
ALLOCATION REFUNDING BONDS TO REFUND CERTAIN OUTSTANDING
OBLIGATIONS OF THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, APPROVING THE EXECUTION AND DELIVERY OF
A FIRST SUPPLEMENT TO INDENTURE OF TRUST, A SECOND SUPPLEMENT TO
INDENTURE OF TRUST, ESCROW AGREEMENTS, BOND PURCHASE
AGREEMENT AND PRELIMINARY AND FINAL OFFICIAL STATEMENTS AND
PROVIDING OTHER MATTERS RELATING TO THE ISSUANCE OF THE
REFUNDING BONDS."
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SUCCESSOR AGENCY STAFF REPORT
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DATE: JULY 26, 2017 NEW BUSINESS
SUBJECT: AUTHORIZE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS
FROM: DAVID H. READY, CITY MANAGER
BY: SUZANNE HARRELL, CITY FINANCIAL ADVISOR
SUMMARY
When the Palm Springs Redevelopment Agency was dissolved, there were six series of
tax allocation bonds previously issued and outstanding. The Dissolution Act permits
successor agencies to refinance outstanding bonds or other obligations of a former
redevelopment agency under certain circumstances.
If approved, the resolution would authorize refunding two of the remaining three series
of outstanding bonds issued by the former agency, with an expected total savings of
$3.8 million over 17 years, of which approximately $1.1 million is the City's share
($70,000 annually).
RECOMMENDATION:
Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS
THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY APPROVING THE ISSUANCE OF 2017 TAX
ALLOCATION REFUNDING BONDS TO REFUND CERTAIN OUTSTANDING
OBLIGATIONS OF THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, APPROVING THE EXECUTION AND DELIVERY OF
A FIRST SUPPLEMENT TO INDENTURE OF TRUST, A SECOND SUPPLEMENT TO
INDENTURE OF TRUST, ESCROW AGREEMENTS, BOND PURCHASE
AGREEMENT AND PRELIMINARY AND FINAL OFFICIAL STATEMENTS AND
PROVIDING OTHER MATTERS RELATING TO THE ISSUANCE OF THE
REFUNDING BONDS."
tTEM N0.
Successor Agency Staff Report
July 26, 2017-- Page 2
Authorize Issuance of Tax Allocation Refunding Bonds
STAFF ANALYSIS:
When the Palm Springs Redevelopment Agency was dissolved as a result of the
Dissolution Act, the Agency had 6 series of tax allocation bonds outstanding. The
Dissolution Act authorizes refinancing of the former Agency debt if debt service on the
bonds can be reduced.
In 2014, the Successor Agency refinanced the former Agency's 2001 Housing Tax
Allocation Bonds, 2004 Series A Tax Allocation Refunding Bonds and 2004 Series B
Tax Allocation Refunding Bonds, reducing debt service by $6.8 million over 20 years.
The City's share of the increased Redevelopment Property Tax Trust Fund (RPTTF)
residual generated as a result of those debt service savings is approximately 31%, or
$2.1 million.
There are 3 remaining series of outstanding bonds issued by the former Agency. The
former Agency's outstanding bonds (after the upcoming September 1, 2017 payment)
are shown below:
Taxable Taxable
2007 Series A 2007 Series B 2007 Series C
Outstanding $12,420,000 $1,850,000 $5,335,000
Final Maturity 2034 2034 2034
Average Interest Rate 4.95% 6.14% 6.41%
The 2007 Series B Bonds and 2007 Series C Bonds were issued on a taxable basis and
had a higher interest rate. The Series B and Series C Bonds were issued to fund the
acquisition of the Suitt-Block parcel, which is held for possible future development.
The Successor Agency's Financial Advisor estimates that refinancing of the taxable
2007 Series C Bonds will be at an effective rate of 4.3%. The Financial Advisor also
recommends refinancing the tax-exempt 2007 Series A Bonds. The estimated effective
rate for the tax-exempt bonds is 3.5%. The repayment is scheduled to occur over the
same term as the existing bonds.
Refinancing the 2007 Series B Bonds does not meet the refunding requirements of the
Dissolution Act at this time.
The total debt service savings over the remaining 17 years that the Series A Bonds and
Series C Bonds are outstanding is approximately $3.8 million, which will increase the
RPTTF residual available to be distributed to all taxing agencies. The City currently
receives approximately 31% of the residual RPTTF. Assuming that the savings are not
applied to other enforceable obligations of the Successor Agency, the City's share of
the additional residual property tax generated by the debt service savings would be
average of $69,000 annually. The remainder of the savings would also be distributed to
,► ., 02
Successor Agency Staff Report
July 26, 2017 -- Page 3
Authorize Issuance of Tax Allocation Refunding Bonds
the County, the School District, the College District and other taxing agencies through
the regular RPTTF distribution process.
Between the time that the refinancing is approved by the Successor Agency and the
time that the Successor Agency can actually enter the market to sell the refunding
bonds based on the Health & Safety Code (HSC) requirements (discussed below),
interest rates could increase, and debt service savings may be reduced. Therefore, the
current estimate of $$3.8 million savings to be shared among taxing agencies over the
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next 18 years is an estimate at this time. For every /4/o increase in the bonds interest
rate, the total savings will be reduced by $475,000, or an average annual savings
reduction of$28,000, of which $8,700 is the General Fund's share.
Authorization Process
The Dissolution Act has added a number of steps to the traditional refinancing process,
and requires more time to actually get the bonds to market. If the Board takes the
recommended action and adopts the resolution authorizing the refinancing of the bonds,
the Oversight Board will be resented with a companion resolution approving the action
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taken by your Board. This Oversight Board action must be submitted to and approved
by the DOF for conformity with the provisions of HSC 34177.5(a)(1). DOF can take up
to 60 days from the time the Oversight Board resolution is submitted to approve the
financing.
The Resolution presented for Successor Agency Board approval authorizes the
issuance of the Refunding Bonds in two series, and approves the forms of the following
documents:
First Supplement to Indenture of Trust;
Second Supplement to Indenture of Trust;
Escrow Deposit and Trust Agreement — 2007 Series A Bonds;
Escrow Deposit and Trust Agreement — 2007 Series C Bonds;
Bond Purchase Contract;
Preliminary Official Statement; and
Continuing Disclosure Certificate (appended to the Preliminary Official Statement).
The Resolution also approves the distribution of the preliminary official statement for the
bonds, entering into the Bond Purchase Contract with Stifel Nicolaus & Company to
underwrite the bonds and authorize any other actions needed in connection with the
bonds. The Preliminary Official Statement is included with this report for the Board's
review, and the forms of the other documents are on file with the City Clerk. The
resolution authorizes the City Manager, as the chief administrative officer of the
Successor Agency, to enter into the Bond Purchase Contract so long as the principal
amount does not exceed $20,000,000 for the aggregate two series of Tax-Exempt and
Taxable Bonds, the underwriters' compensation is not more than 1% of the principal
03
Successor Agency Staff Report
July 26, 2017 -- Page 4
Authorize Issuance of Tax Allocation Refunding Bonds
amount of the Bonds and the debt service savings meet the requirements of
34177.5(a)(1) of the Dissolution Act.
The bonds are expected to be sold in late October after DOF approval is received.
The Board members are asked to review the description of the Successor Agency and
the financial information relating to the Successor Agency's finances that are included in
the Preliminary Official Statement and communicate any changes to staff prior to
October 1.
Staff has prepared a resolution for consideration by the Oversight Board to direct the
Successor Agency to refinance the 2007 Series A Bonds and 2007 Series C Bonds. If
your Board adopts the resolution approving the refinancing, the Oversight Board
resolution will be presented to the Oversight Board at their next meeting.
FISCAL IMPACT:
The increase in the residual property tax (or former tax increment) that gets distributed
to all the taxing entities (including the City) will increase by approximately $3.8 million
over 17 years. To the extent the incremental residual property tax is not used for other
Successor Agency enforceable obligations, it will be distributed to taxing agencies,
including the City, through the regular RPTTF distribution process. The City's share of
the increased residual is approximately $1.1 million based on today's interest rates.
The total savings, and therefore the City's share, are calculated net of the cost of
issuing the Refunding Bonds. The fixed costs of issuance, including the underwriter
compensation, but excluding bond insurance (which is only paid to the extent that it
reduces the interest rates), are summarized below. The costs are contingent and are
payable from the proceeds of the Bonds (see attached Exhibit A for bond issuance cost
comparisons with other jurisdictions). The Dissolution Act also provides that staff costs
related to refunding proceedings can be recovered as authorized by HSC §34177.5(f).
Bond Counsel $ 72,500
Disclosure Counsel 30,000
Financial Advisor 70,000
Trustee 10,000
Printing 1,500
Rating Agency 20,000
Staff Cost Reimbursement 7,500
Other Expenses 3,500
Underwriter Discount 105,000
Total $320,000
04
Successor Agency Staff Report
July 26, 2017 --Page 5 ,
Authorize Issuance of Tax Allocation Refunding Bonds
Suzanne Harrell Geoffrey Kiehl
City Financial Advisor Director of Finance and Treasurer
c
David H. Ready, Esq., P D. Marcus Fuller
City Manager Assistant City Manager
Attachments:
1. Resolution
2. Preliminary Official Statement
3. Debt Service Savings Analysis
4. Exhibit A, Comparison of Financing Fees
05
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS
CAPACITY AS THE SUCCESSOR AGENCY TO THE PALM
SPRINGS COMMUNITY REDEVELOPMENT AGENCY
APPROVING THE ISSUANCE OF 2017 TAX ALLOCATION
REFUNDING BONDS TO REFUND CERTAIN OUTSTANDING
OBLIGATIONS OF THE FORMER COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS, APPROVING THE EXECUTION AND DELIVERY OF
A FIRST SUPPLEMENT TO INDENTURE OF TRUST, A
SECOND SUPPLEMENT TO INDENTURE OF TRUST,
ESCROW AGREEMENTS, BOND PURCHASE AGREEMENT
AND PRELIMINARY AND FINAL OFFICIAL STATEMENTS AND
PROVIDING OTHER MATTERS RELATING TO THE ISSUANCE
OF THE REFUNDING BONDS
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 'Redevelopment
Law"); and
WHEREAS, redevelopment plans for the redevelopment project areas
designated 'Palm Springs Merged Redevelopment Project No. 1" and "Palm Springs
Merged Redevelopment Project No. 2" in the City of Palm Springs, California, were
adopted in compliance with all requirements of the Redevelopment Law; and
WHEREAS, pursuant to Section 34172(a) of the California Health and Safety
Code (unless otherwise noted, all Section references hereinafter being to such Code),
the Former Agency has been dissolved and no longer exists as a public body, corporate
and politic, and pursuant to Section 34173, 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
previously issued the following 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 (the "2007 Series A
Bonds"), 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 (the "2007
Series C Bonds"); and
06
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, the Successor Agency has determined, based on current conditions
in the municipal bond market, that it will achieve debt service savings by refunding the
2007 Series A Bonds and the 2007 Series C Bonds in compliance with the Savings
Parameters as evidenced by the analysis prepared by its Municipal Advisor, Harrell &
Company Advisors, LLC describing potential savings that will accrue to the Successor
Agency and to applicable taxing entities as a result of the refunding of the 2007 Series A
Bonds and the 2007 Series C Bonds (the "Debt Service Savings Analysis"); and
WHEREAS, the Successor Agency has previously issued its $15,635,000
aggregate principal amount of Successor Agency to the Palm Springs Community
Redevelopment Agency 2014 Subordinate Tax Allocation Refunding Bonds (the "2014
Bonds") for the purpose of refunding outstanding bonds of the Former Agency, pursuant
to an Indenture of Trust dated as of July 1, 2014 (the "2014 Bond Indenture"), between
the Successor Agency and U.S. Bank National Association, as trustee (the "Trustee");
and
WHEREAS, the Successor Agency proposes to achieve the potential debt
service savings evidenced by the Debt Service Savings Analysis with respect to the
refunding of the 2007 Series A Bonds by the issuance of its Successor Agency to the
Palm Springs Community Redevelopment Agency Tax Allocation Refunding Parity
Bonds, 2017 Series A (the "Series A Refunding Bonds"), on a parity with the 2014
Bonds, pursuant to the Law, the Refunding Law and a First Supplement to Indenture of
Trust (the "First Supplemental Indenture") between the Successor Agency and the
Trustee, in substantially the form on file with the Interim City Clerk, acting in the capacity
as secretary of the Successor Agency(the "Interim Secretary"); and
WHEREAS, the Successor Agency proposes to achieve the potential debt
service savings evidenced by the Debt Service Savings Analysis with respect to the
refunding of the 2007 Series C Bonds by the issuance of its Successor Agency to the
Palm Springs Community Redevelopment Agency Taxable Tax Allocation Refunding
Parity Bonds, 2017 Series B (the "Series B Refunding Bonds"), also on a parity with the
2014 Bonds, pursuant to the Law, the Refunding Law and a Second Supplement to
Indenture of Trust (the "Second Supplemental Indenture") between the Successor
Agency and the Trustee, in substantially the form on file with the Interim Secretary; and
WHEREAS, pursuant to Section 34179, an oversight board (the "Oversight
Board") has been established for the Successor Agency and the Successor Agency
requests that the Oversight Board direct the Successor Agency to undertake
proceedings for the issuance of the Refunding Bonds, it being understood that such
direction by the Oversight Board will enable the Successor Agency to recover its related
costs in connection with the refunding proceedings, as authorized by Section 34177.5(f);
WHEREAS, the Successor Agency, with the aid of its staff, has reviewed the
First Supplemental Indenture, the Second Supplemental Indenture, the separate Escrow
07
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Agreements relating to the refunding of the 2007 Series A Bonds and the 2007 Series C
Bonds (collectively, the "Escrow Agreements") and the Bond Purchase Agreement and
the Successor Agency wishes to authorize the issuance, sale and delivery of the Series
A Refunding Bonds and the Series B Refunding Bonds (collectively, the "Refunding
Bonds") and to approve the First Supplemental Indenture, the Second Supplemental
Indenture, the Escrow Agreements and the Bond Purchase Agreement; and
WHEREAS, the Successor Agency also requests that the Oversight Board
approve the issuance, sale and delivery of the Refunding Bonds by the Successor
Agency, as authorized by Section 34177.5(f), and that the Oversight Board make certain
determinations described below on which the Successor Agency will rely in undertaking
the refunding proceedings and the issuance, sale and delivery of the Refunding Bonds;
and
WHEREAS, the Successor Agency has determined to sell the Refunding Bonds
to Stifel, Nicolaus & Company, Inc. (the "Underwriter") pursuant to a Bond Purchase
Agreement between the Successor Agency and the Underwriter (the "Bond Purchase
Agreement'), the form of which is on file with the Interim Secretary; and
WHEREAS, the Successor Agency has caused to be prepared a form of Official
Statement describing the Refunding Bonds and containing material information relating
to the Refunding Bonds, the preliminary form of which is on file with the Interim
Secretary;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm
Springs, California, acting solely in its capacity as the Successor Agency to the Palm
Springs Community Redevelopment Agency, as follows:
Section 1. Determination of Savings. The Successor Agency has determined
that there are significant potential savings available to the Successor Agency and to
applicable taxing entities in compliance with the Savings Parameters by the issuance by
the Successor Agency of the Refunding Bonds to provide funds to refund the 2007
Series A Bonds and the 2007 Series C Bonds, all as evidenced by the Debt Service
Savings Analysis on file with the Interim Secretary, which Debt Service Savings Analysis
is hereby approved.
Section 2. Request for Direction. The Oversight Board is hereby requested to
direct the Successor Agency to undertake the refunding proceedings pursuant to Section
34177.5(a)(1) for the issuance, sale and delivery of the Refunding Bonds.
Section 3. Approval of Issuance of the Refunding Bonds. The Successor
Agency hereby authorizes and approves the issuance of the Refunding Bonds pursuant
to the Refunding Law in the aggregate principal amount of not to exceed $20,000,000 in
one or more series for the purpose of providing funds to refinance the 2007 Series A
Bonds and the 2007 Series C Bonds in whole or in part. The Successor Agency further
authorizes the sale of the Refunding Bonds, provided that the Refunding Bonds shall
bear interest at such rates and shall be sold at such a price so as to achieve the Savings
Parameters required to be met by Section 34177.5(a)(1).
Section 4. Supplemental Indentures. The Successor Agency hereby
approves the First Supplemental Indenture which supplements the 2014 Bond Indenture
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08
for the purpose of prescribing the terms and provisions of the Series A Refunding Bonds
and the application of the proceeds of the Series A Refunding Bonds. The Successor
Agency hereby approves the Second Supplemental Indenture which supplements the
2014 Bond Indenture for the purpose of prescribing the terms and provisions of the
Series B Refunding Bonds and the application of the proceeds of the Series B Refunding
Bonds.
Each of the Mayor, as the presiding officer of the Successor Agency, or the City
Manager of the City of Palm Springs, as the chief administrative officer of the Successor
Agency(each, an "Authorized Officer"), is hereby authorized and directed to execute and
deliver, and the Interim Secretary, is hereby authorized and directed to attest to, the First
Supplemental Indenture and the Second Supplemental Indenture for and in the name
and on behalf of the Successor Agency, in substantially the respective forms on file with
the City Clerk, with such changes therein, deletions therefrom and additions thereto as
the Authorized Officer shall approve, such approval to be conclusively evidenced by the
execution and delivery of the First Supplemental Indenture and the Second
Supplemental Indenture. The Successor Agency hereby authorizes the delivery and
performance of the First Supplemental Indenture and the Second Supplemental
Indenture.
Section 5. Issuance in Separate Series. The Refunding Bonds may be issued
as a single issue, or from time to time in separate series, as the Successor Agency shall
determine. The approval of the issuance of the Refunding Bonds by the Successor
Agency and by the Oversight Board shall constitute the approval of each and every
separate series of Refunding Bonds, without the need for any further approval from the
Oversight Board, provided that each such separate series of Refunding Bonds complies
with the Saving Parameters required to be met by Section 34177.5(a)(1).
Section 6. Escrow Agreements. The Successor Agency hereby approves the
Escrow Agreements prescribing the provisions for refunding the 2007 Series A Bonds
and the 2007 Series C Bonds. Each Authorized Officer is hereby authorized and
directed to execute and deliver, and the Interim Secretary, is hereby authorized and
directed to attest to, the Escrow Agreements for and in the name and on behalf of the
Successor Agency, in substantially the forms on file with the City Clerk, with such
changes therein, deletions therefrom and additions thereto as the Authorized Officer
shall approve, such approval to be conclusively evidenced by the execution and delivery
of the Escrow Agreements. The Successor Agency hereby authorizes the delivery and
performance of the Escrow Agreements.
Section 7. Sale of the Refunding Bonds. The Successor Agency hereby
approves the sale of the Refunding Bonds to the Underwriter pursuant to and in
accordance with the Bond Purchase Agreement. An Authorized Officer is hereby
authorized and directed, for and in the name and on behalf of the Successor Agency, to
sell each series of the Refunding Bonds to the Underwriter and to execute and deliver
the Bond Purchase Agreement, subject to the terms and conditions of the Bond
Purchase Agreement; provided, however, that (a) the aggregate principal amount of the
Refunding Bonds shall not to exceed $20,000,000, (b) the Refunding Bonds shall bear
interest at such rates and shall be sold at such a price so as to achieve the Savings
Parameters required to be met by Section 34177.5(a)(1), and (c) the amount of
Underwriter's discount on the sale of each series of Refunding Bonds shall not exceed
4 09
1% of the aggregate principal amount of such series of Refunding Bonds, excluding
original issue discount.
Section 8. Approval of Official Statement. The Successor Agency hereby
approves the preliminary Official Statement describing the Refunding Bonds, in
substantially the form on file with the Interim Secretary. Distribution of the preliminary
Official Statement by the Underwriter is hereby approved, and, prior to the distribution of
the preliminary Official Statement, either Authorized Officer is authorized and directed,
on behalf of the Successor Agency, to deem the preliminary Official Statement "final'
pursuant to Rule 15c2-12 under the Securities Exchange Act of 1934 (the `Rule"). The
execution of the final Official Statement, which shall include such changes and additions
thereto deemed advisable by an Authorized Officer, and such information permitted to
be excluded from the preliminary Official Statement pursuant to the Rule, is hereby
approved for delivery to the purchasers of the Refunding Bonds, and the Authorized
Officer is authorized and directed to execute and deliver the final Official Statement for
and on behalf of the Successor Agency, to deliver to the Underwriter a certificate with
respect to the information set forth therein and to deliver to the Underwriter a Continuing
Disclosure Certificate substantially in the form appended to the final Official Statement.
Section 9. Oversight Board Approval of the Issuance of the Refunding
Bonds. The Successor Agency hereby requests that the Oversight Board approve the
issuance, sale and delivery of the Refunding Bonds pursuant to this Resolution and the
First Supplemental Indenture and the Second Supplemental Indenture, as above
described.
Section 16. Filing of this Resolution. The Interim Secretary is hereby
authorized and directed to file a certified copy of this Resolution with the Oversight
Board, together with the Debt Service Savings Analysis, and, as provided in Section
34180Q), with the Riverside County Administrative Officer, the Riverside County Auditor-
Controller and the California Department of Finance.
Section 11. Determinations by the Oversight Board. The Successor Agency
requests that the Oversight Board make the following determinations upon which the
Successor Agency will rely in undertaking the refunding proceedings and the issuance,
sale and delivery of the Refunding Bonds:
(a) The Successor Agency is authorized, as provided in Section
34177.5(f), to recover its costs related to the issuance of the
Refunding Bonds from the proceeds of the Refunding Bonds,
including the cost of reimbursing the City of Palm Springs for
administrative staff time spent with respect to the authorization,
issuance, sale and delivery of the Refunding Bonds;
(b) The application of proceeds of the Refunding Bonds by the
Successor Agency to the refunding and defeasance of the 2007
Series A Bonds and the 2007 Series C Bonds, as well as to the
payment by the Successor Agency of all costs of issuance of the
Refunding Bonds, as provided in Section 34177.5(a), shall be
implemented by the Successor Agency promptly upon sale and
delivery of the Refunding Bonds, and, notwithstanding Section
34177.3 or any other provision of law to the contrary, no further
10
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approval of the Oversight Board, the California Department of
Finance, the Riverside County Auditor-Controller or any other
person or entity other than the Successor Agency shall be required;
(c) The Successor Agency shall be entitled to receive its full
Administrative Cost Allowance under Section 34183(a)(3) without
any deductions with respect to continuing costs related to the
Refunding Bonds, such as trustee's fees, auditing and fiscal
consultant fees and continuing disclosure and rating agency costs
(collectively, "Continuing Costs of Issuance"), and such Continuing
Costs of Issuance shall be payable from property tax revenues
pursuant to Section 34183. In addition and as provided by Section
34177.5(f), if the Successor Agency is unable to complete the
issuance of the Refunding Bonds for any reason, the Successor
Agency shall, nevertheless, be entitled to recover its costs incurred
with respect to the refunding proceedings from such property tax
revenues pursuant to Section 34183 without reduction in its
Administrative Cost Allowance.
Section 12. Appointments. The appointments of Harrell & Company, Advisors,
as Financial Advisor, Jones Hall, A Professional Law Corporation, as bond counsel, and
Fulbright & Jaworski LLP, a member of Norton Rose Fulbright, as disclosure counsel,
are hereby confirmed to act on behalf of the Successor Agency in the presentation of
this Resolution and the Debt Service Savings Analysis to the Oversight Board and for
purposes of the proceedings for the issuance, sale and delivery of the Refunding Bonds.
Section 13. Official Actions. The Authorized Officers and any and all other
officers of the Successor Agency are hereby authorized and directed, for and in the
name and on behalf of the Successor Agency, to do any and all things and take any and
all actions, which they, or any of them, may deem necessary or advisable in obtaining
the requested approvals by the Oversight Board and the California Department of
Finance and to implement the sale and delivery of the Refunding Bonds to the
Underwriter. Whenever in this Resolution any officer of the Successor Agency is
directed to execute or countersign any document or take any action, such execution,
countersigning or action may be taken on behalf of such officer by any person
designated by such officer to act on his or her behalf in the case such officer is absent or
unavailable.
Section 14. Effective Date. This Resolution shall take effect from and after its
passage and adoption.
ADOPTED THIS 26th DAY OF JULY, 2017.
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ROBERT MOON, Mayor of the City of
Palm Springs acting in his capacity as
Chair of the Successor Agency to the
Palm Springs Community
Redevelopment Agency
ATTEST:
KATHLEEN D. HART, Interim City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby
certify that Resolution No. is a full, true and correct copy, and was duly
adopted at an adjourned regular meeting of the Successor Agency to the Palm
Springs Community Redevelopment Agency on July 26, 2017, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
KATHLEEN D. HART, INTERIM CITY
CLERK
City of Palm Springs, California
-7-
PRELIMINARY OFFICIAL STATEMENT DATED JULY 13,2017
NEW ISSUE—BOOK-ENTRY RATINGS
INSURED BONDS RATING: S&P!
UNINSURED BONDS AND UNDERLYING RATING: S&P! "
H
u
C � (See"CONCLUDING INFORMATION-Ratings on the Bonds"herein)
In the opinion of Jones Hall, A Professional Law Corporation, San Francisco, California, Bond Counsel, subject, however, to certain
7
� u qualifications described herein, under existing law, the interest on the Series A Bonds is excluded from gross income for federal income
vu tar purposes,and such interest is not an item of tax preference for purposes ofthe federal alternative minimum tax imposed on individuals
i „ and corporations, although for the purpose of computing the federal alternative minimum tax imposed on certain corporations, such
`� interest is taken into account in determining certain income and earnings. Interest payable on the Series B Bonds is subject to all
C w applicable Federal income taxation. Interest on the Series A Bonds and the Series B Bonds is exempt from State of California personal
6 o income taxes. See "TAXMATTERS"herein.
u u
SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY
n w $1190009000* $650001000*
TAX ALLOCATION TAXABLE TAX ALLOCATION
y C REFUNDING PARITY BONDS, REFUNDING PARITY BONDS,
° 2017 SERIES A 2017 SERIES B
o � u
o m Dated: Date of Delivery Due: September 1 as shown on the inside cover pages
0
a q o Proceeds from the sale of the Successor Agency to the Palm Springs Community Redevelopment Agency(the"Successor Agency")Tax
G 3 Allocation Refunding Parity Bonds, 2017 Series A(the "Series A Bonds"), and Taxable Tax Allocation Refunding Parity Bonds, 2017
oa 3 Series B (the "Series B Bonds," and together with the Series A Bonds, the "Bonds"), will be used to refinance certain outstanding
u ° y obligations of the former Community Redevelopment Agency of the City of Palm Springs(the"Fortner Agency").
p y Y
The Bonds will be issued under an Indenture of Trust dated as of July 1,2014,as amended and supplemented by a First Supplement to
d o 7 Indenture of Trust and a Second Supplement to Indenture of Trust,each dated as of October 1,2017(as amended and supplemented,the
V "Indenture"),each by and between the Successor Agency and U.S.Bank National Association,as trustee(the"Trustee"). The Bonds are
y , u special obligations of the Successor Agency and are payable solely from and secured by a pledge of certain tax increment revenues of the
v o y Former Agency's Merged Project No. 1 and Merged Project No. 2 and a pledge of amounts in certain funds and accounts established
a c v under the Indenture(see"SECURITY FOR THE BONDS"and"RISK FACTORS").
�' fl
Interest on the Bonds is payable semiannually on each March 1 and September 1,commencing March 1,2018,until maturity(see"THE
at i 7 BONDS-General Provisions"herein). The Bonds are subject to optional and sinking fund redemption prior to maturity.
4.
H 3 The Bonds do not constitute a debt or liability of the City of Palm Springs,the County of Riverside,the State of California or of
t: o any political subdivision thereof, other than the Successor Agency. The Successor Agency shall only be obligated to pay the
y? p C principal of the Bonds, or the interest thereon,from the funds described herein, and neither the faith and credit nor the taxing
e y power of the City of Palm Springs,the County of Riverside,the State of California or any of its political subdivisions is pledged to
u H the payment of the principal of or the interest on the Bonds. The Successor Agency has no taxing power.
to o 'o
The scheduled payment of principal of and interest on the Series A Bonds maturing on September 1 of the years_through
3 inclusive,and the Series B Bonds maturing on September 1 of the years through ,inclusive,(collectively,the"Insured Bonds',
o d when due will be guaranteed under a municipal bond insurance policy to be issued concurrently with the delivery of the Insured Bonds by
o q e"a (the"Policy"). The Policy does not insure the payment of the Series A Bonds maturing September 1,
r2018 through and including September 1, or the Series A Bonds maturing September 1,2018 through and including September 1,
d "" o _(collectively,the"Uninsured Bonds"). See "MUNICIPAL BOND INSURANCE"and"APPENDIX H-SPECIMEN MUNICIPAL BOND
p INSURANCE POLICY."
o [LOGO]
� u '
d G o
u 0/ The cover page contains certain information for quick reference only. It is not a summary of the issues. Potential investors must read the
entire Official Statement to obtain information essential to the making of an informed investment decision. See"RISK FACTORS"herein
ia for a discussion of special risk factors that should be considered in evaluating the investment quality of the Bonds.
The Bonds are being offered when, as and if issued, subject to the approval as to their legality by Jones Hall, A Professional Law
a7 Corporation,San Francisco,California. Certain legal matters will also be passed on for the Successor Agency by Norton Rose Fulbright
w US LLP,Los Angeles,California,as Disclosure Counsel,and by Edward Z. Kotkin, Esq.,Costa Mesa,California,as Successor Agency
Counsel. Certain legal matters will be passed on for the Underwriter by its counsel, Stradling Yocca Carlson& Rauth,A Professional
C a3 Corporation, Newport Beach, California. It is anticipated that the Bonds will be available for delivery through the facilities of The
G Depository Trust Company on or about ,2017(see"APPENDIX G-THE BOOK-ENTRY SYSTEM"herein).
K
The date of the Official Statement is 2017.
4 � u
a STIFEL
13
*Preliminary,subject to change.
SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY
$11,000,000* TAX ALLOCATION REFUNDING PARITY BONDS,2017 SERIES A
MATURITY SCHEDULE
Maturity Date Principal Interest CUSIP®R t
September I Amount Rate Yield Price
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
*Preliminary,subject to change.
t CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by
CUSIP Global Services, managed by S&P Capital IQ on behalf of the American Bankers Association. CUSIP
numbers have been assigned by an independent company not affiliated with the Successor Agency,the Municipal
Advisor or the Underwriter and are included solely for the convenience of the holders of the Bonds. None of the
Successor Agency, the Municipal Advisor or the Underwriter is responsible for the selection or use of these
CUSIP numbers, and no representation is made as to their correctness on the Bonds or as indicated above. The
CUSIP number for a specific maturity is subject to being changed after the issuance of the Bonds as a result of
various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a
result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that
is applicable to all or a portion of certain maturities of the Bonds.
14
SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY
$6,000,000*TAXABLE TAX ALLOCATION REFUNDING PARITY BONDS, 2017 SERIES B
MATURITY SCHEDULE
Maturity Date Principal Interest CUSIP®j
September 1 Amount Rate Yield Price
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
*Preliminary,subject to change.
t CUSIP® is a registered trademark of the American Bankers Association. CUSIP data herein is provided by
CUSIP Global Services, managed by S&P Capital IQ on behalf of the American Bankers Association. CUSIP
numbers have been assigned by an independent company not affiliated with the Successor Agency,the Municipal
Advisor or the Underwriter and are included solely for the convenience of the holders of the Bonds. None of the
Successor Agency, the Municipal Advisor or the Underwriter is responsible for the selection or use of these
CUSIP numbers, and no representation is made as to their correctness on the Bonds or as indicated above. The
CUSIP number for a specific maturity is subject to being changed after the issuance of the Bonds as a result of
various subsequent actions including, but not limited to, a refunding in whole or in part of such maturity or as a
result of the procurement of secondary market portfolio insurance or other similar enhancement by investors that
is applicable to all or a portion of certain maturities of the Bonds.
15
GENERAL INFORMATION ABOUT THIS OFFICIAL STATEMENT
No Offering May Be Made Except by this Official Statement. No dealer, broker, salesperson or other person has been
authorized to give any information or to make any representations with respect to the Bonds other than as contained in this
Official Statement, and if given or made, such other information or representation must not be relied upon as having been
authorized.
No Unlawful Offers or Solicitations. This Official Statement does not constitute an offer to sell or the solicitation of an offer to
buy in any state in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not
qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.
Effective Date. This Official Statement speaks only as of its date and the information and expressions of opinion contained in
this Official Statement are subject to change without notice. Neither the delivery of this Official Statement nor any sale of the
Bonds will,under any circumstances,create any implication that there has been no change in the affairs of the Successor Agency
or the Project Area since the date of this Official Statement.
Use of this Official Statement. This Official Statement is submitted in connection with the sale of the Bonds referred to in this
Official Statement and may not be reproduced or used,in whole or in part,for any other purpose. This Official Statement is not a
contract with the purchasers of the Bonds.
Preparation of this Official Statement. The information contained in this Official Statement has been obtained from sources that
are believed to be reliable, but this information is not guaranteed as to accuracy or completeness. The information and
expressions of opinions herein are subject to change without notice and neither the delivery of this Official Statement nor any
sale made hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the
Successor Agency since the date hereof. This Official Statement is submitted in connection with the sale of the Bonds referred to
herein and may not be reproduced or used, in whole or in part, for any other purpose, unless authorized in writing by the
Successor Agency. All summaries of the Bonds,the Indenture and other documents, are made subject to the provisions of such
documents and do not purport to be complete statements of any or all of such provisions. Reference is hereby made to such
documents on file with the Successor Agency for further information. See"INTRODUC'I ION-Summary Not Definitive."
The Underwriter has provided the following sentence for inclusion in this Official Statement: The Underwriter has reviewed the
information in this Official Statement in accordance with, and as part of, its responsibilities to investors under the federal
securities laws as applied to the facts and circumstances of this transaction,but the Underwriter does not guarantee the accuracy
or completeness of such information.
Stabilization of and Changes to Offering Prices. The Underwriter may overallot or take other steps that stabilize or maintain the
market price of the Bonds at levels above that which might otherwise prevail in the open market. If commenced,the Underwriter
may discontinue such market stabilization at any time. The Underwriter may offer and sell the Bonds to certain dealers,dealer
banks and banks acting as agent at prices lower than the public offering prices stated on the inside cover pages of this Official
Statement,and those public offering prices may be changed from time to time by the Underwriter.
Bonds are Exempt from Securities Laws Registration. The Bonds have not been registered under the Securities Act of 1933,as
amended, or the Securities Exchange Act of 1934, as amended, in reliance upon exemptions for the issuance and sale of
municipal securities provided under Section 3(a)(2)of the Securities Act of 1933 and Section 3(a)(12)of the Securities Exchange
Act of 1934.
Estimates and Projections. Certain statements included or incorporated by reference in this Official Statement constitute
"forward-looking statements"within the meaning of the United States Private Securities Litigation Reform Act of 1995,Section
21E of the United States Securities Exchange Act of 1934, as amended, and Section 27A of the United States Securities Act of
1933, as amended. Such statements are generally identifiable by the terminology used such as "plan," "expect," "estimate,"
"budget"or other similar words.
THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH FORWARD-
LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER FACTORS
WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE MATERIALLY
DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY
SUCH FORWARD-LOOKING STATEMENTS.THE SUCCESSOR AGENCY DOES NOT PLAN TO ISSUE ANY UPDATES
OR REVISIONS TO THOSE FORWARD-LOOKING STATEMENTS IF OR WHEN ITS EXPECTATIONS, OR EVENTS,
CONDITIONS OR CIRCUMSTANCES ON WHICH SUCH STATEMENTS ARE BASED OCCUR.
Website. The City of Palm Springs maintains an Internet website,but the information on the website is not incorporated in this
Official Statement.
�• 16
SUCCESSOR AGENCY TO THE PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY
PALM SPRINGS, CALIFORNIA
CITY COUNCIL AND SUCCESSOR AGENCY GOVERNING BOARD
Robert Moon,Mayor
Ginny Foat,Mayor Pro Tem
Geoff Kors, Councilmember
Christopher Mills, Councilmember
J.R. Roberts, Councilmember
CITY STAFF
David H. Ready, Esq., Ph.D., City Manager
Geoffrey S. Kiehl,Director of Finance and Treasurer
Jay Virata,Director of Community&Economic Development
Edward Z. Kotkin,Esq., City Attorney
Kathleen D. Hart,Interim City Clerk
PROFESSIONAL SERVICES
Bond Counsel
Jones Hall
A Professional Law Corporation
San Francisco, California
Disclosure Counsel
Norton Rose Fulbright US LLP
Los Angeles, California
Municipal Advisor
Harrell &Company Advisors, LLC
Orange, California
Trustee and Escrow Bank
U.S. Bank National Association
Los Angeles, California
Verification Agent
Grant Thornton LLP
Minneapolis, Minnesota
17
TABLE OF CONTENTS
INTRODUCTION......................................................I Tax Sharing Agreements and Tax Sharing Statutes.36
The Successor Agency and the Former Agency.........I Outstanding Indebtedness........................................37
TheCity.....................................................................2 Flow of Funds..........................................................37
Authority and Purpose...............................................2 Projected Tax Revenues and Debt Service
Tax Allocation Financing Under the Dissolution Coverage...............................................................37
Act..........................................................................3
RISK FACTORS......................................................39
The Project Areas.......................................................3
Factors Which May Affect Tax Revenues...............39
Security for the Bonds...............................................4 Real Estate and General Economic Risks................43
Municipal Bond Insurance and Reserve Account Possessory Interest Taxes;Bureau of Indian
SuretyPolicy...........................................................4
Affairs Regulations...............................................43
Legal Matters.............................................................5 Tax Sharing
Offering of the Bonds................................................5 Recognized Obligation Payment Schedule..............45
Summary Not Definitive............................................5
Series A Bonds Loss of Tax Exemption...................45
THE BONDS...............................................................6 IRS Audit of Tax-Exempt Bond Issues....................46
General Provisions.....................................................6 Risks Related to Insured Bonds...............................46
Redemption................................................................6 Secondary Market....................................................47
Scheduled Debt Service on the Bonds.....................10
TAX MATTERS.......................................................47
THE FINANCING PLAN........................................12
12 LEGAL MATTERS..................................................48
The Refunding Plan.................................................
Enforceability of Remedies.....................................48
Estimated Sources and Uses of Funds.....................13
Approval of Legal Proceedings...............................48
SECURITY FOR THE BONDS..............................14 No Litigation...........................................................48
Tax Allocation Financing.........................................14
CONCLUDING INFORMATION..........................49
Tax Revenues...........................................................14
Redevelopment Property Tax Trust Fund................16 Ratings the Bonds...............................................49
The Municipal Advisor............................................49
Recognized Obligation Payment Schedules............17
Continuing Disclosure.............................................49
Pledge of Tax Revenues...........................................20
Redevelopment Obligation Retirement Fund; Underwriting...........................................................49
50
Special Fund;Deposit of Tax Revenues...............21
Additional Information............................................50
References...............................................................50
Reserve Account......................................................21
Execution.................................................................50
No Additional Debt Other Than Refunding Bonds..22
APPENDIX A-SUMMARY OF CERTAIN
MUNICIPAL BOND INSURANCE........................23 PROVISIONS OF THE INDENTURE
Bond Insurance Policy.............................................23
APPENDIX B-PROJECTED TAX REVENUES
THE SUCCESSOR AGENCY.................................24
Government Organization........................................24 APPENDIX C-CITY OF PALM SPRINGS
Successor Agency Powers.......................................24 INFORMATION STATEMENT
Redevelopment Plans...............................................25 APPENDIX D-CITY AUDITED FINANCIAL
Plan Limitations.......................................................25 STATEMENTS FOR THE FISCAL YEAR ENDED
THE PROJECT AREAS..........................................26 JUNE 30,2016
Description of the Merged Project No. 1 .................26 APPENDIX E-FORM OF CONTINUING
Description of the Merged Project No.2.................26 DISCLOSURE CERTIFICATE
Assessed Valuations and Tax Revenues...................27 APPENDIX F-PROPOSED FORM OF BOND
Major Taxpayers......................................................30 COUNSEL OPINIONS
Assessment Appeals.................................................32 APPENDIX G-THE BOOK-ENTRY SYSTEM
FINANCIAL INFORMATION...............................33 APPENDIX H-SPECIMEN MUNICIPAL BOND
Successor Agency Accounting Records and INSURANCE POLICY
Financial Statements.............................................33
Property Taxation in California................................33
M 18
OFFICIAL STATEMENT
SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY
$11,000,000* $610007000*
TAX ALLOCATION TAXABLE TAX ALLOCATION
REFUNDING PARITY BONDS, REFUNDING PARITY BONDS,
2017 SERIES A 2017 SERIES B
This Official Statement, which includes the cover page, inside cover pages and appendices (the "Official
Statement"), is provided to furnish certain information concerning the sale of the Successor Agency to the
Palm Springs Community Redevelopment Agency Tax Allocation Refunding Parity Bonds, 2017 Series A
("Series A Bonds") and Taxable Tax Allocation Refunding Parity Bonds, 2017 Series B ("Series B
Bonds,"and together with the Series A Bonds,the"Bonds").
INTRODUCTION
This Introduction contains only a brief description of this issue and does not purport to be complete. The _
Introduction is subject in all respects to more complete information in the entire Official Statement and
the offering of the Bonds to potential ini�estors is made only by means of the entire Official Statement and
the documents summarized herein. Potential investors must read the entire Official Statement to obtain
information essential to the making of an informed investment decision (see "RISK FACTORS" herein).
For definitions of certain capitalized terms used herein and not otherwise defined, and the terms relating
to the Bonds, see the summary included in "APPENDIX A -SUMMARY OF CERTAIN PROVISIONS OF THE
INDENTURE"herein.
The Successor Agency and the Former Agency
The Former Agency was established in 1973 by the City Council (the"City Council") of the City of Palm
Springs (the "City") pursuant to the Community Redevelopment Law (the "Redevelopment Law"),
constituting Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the
State of California (the "State"). On June 29, 2011,Assembly Bill No. 26 ("AB XI 26") was enacted as
Chapter 5, Statutes of 2011, together with a companion bill, Assembly Bill No. 27 ("AB X1 27"). A
lawsuit was brought in the California Supreme Court, California Redevelopment Association, et al. v.
Matosantos, et al., 53 Cal. 4 h 231 (Cal. 2011), challenging the constitutionality of AB Xl 26 and AB X1
27. In its December 29, 2011 decision, the California Supreme Court largely upheld AB X1 26,
invalidated AB X1 27, and held that AB X1 26 may be severed from AB X1 27 and enforced
independently. As a result of AB X1 26 and the decision of the California Supreme Court in the
California Redevelopment Association case, as of February 1, 2012, all redevelopment agencies in the
State were dissolved, including the Former Agency, and successor agencies were designated as successor
entities to the former redevelopment agencies to expeditiously wind down the affairs of the former
redevelopment agencies.
*Preliminary,subject to change.
1 � „ 19
The primary provisions enacted by AB XI 26 relating to the dissolution and wind down of former
redevelopment agency affairs are Parts 1.8 (commencing with Section 34161) and 1.85 (commencing
with Section 34170) of Division 24 of the Health and Safety Code of the State, as amended on June 27,
2012 by Assembly Bill No. 1484 ("AB 1484"), enacted as Chapter 26, Statutes of 2012, and as further
amended on September 22, 2015 by Senate Bill No. 107 ("SB 107") enacted as Chapter 325, Statutes of
2015. The provisions of Part 1.85 as amended by AB 1484 and SB 107 are referred to in this Official
Statement as the "Dissolution Act." The Redevelopment Law, as amended by the Dissolution Act, is
sometimes referred to herein as the"Law."
Pursuant to Section 34173 of the Dissolution Act, the City Council serves as the governing board of the
successor agency to the Former Agency. Since the February 1, 2012 dissolution of the Former Agency,
the City has served as the Successor Agency to the Palm Springs Community Redevelopment Agency(the
"Successor Agency"). The Successor Agency is governed by a five-member board consisting of the
Mayor and the members of the City Council. The City Manager acts as the Successor Agency's chief
administrative officer(see"THE SUCCESSOR AGENCY"herein).
Section 34173(g) of the Dissolution Act expressly affirms that the Successor Agency is a separate public
entity from the City, that the two entities shall not merge, and that the liabilities of the Former Agency
will not be transferred to the City nor will the assets of the Former Agency become assets of the City (see
"THE SUCCESSOR AGENCY"herein).
The City
The City was incorporated as a general law city on April 20, 1938. It became a charter city on July 12,
1994. The City encompasses 96.2 square miles in central Riverside County. The City is located 108
miles east of downtown Los Angeles and 120 miles west of the Arizona border. Neighboring
communities include Palm Desert, Rancho Mirage, Desert Hot Springs and Cathedral City (see
"APPENDIX C- CITY OF PALM SPRINGS INFORMATION STATEMENT"herein).
Authority and Purpose
The Bonds are being issued pursuant to the Constitution and laws of the State, including Article 11
(commencing with Section 53580) of Chapter 3 of Part I of Division 2 of Title 5 of the Government Code
of the State (the "Refunding Law"), the Law, an Indenture of Trust dated as of July 1, 2014 as amended
and supplemented by a First Supplement to Indenture of Trust and a Second Supplement to Indenture of
Trust, each dated as of October 1, 2017 (as amended and supplemented the "Indenture"), each by and
between the Successor Agency and U.S. Bank National Association, as trustee(the"Trustee").
The Series A Bonds are being issued to refinance the Former Agency's outstanding Merged Project No. 1
Tax Allocation Bonds, 2007 Series A (the "2007A Bonds"). The Series B Bonds are being issued to
refinance the Former Agency's outstanding Merged Project No. 2 Taxable Tax Allocation Bonds, 2007
Series C (the "2007C Bonds"). The 2007A Bonds and the 2007C Bonds are sometimes collectively
referred to herein as the"Prior Bonds." See"THE FINANCING PLAN"herein.
Following the issuance of the Bonds, the Former Agency's Merged Project No. I Taxable Tax Allocation
Bonds, 2007 Series B (the "2007B Bonds") will remain outstanding and payable from pledged Tax
Revenues on a basis senior to the Bonds. The 2007B Bonds are sometimes referred to herein as "Senior
Bonds."
Collectively, the indentures of trust providing for the issuance of the Prior Bonds are referred to herein as
the "Prior Trust Indentures" and the indenture of trust which relates to the Senior Bonds is referred to
herein as the "Senior Bonds Indenture." See "SECURITY FOR THE BONDS" and "FINANCIAL
INFORMATION-Outstanding Indebtedness."
2 20
Tax Allocation Financing Under the Dissolution Act
Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of redevelopment
projects through the use of tax increment revenues. This method provided that the taxable valuation of
the property within a redevelopment project area on the property tax roll last equalized prior to the
effective date of the ordinance which adopted the redevelopment plan became the base year valuation.
Assuming the taxable valuation never dropped below the base year level, the Taxing Agencies, as defined
herein, thereafter received that portion of the taxes produced by applying then current tax rates to the base
year valuation, and the redevelopment agency was allocated the remaining portion produced by applying
then current tax rates to the increase in valuation over the base year. Such incremental tax revenues
allocated to a redevelopment agency were authorized to be pledged to the payment of agency obligations.
Under the Dissolution Act, moneys will be deposited from time to time in a Redevelopment Property Tax
Trust Fund (the "Redevelopment Property Tax Trust Fund" or "RPTTF") held by a county auditor-
controller with respect to a successor agency, which are equivalent to the tax increment revenues that
were formerly allocated under the Redevelopment Law to the redevelopment agency and formerly
authorized under the Redevelopment Law to be used for the financing of redevelopment projects using
current assessed values on the last equalized roll on August 20 each year. See "SECURITY FOR THE
BONDS-Tax Allocation Financing"herein for additional information.
The Dissolution Act authorizes refunding bonds, including the Bonds, to be secured by a pledge of
moneys deposited from time to time in the Redevelopment Property Tax Trust Fund. Pledged Tax
Revenues, as defined herein, pledged to pay the Bonds consist of a portion of the amounts deposited from
time to time in the Redevelopment Property Tax Trust Fund established pursuant to and as provided in the
Dissolution Act(see"Security for the Bonds"below).
The Dissolution Act provides that any bonds authorized thereunder to be issued by the Successor Agency
will be considered indebtedness incurred by the Former Agency, with the same legal effect as if the bonds
had been issued prior to the effective date of AB X1 26, in full conformity with the applicable provision
of the Redevelopment Law that existed prior to that date, and will be included in the Successor Agency's
Recognized Obligation Payment Schedules (see "APPENDIX A- SUMMARY OF CERTAIN PROVISIONS
OF THE INDENTURE - Definitions" and"SECURITY FOR THE BONDS - Recognized Obligation Payment
Schedules").
The Project Areas
The Former Agency created 10 individual redevelopment projects, and in 2000 created 2 separate merged
project areas incorporating all 10 redevelopment projects.
The Former Agency's Merged Project No. 1 ("Merged Project No. 1") was created on May 31, 2000
pursuant to an amendment to the redevelopment plans for the Former Agency's Central Business District
Redevelopment Project,North Palm Canyon Redevelopment Project, South Palm Canyon Redevelopment
Project, Ramon-Bogie Redevelopment Project, Oasis Redevelopment Project, Highland-Gateway
Redevelopment Project and Redevelopment Project No. 9. In total, Merged Project No. 1 encompasses
1,894 acres of commercial, residential, industrial and hotel development.
The Former Agency's Merged Project No. 2 ("Merged Project No. 2") was also created on May 31, 2000
pursuant to an amendment to the redevelopment plans for the Former Agency's Baristo-Farrell
Redevelopment Project, Canyon Redevelopment Project and Tahquitz-Andreas Redevelopment Project.
In total, Merged Project No. 2 encompasses 1,393 acres of commercial, residential, and hotel
development.
Merged Project No. 1 and Merged Project No. 2 are referred to herein as the "Project Areas," an
individual redevelopment project is referred to herein as a "Redevelopment Project" or when referring to
3 0 . 21
more than one individual redevelopment project, "Redevelopment Projects," and the Redevelopment
Plans for all the individual redevelopment projects comprising the Project Areas are referred to herein as
the"Redevelopment Plans."
See "THE PROJECT AREAS" herein for additional information on the Project Areas and "THE
SUCCESSOR AGENCY"herein for additional information on the Redevelopment Plans.
Security for the Bonds
For the security of the Bonds, the Successor Agency grants a pledge of and lien on all of the Tax
Revenues subject to the prior pledge of the Senior Bonds, on a parity with the Successor Agency's
previously issued $15,635,000 2014 Subordinate Tax Allocation Refunding Bonds, (the "Parity Bonds").
"Tax Revenues" are defined under the Indenture as taxes that were eligible for allocation to the Former
Agency with respect to the Project Areas and are allocated to the Successor Agency pursuant to Article 6
of Chapter 6 (commencing with Section 33670) of the Law and Section 16 of Article XVI of the
Constitution of the State, or pursuant to other applicable State laws and deposited in the Redevelopment
Property Tax Trust Fund. By definition,Tax Revenues are net of the same amounts that were payable by
the Former Agency pursuant to any existing Contractual Tax Sharing Agreements and amounts that were
payable by the Former Agency as Statutory Tax Sharing as well as the County's administrative costs
allowed under Section 34182 of the Dissolution Act and Section 95.3 of the Revenue and Taxation Code.
See "FINANCIAL INFORMATION - Property Taxation in California" and "Tax Sharing Agreements and
Tax Sharing Statutes"herein.
The Successor Agency may issue refunding bonds or payable from Tax Revenues on a parity with the
Bonds ("Parity Debt") to refinance the Bonds, the Parity Bonds or the Senior Bonds. See "SECURITY
FOR THE BONDS -No Additional Debt Other Than Refunding Bonds"herein.
Taxes levied on the property within the Project Areas on that portion of the taxable valuation over and
above the taxable valuation of the base year property tax roll of the Project Areas, will be deposited in the
Redevelopment Property Tax Trust Fund for transfer by the County Auditor-Controller to the Successor
Agency's Redevelopment Obligation Retirement Fund, as defined herein, on January 2 and June 1 of each
year to the extent required for payments listed in the Successor Agency's Recognized Obligation Payment
Schedule in accordance with the requirements of the Dissolution Act. Moneys transferred by the County
Auditor-Controller to the Successor Agency will be deposited into the Successor Agency's
Redevelopment Obligation Retirement Fund and will be transferred by the Successor Agency to the
Trustee for deposit in the Debt Service Fund established under the Indenture. See "SECURITY FOR THE
BONDS -Recognized Obligation Payment Schedules"herein.
The Bonds do not constitute a debt or liability of the City, the County of Riverside (the"County"),
the State or of any political subdivision thereof, other than the Successor Agency. The Successor
Agency shall only be obligated to pay the principal of the Bonds, or the interest thereon, from the
funds described herein, and neither the faith and credit nor the taxing power of the City, the
County, the State or any of its political subdivisions is pledged to the payment of the principal of or
the interest on the Bonds. The Successor Agency has no taxing power.
Municipal Bond Insurance and Reserve Account Surety Policy
Concurrently with the issuance of the Bonds, (" ") will issue its Municipal Bond Insurance
Policy (the "Policy") for the Series A Bonds maturing on September I in the years _ through and
including and for the Series B Bonds maturing on September 1 in the years through and
including (collectively, the "Insured Bonds"). The Policy guarantees the scheduled payment of
principal of and interest on the Insured Bonds when due as set forth in the form of the Policy included as
"APPENDIX G - SPECIMEN MUNICIPAL BOND INSURANCE POLICY." The Policy does not insure the
4 "" 22
payment of the Series A Bonds maturing on September 1,in the years through and including or
the Series B Bonds maturing on September 1 in the years through and including (collectively,
the"Uninsured Bonds").
In order to further secure the payment of the principal of and interest on the Bonds, a Reserve Account
has been established by the Indenture. The Reserve Account will be funded by the purchase of a
Municipal Bond Debt Service Reserve Insurance Policy (the "Reserve Policy") issued by in an
amount equal to the Reserve Requirement as defined in the Indenture. The Reserve Policy secures only
the Bonds and does not secure the Parity Bonds. See"SECURITY FOR THE BONDS - Reserve Account -
Reserve Policy."
Legal Matters
All legal proceedings in connection with the issuance of the Bonds are subject to the approving opinion of
Jones Hall, A Professional Law Corporation, San Francisco, California, as Bond Counsel ("Bond
Counsel"). Such opinion, and certain tax consequences incident to the ownership of the Bonds, including
certain exceptions to the tax treatment of interest, are described more fully under the heading "TAX
MATTERS" herein. Certain legal matters will be passed on for the Successor Agency by Norton Rose
Fulbright US LLP, Los Angeles, California, as Disclosure Counsel, by Edward Z. Kotkin, Esq., Costa
Mesa, California, as General Counsel to the Successor Agency, and for the Underwriter by their Counsel,
Stradling Yocca Carlson& Rauth,A Professional Corporation,Newport Beach, California.
Offering of the Bonds
Authority for Issuance. The Bonds are to be issued and secured pursuant to the Indenture, as authorized
by Resolution No. of the Successor Agency adopted on , 2017, the Refunding Law
and the Law. The Successor Agency to the Palm Springs Community Redevelopment Agency Oversight
Board (the "Oversight Board") approved the action taken by the Successor Agency to refinance the Prior
Bonds on , 2017. The State Department of Finance approved the Oversight Board action by
letter dated 2017.
Offering and Delivery of the Bonds. The Bonds are being sold to Stifel, Nicolaus & Company,
Incorporated(the"Underwriter"). The Bonds are offered, when, as and if issued, subject to the approval
as to their legality by Bond Counsel. It is anticipated that the Bonds, in book-entry form, will be
available for delivery through the facilities of The Depository Trust Company on or about
2017.
Summary Not Definitive
The summaries and references contained herein with respect to the Indenture,the Bonds and other statutes
or documents do not purport to be comprehensive or definitive and are qualified by reference to each such
document or statute, and references to the Bonds are qualified in their entirety by reference to the form
thereof included in the Indenture. Copies of the documents described herein are available for inspection
during the period of initial offering of the Bonds at the offices of the Municipal Advisor, Harrell &
Company Advisors, LLC, 333 City Boulevard West, Suite 1215, Orange, California 92868, telephone
(714) 939-1464. Copies of these documents may be obtained after delivery of the Bonds from the
Successor Agency at 3200 E. Tahquitz Canyon Way, Palm Springs, California 92262.
5 4!
THE BONDS
General Provisions
Repayment of the Bonds. Interest on the Bonds is payable at the rates per annum set forth on the inside
cover pages hereof. Interest on the Bonds will be computed on the basis of a year consisting of 360 days
and twelve 30-day months.
Interest on the Bonds will be payable on March 1 and September 1 (each an "Interest Payment Date"),
commencing March 1, 2018, and thereafter from the Interest Payment Date next preceding the date of
authentication thereof, unless (a) it is authenticated after the close of business on the 15"' calendar day of
the month preceding such Interest Payment Date (each, a "Record Date") and on or before the following
Interest Payment Date, in which event it shall bear interest from such Interest Payment Date; or (b) a
Bond is authenticated on or before the first Record Date, in which event it shall bear interest from the date
of delivery;provided, however, that if, as of the date of authentication of any Bond, interest thereon is in
default, such Bond shall bear interest from the Interest Payment Date to which interest has previously
been paid or made available for payment thereon.
The Bonds are authorized to be issued in denominations of$5,000 or any integral multiple of$5,000, and
will be dated as of the date of their original delivery.
Transfer or Exchange of Bonds. Any Bond may, in accordance with its terms, be transferred or
exchanged, pursuant to the provisions of the Indenture, upon surrender of such Bond for cancellation at
the Principal Corporate Trust Office of the Trustee. Whenever any Bond or Bonds shall be surrendered
for transfer or exchange, the Trustee shall authenticate and deliver a new Bond or Bonds for like
aggregate principal amount and of like maturity. The Trustee may require the payment by the Bondholder
requesting such transfer or exchange of any tax or other governmental charge required to be paid with
respect to such transfer or exchange. The foregoing provisions regarding the transfer and exchange of the
Bonds apply only if the book-entry system is discontinued. So long as the Bonds are in the book-entry
system of The Depository Trust Company ("DTC") as described below, the rules of DTC will apply for
the transfer and exchange of Bonds.
Book-Entry System. DTC will act as securities depository for the Bonds. The Bonds will be issued as
fully registered securities registered in the name of Cede & Co. (DTC's partnership nominee) or such
other name as may be requested by an authorized representative of DTC. Interest on and principal of the
Bonds will be payable when due by wire of the Trustee to DTC which will in turn remit such interest and
principal to DTC Participants,which will in turn remit such interest and principal to Beneficial Owners of
the Bonds (see "APPENDIX G - THE BOOK-ENTRY SYSTEM" herein). As long as DTC is the registered
owner of the Bonds and DTC's book-entry method is used for the Bonds, the Trustee will send any
notices to Bond Owners only to DTC.
DTC may discontinue providing its services as securities depository with respect to the Bonds at any time
by giving reasonable notice to the Successor Agency or the Trustee. Under such circumstances, if a
successor securities depository is not obtained, Bonds are required to be printed and delivered as
described in the Indenture. The Successor Agency may decide to discontinue use of the system of book-
entry transfers through DTC (or a successor securities depository). In that event, the Bonds will be
printed and delivered as described in the Indenture.
Redemption
Optional Redemption. The Bonds of either series maturing on or before September 1, _ are not
subject to redemption prior to their respective stated maturities. The Bonds of either series maturing on or
after September 1, are subject to redemption at the option of the Successor Agency, in whole or in
6
11 24
part, from any available source of funds, on September 1, or on any date thereafter. Bonds called
for redemption will be redeemed at a redemption price equal to the principal amount of Bonds to be
redeemed plus accrued interest to the redemption date,without premium.
Mandatory Sinking Fund Redemption of Series A Term Bonds. The Series A Bonds maturing on
September 1, 2034* (the"Series A Term Bonds") are subject to redemption in part by lot, on September 1
in each of the years as set forth in the following table, at a redemption price equal to the principal amount
thereof to be redeemed together with accrued interest thereon to the redemption date,without premium, or
in lieu thereof shall be purchased as described below, in the aggregate respective principal amounts and
on the respective dates as set forth in the following table;provided, however, that if some but not all of the
Series A Tenn Bonds have been redeemed the optional redemption provisions described above, the total
amount of all future payments with respect to such Series A Term Bonds shall be reduced by the
aggregate principal amount of such Series A Term Bonds so redeemed, to be allocated among such
payments on a pro rata basis in integral multiples of $5,000 as determined by the Successor Agency
(written notice of which determination shall be given by the Successor Agency to the Trustee).
SINKING FUND SCHEDULE FOR
SERIES A TERM BONDS MATURING SEPTEMBER 1,2034
Sinking Fund
Redemption Date Principal Amount
(September 1) To Be Redeemed
(maturity)
In lieu of redemption of the Series A Term Bonds under the preceding paragraph, amounts on deposit in
the Debt Service Fund(to the extent not required to be deposited by the Trustee in the Interest Account or
the Principal Account during the current Bond Year) may also be used and withdrawn by the Successor
Agency at any time for the purchase of such Series A Term Bonds at public or private sale as and when
and at such prices (including brokerage and other charges and including accrued interest) as the Successor
Agency may in its discretion determine. The par amount of any of such Series A Term Bonds so
purchased by the Successor Agency in any twelve-month period ending on July 15 in any year shall be
credited towards and shall reduce the par amount of such Series A Term Bonds required to be redeemed
on the next succeeding September 1.
Mandatory Sinking Fund Redemption of Series B Term Bonds. The Series B Bonds maturing on
September 1, 2034* (the"Series B Term Bonds")are subject to redemption in part by lot, on September 1
in each of the years as set forth in the following table, at a redemption price equal to the principal amount
thereof to be redeemed together with accrued interest thereon to the redemption date, without premium,or
in lieu thereof shall be purchased as described below, in the aggregate respective principal amounts and
on the respective dates as set forth in the following table;provided, however, that if some but not all of the
Series B Term Bonds have been redeemed the optional redemption provisions described above, the total
amount of all future payments with respect to such Series B Term Bonds shall be reduced by the
aggregate principal amount of such Series B Tenn Bonds so redeemed, to be allocated among such
payments on a pro rata basis in integral multiples of $5,000 as determined by the Successor Agency
(written notice of which determination shall be given by the Successor Agency to the Trustee).
*Preliminary,subject to change.
7 25
SINKING FUND SCHEDULE FOR
SERIES B TERM BONDS MATURING SEPTEMBER 1,2034
Sinking Fund
Redemption Date Principal Amount
(September 1) To Be Redeemed
(maturity)
In lieu of redemption of the Series B Term Bonds under the preceding paragraph, amounts on deposit in
the Debt Service Fund(to the extent not required to be deposited by the Trustee in the Interest Account or
the Principal Account during the current Bond Year) may also be used and withdrawn by the Successor
Agency at any time for the purchase of such Series B Term Bonds at public or private sale as and when
and at such prices (including brokerage and other charges and including accrued interest) as the Successor
Agency may in its discretion determine. The par amount of any of such Series B Term Bonds so
purchased by the Successor Agency in any twelve-month period ending on July 15 in any year shall be
credited towards and shall reduce the par amount of such Series B Term Bonds required to be redeemed
on the next succeeding September 1.
Notice of Redemption; Rescission.
The Trustee on behalf and at the expense of the Successor Agency shall mail (by first class mail,postage
prepaid) notice of any redemption at least 20 but not more than 60 days prior to the redemption date, to (i)
to the Owners of any Bonds designated for redemption at their respective addresses appearing on the
Registration Books, and (ii) the Securities Depositories and to the Information Services; but such mailing
shall not be a condition precedent to such redemption and neither failure to receive any such notice nor
any defect therein shall affect the validity of the proceedings for the redemption of such Bonds or the
cessation of the accrual of interest thereon. Such notice shall require that such Bonds be then surrendered
at the Principal Corporate Trust Office of the Trustee for redemption at the redemption price, giving
notice also that further interest on such Bonds will not accrue from and after the redemption date.
So long as the book-entry system is used for the Bonds, the Trustee will give any notice of redemption or
any other notices required to be given to registered Owners of Bonds only to DTC. Any failure of DTC to
advise any Participant, or of any Participant to notify the Beneficial Owner, of any such notice and its
content or effect will not affect the validity of the redemption of the Bonds called for redemption or any
other action premised on such notice. Beneficial Owners may desire to make arrangements with a
Participant so that all notices of redemption or other communications to DTC which affect such
Beneficial Owners, and notification of all interest payments, will be forwarded in writing by such
Participant.
The Successor Agency has the right to rescind any notice of the optional redemption of Bonds by written
notice to the Trustee on or prior to the date fixed for redemption. Any notice of redemption shall be
cancelled and annulled if for any reason funds will not be or are not available on the date fixed for
redemption for the payment in full of the Bonds then called for redemption, and such cancellation shall
not constitute an Event of Default. The Successor Agency and the Trustee have no liability to the Owners
or any other party related to or arising from such rescission of redemption. The Trustee shall mail notice
of such rescission of redemption in the same manner as the original notice of redemption was sent.
8 r n
Partial Redemption of Bonds. In the event only a portion of any Bond is called for redemption, then
upon surrender of such Bond the Successor Agency shall execute and the Trustee shall authenticate and
deliver to the Owner thereof, at the expense of the Successor Agency, a new Bond or Bonds of the same
interest rate and maturity, of authorized denominations, in aggregate principal amount equal to the
unredeemed portion of the Bond to be redeemed.
Effect of Redemption. From and after the date fixed for redemption, if funds available for the payment
of the redemption price of and interest on the Bonds so called for redemption shall have been duly
deposited with the Trustee, such Bonds so called shall cease to be entitled to any benefit under this
Indenture other than the right to receive payment of the redemption price and accrued interest to the
redemption date, and no interest shall accrue thereon from and after the redemption date specified in such
notice.
Manner of Redemption. Whenever any Bonds or portions thereof are to be selected for redemption by
lot, the Trustee shall make such selection, in such manner as the Trustee shall deem appropriate, and shall
notify the Successor Agency thereof to the extent Bonds are no longer held in book-entry form. In the
event of redemption by lot of Bonds, the Trustee shall assign to each Bond then Outstanding a distinctive
number for each $5,000 of the principal amount of each such Bond. The Bonds to be redeemed shall be
the Bonds to which were assigned numbers so selected, but only so much of the principal amount of each
such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each
number assigned to it and so selected.
9 27
Scheduled Debt Service on the Bonds
The following is the scheduled semi-annual and annual Debt Service on the Series A Bonds (assuming no
early redemption).
Semi-Annual Annual
Payment Date Principal Interest Debt Service Debt Service
March 1,2018
September 1,2018
March 1,2019
September 1,2019
March 1,2020
September 1,2020
March 1, 2021
September 1,2021
March 1,2022
September 1,2022
March 1,2023
September 1,2023
March 1,2024
September 1,2024
March 1,2025
September 1, 2025
March 1,2026
September 1,2026
March 1,2027
September 1,2027
March 1,2028
September 1,2028
March 1,2029
September 1,2029
March 1,2030
September 1,2030
March 1,2031
September 1,2031
March 1,2032
September 1,2032
March 1,2033
September 1,2033
March 1,2034
September 1,2034
Total
10
28
The following is the scheduled semi-annual and annual Debt Service on the Series B Bonds (assuming no
early redemption).
Semi-Annual Annual
Payment Date Principal Interest Debt Service Debt Service
March 1,2018
September 1,2018
March 1,2019
September 1,2019
March 1,2020
September 1,2020
March 1,2021
September 1, 2021
March 1,2022
September 1, 2022
March 1,2023
September 1,2023
March 1,2024
September 1,2024
March 1,2025
September 1,2025
March 1,2026
September 1,2026
March 1,2027
September 1,2027
March 1,2028
September 1,2028
March 1,2029
September 1,2029
March 1,2030
September 1,2030
March 1,2031
September 1,2031
March 1,2032
September 1,2032
March 1, 2033
September 1,2033
March 1, 2034
September 1,2034
Total
11 29
THE FINANCING PLAN
The Refunding Plan
Redemption of Prior Bonds. On the Closing Date, a portion of the proceeds of each series of the Bonds
will be transferred to the Trustee as prior trustee for the Prior Bonds (the"Prior Trustee") for deposit into
a separate redemption fund (together, the "Redemption Funds") established for each series of Prior
Bonds, under certain Irrevocable Refunding Instructions dated as of the Closing Date (the "Refunding
Instructions") delivered by the Successor Agency to the Prior Trustee.
The amount deposited in the Redemption Funds for the Prior Bonds, together with other available
moneys, will be held uninvested and irrevocably pledged for the payment of the related Prior Bonds on
their respective date of redemption as follows:
• the $12,420,000 outstanding 2007 Series A Bonds will be redeemed in full on November 15,
2017, at a redemption price equal to 100% of the principal amount of the 2007 Series A Bonds to
be redeemed together with accrued interest thereon to the date fixed for redemption, without
premium,and
• the $5,355,000 outstanding 2007 Series C Bonds will be redeemed in full on November 15, 2017,
at a redemption price equal to 100% of the principal amount of the 2007 Series C Bonds to be
redeemed together with accrued interest thereon to the date fixed for redemption, without
premium.
Amounts so deposited in the Redemption Funds will be pledged to the redemption price of the Prior
Bonds on the respective redemption dates and the sufficiency of the amounts deposited in the Redemption
Funds for such purpose will be verified by the Verification Agent as described below. The lien of the
Prior Bonds will be discharged, terminated and of no further force and effect upon the deposit with the
Prior Trustee of the amounts required pursuant to the Refunding Instructions.
The amounts held by the Prior Trustee for the respective Prior Bonds in the Redemption Funds are
pledged solely to the payment of amounts due and payable by the Successor Agency under the Prior
Indenture. The funds deposited in the Redemption Funds for the Prior Bonds will not be available for the
payment of debt service on the Bonds.
Verifications of Mathematical Computations. Grant Thornton LLP will verify from the information
provided to them the mathematical accuracy as of the date of the closing on the Bonds of (1) the
computations contained in the provided schedules to determine that the cash listed in the schedules
prepared by the Municipal Advisor, to be held in the Redemption Funds, will be sufficient to pay, when
due, the principal, redemption premium and interest requirements of the Prior Bonds, and (2) the
computation of yield on the Series A Bonds contained in the provided schedules used by Bond Counsel in
its determination that the interest with respect to the Series A Bonds is exempt from federal taxation.
12
J 0
Estimated Sources and Uses of Funds
Under the provisions of the Indenture, the Trustee will receive the proceeds from the sale of the Bonds
and other available funds and will apply them as shown below.
Series A Bonds Series B Bonds
Sources of Funds
Par Amount of Bonds
Net Original Issue Premium/(Original Issue Discount)
Funds Held for the Prior Bonds
Total Source of Funds
Uses of Funds
Transfer to Redemption Funds
Underwriter's Discount
Costs of Issuance Fund n�
Total Use of Funds
Costs of issuance include fees and expenses of Bond Counsel, the Municipal Advisor, Disclosure Counsel,
Verification Agent,Trustee and Escrow Bank, costs of printing the Official Statement,rating fee, premiums for
the Policy and the Reserve Policy and other costs of issuance of the Bonds.
13 31
SECURITY FOR THE BONDS
Tax Allocation Financing
Prior to the enactment of the Dissolution Act, the Redevelopment Law authorized the financing of
redevelopment projects through the use of tax increment revenues. First, the assessed valuation of the
taxable property in a project area, as last equalized prior to adoption of the redevelopment plan, was
established and became the base roll. Thereafter, except for any period during which the assessed
valuation drops below the base year level, the Taxing Agencies, on behalf of which taxes are levied on
property within the project area, receive the taxes produced by the levy of the then current tax rate upon
the base roll. Taxes collected upon any increase in the assessed valuation of the taxable property in a
project area over the levy upon the base roll could be pledged by a redevelopment agency to the
repayment of any indebtedness incurred in financing the redevelopment project. Redevelopment agencies
themselves had no authority to levy taxes on property.
The Dissolution Act now requires the County Auditor-Controller to determine the amount of property
taxes that would have been allocated to the Former Agency had the Former Agency not been dissolved
using current assessed values on the last equalized roll on August 20, and to deposit that amount in the
Redevelopment Property Tax Trust Fund for the Successor Agency established and held by the County
Auditor-Controller pursuant to the Dissolution Act. Such funds, or portions thereof distributed to the
Successor Agency, are deposited by the Successor Agency in its Recognized Obligation Retirement Fund
(the"Recognized Obligation Retirement Fund"). The Dissolution Act provides that any bonds authorized
thereunder to be issued by the Successor Agency will be considered indebtedness incurred by the
dissolved Former Agency,with the same legal effect as if the bonds had been issued prior to effective date
of AB X1 26, in full conformity with the applicable provision of the Redevelopment Law that existed
prior to that date, and will be included in the Successor Agency's Recognized Obligation Payment
Schedules (see"Recognized Obligation Payment Schedules"herein).
The Dissolution Act authorizes refunding bonds, including the Bonds, to be secured by a pledge of
moneys deposited from time to time in a Redevelopment Property Tax Trust Fund held by a county
auditor-controller with respect to a successor agency, which are equivalent to the tax increment revenues
that were formerly allocated under the Redevelopment Law to the redevelopment agency and formerly
authorized under the Redevelopment Law to be used for the financing of redevelopment projects, less
amounts deducted pursuant to Section 34183(a) of the Dissolution Act for permitted administrative costs
of the county auditor-controller and payments made under Sections 33401, 33676, 33607.5 and 33607.7
(among others)of the Redevelopment Law.
Successor agencies have no power to levy property taxes and must look specifically to the allocation of
taxes as described above. See"RISK FACTORS."
Tax Revenues
As provided in the Redevelopment Plans for the constituent Redevelopment Projects and pursuant to
Article 6 of Chapter 6 of the Redevelopment Law, and Section 16 of Article XVI of the Constitution of
the State, taxes levied upon taxable property in the Project Area each year by or for the benefit of the
State, for cities, counties, districts or other public corporations (collectively, the "Taxing Agencies") for
fiscal years beginning after the effective date of each constituent Redevelopment Plan, will be divided as
follows:
(a) To Taxing Agencies: That portion of the taxes which would be produced by the rate upon which
the tax is levied each year by or for each of the Taxing Agencies upon the total sum of the
assessed value of the taxable property in the Redevelopment Project as shown upon the
assessment roll used in connection with the taxation of such property by such Taxing Agency last
14 32
equalized prior to the effective date of the ordinance adopting the Redevelopment Plan, or the
respective effective dates of ordinances approving amendments to the Redevelopment Plan that
added territory to the Redevelopment Project, as applicable (each, a "base year valuation"), will
be allocated to, and when collected will be paid into, the funds of the respective Taxing Agencies
as taxes by or for the Taxing Agencies on all other property are paid; and
(b) To the Former Agency/Successor Agency: Except for that portion of the taxes in excess of the
amount identified in (a) above which are attributable to a tax rate levied by a Taxing Agency for
the purpose of producing revenues in an amount sufficient to make annual repayments of the
principal of and the interest on, any bonded indebtedness approved by the voters of the Taxing
Agency on or after January 1, 1989 for the acquisition or improvement of real property, which
portion shall be allocated to, and when collected shall be paid into, the fund of that Taxing
Agency, that portion of the levied taxes each year in excess of such amount, when collected will
be paid into a special fund of the Former Agency/Successor Agency.
Section 34183 of the Dissolution Act effectively eliminated the January 1, 1989 date from the paragraph
above. Additionally, effective September 22, 2015, debt service override revenues approved by the voters
for the purpose of supporting pension programs, capital projects, or programs related to the State Water
Project, that are not pledged to or needed for debt service on successor agency obligations are allocated
and paid to the entity that levies the override and will not be deposited into the Redevelopment Property
Tax Trust Fund. Further, also effective September 22, 2015, Redevelopment Plan limits relating to the
amount of taxes that could be paid to the Former Agency/Successor Agency and the time that such taxes
could be paid was eliminated for the purpose of paying debt service on bonds of the Former Agency or
the Successor Agency.
Tax revenues generated as set forth under(b) above and allocated to the Successor Agency constitute Tax
Increment Revenues,as that term is used herein.
Pledged Tax Revenues. For the security of the Bonds, the Successor Agency grants a pledge of and lien
on all of the Tax Revenues. Tax Revenues are defined under the Indenture as taxes that were eligible for
allocation to the Former Agency with respect to the Project Areas and are allocated to the Successor
Agency pursuant to Article 6 of Chapter 6 (commencing with Section 33670) of the Law and Section 16
of Article XVI of the Constitution of the State, or pursuant to other applicable State laws and deposited in
the Redevelopment Property Tax Trust Fund. By definition, Tax Revenues are net of the same amounts
that were payable by the Former Agency pursuant to any existing Contractual Tax Sharing Agreements
and amounts that were payable by the Former Agency as Statutory Tax Sharing as well as the County's
administrative costs allowed under Section 34182 of the Dissolution Act and Section 95.3 of the Revenue
and Taxation Code. Certain Tax Revenues are released from the lien of the Bonds each January 2 upon
certain conditions.
See "Pledge of Tax Revenues" below and "FINANCIAL INFORMATION - Tax Sharing Agreements and
Tax Sharing Statutes"herein.
Elimination of the 20% Housing Set-Aside. Revenues pledged to the Refunded Bonds and the Senior
Bonds did not include amounts otherwise required to be deposited in the Former Agency's Low and
Moderate Income Housing Fund(the"20% Housing Set-Aside"). The Dissolution Act has eliminated the
20% Housing Set-Aside requirement and none of the property tax revenues deposited in the
Redevelopment Property Tax Trust Fund is designated as 20% Housing Set-Aside. In effect, after the
Former Agency's dissolution, the Prior Bonds, the Parity Bonds and the Senior Bonds have been paid
from Redevelopment Property Tax Trust Fund disbursements without any allocation of the 20% Housing
Set-Aside, and Tax Revenues pledged to the Bonds and the Parity Bonds includes the former 20%
Housing Set-Aside.
15 3 3
Redevelopment Property Tax Trust Fund
Deposits to the Redevelopment Property Tax Trust Fund. Section 34172 of the Dissolution Act
provides that, for purposes of Section 16 of Article XVI of the State Constitution, the Redevelopment
Property Tax Trust Fund shall be deemed to be a special fund of the Successor Agency to pay the debt
service on indebtedness incurred by the Former Agency or the Successor Agency to finance or refinance
the redevelopment projects of the Former Agency.
Disbursements from the Redevelopment Property Tax Trust Fund. The Redevelopment Law
authorized redevelopment agencies to make payments to Taxing Agencies to alleviate any financial
burden or detriments to such Taxing Agencies caused by a redevelopment project. The Former Agency
entered into a number of agreements with the Taxing Agencies for this purpose ("Tax Sharing
Agreements"). Additionally, Sections 33607.5 and 33607.7 of the Redevelopment Law required
mandatory tax sharing applicable to redevelopment projects adopted on or after June 1, 1994 or amended
after January 1, 1994 in a manner specified in such section (the "Statutory Tax Sharing"). Because of
amendments to the individual Redevelopment Plans adopted after January 1, 1994, the Successor Agency
is obligated to make Statutory Tax Sharing payments. See "FINANCIAL INFORMATION - Tax Sharing
Agreements and Tax Sharing Statutes"herein).
Typically, under the Redevelopment Property Tax Trust Fund distribution provisions of the Dissolution
Act, a county auditor-controller is to distribute funds for each six-month period in the following order
specified in Section 34193 of the Dissolution Act:
(i) first, subject to certain adjustments (as described below) for subordinations to the extent
permitted under the Dissolution Act (if any, as described below under "FINANCIAL
INFORMATION - Tax Sharing Agreements and Tax Sharing Statutes") and no later than each
January 2 and June 1, to each local taxing agency and school entity, to the extent applicable,
amounts required for pass-through payments such entity would have received under provisions of
the Redevelopment Law, as those provisions read on January 1, 2011, including negotiated pass-
through agreements and statutory pass-through obligations;
(ii) second, on each January 2 and June 1, to the successor agency for payments listed in its
Recognized Obligation Payment Schedule, with debt service payments (and amounts required to
replenish the related reserve funds, if any) scheduled to be made for tax allocation bonds having
the highest priority over payments scheduled for other debts and obligations listed on the
Recognized Obligation Payment Schedule;
(iii) third, on each January 2 and June 1, to the successor agency for the administrative cost
allowance, as defined in the Dissolution Act; and
(iv) fourth, on each January 2 and June 1, to taxing entities any moneys remaining in the
Redevelopment Property Tax Trust Fund after the payments and transfers authorized by clauses
(i) through (iii), in an amount proportionate to such taxing entity's share of property tax revenues
in the tax rate area in that fiscal year (without giving effect to any pass-through obligations that
were established under the Redevelopment Law).
The Dissolution Act requires the County Auditor-Controller to distribute from the Redevelopment
Property Tax Trust Fund amounts required to be distributed under any Tax Sharing Agreements and
Statutory Tax Sharing to the Taxing Agencies on each January 2 and June 1 before amounts are
distributed by the County Auditor-Controller from the Redevelopment Property Tax Trust Fund to the
Successor Agency's Redevelopment Obligation Retirement Fund, unless: (i) pass-through payment
obligations have been made subordinate to debt service payments for the bonded indebtedness of the
Former Agency, as succeeded to by the Successor Agency; (ii) the Successor Agency has reported, no
later than the December 1 and May 1 preceding the applicable January 2 or June 1 distribution date, that
16 34
the total amount available to the Successor Agency from the Redevelopment Property Tax Trust Fund
allocation to the Successor Agency's Redevelopment Obligation Retirement Fund, from other funds
transferred from the Former Agency and from funds that have or will become available through asset
sales and all redevelopment operations is insufficient to fund the Successor Agency's enforceable
obligations, pass-through payments and the Successor Agency's administrative cost allowance for the
applicable Recognized Obligation Payment Schedule period; and (iii) the State Controller has concurred
with the Successor Agency that there are insufficient funds for such purposes.
If the requirements set forth in clauses (i) through (iii) of the foregoing paragraph have been met, the
Dissolution Act provides for certain modifications in the distributions otherwise calculated to be
distributed on the applicable January 2 or June 1 property tax distribution date (as adjusted for weekends
and holidays). To provide for calculated shortages to be paid to the Successor Agency for enforceable
obligations, the amount of the deficiency will first be deducted from the residual amount otherwise
calculated to be distributed to the taxing entities under the Dissolution Act after payment of the Successor
Agency's enforceable obligations, pass-tbrough payments and the Successor Agency's administrative cost
allowance. If such residual amount is exhausted,the amount of the remaining deficiency will be deducted
from amounts available for distribution to the Successor Agency for administrative costs for the
applicable Recognized Obligation Payment Schedule period in order to fund the enforceable obligations.
Finally, funds required for servicing bond debt may be deducted from the amounts to be distributed under
subordinated Tax Sharing Agreements, in order to be paid to the Successor Agency for enforceable
obligations, but only after the amounts described in the previous two sentences have been exhausted.
The Dissolution Act provides for a procedure by which the Successor Agency may make the payment of
Statutory Tax Sharing Amounts subordinate to the Bonds. The Successor Agency had not previously
undertaken proceedings to subordinate such payments to the outstanding Parity Bonds, nor will it
undertake such procedure with respect to the Bonds, and therefore, Statutory Tax Sharing Amounts are
not subordinate to the Bonds. See"FINANCIAL INFORMATION" for additional information regarding the
Statutory Tax Sharing Amounts applicable to the Successor Agency and the revenues derived from the
Project Areas.
Recognized Obligation Payment Schedules
Enforceable Obligations. The Dissolution Act requires successor agencies to prepare and approve, and
submit to the successor agency's oversight board and the State Department of Finance for approval, a
Recognized Obligation Payment Schedule pursuant to which enforceable obligations (as defined in the
Dissolution Act) of the successor agency are listed,together with the source of funds to be used to pay for
each enforceable obligation. As defined in the Dissolution Act, "enforceable obligation" includes bonds,
including the required debt service, reserve set-asides, and any other payments required under the
indenture or similar documents governing the issuance of the outstanding bonds of the former
redevelopment agency, as well as other obligations such as loans, judgments or settlements against the
former redevelopment agency, any legally binding and enforceable agreement that is not otherwise void
as violating the debt limit or public policy, contracts necessary for the administration or operation of the
successor agency, and amounts borrowed from the Low and Moderate Income Housing Fund and from
the city. A reserve may be included on the Recognized Obligation Payment Schedule and held by the
successor agency when required by the bond indenture or when the next property tax allocation will be
insufficient to pay all obligations due under the provisions of the bond for the next payment due in the
following six-month period (see "APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE
INDENTURE - Covenants of the Successor Agency"). The Successor Agency has covenanted to request
such reserves as described below.
Under the Dissolution Act, the categories of sources of payments for enforceable obligations listed on a
Recognized Obligation Payment Schedule are the following: (i) the Low and Moderate Income Housing
Fund, (ii) bond proceeds, (iii)reserve balances, (iv) administrative cost allowance, (v) the Redevelopment
Property Tax Trust Fund (but only to the extent no other funding source is available or when payment
17 35
from property tax revenues is required by an enforceable obligation or otherwise required under the
Dissolution Act), or (vi) other revenue sources (including rents, concessions, asset sale proceeds, interest
earnings, and any other revenues derived from the former redevelopment agency, as approved by the
oversight board). Other than amounts deposited in the Redevelopment Property Tax Trust Fund and
amounts held in funds and accounts under the Indenture, the Successor Agency does not expect to have
any other funds available to pay the Bonds.
The Dissolution Act provides that only those payments listed in the Recognized Obligation Payment
Schedule may be made by the Successor Agency from the funds specified in the Recognized Obligation
Payment Schedule.
Required Approvals. As provided in SB 107, the Recognized Obligation Payment Schedule, with
respect to each Fiscal Year, and segregated into each six-month period beginning July t and January 1,
must be submitted by the Successor Agency, after approval by the Oversight Board, to the County
Auditor-Controller, the State Department of Finance, and the State Controller by each February 1. For
information regarding procedures under the Dissolution Act relating to late Recognized Obligation
Payment Schedules and implications thereof on the Bonds, see"RISK FACTORS - Recognized Obligation
Payment Schedule."
Commencing on September 22, 2015, successor agencies that have received a Finding of Completion and
the concurrence of the Department of Finance as to the items that qualify for payment, among other
conditions, may at their option, file a "Last and Final" Recognized Obligation Payment Schedule. If
approved by the Department of Finance, the Last and Final Recognized Obligation Payment Schedule
will be binding on all parties, and the Successor Agency will no longer submit a Recognized Obligation
Payment Schedule to the Department of Finance or the Oversight Board. The County Auditor-Controller
will remit the authorized funds to the Successor Agency in accordance with the approved Last and Final
Recognized Obligation Payment Schedule until each remaining enforceable obligation has been fully
paid. A Last and Final Recognized Obligation Payment Schedule may only be amended twice, and only
with approval of the Department of Finance and the County Auditor-Controller. The Successor Agency
currently has no plans to file a Last and Final Recognized Obligation Payment Schedule and has
covenanted in the Indenture to not do so without the consent of any bond insurer insuring the payment of
principal and interest on the outstanding Bonds issued by the Successor Agency.
Determination of Available Funding. In connection with the allocation and distribution by the County
Auditor-Controller of property tax revenues deposited in the Redevelopment Property Tax Trust Fund,
under the Dissolution Act the County Auditor-Controller must prepare estimates of the amounts of (i)
property tax to be allocated and distributed, and (ii) the amounts of pass-through payments to be made in
the upcoming six-month period, and provide those estimates to the entities receiving the distributions and
the State Department of Finance no later than April 1 and October 1 of each year,as applicable.
If, after receiving such estimate from the County Auditor-Controller, the Successor Agency determines
and reports, no later than December 1 or May 1, as applicable, that the total amount available to the
Successor Agency from the Redevelopment Property Tax Trust Fund allocation to the Successor Agency's
Redevelopment Obligation Retirement Fund, from other funds transferred from the Former Agency, and
from funds that have or will become available through asset sales and all redevelopment operations, is
insufficient to fund the payment of pass-through obligations, the Successor Agency's enforceable
obligations listed on the Recognized Obligation Payment Schedule, and the Successor Agency's
administrative cost allowance, the County Auditor-Controller must notify the State Controller and the
State Department of Finance no later than 10 days from the date of the Successor Agency's notification.
If the State Controller concurs that there are insufficient funds to pay required debt service, the
Dissolution Act provides for certain adjustments to be made to the estimated distributions, as described in
more detail under"Redevelopment Property Tax Trust Fund"above.
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Debt Service. In the Indenture, the Successor Agency covenants to comply with all of the requirements
of the Dissolution Act, including taking all actions required under the Dissolution Act to prepare and file
Recognized Obligation Payment Schedules for each Fiscal Year so as to enable the County Auditor-
Controller to distribute from the Redevelopment Property Tax Trust Fund for deposit in the
Redevelopment Obligation Retirement Fund all amounts as shall be required to enable the Successor
Agency to pay timely principal of, and interest on, the Senior Bonds, the Bonds, the Parity Bonds and all
outstanding Parity Debt coming due in such Bond Year, including any amounts due and owing to the
Bond Insurer in respect of the Reserve Policy, or required to replenish the Reserve Account, and the
respective reserve accounts established for any Senior Bonds or Parity Bonds.
Pursuant to the Indenture, without limiting the generality of the foregoing covenant, the Successor
Agency will take all actions required under the Dissolution Act to file a Recognized Obligation Payment
Schedule by February 1 in each year, commencing February 1, 2018, in accordance with Section
34177(0) of the Redevelopment Law. For the semiannual period ending each June 30, the Recognized
Obligation Payment Schedule which includes such period shall request the payment to the Successor
Agency of an amount of Tax Revenues which is at least equal to the following:
(a) 100% of the amount of principal of and interest on the Senior Bonds coming due and payable on
the next succeeding March 1 and September 1,
(b) 100% of the amount of interest on the Bonds and all Outstanding Parity Bonds coming due and
payable on the next succeeding March 1,
(c) 100% of the amount of principal on the Bonds and all Outstanding Parity Bonds coming due and
payable on the next succeeding September 1,
(d) any amount then required to replenish the full amount of the Reserve Requirement in the Reserve
Account and to replenish the amount in any reserve account established for outstanding Senior
Bonds or Parity Bonds; and
(e) any amount then required to make payments due to the Bond Insurer in respect of the Policy or
the Reserve Policy.
For the semiannual period ending each December 31, the Recognized Obligation Payment Schedule
which includes such period shall request the payment to the Successor Agency of an amount of Tax
Revenues which is at least equal to the following:
(a) 100% of the interest due on the Bonds and all Outstanding Parity Bonds coming due and payable
on the next succeeding September 1,
(b) the remaining principal due on the Bonds and all Outstanding Parity Bonds coming due and
payable on the next succeeding September 1 and not reserved in the period ending June 30; and
(e) reserves and amounts due to any bond insurer as described under(d) and(c)above.
The foregoing actions will include, without limitation, placing on the periodic Recognized Obligation
Payment Schedule for approval by the Oversight Board and the Department of Finance, to the extent
required, the amounts to be held by the Successor Agency as a reserve for the timely payment of principal
of and interest on the Senior Bonds, the Bonds, the Parity Bonds and all outstanding Parity Debt coming
due in the succeeding Fiscal Year. See "Recognized Obligation Payment Schedules" above and "RISK
FACTORS -Recognized Obligation Payment Schedule."
The Successor Agency further agrees (a) to the extent permitted by law, to amend any Recognized
Obligation Payment Schedule filing for any period during which amounts owed to the Bond Insurer either
with respect to the Bond Insurance Policy or the Reserve Policy are not included on such Recognized
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37
Obligation Payment Schedule filing, and (b) not to submit a Last and Final Recognized Obligation
Payment Schedule under the Dissolution Act without the prior written consent of the Bond Insurer.
The Successor Agency has no power to levy and collect taxes, and various factors beyond its control
could affect the amount of Tax Revenues available in any six-month period (or otherwise) to pay the
principal of and interest on the Bonds. See"RISK FACTORS."
Pledge of Tax Revenues
The Bonds,the Parity Bonds and any Parity Debt shall be equally secured by a pledge of, security interest
in and lien on all of the Tax Revenues, including all of the Tax Revenues in the Redevelopment Property
Tax Trust Fund, net of Tax Sharing Agreements or Statutory Tax Sharing Amounts, or in the Special Fund
(if applicable), subject, however, to the prior pledge, security interest and lien on Tax Revenues securing
payment of debt service on the Senior Bonds, and a first and exclusive pledge of, security interest in and
lien upon all of the moneys in the Debt Service Fund, the Interest Account, the Principal Account, the
Sinking Account and the Redemption Account, without preference or priority for series, issue, number,
dated date, sale date, date of execution or date of delivery. The Bonds, the Parity Bonds and any Parity
Debt shall be additionally secured by a first and exclusive pledge of, security interest in and lien upon all
of the moneys in the Reserve Account. The Bonds, the Parity Bonds and all Parity Debt shall be also
equally secured by the pledge and lien created by Section 34177.5(g) of the Law on moneys deposited
from time to time in the Redevelopment Property Tax Trust Fund. Except for the Tax Revenues and such
moneys, no funds or properties of the Successor Agency shall be pledged to, or otherwise liable for, the
payment of principal of or interest on the Bonds.
The Successor Agency has established the Redevelopment Obligation Retirement Fund pursuant to
Section 34170.5(a)of the Law which the Successor Agency shall continue to hold and maintain so long as
any of the Bonds are Outstanding. Because the Dissolution Act requires that all Tax Revenues be
deposited by the Successor Agency in the Redevelopment Obligation Retirement Fund, the
Redevelopment Obligation Retirement Fund shall be deemed to be the Special Fund (as defined in the
Senior Bond Indenture) established and continued by the Successor Agency pursuant to the Senior Bonds
Indenture.
The Successor Agency shall deposit all of the Tax Revenues received into the Redevelopment Obligation
Retirement Fund promptly upon receipt thereof. All Tax Revenues received by the Successor Agency in
excess of the amount required to pay debt service on the Senior Bonds and to pay debt service on the
Bonds, the Parity Bonds and any Parity Debt and except as may be provided to the contrary in the Senior
Bond Indenture or indenture relating to any Parity Debt, shall be released from the pledge and lien of the
Indenture and shall be applied in accordance with the Law, including but not limited to the payment of
debt service on any subordinate debt. Prior to the payment in full of the principal of and interest on the
Bonds and the payment in full of all other amounts payable under the Indenture and under any
supplemental indentures, the Successor Agency shall not have any beneficial right or interest in the
moneys on deposit in the Redevelopment Obligation Retirement Fund, except as may be provided in the
Indenture and in any supplemental indenture.
Also see"No Additional Debt Other Than Refunding Bonds"below.
The Tax Revenues are pledged to the payment of principal of and interest on the Bonds pursuant to the
Indenture until the Bonds have been paid, or until moneys have been set-aside irrevocably for that
purpose. The Trustee will covenant to exercise such rights and remedies as may be necessary to enforce
the payment of the Tax Revenues when due under the Indenture, and otherwise to protect the interests of
the Bondholders in the event of default by the Successor Agency.
The Bonds are special obligations of the Successor Agency. The Bonds do not constitute a debt or
liability of the City, the County, the State or of any political subdivision thereof, other than the
20 3 8
Successor Agency. The Successor Agency shall only be obligated to pay the principal of the Bonds,
or the interest thereon, from the funds described herein, and neither the faith and credit nor the
taxing power of the City, the County, the State or any of its political subdivisions is pledged to the
payment of the principal of or the interest on the Bonds. The Successor Agency has no taxing
power.
The State Legislature has amended the Dissolution Act several times. The Successor Agency expects,but
cannot guarantee, that the processes for funding of enforceable obligations prescribed by any new
legislative change in the Dissolution Act will not interfere with its administering of the Tax Revenues in
accordance with the Indenture and will effectively result in adequate Tax Revenues for the timely
payment of principal of and interest on the Bonds when due.
Redevelopment Obligation Retirement Fund; Special Fund; Deposit of Tax
Revenues
The Successor Agency has established a Redevelopment Obligation Retirement Fund in accordance with
the Dissolution Act. The Former Agency established a"Special Fund" for deposit of Tax Revenues when
received, and the Special Fund is continued under the Indenture within the Redevelopment Obligation
Retirement Fund. The Successor Agency shall deposit all of the Tax Revenues received in any Bond Year
in the Special Fund promptly upon receipt thereof by the Successor Agency, until such time during such
Bond Year as the amounts on deposit in the Special Fund equal the aggregate amounts required to be
transferred to the Trustee in such Bond Year pursuant to the Indenture and for deposit in such Bond Year
in the funds and accounts established with respect to Parity Bonds, as provided in the Parity Bonds
Indentures,or with respect to Parity Debt, as provided in any Supplemental Indenture.
If the amount of Tax Revenues available in such Bond Year is insufficient to deposit the full amount
required to be deposited in the Special Fund pursuant to the paragraph above, then the Successor Agency
shall transfer such Tax Revenues to the Trustee for the Bonds in such Bond Year and for in the funds and
accounts established with respect to Parity Bonds, as provided in the Parity Bonds Indenture, or with
respect to Parity Debt, as provided in any Supplemental Indenture, ratably based on the full amounts
required to be deposited without preference or priority for series.
All Tax Revenues received by the Successor Agency during any Bond Year in excess of the amount
required to be deposited in the Special Fund during such Bond Year shall be released from the pledge and
lien of the Indenture and Parity Bonds Indenture for the security of the Bonds and Parity Bonds and shall
be deposited and applied by the Successor Agency for any lawful purposes of the Successor Agency.
However,Tax Revenues shall not be released from the pledge and lien which secures the Bonds unless no
amounts are then due and owing to the Bond Insurer in respect of the Policy or the Reserve Policy, as
defined herein.
Reserve Account
A Reserve Account has been established under the Indenture to be held by the Trustee to further secure
the timely payment of principal of and interest on the Bonds. The Successor Agency must maintain a
balance in the Reserve Account equal to the least of(i) 10% of the original par amount of the Bonds, (ii)
Maximum Annual Debt Service with respect to the Bonds, or (iii) 125% of average Annual Debt Service
on the Bonds; provided further that the Reserve Requirement with respect to the Series A Bonds and the
Series B Bonds will be calculated on a combined basis (the "Reserve Requirement"). If the Successor
Agency fails to deposit with the Trustee the full amount required by the Indenture to pay principal and
interest due on the Bonds of that series when due on any date, the Trustee will withdraw from the Reserve
Account, the difference between the amount required to be on deposit and the amount available on such
date.
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The Reserve Account established for the Bonds secures only the Bonds, and will not secure the Senior
Bonds, the Parity Bonds or any other series of Parity Debt that may be issued under the Indenture (see
"No Additional Debt Other Than Refunding Bonds"below).
The Indenture provides that in lieu of a cash deposit, the Successor Agency may satisfy all or a portion of
the Reserve Requirement by means of a Qualified Reserve Account Credit Instrument (see"APPENDIX A
- SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE"herein).
The Senior Bonds reserve requirement is currently satisfied with a surety bond issued by Ambac
Assurance Corporation in the amount of $180,712.40 (the "2007B Surety"). The 2007B Surety is not
available to pay debt service on the Bonds or the Parity Bonds.
Qualified Reserve Account Credit Instruments
The Successor Agency deposited a Qualified Reserve Account Credit Instrument in the face amount of
$1,419,004.50 to the reserve account established for the Parity Bonds (the "2014 Reserve Policy"). The
2014 Reserve Policy is not available to pay debt service on the Bonds.
Concurrently with the issuance of the Bonds, will issue the Reserve Policy for the Bonds. The
Reserve Policy constitutes a Qualified Reserve Account Credit Instrument under the Indenture and is
being issued in the amount of the Reserve Requirement. is also issuing a municipal bond insurance
policy for the Insured Bonds, but is not providing municipal bond insurance for the Uninsured Bonds.
Information regarding is discussed herein under"MUNICIPAL BOND INSURANCE- "
WHILE _ HAS NOT ISSUED A POLICY INSURING OR GUARANTEEING THE PRINCIPAL OF
AND/OR INTEREST ON THE UNINSURED BONDS, HAS ISSUED THE RESERVE POLICY FOR
THE BENEFIT OF ALL OF THE BONDS.
Rating agencies have downgraded or withdrawn the ratings on the claims-paying ability and financial
strength of most of the nation's bond insurance companies. Deterioration in the financial condition of the
provider of the Reserve Policy or a failure to honor a draw by any provider under its Reserve Policy could
occur. The Successor Agency is not required under the Indenture to replace the Reserve Policy with cash
or a replacement instrument in the event the ratings of its provider decline or are withdrawn. If
circumstances should ever cause the Reserve Policy to be canceled or discharged, such cancellation or
discharge could be determined to create a deficiency in the Reserve Requirement previously satisfied by
such Reserve Policy. Under the Indenture, in the event that the amount on deposit in the Reserve Account
is less than the Reserve Requirement, the Successor Agency is required to transfer to the Trustee an
amount of available Tax Revenues sufficient to maintain the amount in such Reserve Account at such
Reserve Requirement. Should the amount of Tax Revenues then available to maintain such Reserve
Account at the Reserve Requirement be insufficient for such purpose, such insufficiency would not result
in an event of default under the Indenture, but the requirement of the Successor Agency to transfer
available Tax Revenues to the Trustee would continue.
No Additional Debt Other Than Refunding Bonds
So long as the Bonds are Outstanding, the Successor Agency shall not issue any bonds, notes or other
obligations, enter into any agreement or otherwise incur any indebtedness, which is in any case payable
from all or any part of the Tax Revenues, excepting only as provided in the Indenture. The Successor
Agency will not otherwise encumber, pledge or place any charge or lien upon any of the Tax Revenues or
other amounts pledged to the Bonds superior to the pledge and lien created for the benefit of the Bonds;
provided, that the Successor Agency (a) may issue and sell refunding bonds as Parity Debt payable from
Tax Revenues on a parity with Outstanding Bonds ("Parity Debt") (as determined by the Successor
Agency, in its sole discretion) to refund the 2007B Bonds and (b) may issue and sell refunding bonds as
Parity Debt payable from Tax Revenues on a parity with Outstanding Bonds to refund a portion of the
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40
Outstanding Bonds or the Parity Bonds, provided further that, with respect to any such refunding (i)
annual debt service on such Parity Debt is lower than annual debt service on the obligations being
refunded during every year the obligations would otherwise be outstanding and (ii) the final maturity of
any such Parity Debt does not exceed the final maturity of the obligations being refunded.
MUNICIPAL BOND INSURANCE
Bond Insurance Policy
[to be determined]
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41
THE SUCCESSOR AGENCY
Government Organization
The Former Agency was established by the City Council in 1973 pursuant to the Redevelopment Law.
On June 29, 2011, AB X1 26 was enacted, together with a companion bill, AB XI 27. A lawsuit was
brought in the California Supreme Court, California Redevelopment Association, et al. a Matosantos, et
al., 53 Cal. 41" 231 (Cal. Dec. 29, 2011), challenging the constitutionality of AB X1 26 and AB X1 27. In
its December 29, 2011 decision, the California Supreme Court largely upheld AB X1 26, invalidated AB
X1 27, and held that AB X1 26 may be severed from AB X1 27 and enforced independently. As a result
of AB X1 26 and the decision of the California Supreme Court in the California Redevelopment
Association case, as of February 1, 2012, all redevelopment agencies in the State were dissolved,
including the Former Agency, and successor agencies were designated as successor entities to the former
redevelopment agencies to expeditiously wind down the affairs of the former redevelopment agencies.
Pursuant to Section 34173 of the Dissolution Act, the City Council serves as the governing board of the
successor agency to the Former Agency and thus, since the February 1, 2012 dissolution of the Former
Agency, the City has acted in such capacity. The Successor Agency is governed by a five-member board
which consists of the Mayor and the members of the City Council. The Mayor serves as the presiding
officer of the Successor Agency.
Section 34173(g) of the Dissolution Act, added by AB 1484, expressly affirms that the Successor Agency
is a separate public entity from the City, that the two entities shall not merge, and that the liabilities of the
Former Agency will not be transferred to the City nor will the assets of the Former Agency become assets
of the City.
The City performs certain general administrative functions for the Successor Agency. The City Manager
serves as the Successor Agency's chief administrative officer, the City Clerk serves as the Successor
Agency secretary and the City Treasurer serves as the Successor Agency treasurer. The costs of such
functions, as well as additional services performed by City staff are allocated annually to the Successor
Agency, within certain limitations established by the Dissolution Act. Such reimbursement is subordinate
to payment on any outstanding bonds of the Successor Agency.
Successor Agency Powers
All powers of the Successor Agency are vested in its members, who are the elected Mayor and members
of the City Council. Pursuant to the Dissolution Act, the Successor Agency is a separate public body
from the City and succeeds to the organizational status of the Former Agency but without any legal
authority to participate in redevelopment activities, except to complete any work related to an approved
enforceable obligation. The Successor Agency is tasked with expeditiously winding down the affairs of
the Former Agency, pursuant to the procedures and provisions of the Dissolution Act. Under the
Dissolution Act, many Successor Agency actions are subject to approval by the Oversight Board, as well
as review by the State Department of Finance. California has strict laws regarding public meetings
(known as the Ralph M. Brown Act) which generally make all Successor Agency and Oversight Board
meetings open to the public in similar manner as City Council meetings.
Section 34179.5 of the Dissolution Act established a due diligence review process for determining the
unobligated balances that redevelopment agencies had available as of June 30, 2012 to remit to their
respective county auditor-controllers for distribution to affected Taxing Agencies within project areas of
the former redevelopment agencies. The Successor Agency has remitted to the County Auditor-Controller
all of the unobligated balances as determined by the State Department Finance. On January 2, 2014, the
Successor Agency received its Finding of Completion from the State Department of Finance. Receipt of
the Finding of Completion allows the Successor Agency to do several things, among them, developing a
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plan for the disposition of any properties held by the Successor Agency and spending proceeds of bonds
issued prior to December 31, 2010,all requiring approval of the Oversight Board.
After receiving the finding of completion, each successor agency was required to submit a Long Range
Property Management Plan (a "Long Range Property Management Plan") detailing what it intends to do
with its inventory of properties. Successor agencies are not required to immediately dispose of their
properties but are limited in terms of what they can do with the retained properties. Permissible uses
include: sale of the property, use of the property to fulfill an enforceable obligation, retention of the
property for future redevelopment, and retention of the property for governmental use. These plans must
be filed by successor agencies with the State Department of Finance within six months of receiving a
finding of completion. The State Department of Finance approved the Successor Agency's Long Range
Property Management Plan on March 25, 2014. The Successor Agency currently has _ remaining
properties to be disposed of.
Redevelopment Plans
The City Council approved and adopted the separate Redevelopment Plans for the ten constituent
Redevelopment Projects as described in"APPENDIX B-PROJECTED TAX REVENUES." Merged Project
No. 1 was created on May 31, 2000 pursuant to an amendment to the redevelopment plans for the Former
Agency's Central Business District Redevelopment Project, North Palm Canyon Redevelopment Project,
South Palm Canyon Redevelopment Project, Ramon-Bogie Redevelopment Project, Oasis
Redevelopment Project, Highland-Gateway Redevelopment Project and Redevelopment Project No. 9.
Merged Project No. 2 was also created on May 31, 2000 pursuant to an amendment to the redevelopment
plans for the Former Agency's Baristo-Farrell Redevelopment Project, Canyon Redevelopment Project
and Tahquitz-Andreas Redevelopment Project.
Plan Limitations
In accordance with the Redevelopment Law, redevelopment plans were required to include certain limits
on the financing of redevelopment projects. These limits could include a time limit on the life of the
redevelopment plan, a time limit to incur debt, a time limit on the receipt of Tax Increment Revenues and
the repayment of debt,and a limit on the amount of bonded indebtedness outstanding at any time. SB 107
clarifies that the former tax increment limits in redevelopment plans no longer apply for purposes of
paying approved enforceable obligations such as the Bonds,the Parity Bonds and the Senior Bonds.
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THE PROJECT AREAS
Description of the Merged Project No. 1
The Merged Project No. 1 is comprised of seven constituent project areas: the Central Business District
Redevelopment Project, the North Palm Canyon Redevelopment Project, the South Palm Canyon
Redevelopment Project, the Ramon-Bogie Redevelopment Project, the Oasis Redevelopment Project, the
Highland-Gateway Redevelopment Project and Redevelopment Project No. 9.
MERGED PROJECT NO. 1
REDEVELOPMENT PROJECT INFORMATION
Redevelopment Project Year Adopted Acreage Primary Land Use
Central Business District 1973 114 Commercial/Hotel
North Palm Canyon 1984 94 Commercial/Hotel
South Palm Canyon 1983 150 Industrial/Commercial
Oasis 1984 4 Hotel/Residential
Highland-Gateway 1984 325 Residential
Ramon-Bogie 1983 440 Industrial/Commercial
Project No. 9 1988 737 Commercial/Residential
1,864
The percentage of 2013/14 taxable value by land use within Merged Project No. 1 is shown below.
Land Use Taxable Value
Residential
Commercial/Industrial
Vacant Land
Possessory Interest
Unsecured
100%
See "RISK FACTORS - Possessory Interest Taxes; Bureau of Indian Affairs Regulations" herein for a
further discussion of possessory interest taxes.
Description of the Merged Project No. 2
Merged Project No. 2 is comprised of three constituent Redevelopment Projects: the Baristo-Farrell
Redevelopment Project, the Tahquitz-Andreas Redevelopment Project and the Canyon Redevelopment
Project.
MERGED PROJECT NO.2
REDEVELOPMENT PROJECT INFORMATION
Redevelopment Proiect Year Adopted Acreage Primary Land Use
Baristo-Farrell 1986 483 Commercial/Residential
Tahquitz-Andreas 1983 164 Commercial/Hotel
Canyon 1991 746 Residential/Open Space
1,393
26 44
The percentage of 2016/17 taxable value by land use within Merged Project No. 2 is shown below.
Land Use Taxable Value
Residential
Commercial/Industrial
Vacant Land
Possessory Interest
Unsecured
100%
See "RISK FACTORS - Possessory Interest Taxes; Bureau of Indian Affairs Regulations" herein for a
further discussion of possessory interest taxes.
Assessed Valuations and Tax Revenues
Base year assessed value and total assessed value of the Project Areas, together with assessed values of
the constituent Redevelopment Projects comprising the Project Areas between fiscal years 2013/14 and
2016/17 and the preliminary assessed values for 2017/18 are shown in the tables below.
TABLE NO. 1
MERGED PROJECT NO. 1
HISTORICAL ASSESSED VALUATIONS(1)
Preliminary
Proiect Area Base Value 2013/14 2014/15 2015/16 2016/17 2017/18
Central Business District $ 35,805,588 S 195,270,951 $ 189,483,8531't $ 194,142,064 $ 209,528,230 $ 228,886,062
Oasis 6,216,941 40,540,340 44,770,791 47,762,227 52,579,708 68,214,152
North Palm Canyon 58,368,599 176,789,817 180,912,117 186,895,962 203,936,811 218,111,666
Highland Gateway 13,076,698 74,604,313 76,040,066 79,664,267 85,463,565 93,873,606
Ramon-Bogie0) 24,113,819 190,337,750 190,332,903 196,207,008 201,751,055 210,349,886
South Palm Canyon(2) 52,364,719 121,925,359 128,101,827 127,859,813 130,307,997 139,403,781
Project No.9(-) 146,554,451 554,510,620 575,997,835 624306,134 657,851,291 692,636,575
S336,500,815 $1,353,979,150 $1,385,639,392 $1,456,837,475 $1,541,418,657 S1,651,475,728
11> Taxable Valuation as of August 20 equalized roll, except for the Preliminary 2017/18 tax roll, which was
released by the Riverside County Auditor-Controller and dated July 6, 2017. The Preliminary 2017/19 tax roll
is subject to change.
s21 Contains assessed value relating to possessory interest in leased tribal land. See"RISK FACTORS- Possessory
Interest Taxes;Bureau of Indian Affairs Regulations"herein.
(11 Redevelopment of 13 acres in the City's downtown resulted in some existing structures being demolished and a
reduction in assessed values.
Source: Riverside County Auditor-Controller.
27
45
TABLE NO. 2
MERGED PROJECT NO.2
HISTORICAL ASSESSED VALUATIONS t�1
Preliminary
ProiectArea Base Value 2013114 2014/15 2015116 2016117 2017/18
Baristo-Farrell« $105,804,243 $320,291,939 $340,641,620 $367,166,342 $393,295,714 $421,698,489
Tahquitz-Andreas4'-) 67,120,387 172,670,659 172,902,123 172,902,123 194,848,220 203,531,458
Canyon(2
) 9,543,553 176,278,489 238,522,743 287,828,368 330,937,300 368,019,765
$182,468,183 $669,241,087 $752,066,486 S827,896,833 $919,081,234 $993,249,712
�1 Taxable Valuation as of August 20 equalized roll except for the Preliminary 2017/18 tax roll, which was
released by the Riverside County Auditor-Controller and dated July 6, 2017. The Preliminary 2017/18 tax roll
is subject to change.
(2
) Contains assessed value relating to possessory interest in leased tribal land. See "RISK FACTORS - Possessory
Interest Taxes; Bureau of Indian Affairs Regulations"herein.
Source: Riverside County Auditor-Controller.
Actual Gross Tax Increment Revenues from Merged Project No. I are shown below.
TABLE NO.3
MERGED PROJECT NO. 1
HISTORICAL TAX REVENUES
Prom ectArea 2012/13 2013/14 2014 15 2015/16 2016/17
Central Business District S 1,684,561 $ 1,617,149 $ 1,559,824 $ 1,617,762 $ 1,765,555
Oasis 347,424 345,729 388,125 418,304 467,962
North Pahn Canyon 1,221,799 1,196,766 1,238,380 1,299,187 1,474,594
Highland Gateway 644,597 619,625 634,204 670,950 738,573
Ramon-Bogie 1,681,791 1,672,683 1,669,310 1,732,922 1,792,348
South Palm Canyon 687,583 704,202 766,191 764,379 791,232
Project No.9 3,914,682 4,105,751 4,322,026 4,809,007 5,185,174
Total Tax Increment $10,182,436 $10,261,905 $10,578,060 $11,312,511 12,215,438
Supplemental Taxes 67,394 108,705 45,902 323,994 433,428
Actual Tax Revenues $10,249,829 $10,370,610 S10,623,962 $11,636,505 12,648,866
Source: Former Agency and City audited financial statements and Riverside County Auditor-Controller.
28 46
Actual Gross Tax Increment Revenues from Merged Project No. 2 are shown below.
TABLE NO.4
MERGED PROJECT NO.2
HISTORICAL TAX REVENUES
ProiectArea 2012/13 2013/14 2014/15 2015/16 2016/17
Baristo-Farrell $2,212,103 $2,179,265 $2,383,939 $2,651,494 $2,934,201
Tahquitz-Andreas 1,076,553 1,079,008 1,081,781 1,187,211 1,307,304
Canyon 1,584,359 1,678,510 2,421,983 2,796,682 3,241,772
Total Tax Increment $4,873,014 $4,936,784 $5,887,703 6,635,387 7,483,277
Supplemental Taxes (131,743) 210,784 353,908 554153 432,282
Actual Tax Revenues $4,741,271 $5,147,568 $6,241.611 $7,189,540 $7,915,559
Source: Riverside County Auditor-Controller.
Deposits to the Redevelopment Property Tax Trust Fund are shown below.
TABLE NO.5
REDEVELOPMENT PROPERTY TAX TRUST FUND DEPOSITS
2012/13 2013/14 2014/15 2015/16 2016/17
January RPTTF Deposit $7,535,903 $7,697,430 $8,350,428 $ 9,205,677 $10,025,656
June RPTTF Deposit 7,455,197 7,820,748 8,515,145 9,620,368 10,538,769
Gross RPTTF Deposits 14,991,100 15,518,178 16,865,573 18,826,045 20,564,425
County Administrative Fees (217,384) (202,091) (212,113) (203,120) (248,372)
Tax Sharing (5,680,282) (6,196,055) (6,839,768) (7,765,712) (8,097,390)
RPTTF Available $9,093,434 $9,120,032 $9,814,692 $10,857,213 $12,218,663
Source: Riverside County Auditor-Controller.
The estimated gross Tax Increment Revenues for 2017/18, based on the 2017/18 assessed value, are as
follows:
Gross Assessed Value $2,644,725,440
Base Year Value (518,968,998)
Incremental Value $2,125,756,442
Tax Rate 1%
Tax Increment Revenue $ 21,257,564
Unitary Revenue 212,087
Total Tax Revenue $ 21,469,651
29 47
Major Taxpayers
The ten largest property taxpayers represent 13.7% of the 2016/17 secured assessed value of the Merged
Project No. 1.
TABLE NO.6
MERGED PROJECT NO. 1
TEN LARGEST TAXPAYERS AS A PERCENT OF 2016/17 ASSESSED VALUE
2016/17 % of
Total Total
Assessed Assessed
Taxpayer Value Value
Al California LLC $ 50,038,571 3.2%
Wal Mart Real Estate Business Trust 31,054,957 2.0%
RBD Hotel Palm Springs 22,025,610 1.4%
Palm Springs Land 21,500,000 1.4%
Wessman Holdings 17,955,476 1.2%
Palm Canyon Villas LLC 15,035,332 1.0%
Partners Land Development 14,797,105 1.0%
Lowes HIW Inc. 14,360,706 0.9%
Investec Ramon Investors 12,192,292 0.8%
FDH Enterprises 11,926,816 0.8%
Total $210,886,865 13.7%
Source: Successor Agency.
The following provides a description of the five largest property owners in Merged Project No. 1.
Retail Center; Al California LLC, owner. The 400,000 square foot "The Springs" retail shopping
center is anchored by Home Depot, Marshalls and Bed Bath & Beyond. The center was completed in
2009 and is located in the Ramon-Bogie Redevelopment Project.
WalMart Superstore; WalMart Real Estate Business Trust, owner. This 219,000 square foot
Superstore was constructed in 2005. The building is located on 22 acres in the Ramon-Bogie
Redevelopment Project.
Hyatt Hotel; RBD Hotel Palm Springs, owner. The 194-room all suites Hyatt Hotel is located on 2.2
acres in the Central Business District Redevelopment Project. The current owner purchased the property
in 2008 and undertook extensive renovations.
Colony Palms Hotel; Palm Springs Land, owner. This 57-room & suites boutique hotel was
extensively renovated in 2007. It recently sold in 2015. The building is located on 2.3 acres in the North
Palm Canyon Redevelopment Project.
Office Buildings; Wessman Holdings, owner. This property is comprised of 12 parcels in the Central
Business District and South Palm Canyon Redevelopment Projects. All are developed with office
buildings.
The ten largest property taxpayers represent 18.6% of the 2016/17 secured assessed value of the Merged
Project No. 2.
30 4
TABLE NO.7
MERGED PROJECT NO.2
TEN LARGEST TAXPAYERS AS A PERCENT OF 2016/17 ASSESSED VALUE
2016/17 %of
Total Total
Assessed Assessed
Taxpayer Value Value
HH Palm Springs $ 41,450,613 4.5"%
Walter Hotel Corporation 28,483,615 3.1%
Alta Verde Sereno LLC 17,539,763 1.9%
Essex House Condominium Corp 14,055,286 1.5%
Ralph's Grocery 12,856,925 1.4%
Zoso APHM 12,520,852 1.4%
Tree Moss Partners 11,900,000 1.3%
Sol PS 10,965,543 1.2%
311 South Sunrise Apartments 10,714,427 1.2%
Jen California 3 10,200,000 1.1%
Total $170,687,024 18.6%
Source: Successor Agency.
The following provides a description of the five largest property owners in Merged Project No. 2.
Renaissance Hotel; HH Palm Springs, owner. The 410-room Renaissance Hotel, which underwent a
renovation in 2009, is located adjacent to the City's Convention Center, in the Tahquitz-Andreas
Redevelopment Project.
Hilton Hotel; Walter Hotel Corporation, owner. The 260-room Hilton Hotel is nearby to the
Convention Center. Like many hotels in Palm Springs, the Hilton completed a $12 million renovation in
2013. It is also located in the Tahquitz-Andreas Redevelopment Project.
Residential Homes; Alta Verde Sereno LLC, owner. This property is comprised of 22 single family
homes for sale, located in the Canyon Redevelopment Project.
Courtyard by Marriott; Essex House Condominium Corp. This -room hotel is located in the
Baristo-Farrell Redevelopment Project.
Grocery Store; Ralph's Grocery, owner. The _ square foot store is located on acres in the
Baristo-Farrell Redevelopment Project.
31 49
Assessment Appeals
As of June 2017, there were a total pending appeals filed in the last 5 years by property owners in the
Project Areas as shown below. The total value of property under appeal for all years is $_ million.
Some appeals have been filed for multiple years for the same property. A summary of all pending appeals
is shown below.
Pending Value of Property
Tax Year Appeals Under Appeal
2012/13
2013/14
2014/15
2015/16
2016/17
Source: Successor Agency.
[complete appeal data]
32 50
FINANCIAL INFORMATION
Successor Agency Accounting Records and Financial Statements
The activities of the Successor Agency are reported as a fiduciary trust fund as part of the City's basic
financial statements, which is in accordance with guidance issued by the State Department of Finance on
September 19, 2012 and available on its website relating to redevelopment dissolution
(www.dof.ca.gov/redevelopment) under the category of "Common RDA Dissolution Questions and
Answers," interpreting Section 34177(n) of the Law concerning certain successor agency postaudit
obligations. The Successor Agency does not prepare separate financial statements. The State Department
of Finance's website is not in any way incorporated into this Official Statement, and the Successor
Agency cannot take any responsibility for, nor make any representation whatsoever as to, the continued
accuracy of the Internet address or the accuracy, completeness, or timeliness of information posted there.
In addition, from time to time,the State Department of Finance changes its guidance without notice.
The City's financial statements for the Fiscal Year ended June 30, 2016, attached hereto as "APPENDIX
D"have been audited by Lance, Sell & Lunghard LLP, Certified Public Accountants and Advisors, Brea,
California. The City's audited financial statements are public documents and are included within this
Official Statement without the prior approval of the auditor. Lance, Soll& Lunghard LLP has not been
engaged to perform, and has not performed, since the date of its report included herein, any
procedures on the financial statements addressed in that report. Lance, Soll& Lunghard LLP also has
not performed any procedures relating to this Official Statement
Property Taxation in California
Manner in Which Property Valuations and Assessments are Determined (Article XIIIA). On June 6,
1978, California voters approved an amendment(commonly known as both Proposition 13 and the Jarvis-
Gann Initiative) to the State Constitution which imposes certain limitations on taxes that may be levied
against real property. This amendment, which added Article XIIIA to the State Constitution, among other
things, defines full cash value of property to mean "the county assessor's valuation of real property as
shown on the 1975/76 tax bill under `full cash value,' or, thereafter, the appraised value of real property
when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment."
This full cash value may be adjusted annually to reflect inflation at a rate not to exceed 2% per year, or
any reduction in the consumer price index or comparable local data, or any reduction in the event of
declining property value caused by substantial damage, destruction or other factors. The amendment
further limits the amount of any ad valorem tax on real property to 1% of the full cash value of that
property, except that additional taxes may be levied to pay debt service on indebtedness approved by the
voters prior to July 1, 1978 and on any bonded indebtedness for the acquisition or improvement of real
property which is approved after July 1, 1978 by two-thirds of the votes cast by voters voting on such
indebtedness. However, pursuant to an amendment to the State Constitution, redevelopment agencies
were prohibited from receiving any of the tax increment revenue attributable to tax rates levied to finance
bonds approved by the voters on or after January 1, 1989 for the acquisition or improvement of real
property. Moreover, Section 34183 of the Dissolution Act effectively eliminates the January 1, 1989 date
from such prohibitions and SB 107 further states that pre-1989 tax override rates are no longer distributed
to successor agencies except in limited circumstances (see "SECURITY FOR THE BONDS - Tax
Revenues,""Property Tax Rate"below and"RISK FACTORS -Factors Which May Affect Tax Revenues -
Reduction in Inflationary Rate").
In the general election held November 4, 1986, voters in the State approved two measures, Propositions
58 and 60, which further amend the terms "purchase" and "change of ownership," for purposes of
determining full cash value of property under Article XIIIA, to not include the purchase or transfer of(1)
real property between spouses and (2) the principal residence and the first $1,000,000 of other property
between parents and children. Proposition 60 amends Article XIIIA to permit the Legislature to allow
33
51
persons over age 55 who sell their residence and buy or build another of equal or lesser value within two
years in the same county (or in certain cases, another county), to transfer the old residence's assessed
value to the new residence.
Proposition S Adjustments. Proposition 8, approved in 1978, provides for the assessment of real
property at the lesser of its originally determined (base year) full cash value compounded annually by the
inflation factor, or its full cash value as of the lien date, taking into account reductions in value due to
damage, destruction, obsolescence or other factors causing a decline in market value. Reductions based
on Proposition 8 do not establish new base year values, and the property may be reassessed as of the
following lien date up to the lower of the then-current fair market value or the factored base year value.
The State Board of Equalization has approved this reassessment formula and such formula has been used
by county assessors statewide, and such methodology has been upheld by the California courts. During
the recent recession, the County made significant blanket assessed value reductions throughout the
County pursuant to Proposition 8 from the maximum amount that could be assessed on property. As a
result, the Former Agency saw a reduction in property values of approximately 6% between 2008/09 and
2011/12, which the Successor Agency attributes to Proposition 8 reductions. Given the 3% increase in
assessed value since 2013/14, the Successor Agency expects that most of any Proposition 8 reductions
have likely been recovered.
Unsecured and Secured Property. In California, property which is subject to ail valorem taxes is
classified as "secured" or "unsecured." The secured classification includes property on which any
property tax levied by a county becomes a lien on that property. A tax levied on unsecured property does
not become a lien against the taxed unsecured property, but may become a lien on certain other property
owned by the taxpayer. Every tax which becomes a lien on secured property, arising pursuant to State
law, has priority over all other liens on the secured property, regardless of the time of the creation of the
other liens.
Property in the Project Area is assessed by the Riverside County Assessor except for public utility
property which is assessed by the State Board of Equalization.
The valuation of secured property is determined as of January 1 each year for taxes owed with respect to
the succeeding Fiscal Year. The tax rate is equalized during the following September of each year, at
which time the tax rate is determined. Secured and unsecured property is entered on separate parts of the
assessment roll maintained by the county assessor. The method of collecting delinquent taxes is
substantially different for the two classifications of property.
Property taxes on the secured roll are due in two installments,on November I and February I of the fiscal
year. If unpaid, such taxes become delinquent on December 10 and April 10, respectively, and a 10%
penalty attaches to any delinquent payment in addition to a$20 cost on the second installment. On July 1
of each fiscal year any property which is delinquent will become defaulted. Such property may thereafter
be redeemed by payment of the delinquent taxes and the delinquency penalty, plus a redemption penalty
of l`/2% per month to the time of redemption, together with any other charges permitted by law. If taxes
are unpaid for a period of five years or more, the property is subject to sale by the County Tax Collector.
The exclusive means of enforcing the payment of delinquent taxes with respect to property on the secured
roll is the sale of the property securing the taxes for the amount of taxes which are delinquent.
Property taxes on the unsecured roll become delinquent, if unpaid on August 31. A 10%penalty attaches
to delinquent taxes on property on the unsecured roll, and an additional penalty of l'/z%per month begins
to accrue on November 1 of the fiscal year. The County has four ways of collecting delinquent unsecured
personal property taxes: (1) a civil action against the taxpayer; (2) filing a certificate in the office of the
County Clerk specifying certain facts in order to obtain a judgment lien on certain property of the
taxpayer; (3) filing a certificate of delinquency for record in the County Recorder's Office, in order to
obtain a lien on certain property of the taxpayer; and (4) seizure and sale of personal property,
improvements or possessory interests belonging or assessed to the assessee.
34 5 2
Supplemental Assessments. Legislation adopted in 1984 (Section 75, et seq. of the Revenue and
Taxation Code of the State of California) provides for the supplemental assessment and taxation of
property at its full cash value as of the date of a change of ownership or the date of completion of new
construction (the "Supplemental Assessments"). To determine the amount of the Supplemental
Assessment the County Auditor applies the current year's tax rate to the supplemental assessment roll and
computes the amount of taxes that would be due for the full year. The taxes due are then adjusted by a
proration factor to reflect the portion of the tax year remaining as determined by the date on which the
change in ownership occurred or the new construction was completed. Supplemental Assessments
become a lien against the real property on the date of the change of ownership or completion of new
construction.
Unitary Property. Commencing in the 1988/89 Fiscal Year, the Revenue and Taxation Code of the State
of California changed the method of allocating property tax revenues derived from state assessed utility
properties. It provides for the distribution of state assessed values to tax rate areas by a county-wide
mathematical formula rather than assignment of state assessed value according to the location of those
values in individual tax rate areas.
Commencing with the 1988/89 Fiscal Year, each county has established one county-wide tax rate area.
The assessed value of all unitary property in the county has been assigned to this tax rate area and one tax
rate is levied against all such property("Unitary Revenues").
The property tax revenue derived from the assessed value assigned to the county-wide tax rate area shall
be allocated as follows: (1) each jurisdiction will be allocated up to 2% of the increase in Unitary
Revenues on a pro rata basis county-wide; and (2) any decrease in Unitary Revenues or increases less
than 2%, or any increase in Unitary Revenues above 2%will be allocated among jurisdictions in the same
proportion of each jurisdiction's Unitary Revenues received in the prior year to the total Unitary
Revenues county-wide.
Legislation adopted in 2006 (SB 1317, Chapter 872) provides that, commencing with Fiscal Year
2007/08, certain property related to new electrical facilities shall be allocated entirely to the county in
which such property is located and property tax revenues derived from such property shall be allocated to
such county and certain Taxing Agencies with such county.
Property Tax Rate. The difference between the $1.00 general tax levy provided under Article XIIIA tax
rate and those actually levied (referred to as the "tax override rate") represents the tax levied by
overlapping entities to pay debt service on bonded indebtedness approved by the voters.
Section 34183 of the Dissolution Act effectively eliminated the tax override rate from the calculation of
tax increment revenues with respect to tax override rates authorized by voters for the purpose of repaying
bonded indebtedness for the acquisition or improvement of real property. Future Tax Increment Revenues
have been projected by applying a tax rate of$1.00 per$100 of taxable value general levy to incremental
taxable values.
Administrative Costs. In 1990, the Legislature enacted SB 2557 (Chapter 466, Statutes of 1990) which
allows counties to charge for the cost of assessing, collecting and allocating property tax revenues to local
government jurisdictions on a prorated basis. SB 1559(Chapter 697, Statutes of 1992) explicitly includes
redevelopment agencies among the jurisdictions which are subject to such charges. In addition, Sections
34182(e) and 34183(a) of the Dissolution Act allow administrative costs of the County Auditor-Controller
for the cost of administering the provisions of the Dissolution Act, as well as the foregoing SB 1559
amounts, to be deducted from property tax revenues before moneys are deposited into the Redevelopment
Property Tax Trust Fund. For Fiscal Year 2014/15, the County administrative fees charged to the Project
Area including administration of the Redevelopment Property Tax Trust Fund were $144,305. In total,
the fees represent approximately 1.1%of gross tax increment revenues.
35 5 3
Tax Sharing Agreements and Tax Sharing Statutes
Tax Sharing Agreements
Pursuant to prior Section 33401(b) of the Redevelopment Law, a redevelopment agency was authorized to
enter into an agreement to pay tax increment revenues to any taxing agency that has territory located
within a redevelopment project to alleviate any financial burden or detriment caused by the
redevelopment project. These agreements are commonly referred to as "tax sharing agreements" or
"pass-through agreements."
The tax sharing agreements ("Tax Sharing Agreements") entered into with respect to each Redevelopment
Project are described in"APPENDIX B-PROJECTED TAX REVENUES." Certain Tax Sharing Agreements
contain provisions that increase the percentage of Tax Increment Revenues payable to certain taxing
agencies once certain cumulative or annual Tax Increment Revenue milestones are reached. The
projections herein are based on the timing of reaching such milestones. If development were to occur
sooner or the assessed value of such affected Redevelopment Project were to increase at levels higher
than projected herein, the Contractual Tax Sharing Agreement amounts may reach such milestones earlier
than projected, in which case, the Contractual Tax Sharing Agreement amounts would increase. See
"RISK FACTORS - Factors Which May Affect Tax Revenues-Tax Sharing"herein. Based on the 2017/18
estimated Tax Revenues, if all tax sharing was calculated at the maximum percentage, the impact would
be to reduce Merged Project No. 1 2017/18 Tax Revenues by $ , and to reduce Merged Project No.
2 2017/18 Tax Revenues by $ . Further, in 2027/28, the County share of the Baristo-Farrell
Redevelopment Project Tax Revenues will increase by$
Since dissolution, the County Auditor-Controller calculates and pays the Tax Sharing Agreement
amounts. These amounts are payable from tax increment revenue deposited in the Redevelopment
Property Tax Trust Fund senior to the Senior Obligations and the Bonds.
Tax Sharing Statutes
Certain provisions were added to the Redevelopment Law by the adoption of AB 1290 in 1994. If new
territory was added to a redevelopment project, under Section 33607.5 of the Redevelopment Law, any
affected taxing entity would share in the Tax Increment Revenues generated by such added area pursuant
to a statutory formula("Statutory Tax Sharing").
In addition, pursuant to Section 33333.6(e)(2) of the Redevelopment Law, if the Former Agency deleted
the time limit to incur indebtedness in a redevelopment project (as amended pursuant to SB 211) or
increased the total amount of Tax Increment Revenues to be allocated to the project area or increased the
duration of the Redevelopment Plan and the period for receipt of Tax Increment Revenues, Statutory Tax
Sharing is required under Section 33607.7 of the Redevelopment Law with all affected taxing entities not
already a party to a tax sharing agreement,once the original limitations have been reached.
The Dissolution Act provides for a procedure by which the Successor Agency may make Statutory Tax
Sharing amounts subordinate to the Bonds. The Former Agency had not previously undertaken
proceedings to subordinate such payments to the Senior Bonds, the 2007A Bonds or the 2007C Bonds,
nor will the Successor Agency undertake such procedure with respect to the Bonds.
The Statutory Tax Sharing calculations with respect to each Redevelopment Project are described in
"APPENDIX B - PROJECTED TAX REVENUES." Since dissolution, the County Auditor-Controller
calculates and pays the Statutory Tax Sharing amounts.
36 J
Outstanding Indebtedness
After refinancing the Prior Bonds, $1,850,000 par amount of the Senior Bonds are outstanding as of
September 2, 2017 and will mature on September 1, 2034. The Parity Bonds were issued in July 2014.
$12,840,000 par amount of the Parity Bonds are outstanding as of September 2, 2017 and will also mature
on September 1,2034.
The Successor Agency has other enforceable obligations payable from amounts deposited in the
Redevelopment Obligation Retirement Fund on a basis subordinate to the Senior Bonds, the Bonds and
the Parity Bonds.
Flow of Funds
Under the Indenture, in the Recognized Obligation Payment Schedule period beginning January 2 of each
year, the Successor Agency is required to request funding of the principal and interest due on the Senior
Bonds and 50% of the principal and interest on the Bonds in the calendar year. Other enforceable
obligations may be paid in such Recognized Obligation Payment Schedule period to the extent those
amounts are transferred to the trustee for the Bonds and reserved for such debt service.
In the Recognized Obligation Payment Schedule period beginning July I of each year, the Indenture also
requires the Successor Agency to request funding of the remaining unfunded principal and interest
payable on the Bonds on September 1 of such year. Other enforceable obligations may be paid in such
Recognized Obligation Payment Schedule period to the extent those amounts are transferred to the
Trustee and reserved for such debt service.
Projected Tax Revenues and Debt Service Coverage
Receipt of projected Tax Revenues shown in Table No. 8 in the amounts and at the times projected by the
Successor Agency depends on the realization of certain assumptions relating to the Tax Increment
Revenues. The Municipal Advisor has projected taxable valuation and Tax Revenues in the Project Areas.
The Successor Agency believes the assumptions (set forth in "APPENDIX B - PROJECTED TAX
REVENUES") upon which the projections are based are reasonable; however, some assumptions may not
materialize and unanticipated events and circumstances may occur (see "RISK FACTORS"). Therefore,
the actual Tax Revenues received during the forecast period may vary from the projections and the
variations may be material, affecting the Successor Agency's ability to timely pay principal of and interest
on the Bonds.
37 55
TABLE NO.8
PROJECTED TAX REVENUES AND DEBT SERVICE COVERAGE
Debt Service
Tax Coverage
Revenues Senior Bonds 2014 Bonds Series A Bonds* Series B Bonds* Total Ratio
2018 $12,595,200 $178,609 $1,611,400 $ 803,000 $448,000 $3,041,009 4.14
2019 12,807,600 179,617 1,620,900 794,000 445,000 3,039,517 4.21
2020 13,054,300 180,318 1,617,400 776,000 449,000 3,022,718 4.32
2021 13,242,100 180,712 1,618,800 634,000 447,000 2,880,512 4.60
2022 13,464,400 175,800 1,276,050 610,000 449,000 2,510,850 5.36
2023 13,644,000 175,887 1,272,550 557,000 445,000 2,450,437 5.57
2024 13,733,600 175,667 810,250 1,007,000 447,000 2,439,917 5.63
2025 13,918,900 180,140 806,500 518,000 443,000 1,947,640 7.15
2026 14,107,400 178,999 906,750 1,258,000 443,000 2,686,749 5.25
2027 12,308,100 177,551 805,750 1,265,000 447,000 2,695,301 4.57
2028 12,206,200 175,796 808,500 1,265,000 446,000 2,695,296 4.53
2029 12,257,800 178,734 804,750 1,267,000 449,000 2,699,484 4.54
2030 12,425,000 176,058 804,750 1,262,000 445,000 2,687,808 4.62
2031 12,596,200 178,074 808,250 1,280,000 446,000 2,712,324 4.64
2032 12,771,600 179,477 805,000 1,286,000 451,000 2,721,477 4.69
2033 12,950,900 180,265 805,250 1,287,000 445,000 2,717,515 4.77
2034 13,132,100 180,440 813,750 1,279,000 443,000 2,716,190 4.83
Source: Municipal Advisor.
*Preliminary,subject to change.
The projected Pledged Tax Revenues shown above are subject to several variables described herein. See"RISK FACTORS"herein. The Successor
Agency provides no assurance that the projected Pledged Tax Revenues will be achieved.
C1
G") 38
RISK FACTORS
The purchase of the Bonds involves investment risk. If a riskfactor materializes to a sufficient degree, it
could delay or prevent payment of principal of and/or interest on the Bonds. Stich risk factors include,
but are not limited to, the following matters and should be considered, along with other information in
this Official Statement, by potential investors.
Factors Which May Affect Tax Revenues
The ability of the Successor Agency to pay principal of and interest on the Bonds depends on the timely
receipt of Tax Revenues as projected herein (see "FINANCIAL INFORMATION - Projected Tax Revenues
and Debt Service Coverage" herein). Projections of Tax Revenues are based on the underlying
assumptions relating to Tax Increment Revenues of the Project Area. Tax Revenues allocated to the
Successor Agency (which constitute the ultimate source of payment of principal of and interest on the
Bonds, as discussed herein) are determined by the amount of incremental valuation of taxable property in
the Project Areas, taxed at a rate of$1.00 per $100 of assessed value (1%) and the percentage of taxes
collected in the Project Area, adjusted to reflect prior claims on the Tax Increment Revenues. A number
of factors which may affect Tax Increment Revenues, and consequently, Tax Revenues, are outlined
below.
Reductions in Assessed Value. Tax Increment Revenues allocated to the Redevelopment Property Tax
Trust Fund are determined by the amount of incremental taxable value in the Project Areas taxed at a rate
of $1.00 per $100 of assessed value (1%). The reduction of taxable values of property in the Project
Areas caused by economic factors beyond the Successor Agency's control, such as relocation out of the
Project Area by one or more major property owners, sale of property to a non-profit corporation exempt
from property taxation, or the complete or partial destruction of such property caused by, among other
eventualities, earthquake or other natural disaster, could cause a reduction in the Tax Revenues that
provide for the repayment of and secure the Bonds. Such reduction of Tax Revenues could have an
adverse effect on the Successor Agency's ability to make timely payments of principal of and interest on
the Bonds.
Article XIIIA. Pursuant to the California voter initiative process, on June 6, 1978, California voters
approved Proposition 13 which added Article XIIIA to the California Constitution. This amendment
imposed certain limitations on taxes that may be levied against real property to 1% of the full cash value
of the property, adjusted annually for inflation at a rate not exceeding 2% annually. Full cash value is
determined as of the 1975/76 assessment year, upon change in ownership (acquisition) or when newly
constructed (see "FINANCIAL INFORMATION - Property Taxation in California" herein for a more
complete discussion of Article XIIIA). Article XIIIA has subsequently been amended to permit reduction
of the "full cash value" base in the event of declining property values caused by substantial damage,
destruction or other factors,and to provide that there would be no increase in the"full cash value"base in
the event of reconstruction of property damaged or destroyed in a disaster and in other special
circumstances.
Reduction in Inflationary Rate. The annual inflationary adjustment,while limited to 2%, is determined
annually and may not exceed the percentage change in the California Consumer Price Index(CCPI).
Because the Revenue and Taxation Code does not distinguish between positive and negative changes in
the CCPI used for purposes of the inflation factor,there was a decrease of 0.237%in 2009/10—applied to
the 2010/11 tax roll — reflecting the actual change in the CCPI, as reported by the State Department of
Finance. For each fiscal year since Article XIIIA has become effective (the 1978/79 fiscal year), the
annual increase for inflation has been at least 2%except in nine fiscal years as shown below:
39 J��
Tax Roll Percentage
1981/82 1.000%
1995/96 1.190
1996/97 1.110
1998/99 1.853
2004/05 1.867
2010/11 (0.237)
2011/12 0.753
2014/15 0.454
2015/16 1.998
Proposition 8 Adjustments. Proposition 8, approved in 1978, provides for the assessment of real
property at the lesser of its originally determined (base year) full cash value compounded annually by the
inflation factor, or its full cash value as of the lien date, taking into account reductions in value due to
damage, destruction, obsolescence or other factors causing a decline in market value. Reductions based
on Proposition 8 do not establish new base year values, and the property may be reassessed as of the
following lien date up to the lower of the then-current fair market value or the factored base year value.
The State Board of Equalization has approved this reassessment formula and such formula has been used
by county assessors statewide. This methodology has been approved by the Fourth District Court of
Appeals in a case in which the California Supreme Court declined further review. See "FINANCIAL
INFORMATION-Property Taxation in California- Proposition 8 Adjustments"herein.
If Proposition 8 adjustments are made by the County Assessor in future years because of declines in the
fair market value of properties caused by the lack of real estate development in the area generally, Tax
Revenues may be adversely affected and as a possible consequence may have an adverse effect on the
Successor Agency's ability to pay debt service on the Bonds.
Assessment Appeals. Assessment appeals may be filed by property owners seeking a reduction in the
assessed value of their property. After the property owner files an appeal, the County's Appeals Board
will hear the appeal and make a determination as to whether or not there should be a reduction in assessed
value for a particular property and the amount of the reduction, if any. To the extent that any reductions
are made to the assessed valuation of such properties with appeals currently pending, or appeals
subsequently filed, Tax Increment Revenues, and correspondingly, Tax Revenues will be reduced. Such
reductions may have an adverse effect on the Successor Agency's ability to pay debt service on the
Bonds. As of June 2017, there were pending appeals filed within the last five years by property
owners within the Project Areas relating to $ million of current year or prior years' assessed value
(see "THE PROJECT AREAS - Assessment Appeals" herein). To the extent these appeals are resolved in
favor of the property owner,Tax Revenues will be reduced.
Natural Hazards. Any natural disaster or other physical calamity, including earthquake, may have the
effect of reducing Tax Increment Revenues through reduction in the aggregate assessed valuation within
the boundaries of the Project Areas.
According to the Seismic Safety Element of the City's General Plan, the City is located in a seismically
active region and structures in the Project Areas could be impacted by a major earthquake originating
from the numerous faults in the area. Seismic hazards encompass both potential surface rupture and
ground shaking. These hazards could result in damage to property within the Project Areas.
The Palm Springs planning area has numerous fault traces that are part of the larger San Andreas Fault
Zone. Small magnitude earthquakes have occurred on these faults periodically. Of primary concern are
the Banning Fault, the Palm Canyon Fault and the San Jacinto Fault. Ground rupture occurred along the
Banning Fault Zone as a result of a magnitude 5.9 earthquake on July 8, 1986. Only minor damage was
40 J
sustained by any structures within the City. The San Jacinto Fault approaches within 6.5 miles of the City
and is considered to be one of the major branches of the San Andreas Fault system, extending from Cajon
Pass (near San Bernardino) into Mexico. The San Jacinto Fault Zone is considered to be the most
seismically active fault zone in southern California. The Palm Canyon Fault is exposed in the bedrock in
the southeastern portion of the City and has been inferred by researchers as extending northward beneath
the City under the alluvium. No evidence is available as to the existence or precise location of the Palm
Canyon Fault within the alluvium or regarding its potential activity.
Portions of the City are susceptible to storm-induced flooding of the San Gorgonio River, Whitewater
River, and along Snow Creek, Blaisdell Creek, Chino Creek, Palm Canyon Wash, and Tahquitz Creek.
Palm Springs is susceptible to flash flooding, since the local mountains are very steep and consist of rock
types that are fairly impervious to water, meaning that little precipitation is absorbed into the ground.
Instead, rainwater flows across the surface as runoff, collecting in the major drainages that pass through
the City. Because of the steep terrain, scarcity of vegetation, and frequency of rockfalls and minor
landslides, water from major storms can collect rapidly and run off'quickly, overcoming manmade and
natural channels, resulting in flash flooding. Approximately 350 acres within Merged Project No. 1 are
identified as potentially subject to inundation in a 100 year flood event (25 acres in the Ramon-Bogie
Redevelopment Project and all 325 acres in the Highland-Gateway Redevelopment Project). Another
approximately 850 acres within Merged Project No. 1 are within the boundaries identified for a 100 to
500 year flood event. Approximately 746 acres within Merged Project No. 2 (all of the Canyon
Redevelopment Project) are identified as potentially subject to inundation in a 100 year flood event.
Another approximate 200 acres within Merged Project No. 2 are within the boundaries identified for a
100 to 500 year flood event. The remainder of the properties within the Project Areas are outside mapped
flood areas.
Flooding resulting from dam failure is also a potential hazard for the City. The Tachevah Creek Detention
Reservoir and the Tahquitz Creek Debris Basin are two flood-control structures in the Palm Springs area
required by the California State Water Code to be monitored for structural safety and that have the
potential to pose a flooding risk to the City. Portions of the Project Areas are in the inundation path in the
event of a dam failure at the Tachevah Creek Detention Reservoir. The Tahquitz Creek Debris Basin was
designed and constructed to reduce the risk of flooding that the Tahquitz Creek has historically posed to
Palm Springs. Completed in May 1991 by the U.S. Army Corps of Engineers, the basin consists of a
natural channel and dam with a debris storage capacity of about 33 million gallons and a two-mile reach
of grass-lined channel used as bicycle and equestrian trails that transverses the City's Tahquitz Creek Golf
Course. Heavy rain during the winter of 2017 resulted in cleanup of debris from the Tahquitz Creek at the
Golf Course,and flows of melting snow continue to pose potential to deposit further debris.
The City has adopted a Natural Hazards Mitigation Plan. This plan includes a hazard analysis for
earthquake, flood, landslide and fire risk, and is required to comply with Federal Emergency Management
Agency requirements for disaster relief funding.
Hazardous Substances. An additional environmental condition that may result in the reduction in the
assessed value of parcels would be the discovery of a hazardous substance that would limit the beneficial
use of a property within the Project Areas. In general, the owners and operators of a property may be
required by law to remedy conditions of the property relating to releases or threatened releases of
hazardous substances. The owner (or operator) may be required to remedy a hazardous substance
condition of property whether or not the owner(or operator) has anything to do.with creating or handling
the hazardous substance. The effect, therefore, should any of the property within the Project Areas be
affected by a hazardous substance would be to reduce the marketability and value of the property,perhaps
by an amount in excess of the costs of remedying the condition. The Successor Agency can give no
assurance that future development will not be limited by these conditions.
41 J
Development Risks. The Successor Agency's collection of Tax Revenues is directly affected by the
economic strength of the Project Areas. Potential development within the Project Areas will be subject to
all the risks generally associated with real estate development projects, including unexpected delays,
disruptions and changes. Real estate development operations may be adversely affected by changes in
general economic conditions, fluctuations in real estate market and interest rates, unexpected increases in
development costs and other similar factors. Further, real estate development operations within the
Project Areas could be adversely affected by future governmental policies, including governmental
policies to restrict or control development. If projected development in the Project Areas is delayed or
halted, the economy of the Project Areas could be affected, causing a reduction in Tax Revenues available
to pay debt service on the Bonds.
Certain Bankruptcy Risks. The enforceability of the rights and remedies of the Owners of the Bonds
and the obligations of the Successor Agency may become subject to the following: the federal bankruptcy
code and applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or
affecting the enforcement of creditors' rights generally, now or hereafter in effect; usual equitable
principles which may limit the specific enforcement under state law of certain remedies; the exercise by
the United States of America of the powers delegated to it by the federal Constitution; and the reasonable
and necessary exercise, in certain exceptional situations, of the police power inherent in the sovereignty
of the State of California and its governmental bodies in the interest of servicing a significant and
legitimate public purpose. Bankruptcy proceedings, or the exercise of powers by the federal or state
government, if initiated, could subject the Owners of the Bonds to judicial discretion and interpretation of
their rights in bankruptcy or otherwise and consequently may entail risks of delay, limitation, or
modification of their rights.
Limited Obligations. The Successor Agency has no power to levy and collect property taxes, and any
property tax limitation, legislative measure,voter initiative or provision of additional sources of income to
Taxing Agencies having the effect of reducing the property tax rate must necessarily reduce the amount of
Tax Increment Revenues, and consequently, Tax Revenues that would otherwise be available to pay the
principal of, and interest on the Bonds.
Interpretation of and Future Changes in the Law; Voter Initiatives. The Redevelopment Law and the
Dissolution Act are complex bodies of law and their application to the Successor Agency, the
Redevelopment Plan and the Project Areas may be subject to different interpretations by the Successor
Agency, the Department of Finance, the County Auditor-Controller,Taxing Agencies and other interested
parties, including with respect to Tax Sharing Agreements and Statutory Tax Sharing obligations and
enforceable obligations. Since the effectiveness of the Dissolution Act, the State Department of Finance
and various successor agencies have from time to time disagreed about the interpretation of different
language contained in the Dissolution Act, as well as whether or not the State Department of Finance has
exceeded its authority in rejecting items from Recognized Obligation Payment Schedules submitted by
successor agencies, as evidenced by numerous lawsuits. While the Successor Agency has covenanted in
the Indenture to preserve and protect the security of the Bonds and the rights of the Bondholders (see
"APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE - Covenants of the
Successor Agency"), any such action taken by the Successor Agency could incur substantial time and cost
that may have a detrimental effect on the Successor Agency's ability to timely pay debt service on the
Bonds. Moreover, the Successor Agency cannot guarantee the outcome of any such action taken by the
Successor Agency to preserve and protect the security of the Bonds and the rights of the Bondholders.
In addition to the existing limitations on Tax Increment Revenues described in this Official Statement
under "FINANCIAL INFORMATION - Property Taxation in California," the California electorate or
Legislature could adopt future limitations with the effect of reducing Tax Increment Revenues payable to
the Successor Agency.
42 60
Real Estate and General Economic Risks
Tax Increment Revenues as presented herein as available for payment of any indebtedness of the
Successor Agency are based upon the latest actual assessed values for the 2015/16 Fiscal Year.
Redevelopment of real property within the Project Areas by the City, as well as private development in
the Project Area, may be adversely affected by changes in general economic conditions, fluctuations in
the real estate markets and interest rates, unexpected increases in development costs, changes in or new
governmental policies including governmental policies to restrict or control certain kinds of development
and by other similar factors. If development and redevelopment activities in the Project Areas encounters
significant obstacles of the kind described herein or other impediments, the economy of the area in and
around the Project Areas could be adversely affected, causing reduced taxable valuation of property in the
Project Areas a reduction of the Tax Increment Revenues and a consequent reduction in Tax Revenues
available to repay the Bonds. Due to the decline in the general economy of the region, owners of property
within the Project Areas may be less able or less willing to make timely payments of property taxes,
causing a delay or reduction of Tax Increment Revenues and consequently a reduction in Tax Revenues
available to repay the Bonds.
Possessory Interest Taxes; Bureau of Indian Affairs Regulations
The City has enjoyed a long relationship with the Agua Caliente Band of Cahuilla Indians. Established in
1876, the Agua Caliente reservation now contains more than 32,000 acres in a checkerboard pattern
spanning parts of the City, Cathedral City, Rancho Mirage and the San Jacinto and Santa Rosa
mountains. As a result of this checkerboard pattern, the reservation is deeply connected to the local
communities and the infrastructure of the City.
Certain residents of and businesses in Palm Springs lease property on reservation land. When a person or
entity leases, rents, or uses real estate owned by a government agency for its exclusive use, a taxable
possessory interest occurs. The County collects possessory interest taxes pursuant to, among other
authority, Sections 61, 107-107.9 of the Revenue and Taxation Code of the State of California from non-
tribal members who lease property on reservation land. The County then redistributes portions of such
taxes to cities,school districts and other local governments, including the City and the Successor Agency.
On December 5, 2012, the Department of the Interior, Bureau of Indian Affairs, promulgated final federal
regulations that became effective on January 4, 2013, governing the applicability of state and local taxes
on surface property interests in leased tribal land. The regulations (25 CFR 162.017) (the "Property
Taxation Regulations")provide that—
(a) Subject only to applicable Federal law, permanent improvements on the leased land,
without regard to ownership of those improvements, are not subject to any fee, tax,
assessment, levy, or other charge imposed by any State or political subdivision of a State.
Improvements may be subject to taxation by the Indian tribe with jurisdiction.
(b) Subject only to applicable Federal law, activities under a lease conducted on the leased
premises are not subject to any fee, tax, assessment, levy, or other charge (e.g., business
use, privilege, public utility, excise, gross revenue taxes) imposed by any State or
political subdivision of a State. Activities may be subject to taxation by the Indian tribe
with jurisdiction.
(c) Subject only to applicable Federal law, the leasehold or possessory interest is not subject
to any fee, tax, assessment, levy, or other charge imposed by any State or political
subdivision of a State. Leasehold or possessory interests may be subject to taxation by
the Indian tribe with jurisdiction.
43
In light of the Property Taxation Regulations, the Agua Caliente Band of Cahuilla Indians has sued the
County and various related County defendants (Aqua Caliente Band of Cahuilla Indians V. Riverside
County, et al.; Case No. 14-00007JGB) in U.S. District Court for the Central District of California,
Eastern Division, to prevent the assessment of possessory interest taxes on tribal land, including land
located in Palm Springs. In the complaint, the tribe argues that the possessory interest tax increases the
economic burden on the tribe and its members by devaluing Indian land leases. According to the
complaint, the tax also limits the tribe's income, since it has agreed to forgo its own tax to avoid the
double taxation of leaseholders. The litigation was filed in January 2014. No trial date is currently set. If
the tribe ultimately prevails, however, leaseholders may potentially be entitled to refunds of possessory
interest taxes collected by the County during the four year period prior to commencement of the
litigation. The City and the Successor Agency cannot predict the outcome of this or any other litigation
relating to possessory interest taxes or any other taxes imposed on leased tribal property.
Six of the ten Redevelopment Projects have assessed value derived from possessory interest on tribal
land. If the tribe prevails with respect to their claims, the loss of Tax Revenue net of tax sharing amounts,
has been estimated as follows:
Possessory Net Impact on Tax Revenue
Interest Related Base Incremental General Net of Tax
Value Year Value Value Levy Sharing
Ramon/Bogie
South Palm Canyon
Project No. 9
Merged Project No. 1
Percent of Project Area
Tax Revenues
Baristo-Farrell
Tahquitz-Andreas
Canyon
Merged Project No. 2
Percent of Project Area
Tax Revenues
Combined Project Areas
Percent of Project Areas
Tax Revenues
Source: Municipal Advisor.
Tax Sharing
Certain Tax Sharing Agreements contain provisions that increase the percentage of Tax Increment
Revenues payable to certain taxing agencies once certain cumulative or annual Tax Increment Revenue
milestones are reached. The projections herein are based on the timing of reaching such milestones. If
development were to occur sooner or the assessed value of such affected Redevelopment Project were to
increase at levels higher than projected herein, the Tax Sharing Agreement amounts may reach such
milestones earlier than projected, in which case, the Tax Sharing Agreement amounts would increase, and
Tax Revenues would decrease.
44 G 2
Recognized Obligation Payment Schedule
The Dissolution Act provides that only those payments listed in the Recognized Obligation Payment
Schedule may be made by the Successor Agency from the funds specified in the Recognized Obligation
Payment Schedule. The Dissolution Act requires successor agencies to prepare and approve, and submit
to the successor agency's oversight board and the State Department of Finance for approval, a Recognized
Obligation Payment Schedule pursuant to which enforceable obligations (as defined in the Dissolution
Act) of the successor agency are listed, together with the source of funds to be used to pay for each
enforceable obligation. Tax Revenues will not be distributed from the Redevelopment Property Tax Trust
Fund by the County Auditor-Controller to the Successor Agency's Redevelopment Obligation Retirement
Fund without a duly approved and effective Recognized Obligation Payment Schedule obtained in
sufficient time prior to the January 2 or June 1 distribution dates, as applicable. See "SECURITY FOR
THE BONDS - Recognized Obligation Payment Schedules." In the event the Successor Agency were to
fail to file a Recognized Obligation Payment Schedule with respect to any six-month period, the
availability of Tax Revenues to the Successor Agency could be adversely affected for such period.
The Successor Agency has covenanted to take all actions required under the Dissolution Act to include
scheduled debt service on the Bonds as well as any amount required under the Indenture to replenish the
Reserve Account of the Debt Service Fund, in Recognized Obligation Payment Schedules for each six-
month period of a Fiscal Year and to enable the County Auditor-Controller to distribute from the
Redevelopment Property Tax Trust Fund to the Successor Agency's Redevelopment Obligation
Retirement Fund on each January 2 and June 1 amounts required for the Successor Agency to pay
principal of, and interest on, the Bonds coming due in the respective six-month period of a Fiscal Year,
including listing a reserve on the Recognized Obligation Payment Schedule to the extent required by the
Indenture or when the next property tax allocation is projected to be insufficient to pay all obligations due
under the provisions of the Bonds for the next payment due in the following six-month period (see
"APPENDIX A - SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE - Covenants of the
Successor Agency").
The Dissolution Act also contains certain penalties in the event the Successor Agency does not timely
submit a Recognized Obligation Payment Schedule for a Fiscal Year. Specifically, a Recognized
Obligation Payment Schedule must be submitted by the Successor Agency, after approval by the
Oversight Board, the County Auditor-Controller, the State Department of Finance, and the State
Controller no later than February 1 of each year. If the Successor Agency does not submit an Oversight
Board-approved Recognized Obligation Payment Schedule by such deadlines,the City will be subject to a
civil penalty equal to $10,000 per day for every day the schedule is not submitted to the State Department
of Finance. Additionally, the Successor Agency's administrative cost allowance is reduced by 25% if the
Successor Agency does not submit an Oversight Board-approved Recognized Obligation Payment
Schedule by the loth day after the February 1 deadline with respect to a Recognized Obligation Payment
Schedule for the subsequent annual period.
The Successor Agency has submitted all Recognized Obligation Payment Schedules, duly approved by
the Oversight Board,in a timely manner.
Series A Bonds Loss of Tax Exemption
As discussed under the caption "LEGAL MATTERS - Tax Matters"herein, interest on the Series A Bonds
could become includable in gross income for purposes of federal income taxation retroactive to the date
the Series A Bonds were executed and delivered as a result of future acts or omissions of the Successor
Agency in violation of its covenants contained in the Indenture. Should such an event of taxability occur,
the Series A Bonds are not subject to special redemption or any increase in interest rate and will remain
outstanding until maturity.
45 C 3
In addition, Congress has considered in the past, is currently considering and may consider in the future,
legislative proposals, including some that carry retroactive effective dates, that, if enacted, would alter or
eliminate the exclusion from gross income for federal income tax purposes of interest on municipal
bonds, such as the Series A Bonds. Prospective purchasers of the Series A Bonds should consult their
own tax advisors regarding any pending or proposed federal tax legislation. The Successor Agency can
provide no assurance that federal tax law will not change while the Series A Bonds are outstanding or that
any such changes will not adversely affect the exclusion of the interest on the Series A Bonds from gross
income for federal income tax purposes. If the exclusion of the interest on the Series A Bonds from gross
income for federal income tax purposes were amended or eliminated, it is likely that the market price for
the Series A Bonds would be adversely impacted.
IRS Audit of Tax-Exempt Bond Issues
The Internal Revenue Service has initiated an expanded program for the auditing of tax-exempt bond
issues, including both random and targeted audits. It is possible that the Series A Bonds will be selected
for audit by the Internal Revenue Service. It is also possible that the market value of the Series A Bonds
might be affected as a result of such an audit of the Series A Bonds(or by an audit of similar bonds).
Risks Related to Insured Bonds
The Bond Insurer. If the Successor Agency fails to provide funds to make payment of the principal of
and interest with respect to the Insured Bonds when the same shall become due, any owner of such
Insured Bonds shall have a claim on the Policy for such payments.
Purchasers of the Insured Bonds should also note that, while the Policy will insure payment of the
principal amount (but not any premium) paid to any owner of the Insured Bonds in connection with the
mandatory or optional prepayment of any Insured Bond which is recovered from such owner as a
voidable preference under applicable bankruptcy law, such amounts will be repaid by the Bond Insurer to
the Owner only at the times and in the amounts as would have been due absent such prepayment unless
the Bond Insurer chooses to pay such amount at an earlier date or dates.
So long as the Insured Bonds are Outstanding and the Bond Insurer performs its obligations under the
Policy, the Bond Insurer shall be deemed to be the sole holder of the Bonds insured by it for the purpose
of exercising any voting right or privilege or giving any consent of direction or taking any other action
that the Owners of such Bonds are entitled to take pursuant to the Indenture pertaining to defaults and
remedies,and the duties and obligations of the Trustee.
If the Bond Insurer is unable to make payments of principal of and interest on the Insured Bonds as such
payments become due, the Insured Bonds are payable solely from moneys received by the Trustee
pursuant to the Indenture. If the Bond Insurer is required to pay principal of or interest with respect to the
Insured Bonds, no representation or assurance is given or can be made that such event will not adversely
affect the market price for or marketability of the Insured Bonds.
The long-term rating on the Insured Bonds is dependent, in part, on the claims paying ability or financial
strength ratings, as applicable, of the Bond Insurer's current claims paying ability or financial strength
ratings are predicated upon a number of factors which could change over time and could result in
downgrading of the ratings on the Bonds insured by _. Such a downgrade could adversely affect the
market price for, and marketability of, the Insured Bonds. is not contractually bound to maintain its
present claims paying ability or financial strength ratings in the future. See "CONCLUDING
INFORMATION-Ratings on the Bonds"herein.
Creditworthiness of the Bond Insurer. 's obligation under the Policy is a general obligation of
Default by_may result in insufficient funds being available to pay the principal of and interest on the
Insured Bonds. In such event, the remedies available to the Trustee may be limited by, among other
46 64
things, certain risks related to bankruptcy proceedings, and may also have been altered prior to a default
by , which has the right, acting with the Trustee, without Owner consent, and upon the occurrence of
an Event of Default, to waive the applicable provisions of the Indenture governing defaults and remedies
and to direct the Trustee to enforce rights and remedies with respect to such Insured Bonds.
When making an investment decision on the Insured Bonds a prospective Owner should look to the
ability of the Successor Agency to pay principal and interest on the Bonds and not solely to 's ability
to pay claims under the Policy. No review of the business or affairs of_ has been conducted by the
Successor Agency in connection with the offering of the Insured Bonds. No assurance can be given by
the Successor Agency as to 's ability to pay claims under the Policy. See "MUNICIPAL BOND
INSURANCE" herein and "APPENDIX H" hereto for further information concerning _ and the Policy,
including resources for obtaining certain financial information concerning_.
Secondary Market
There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market
exists, that such Bonds can be sold for any particular price. Occasionally, because of general market
conditions or because of adverse history or economic prospects connected with a particular issue,
secondary marketing practices in connection with a particular issue are suspended or terminated.
Additionally, prices of issues for which a market is being made will depend upon then prevailing
circumstances. Such prices could be substantially different from the original purchase price.
TAX MATTERS
[to be provided by Bond Counsel]
47 65
LEGAL MATTERS
Enforceability of Remedies
The remedies available to the Trustee and the Owners of the Bonds upon an event of default under the
Indenture or any other document described herein are in many respects dependent upon regulatory and
judicial actions which are often subject to discretion and delay. Under existing law and judicial decisions,
the remedies provided for under such documents may not be readily available or may be limited. The
various legal opinions to be delivered concurrently with the delivery of the Bonds will be qualified to the
extent that the enforceability of certain legal rights related to the Bonds and the Indenture are subject to
limitations imposed by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of
creditors generally and by equitable remedies and proceedings generally.
Approval of Legal Proceedings
Jones Hall, A Professional Law Corporation, San Francisco, California, as Bond Counsel, will render
opinions with respect to the Bonds which state that the Indenture is a valid and binding obligation of the
Successor Agency and enforceable in accordance with its terms. The legal opinions of Bond Counsel will
be subject to the effect of bankruptcy, insolvency, moratorium and other similar laws affecting creditors'
rights and to the exercise of judicial discretion in accordance with general principles of equity. See
"APPENDIX F" for the proposed forms of Bond Counsel's opinions with respect to the Bonds.
The Successor Agency has no knowledge of any fact or other information which would indicate that the
Indenture is not so enforceable against the Successor Agency, except to the extent such enforcement is
limited by principles of equity and by state and federal laws relating to bankruptcy, reorganization,
moratorium or creditors'rights generally.
Certain legal matters will be passed on for the Successor Agency by Edward Z. Kotkin, Esq., General
Counsel to the Successor Agency. Norton Rose Fulbright US LLP,Los Angeles,California, will also pass
on certain legal matters for the Successor Agency as Disclosure Counsel. Certain legal matters will be
passed on for the Underwriter by its counsel, Nossaman, Irvine, California. Fees payable to Bond
Counsel, Disclosure Counsel and Underwriter's Counsel are contingent upon the sale and delivery of the
Bonds.
No Litigation
There is no action, suit or proceeding known to the Successor Agency to be pending and notice of which
has been served upon and received by the Successor Agency, or threatened, restraining or enjoining the
execution or delivery of the Bonds or the Indenture or in any way contesting or affecting the validity of
the foregoing or any proceedings of the Successor Agency taken with respect to any of the foregoing.
48
CONCLUDING INFORMATION
Ratings on the Bonds
Standard& Poor's Global Ratings ("S&P") has assigned a rating of"_" to the Bonds. S&P is expected
to assign to the Insured Bonds (being the Series A Bonds maturing on September 1 in the years
through and including and the Series B Bonds maturing on September 1 in the years _ through
and including_) its rating of"_" with the understanding that the Policy insuring the payment when
due of the principal of and interest on the Insured Bonds will be issued concurrently by the Bond Insurer
with the delivery of the Insured Bonds. Such ratings reflect only the views of S&P, and any desired
explanation of the significance of such ratings may be obtained from S&P Global Ratings. Generally, a
rating agency bases its rating on the information and materials furnished to it and on investigations,
studies and assumptions of its own.
There is no assurance such ratings will continue for any given period of time or that such ratings will not
be revised downward or withdrawn entirely by the rating agency, if in the judgment of such rating agency,
circumstances so warrant. Any such downward revision or withdrawal of such ratings may have an
adverse effect on the market price of the Bonds. Except as otherwise required in the Continuing
Disclosure Certificate, the Successor Agency undertakes no responsibility either to bring to the attention
of the owners of any Bonds any downward revision or withdrawal of any rating obtained or to oppose any
such revision or withdrawal. A rating is not a recommendation to buy, sell or hold securities and may be
subject to revision or withdrawal at any time.
The Municipal Advisor
The material contained in this Official Statement was prepared by the Successor Agency with the
assistance of Harrell & Company Advisors, LLC, Orange, California, an independent financial consulting
firm, which advised the Successor Agency as to the financial structure and certain other financial matters
relating to the Bonds. The information set forth herein has been obtained by the Successor Agency from
sources which are believed to be reliable, but such information is not guaranteed by the Municipal
Advisor as to accuracy or completeness, nor has it been independently verified. Fees paid to the
Municipal Advisor are contingent upon the sale and delivery of the Bonds.
Continuing Disclosure
The Successor Agency will provide annually certain financial information and data relating to the Bonds
by not later than March 31 in each year commencing March 3, 2018 (the "Annual Report"), and to
provide notices of the occurrence of certain other listed events. The Municipal Advisor will act as
Dissemination Agent. The specific nature of the information to be contained in the Annual Report or the
notices of listed events and certain other terms of the continuing disclosure obligation are found in the
form of the Successor Agency's Disclosure Certificate attached in "APPENDIX E - FORM OF
CONTINUING DISCLOSURE CERTIFICATE."
Underwriting
The Bonds were sold to Stifel, Nicolaus & Company, Incorporated (the "Underwriter"), who is offering
the Bonds at the prices set forth on the inside cover pages hereof. The initial offering prices may be
changed from time to time and concessions from the offering prices may be allowed to dealers, banks and
others.
The Underwriter has purchased the Series A Bonds at a price equal to $ which amount
represents the principal amount of the Series A Bonds plus a net original issue premium of$
less an Underwriter's discount of$ The Underwriter has purchased the Series B Bonds at a
49
67
price equal to $ , which amount represents the principal amount of the Series B Bonds less
an original issue discount of $ , less an Underwriter's discount of $ The
Underwriter will pay certain of its expenses relating to the offering from the Underwriter's discount.
Additional Information
The summaries and references contained herein with respect to the Indenture, the Bonds, statutes and
other documents, do not purport to be comprehensive or definitive and are qualified by reference to each
such document or statute and references to the Bonds are qualified in their entirety by reference to the
form hereof included in the Indenture. Copies of the Indenture are available for inspection during the
period of initial offering of the Bonds at the offices of the Municipal Advisor, Harrell & Company
Advisors, LLC, 333 City Boulevard West, Suite 1215, Orange, California 92868, telephone (714) 939-
1464. Copies of this document may be obtained after delivery of the Bonds from the Successor Agency at
3200 E. Tahquitz Canyon Way, Palm Springs, California 92262.
References
All statements in this Official Statement involving matters of opinion, whether or not expressly so stated,
are intended as such and not as representations of fact. This Official Statement is not to be construed as a
contract or agreement between the Successor Agency and the purchasers or Owners of any of the Bonds.
Execution
The execution and delivery of this Official Statement by the City Manager acting as the Chief
Administrative Officer of the Successor Agency has been duly authorized by the Successor Agency.
SUCCESSOR AGENCY TO THE PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY
By:
City Manager
50 C 8
APPENDIX A
SUMMARY OF CERTAIN PROVISIONS OF THE INDENTURE
[TO BE PROVIDED BY BOND COUNSEL]
A-1 69
APPENDIX B
PROJECTED TAX REVENUES
Dissolution Act
On June 29,2011,Assembly Bill No. 26("AB X1 26")was enacted as Chapter 5,Statutes of 2011,together
with a companion bill, Assembly Bill No. 27 ("AB X1 27"). A lawsuit was brought in the California
Supreme Court, California Redevelopment Association, et al. v. Matosantos, et al., 53 Cal. 4"' 231 (Cal.
Dec. 29, 2011), challenging the constitutionality of AB X1 26 and AB X1 27. The California Supreme
Court largely upheld AB X1 26, invalidated AB X1 27, and held that AB X1 26 may be severed from AB
X1 27 and enforced independently. As a result of AB X1 26 and the decision of the California Supreme
Court in the California Redevelopment Association case,as of February 1,2012,all redevelopment agencies
in the State were dissolved, including the Former Agency, and successor agencies were designated as
successor entities to the former redevelopment agencies to expeditiously wind down the affairs of the
former redevelopment agencies.
The AB X1 26 was amended on June 27,2012 by Assembly Bill No. 1484("AB 1484"),enacted as Chapter
26, Statutes of 2012 (as amended from time to time, the"Dissolution Act").
In accordance with the Dissolution Act,as of February 1,2012,the Community Redevelopment Agency of
the City of Palm Springs (the "Former Agency")was dissolved and the City Council of the City serves as
Successor Agency to the Palm Springs Community Redevelopment Agency (the "Agency") pursuant
Section 34173 of the Dissolution Act.
Tax Allocation Financing
Prior to the enactment of AB X1 26, the Redevelopment Law authorized the financing of redevelopment
projects through the use of tax increment revenues. First,the assessed valuation of the taxable property in
a project area, as last equalized prior to adoption of the redevelopment plan, was established and became
the base roll. Thereafter,except for any period during which the assessed valuation dropped below the base
year level, the taxing agencies, on behalf of which taxes are levied on property within the project area,
receive the taxes produced by the levy of the then current tax rate upon the base roll. Taxes collected upon
any increase in the assessed valuation of the taxable property in a project area over the levy upon the base
roll could be pledged by a redevelopment agency to the repayment of any indebtedness incurred in financing
the redevelopment project. Redevelopment agencies themselves had no authority to levy taxes on property.
The Dissolution Act now requires the County Auditor-Controller to determine the amount of property taxes
that would have been allocated to the Former Agency had the Forner Agency not been dissolved pursuant
to the operation of AB X 126,using current assessed values on the last equalized roll on August 20, and to
deposit that amount in the Redevelopment Property Tax Trust Fund for the Agency established and held by
the County Auditor-Controller(the"Redevelopment Property Tax Trust Fund")pursuant to the Dissolution
Act. The Dissolution Act provides that any bonds authorized thereunder to be issued by the Agency will
be considered indebtedness incurred by the dissolved Former Agency, with the same legal effect as if the
bonds had been issued prior to effective date of AB X1 26,in full conformity with the applicable provision
of the Redevelopment Law that existed prior to that date,and will be included in the Agency's Recognized
Obligation Payment Schedule.
B 1 70
Tax Increment Revenues
As provided in each of the Redevelopment Plans for each of the ten separate project areas(collectively,the
"Project Areas" and individually a "Project Area"), and pursuant to Article 6 of Chapter 6 of the
Redevelopment Law, and Section 16 of Article XVI of the Constitution of the State, taxes levied upon
taxable property in the respective Project Area each year by or for the benefit of the State, for cities,
counties, districts or other public corporations (collectively, the "Taxing Agencies") for fiscal years
beginning after the effective date of the respective Redevelopment Plan,will be divided as follows:
1. To Taxing Agencies: That portion of the taxes which would be produced by the rate upon which
the tax is levied each year by or for each of the taxing agencies upon the total sum of the assessed
value of the taxable property in the Project Areas as shown upon the assessment roll used in
connection with the taxation of such property by such taxing agency last equalized prior to the
effective date of the ordinance adopting the Redevelopment Plans,or the respective effective dates
of ordinances approving amendments to the Redevelopment Plans that added territory to the Project
Areas, as applicable (each, a"base year valuation'), will be allocated to, and when collected will
be paid into, the funds of the respective taxing agencies as taxes by or for the taxing agencies on
all other property are paid; and
2. To the Former Agency/Agency: Except for that portion of the taxes in excess of the amount
identified in(a) above which are attributable to a tax rate levied by a taxing agency for the purpose
of producing revenues in an amount sufficient to make annual repayments of the principal of, and
the interest on, any bonded indebtedness approved by the voters of the taxing agency on or after
January 1, 1989 for the acquisition or improvement of real property, which portion shall be
allocated to, and when collected shall be paid into, the fund of that taxing agency, that portion of
the levied taxes each year in excess of such amount,annually allocated within the Plan Limit,when
collected will be paid into a special fund of the Former Agency. Section 34172 of the Dissolution
Act provides that, for purposes of Section 16 of Article XVI of the State Constitution, the
Redevelopment Property Tax Trust Fund shall be deemed to be a special fund of the Agency to pay
the debt service on indebtedness incurred by the Former Agency or the Agency to finance or
refinance the redevelopment projects of the Former Agency.
Section 34183 of the Dissolution Act effectively eliminated the January 1, 1989 date from the paragraph
above. Additionally, effective September 22, 2015, debt service override revenues approved by the voters
for the purpose of supporting pension programs, capital projects, or programs related to the State Water
Project,that are not pledged to or needed for debt service on successor agency obligations are allocated and
paid to the entity that levies the override and will not be deposited into the Redevelopment Property Tax
Trust Fund. Further,also effective September 22,2015,Redevelopment Plan limits relating to the amount
of taxes that could be paid to the Former Agency/Successor Agency and the time that such taxes could be
paid was eliminated for the purpose of paying debt service on bonds of the Former Agency or the Successor
Agency.
The amounts calculated in accordance with the provisions described above are referred to herein as "Tax
Increment Revenues."
Redevelopment Plans
The Former Agency had adopted 10 separate Redevelopment Plans and Project Areas. In 2000,the Former
Agency merged 7 of the 10 Project Areas("Merged Project No. 1")and the 3 remaining Project Areas were
also merged("Merged Project No. 2").
B_2 71
Constituent Redevelopment Projects Comprising Merged Project No. 1
The City Council approved and adopted the Redevelopment Plan for the Central Business District
Redevelopment Project on July 11, 1973. It was subsequently amended on November 11, 1986 to add
certain financial limitations,on December 21, 1994 and on December 15, 1999 to add limitations prescribed
by the Redevelopment Law(see"Plan Limitations"below),on May 31,2000 to merge the Redevelopment
Project with six of the Agency's other redevelopment projects to form Merged Project No. I and on May 5,
2004 to eliminate the limitation on incurring debt pursuant to the provisions of the Redevelopment Law
and to extend the Redevelopment Plan and the ability to collect tax increment revenue by one additional
year pursuant to the provisions of the Redevelopment Law.
The City Council approved and adopted the Redevelopment Plan for the South Palm Canyon
Redevelopment Project on November 30, 1983. It was subsequently amended on December 21, 1994 and
on December 15, 1999 to add limitations prescribed by the Redevelopment Law,on May 31,2000 to merge
the Redevelopment Project with six of the Agency's other redevelopment projects to form Merged Project
No. 1 and on May 5, 2004 to eliminate the limitation on incurring debt pursuant to the provisions of the
Redevelopment Law and to extend the Redevelopment Plan and the ability to collect tax increment revenue
by one additional year pursuant to the provisions of the Redevelopment Law.
The City Council approved and adopted the Redevelopment Plan for the Ramon-Bogie Redevelopment
Project on November 30, 1983. It was subsequently amended on December 21, 1994 and on December 15,
1999 to add limitations prescribed by the Redevelopment Law, on May 31, 2000 to merge the
Redevelopment Project with six of the Agency's other redevelopment projects to form Merged Project No.
I and on May 5, 2004 to eliminate the limitation on incurring debt pursuant to the provisions of the
Redevelopment Law and to extend the Redevelopment Plan and the ability to collect tax increment revenue
by one additional year pursuant to the provisions of the Redevelopment Law.
The City Council approved and adopted the Redevelopment Plan for the Oasis Redevelopment Project on
July 10, 1984. It was subsequently amended on December 21, 1994 and on December 15, 1999 to add
limitations prescribed by the Redevelopment Law, on May 31, 2000 to merge the Redevelopment Project
with six of the Agency's other redevelopment projects to form Merged Project No. 1 and on May 5, 2004
to eliminate the limitation on incurring debt pursuant to the provisions of the Redevelopment Law and to
extend the Redevelopment Plan and the ability to collect tax increment revenue by one additional year
pursuant to the provisions of the Redevelopment Law.
The City Council approved and adopted the Redevelopment Plan for the North Palm Canyon
Redevelopment Project on September 19, 1984. It was subsequently amended on December 21, 1994 and
on December 15, 1999 to add limitations prescribed by the Redevelopment Law,on May 31,2000 to merge
the Redevelopment Project with six of the Agency's other redevelopment projects to form Merged Project
No. 1 and on May 5, 2004 to eliminate the limitation on incurring debt pursuant to the provisions of the
Redevelopment Law and to extend the Redevelopment Plan and the ability to collect tax increment revenue
by one additional year pursuant to the provisions of the Redevelopment Law.
The City Council approved and adopted the Redevelopment Plan for the Highland-Gateway
Redevelopment Project on November 20, 1984. It was subsequently amended on December 21, 1994 and
on December 15, 1999 to add limitations prescribed by the Redevelopment Law,on May 31,2000 to merge
the Redevelopment Project with six of the Agency's other redevelopment projects to form Merged Project
No. l and on May 5, 2004 to eliminate the limitation on incurring debt pursuant to the provisions of the
Redevelopment Law and to extend the Redevelopment Plan and the ability to collect tax increment revenue
by one additional year pursuant to the provisions of the Redevelopment Law.
The City Council approved and adopted the Redevelopment Plan for Redevelopment Project No. 9 on
December 29, 1988. It was subsequently amended on December 21, 1994 to add limitations prescribed by
the Redevelopment Law, on May 31, 2000 to merge the Redevelopment Project with six of the Agency's
B-3 w q
other redevelopment projects to form Merged Project No. 1 and on May 5,2004 to eliminate the limitation
on incurring debt pursuant to the provisions of the Redevelopment Law and to extend the Redevelopment
Plan and the ability to collect tax increment revenue by one additional year pursuant to the provisions of
the Redevelopment Law.
Constituent Redevelopment Projects Comprising Merged Project No.2
The City Council approved and adopted the Redevelopment Plan for the Tahquitz-Andreas Redevelopment
Project on July 19, 1983. It was subsequently amended on December 21, 1994 and on December 15, 1999
to add limitations prescribed by the Redevelopment Law, on May 31, 2000 to merge the Redevelopment
Project with two of the Agency's other redevelopment projects to form Merged Project No.2 and on May 5,
2004 to eliminate the limitation on incurring debt pursuant to the provisions of the Redevelopment Law
and to extend the Redevelopment Plan and the ability to collect tax increment revenue by one additional
year pursuant to the provisions of the Redevelopment Law.
The City Council approved and adopted the Redevelopment Plan for the Baristo-Farrell Redevelopment
Project on May 7, 1986. It was subsequently amended on December 21, 1994 and on December 15, 1999
to add limitations prescribed by the Redevelopment Law, on May 31, 2000 to merge the Redevelopment
Project with two of the Agency's other redevelopment projects to form Merged Project No.2 and on May 5,
2004 to eliminate the limitation on incurring debt pursuant to the provisions of the Redevelopment Law
and to extend the Redevelopment Plan and the ability to collect tax increment revenue by one additional
year pursuant to the provisions of the Redevelopment Law.
The City Council approved and adopted the Redevelopment Plan for the Canyon Redevelopment Project
on July 19, 1991. It was subsequently amended on December 21, 1994 to add limitations prescribed by the
Redevelopment Law,on May 31,2000 to merge the Redevelopment Project with two of the Agency's other
redevelopment projects to form Merged Project No. 2 and on May 5, 2004 to eliminate the limitation on
incurring debt pursuant to the provisions of the Redevelopment Law and to extend the Redevelopment Plan
and the ability to collect tax increment revenue by one additional year pursuant to the provisions of the
Redevelopment Law.
Plan Limitations
In accordance with the Redevelopment Law, redevelopment plans were required to include certain limits
on the financing of redevelopment projects. These limits could include a time limit on the life of the
redevelopment plan, a time limit to incur debt, a time limit on the receipt of Tax Increment Revenues and
the repayment of debt, and a limit on the amount of bonded indebtedness outstanding at any time. SB 107
clarifies that the former limit on the amount of tax increment and time within which tax increment could be
received by redevelopment agencies in redevelopment plans no longer apply for purposes of paying
approved enforceable obligations such as the tax allocation bonds and loans incurred by the Former Agency
or refunding tax allocation bonds issued by the Successor Agency. The original time limit for receipt of tax
increment in the Redevelopment Projects was as follows:
Original Time Original Time
Limit to Collect Limit to Collect
Redevelopment Project Tax Increment Redevelopment Project Tax Increment
Central Business District 7/11/2026 Ramon-Bogie 11/30/2036
North Palm Canyon 9/19/2035 Project No.9 12/29/2039
South Palm Canyon 11/30/2036 Baristo-Farrell 5/7/2037
Oasis 7/10/2035 Tahquitz-Andreas 7/19/2033
Highland-Gateway 11/20/2035 Canyon 7/19/2042
B-4
PC"
Low and Moderate Income Housing
Prior to the Dissolution Act, not less than 20% of Tax Increment Revenues was required to be set aside
annually for the purpose of increasing and improving the community's supply of low and moderate income
housing available at affordable housing costs to persons and families of very low,low or moderate income
households (the "Housing Set-Aside"). Under the Redevelopment Law, the portion of Tax Increment
Revenues which were required to be deposited in the Former Agency's Low and Moderate Income Housing
Fund could be pledged to pay the portion of debt service on any obligations to the extent the proceeds
thereof were expended for qualifying low-and moderate-income housing projects. There are currently no
obligations with a prior claim on the former Housing Set-Aside.
Historical Assessed Value and Tax Increment Revenues
Historical assessed value for Merged Project No. 1 based on the equalized tax rolls are shown below.
TABLE NO.B-1
MERGED PROJECT NO. 1
HISTORICAL ASSESSED VALUATIONS(1)
Preliminary
Protect Area Base Value 2013114 2014/15 2015116 2016/17 2017/18
Central Business District $ 35,805,588 $ 195170,951 $ 189,483,853(3) S 194,142,064 $ 209,528,230 $ 228,886,062
Oasis 6,216,941 40,540,340 44,770,791 47,762,227 52,579,708 68,214,152
North Palm Canyon 58,368,599 176,789,817 180,912,117 186,895,962 203,936,811 218,111,666
Highland Gateway 13,076,698 74,604,313 76,040,066 79,664,267 85,463,565 93,873,606
Ramon-Bogiet2� 24,113,819 190,337,750 190,332,903 196,207,008 201,751,055 210,349,886
South Palm Canyon t-J 52,364,719 121,925,359 128,101,827 127,859,813 130,307,997 139,403,781
Project No.9M 146,554,451 554,510,620 575,997,835 624,306,134 657,851,291 692,636,575
$336,500,815 $1,353,979,150 $1,385,639,392 $1,456,837,475 $1,541,418,657 $1,651,475,728
(1) Taxable Valuation as of August 20 equalized roll except for the Preliminary 2017/18 tax roll, which was released
by the Auditor-Controller and dated July 6,2017. The Preliminary 2017/19 tax roll is subject to change.
t2> Contains assessed value relating to possessory interest in leased tribal land. See"RISK FACTORS -Possessory
Interest Taxes;Bureau of Indian Affairs Regulations"herein.
s) Redevelopment of 13 acres in the City's downtown resulted in some existing structures being demolished and a
reduction in assessed values.
Source: Riverside County Auditor-Controller.
B-5 Pr
TABLE NO.B-2
MERGED PROJECT NO. 1
HISTORICAL TAX REVENUES
ProicctArea 2012/13 2013/14 2014115 2015/16 2016/17
Central Business District $ 1,684,561 S 1,617,149 $ 1,559,824 $ 1,617,762 $ 1,765,555
Oasis 347,424 345,729 388,125 418,304 467,962
North Palm Canyon 1,221,799 1,196,766 1,238,380 1,299,187 1,474,594
Highland Gateway 644,597 619,625 634,204 670,950 738,573
Ramon-Bogie 1,681,791 1,672,683 1,669,310 1,732,922 1,792,348
South Palm Canyon 687,583 704,202 766,191 764,379 791,232
Project No.9 3,914,682 4,105,751 4,322,026 4,809,007 5J85,174
Total Tax Increment $10,182,436 S10,261,905 $10,578,060 $11,312,511 12,215,438
Supplemental Taxes 67,394 108,705 45,902 323,994 433,428
Actual Tax Revenues $10,249,829 S10,370,610 $10,623,962 $11,636,505 12,648,866
Less Housing Obligations tp (319,872) (312,649) -
Less Tax Sharing (3,894,637) (4,191,063) (4,342,061) (4,867,301) (4,816,992)
Available for Debt Service('-) $ 6,035,320 S 5,866,898 $ 6,281,901 S 6,769,204 $ 7,831,874
'I Prorata share of 2001 Housing Tax Allocation based on amounts from each Project Area that would have been
required to be set aside for Low and Moderate Income Housing. This was eliminated in 2014 subsequent to the
issuance of the Parity Bonds,which refunded the 2001 Housing Tax Allocation Bonds.See"SECURITY FOR THE
BONDS-Redevelopment Property Tax Trust Fund"herein.
('-I Before deduction for County Auditor-Controller administrative costs.
Source: Former Agency audited financial statements and Riverside County Auditor-Controller.
B-6 5
Historical assessed value for Merged Project No. 2 based on the equalized tax rolls are shown below.
TABLE NO.B-3
MERGED PROJECT NO.2
HISTORICAL ASSESSED VALUATIONS('1
Preliminary
ProiectArea Base Value 2013/14 2014/15 2015/16 2016117 2017118
Baristo-Farrell $105,804,243 $320,291,939 $340,641,620 $367,166,342 S393,295,714 $421,698,489
Tahquitz-Andreas(21 67,120,387 172,670,659 172,902,123 172,902,123 194,848,220 203,531,458
Canyon(2) 9,543,553 176,278,489 238,522,743 287,828,368 330,937,300 368,019,765
$182,468,183 $669,241,087 $752,066,486 $827,896,833 $919,081,234 $993,249,712
01 Taxable Valuation as of August 20 equalized roll except for the Preliminary 2017/18 tax roll,which was released
by the Auditor-Controller and dated July 6,2017. The Preliminary 2017/18 tax roll is subject to change.
Contains assessed value relating to possessory interest in leased tribal land. See"RISK FACTORS - Possessory
Interest Taxes;Bureau of Indian Affairs Regulations"herein.
Source: Riverside County Auditor-Controller.
Actual Tax Revenues paid to the Former Agency or available to the Successor Agency from Merged Project
No. 2 are shown below.
TABLE NO.B-4
MERGED PROJECT NO.2
HISTORICAL TAX REVENUES
Proiect Area 2012/13 2013/14 2014/15 2015/16 2016/17
Baristo-Farrell S2,212,103 $2,179,265 $2,383,939 $2,651,494 $2,934,201
Tahquitz-Andreas 1,076,553 1,079,008 1,081,781 1,187,211 1,307,304
Canyon 1,584,359 1,678,510 1421,983 2,796.682 3,241,772
Total Tax Increment $4,873,014 $4,936,784 $5,887,703 6,635,387 7,483,277
Supplemental Taxes (131,743) 210,784 353,908 554,153 432,282
Actual Tax Revenues $4,741,271 $5,147,568 $6,241,611 $7,189,540 $7,915,559
Less Housing Obligations (147,964) (155,187)
Less Tax Sharing (1,785,645) (2,004,992) (2,496,707) (2,898,411) (3,280,398)
Available for Debt Service(2) $2,807,662 $2,987,389 $3,744,904 $4,291,129 $4,635,161
(0 Prorata share of 2001 Housing Tax Allocation based on amounts from each Project Area that would have been
required to be set aside for Low and Moderate Income Housing. This was eliminated in 2014 subsequent to the
issuance of the Parity Bonds,which refunded the 2001 Housing Tax Allocation Bond. See"SECURITY FOR THE
BONDS-Redevelopment Property Tax Trust Fund"herein.
(2) Before deduction for County Auditor-Controller administrative costs.
Source: Former Agency audited financial statements and Riverside County Auditor-Controller.
B7 76
Major Taxpayers
The ten largest property taxpayers represent 13.7% of the 2016/17 secured assessed value of the Merged
Project No. 1.
TABLE NO.B-5
MERGED PROJECT NO. 1
TEN LARGEST TAXPAYERS AS A PERCENT OF 2016/17 ASSESSED VALUE
2016/17 %of
Total Total
Assessed Assessed
Taxpayer Value Value
Al California LLC $ 50,038,571 3.2%
Wal Mart Real Estate Business Trust 31,054,957 2.0%
RBD Hotel Palm Springs 22,025,610 1.4%
Palm Springs Land 21,500,000 1.4%
Wessman Holdings 17,955,476 1.2%
Palm Canyon Villas LLC 15,035,332 1.0%
Partners Land Development 14,797,105 1.0%
Lowes HIW Inc. 14,360,706 0.9%
Investec Ramon Investors 12,192,292 0.8%
FDH Enterprises 11,926,816 0.8%
Total $210,886,865 13.7%
Source: Successor Agency.
B-8 7 7
The ten largest property taxpayers represent 18.6% of the 2016/17 secured assessed value of the Merged
Project No. 2.
TABLE NO.B-6
MERGED PROJECT NO.2
TEN LARGEST TAXPAYERS AS A PERCENT OF 2016/17 ASSESSED VALUE
2016/17 %of
Total Total
Assessed Assessed
Taxpayer Value Value
HH Palm Springs $ 41,450,613 4.5%
Walter Hotel Corporation 28,483,615 3.1%
Alta Verde Sereno LLC 17,539,763 1.9%
Essex House Condominium Corp 14,055,286 1.5%
Ralph's Grocery 12,856,925 1.4%
Zoso APHM 12,520,952 1.4%
Tree Moss Partners 11,900,000 1.3%
Sol PS 10,965,543 1.2%
311 South Sunrise Apartments 10,714,427 1.2%
Jen California 3 10,200,000 1.1%
Total $170,687,024 18.6%
Source: Successor Agency.
Assessment Appeals
Merced Proiect No. 1
[to be completed]
Merced Proiect No. 2
[to be completed]
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Tax Sharing Agreements
Pursuant to prior Section 33401(b)of the Redevelopment Law,a redevelopment agency could enter into an
agreement to pay tax increment revenues to any taxing agency that has territory located within a
redevelopment project to alleviate any financial burden or detriment caused by the redevelopment project.
These agreements are commonly referred to as "tax sharing agreements" or"pass through agreements."
The following describes the agreements entered into with respect to the Project Areas.
For the purpose of calculating tax sharing under either Section 33401 or 33607 of the Redevelopment Law
(described under the caption "Tax Sharing Statutes"), the Dissolution Act provides that, if applicable, the
amount of tax sharing payments shall be computed as though the requirement to set aside funds for the Low
and Moderate Income Housing Fund was still in effect.
Central Business District Redevelopment Project
Desert Water Agency
In September, 1991,the Agency entered into an agreement with the Desert Water Agency("Water Agency").
The Agency agreed to pass through 25% of the Water Agency's share of the I% General Levy, which is
approximately 1.8%,attributable to increases in assessed valuation of the Redevelopment Project above the
valuation shown on the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the
Low and Moderate Income Housing Fund, the Water Agency contributes its proportionate share of such
amounts.
In addition,the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Oasis Redevelopment Project
Riverside County
Pursuant to the pass-through agreement with Riverside County, the County receives its share of the 1%
General Levy (the "County Share"), which is approximately 26.7%. However, until such time as the
Agency has received a cumulative amount of$500,000 of the County Share, the County received 50% of
the County Share. After such time as the Agency has received a cumulative amount of$500,000 of the
County Share,the County receives 100%of the County Share. The cumulative$500,000 limit was reached
in Fiscal Year 2013/14.
Desert Water Aeencv
In September, 1991, the Agency entered into an agreement with the Water Agency. The Agency agreed to
pass through 25% of the Water Agency's share of the 1% General Levy, which is approximately 1.8%,
attributable to increases in assessed valuation of the Redevelopment Project above the valuation shown on
the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund,the Water Agency contributes it proportionate share of such amounts.
In addition, the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Riverside County Flood Control District
Pursuant to the pass-through agreement with the Riverside County Flood Control District, the Agency
received 100% of the I% General Levy attributable to the District (the"District Share") during the first 6
years of the Redevelopment Project and thereafter,receives 50% of the District Share. The District Share
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is approximately 4.2%. The amount of the District Share received by the Agency is set aside to construct
specific flood control improvements and not pledged to repay the Bonds. The projections include a full
100%deduction of the District Share.
Coachella Valley Mosquito Abatement District("CVMAD")
Pursuant to the pass-through agreement with CVMAD, for the first five years, CVMAD will receive 25%
of its share of the 1%General Fund Levy (the"CVMAD Share), which is approximately 1.3%, for years
six through ten, CVMAD will receive 50% of the CVMAD Share, for years eleven through twenty,
CVMAD will receive 75% of the CVMAD Share, and thereafter, CVMAD will receive 100% of the
CVMAD Share. CVMAD currently receives 100%of the CVMAD Share.
Highland-Gateway Redevelopment Project
Riverside County
Pursuant to the pass-through agreement with Riverside County, the County receives its share of the 1%
General Levy (the "County Share"), which is approximately 2.7%. However, until such time as the
cumulative amount of Tax Increment Revenues exceed$5 million,the County received 10% of the County
Share. When cumulative Tax Increment Revenues are between $5 and $10 million; the County receives
20% of the County Share. When cumulative Tax Increment Revenues are between $10 and $15 million,
the County receives 40%of the County Share. When cumulative Tax Increment Revenues are between$15
and$20 million,the County receives 60%of the County Share. When cumulative Tax Increment Revenues
are between $20 and $25 million, the County receives 80% of the County Share. After cumulative Tax
Increment Revenues exceed $25 million, or when the Agency has received a total of$3,932,328 of the
County Share, the County receives 100% of the County Share. As of June 30, 2017, the Agency had
retained approximately $2,193,000 of the County Share and cumulative Tax Increment Revenues were
approximately$9,504,000.
Desert Water Agency
In September, 1991,the Agency entered into an agreement with the Water Agency. The Agency agreed to
pass through 25% of the Water Agency's share of the 1% General Levy, which is approximately 1.8%,
attributable to increases in assessed valuation of the Redevelopment Project above the valuation shown on
the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund,the Water Agency contributes it proportionate share of such amounts.
In addition, the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Coachella Valley Mosquito Abatement District
Pursuant to the pass-through agreement with the CVMAD, the CVMAD receives approximately 1.3%of
the I%General Levy(the"CVMAD Share"). In any year in which the Agency sets aside funds in the Low
and Moderate Income Housing Fund,the Agency may credit the CVMAD Share for its proportionate share
of such amount.
Cemetery District
Pursuant to the pass-through agreement with the Cemetery District, the Cemetery District will receive
approximately 0.15% of the I% General Levy(the "Cemetery District Share"). In any year in which the
Agency sets aside funds in the Low and Moderate Income Housing Fund, the Agency may credit the
Cemetery District Share for its proportionate share of such amount.
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Coachella Valley Water District("CVWD")
Pursuant to the pass-through agreement with CVWD,the CVWD receives its share of the I%General Levy
(the "CVWD Share"). Until such time as the cumulative amount of Tax Increment Revenues exceed $5
million,the CVWD will receive 20%of the CVWD Share. When cumulative Tax Increment Revenues are
between $5 and $10 million, the CVWD will receive 30% of the CVWD Share. When cumulative Tax
Increment Revenues are between $10 and$15 million,the CVWD will receive 50%of the CVWD Share.
When cumulative Tax Increment Revenues are between$15 and$20 million,the CVWD will receive 60%
of the CVWD Share. When cumulative Tax Increment Revenues are between $20 and $25 million, the
CVWD will receive 80% of the CVWD Share. After cumulative Tax Increment Revenues exceed $25
million, CVWD will receive 100%of the CVWD Share. Currently, the CVWD Share is 0%.
North Palm Canyon Redevelopment Project
Riverside County
Pursuant to the pass-through agreement with Riverside County, the County receives its share of the 1%
General Levy (the "County Share"), which is approximately 26.7%. However, until such time as the
cumulative amount of Tax Increment Revenues exceed$5 million,the County received 10%of the County
Share. When cumulative Tax Increment Revenues were between$5 and$10 million,the County received
50% of the County Share. After cumulative Tax Increment Revenues exceed $10 million, or when the
Agency had received a total of$1.9 million of the County Share,the County receives 100%of the County
Share. Receipt by the Agency of any portion of the County Share was also eliminated in any year in which
the annual Tax Increment Revenue to be received exceeded $2.25 million. As of June 30, 2017, the
cumulative Tax Increment Revenues were approximately$18,017,000.
Riverside County Flood Control District
Pursuant to the pass-through agreement with the Riverside County Flood Control District, the Agency
received 100% of the 1%General Levy attributable to the District for the first six years and commencing
in the seventh year 50% of the 1% General Levy attributable to the District (the "District Share"). The
District Share is approximately 4.2%. These amounts must be used by the Agency to construct specific
project improvements and are not pledged to repay the Bonds and the projections include a full 100%
deduction of the District Share. The District will also receive any Tax Increment Revenues generated by
any tax override levied to service any District debt established after formation of the Redevelopment
Project.
Desert Water Agency
In September, 1991, the Agency entered into an agreement with the Water Agency. The Agency agreed to
pass through 25% of the Water Agency's share of the 1% General Levy, which is approximately 1.8%,
attributable to increases in assessed valuation of the Redevelopment Project above the valuation shown on
the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund,the Water Agency contributes it proportionate share of such amounts.
In addition, the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Coachella Valley Mosquito Abatement District
Pursuant to the pass-through agreement with the CVMAD, the CVMAD receives approximately 1.3%of
the 1%General Levy(the"CVMAD Share"). In any year in which the Agency sets aside funds in the Low
and Moderate Income Housing Fund,the CVMAD will contribute its proportionate share of such amount.
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Cemetery District
Pursuant to the pass-through agreement with the Cemetery District, the Cemetery District will receive
approximately 0.15% of the 1% General Levy (the"Cemetery District Share"). In any year in which the
Agency sets aside funds in the Low and Moderate Income Housing Fund, the Agency may credit the
Cemetery District Share for its proportionate share of such amount.
South Palm Canyon Redevelopment Project
Riverside County
Pursuant to the pass-through agreement with Riverside County, the County receives its share of the 1%
General Levy (the "County Share"), which is approximately 26.7%. However, until such time as the
cumulative amount of Tax Increment Revenues exceeded $5 million, the County received 35% of the
County Share. When cumulative Tax Increment Revenues were between $5 and $10 million, the County
received 50% of the County Share. When cumulative Tax Increment Revenues are between $10 and$15
million, the County receives 70% of the County Share. When cumulative Tax Increment Revenues are
between $15 and $20 million, the County will receive 85% of the County Share. After cumulative Tax
Increment Revenues exceed $20 million, or when the County has deferred a total of$2,169,600 of the
County Share, the County will receive 100% of the County Share. Deferral of any portion of the County
Share is also eliminated in any year in which the annual Tax Increment Revenue to be received exceeds
$2.25 million. No repayment of amounts deferred is required. As of June 30,2017,the Agency had retained
approximately $1,800,000 of the County Share and cumulative Tax Increment Revenues were
approximately$13,263,000.
Riverside County Flood Control District
Pursuant to the pass-through agreement with the Riverside County Flood Control District, the Agency
received 100% of the 1% General Levy attributable to the District for the first 6 years after the Plan was
adopted and thereafter 50%of the 1%General Levy attributable to the District(the"District Share"). The
District Share is approximately 4.2%. These amounts must be used by the Agency to construct specific
project improvements and are not pledged to repay the Bonds. The projections include a full 100%
deductible of the District Share.
Desert Water Agency
In September, 1991, the Agency entered into an agreement with the Water Agency. The Agency agreed to
pass through 25% of the Water Agency's share of the 1% General Levy, which is approximately 1.8%,
attributable to increases in assessed valuation of the Redevelopment Project above the valuation shown on
the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund,the Water Agency contributes it proportionate share of such amounts.
In addition,the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Coachella Valley Mosquito Abatement District
Pursuant to the pass-through agreement with CVMAD, the CVMAD receives its share of the 1%General
Levy (the "CVMAD Share"), which is approximately 1.3%. However, until such time as the cumulative
amount of Tax Increment Revenues exceeded$5 million,the CVMAD received 10%of the CVMAD Share.
When cumulative Tax Increment Revenues were between $5 and$10 million, the CVMAD received 25%
of the CVMAD Share. When cumulative Tax Increment Revenues were between$10 and$15 million,the
CVMAD receives 50% of the CVMAD Share. When cumulative Tax Increment Revenues are between
$15 and $20 million, the CVMAD will receive 60% of the CVMAD Share. When cumulative Tax
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Increment Revenues are between $20 and $25 million, the CVMAD will receive 75% of the CVMAD
Share. After cumulative Tax Increment Revenues exceed$25 million, or when the CVMAD has deferred
a total of$181,804 of the CVMAD Share,the CVMAD will receive 100%of the CVMAD Share. Deferral
of any portion of the CVMAD Share is also eliminated in any year in which the annual Tax Increment
Revenue to be received exceeds $2.25 million. No repayment of amounts deferred is required. As of
June 30,2017,the Agency had retained approximately$128,000 of the CVMAD Share.
Cemetery District
Pursuant to the pass-through agreement with Cemetery District,the Cemetery District receives its share of
the 1%General Levy(the"Cemetery District Share"),which is approximately 0.15%. However,until such
time as the cumulative amount of Tax Increment Revenues exceeded $5 million, the Cemetery District
received 10%of the Cemetery District Share. When cumulative Tax Increment Revenues were between$5
and $10 million, the Cemetery District received 25% of the Cemetery District Share. When cumulative
Tax Increment Revenues are between $10 and $15 million, the Cemetery District receives 50% of the
Cemetery District Share. When cumulative Tax Increment Revenues are between$15 and$20 million,the
Cemetery District will receive 60% of the Cemetery District Share. When cumulative Tax Increment
Revenues are between$20 and$25 million,the Cemetery District will receive 75%of the Cemetery District
Share. After cumulative Tax Increment Revenues exceed $25 million, or when the Cemetery District has
deferred a total of$21,000 of the Cemetery District Share,the Cemetery District will receive 100%of the
Cemetery District Share. Deferral of any portion of the Cemetery District Share is also eliminated in any
year in which the annual Tax Increment Revenue to be received exceeds $2.25 million. No repayment of
amounts deferred is required. As of June 30, 2017,the Agency had retained approximately$15,000 of the
Cemetery District Share.
Ramon-Bogie Redevelopment Project
Riverside County
Pursuant to the pass-through agreement with Riverside County, the County receives its share of the 1%
General Levy (the "County Share"), which is approximately 27%. However, until such time as the
cumulative amount of Tax Increment Revenues exceeded $5 million, the County received 35% of the
County Share. When cumulative Tax Increment Revenues were between $5 and $10 million, the County
received 50%of the County Share. When cumulative Tax Increment Revenues were between$10 and$15
million, the County received 70% of the County Share. When cumulative Tax Increment Revenues are
between $15 and $20 million, the County receives 85% of the County Share. After cumulative Tax
Increment Revenues exceed $20 million, or when the County has deferred a total of$2,169,600 of the
County Share, the County will receive 100%of the County Share. Deferral of any portion of the County
Share is also eliminated in any year in which the annual Tax Increment Revenue to be received exceeds
$2.25 million. No repayment of amounts deferred is required. The cumulative $20,000,000 limit was
reached in Fiscal Year 2016/17.
Riverside County Flood Control District
Pursuant to the pass-through agreement with the Riverside County Flood Control District, the District
receives its share of the 1%General Levy(the"District Share"),which is approximately 3.5%. The District
will also receive any Tax Increment Revenues generated by any tax override levied to service any District
debt established after formation of the Redevelopment Project.
Desert Water Aeencv
In September, 1991,the Agency entered into an agreement with the Water Agency. The Agency agreed to
pass through 25% of the Water Agency's share of the 1% General Levy, which is approximately 1.8%,
attributable to increases in assessed valuation of the Redevelopment Project above the valuation shown on
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the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund,the Water Agency contributes it proportionate share of such amounts.
In addition,the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Coachella Valley Water District
Pursuant to the pass-through agreement with CVWD,the CVWD receives its share of the 1%General Levy
(the "CVWD Share"). However, until such time as the cumulative amount of Tax Increment Revenues
exceeded $5 million, the CVWD received 10% of the CVWD Share. When cumulative Tax Increment
Revenues were between $5 and $10 million, the CVWD received 25% of the CVWD Share. When
cumulative Tax Increment Revenues were between $10 and $15 million, the CVWD received 50% of the
CVWD Share. When cumulative Tax Increment Revenues are between $15 and $20 million, the CVWD
receives 60% of the CVWD Share. When cumulative Tax Increment Revenues are between $20 and $25
million, the CVWD will receive 75% of the CVWD Share. After cumulative Tax Increment Revenues
exceed$25 million, or when the CVWD has deferred a total of$36,400 of the CVWD Share, the CVWD
will receive 100%of the CVWD Share. Deferral of any portion of the CVWD Share is also eliminated in
any year in which the annual Tax Increment Revenue to be received exceeds $2.25 million. No repayment
of amounts deferred is required. Currently the CVWD Share is 0%.
Coachella Valley Mosquito Abatement District
Pursuant to the pass-through agreement with the CVMAD, the CVMAD receives its share of the 1%
General Levy (the "CVMAD Share"), which is approximately 1.3%. However, until such time as the
cumulative amount of Tax Increment Revenues exceeded $5 million, the CVMAD received 10% of the
CVMAD Share. When cumulative Tax Increment Revenues were between $5 and $10 million, the
CVMAD received 25% of the CVMAD Share. When cumulative Tax Increment Revenues were between
$10 and$15 million, the CVMAD received 50%of the CVMAD Share. When cumulative Tax Increment
Revenues are between $15 and $20 million, the CVMAD receives 60% of the CVMAD Share. When
cumulative Tax Increment Revenues are between $20 and $25 million, the CVMAD will receive 75% of
the CVMAD Share. After cumulative Tax Increment Revenues exceed$25 million,or when the CVMAD
has deferred a total of$181,904 of the CVMAD Share, the CVMAD will receive 100% of the CVMAD
Share. Deferral of any portion of the CVMAD Share is also eliminated in any year in which the annual Tax
Increment Revenue to be received exceeds $2.25 million. No repayment of amounts deferred is required.
As of June 30, 2017, the Agency had retained approximately$168,000 of the CVMAD Share.
Cemetery District
Pursuant to the pass-through agreement with Cemetery District, the Cemetery District receives its share of
the 1%General Levy(the"Cemetery District Share"),which is approximately 0.15%. However,until such
time as the cumulative amount of Tax Increment Revenues exceeded $5 million, the Cemetery District
received 10%of the Cemetery District Share. When cumulative Tax Increment Revenues were between$5
and $10 million, the Cemetery District received 25% of the Cemetery District Share. When cumulative
Tax Increment Revenues were between $10 and $15 million, the Cemetery District received 50% of the
Cemetery District Share. When cumulative Tax Increment Revenues are between$15 and$20 million,the
Cemetery District receives 60%of the Cemetery District Share. When cumulative Tax Increment Revenues
are between$20 and$25 million, the Cemetery District will receive 75%and defer the remaining 25% of
the Cemetery District Share. After cumulative Tax Increment Revenues exceed $25 million, or when the
Cemetery District has deferred a total of$21,000 of the Cemetery District Share,the Cemetery District will
receive 100%of the Cemetery District Share. Deferral of any portion of the Cemetery District Share is also
eliminated in any year in which the annual Tax Increment Revenue to be received exceeds $2.25 million.
No repayment of amounts deferred is required. As of June 30,2017,the Agency had retained approximately
$14,000 of the Cemetery District Share.
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Redevelopment Project No. 9
Riverside County
Pursuant to the pass-through agreement with Riverside County, the County receives its share of the 1%
General Levy(the"County Share"),which is approximately 26.8%. However,until such time as the annual
amount of Tax Increment Revenues exceeded $1 million, the County received 10% of the County Share
and deferred the remaining 90%. When annual Tax Increment Revenues were between $1 and$2 million,
the County received 25% and deferred the remaining 75% of the County Share. When annual Tax
Increment Revenues were between$2 and$3 million,the County received 50%and deferred the remaining
50%of the County Share. When annual Tax Increment Revenues exceeded$3 million,or when the County
had deferred a total of$4.2 million of the County Share, the County receives 100% of the County Share.
Repayment of the deferred amounts began in the third year after annual Tax Increment Revenues exceeded
$3 million and is made in seven equal annual installments. Annual Tax Increment Revenues exceeded $3
million for the first time in 2006/07 and repayment of the deferred amount commenced in 2009/10 and
ended in 2015/16.
Riverside County Flood Control District
Pursuant to the pass-through agreement with the Riverside County Flood Control District, the Agency
received 100% of the 1% General Levy attributable to the District (the"District Share") during the first 6
years of the Redevelopment Project and 50%of the District Share thereafter,until the Agency has received
an amount equal to all costs of the project improvements defined in the Agreement. The District Share is
approximately 4.2%. These amounts must be used by the Agency to construct specific project
improvements. In any year in which the Agency sets aside funds in the Low and Moderate Income Housing
Fund, the Agency may deduct from the District Share its proportionate share of such amount. The
projections include a full 100%deduction of the District Share.
Desert Water Aeency
In September, 1991, the Agency entered into an agreement with the Water Agency. The Agency agreed to
pass through 25% of the Water Agency's share of the 1% General Levy, which is approximately 1.8%,
attributable to increases in assessed valuation of the Redevelopment Project above the valuation shown on
the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund, the Water Agency contributes it proportionate share of such amounts.
In addition, the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Riverside County Superintendent of Schools ("RCo. School District")
Pursuant to the pass-through agreement with the RCo. School District, the RCo. School District receives
its share of the 1%General Levy(the"RCo. School District Share"),which is approximately 3.9%. Of the
RCo. School District Share, the Agency retains 50%. In any year in which the Agency sets aside funds in
the Low and Moderate Income Housing Fund, the RCo. School District will contribute its proportionate
share of such amount. The RCo. School District will also receive any Tax Increment Revenues generated
by any tax override levied to service any RCo. School District debt established either prior to or after
formation of the Redevelopment Project.
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Desert Community College("College District')
Pursuant to the pass-through agreement with the College District,the College District receives its share of
the 1% General Levy (the "College District Share"). Of the College District Share, the Agency retains
50%. In any year in which the Agency sets aside funds in the Low and Moderate Income Housing Fund,
the College District will contribute its proportionate share of such amount. The College District will also
receive any Tax Increment Revenues generated by any tax override levied to service any College District
debt established either prior to or after formation of the Redevelopment Project.
Coachella Valley Mosquito Abatement District
Pursuant to the pass-through agreement with the CVMAD, the CVMAD receives its share of the 1%
General Levy(the"CVMAD Share"),which is approximately 1.3%. In addition,the CVMAD will receive
the CVMAD Share of the Tax Increment Revenues generated by a 2%inflationary growth in the base year
assessed value of the Redevelopment Project.
Cemetery District
Pursuant to the pass-through agreement with the Cemetery District,the Cemetery District receives its share
of the 1% General Levy (the "Cemetery District Share"), which is approximately 0.15%. In any year in
which the Agency sets aside funds in the Low and Moderate Income Housing Fund,the Agency may deduct
from the Cemetery District Share its proportionate share of such amount.
Palm Springs Unified School District("PSUSD")
Pursuant to the pass-through agreement with the PSUSD,the PSUSD receives its share of the 1%General
Levy(the"PSUSD Share"),which is approximately 25.1%. Of the PSUSD Share, the Agency will retain
50% and 50% shall be paid by the Agency into a trust fund to be administered by and for the exclusive
benefit of the District. In addition, the PSUSD will receive the PSUSD Share of the Tax Increment
Revenues generated by a 2% inflationary growth in the base year assessed value of the Redevelopment
Project. In any year in which the Agency sets aside funds in the Low and Moderate Income Housing Fund,
the PSUSD will contribute its proportionate share of such amount. The PSUSD will also receive any Tax
Increment Revenues generated b an tax override levied to service an PSUSD debt established either
g Y Y Y
prior to or after formation of the Redevelopment Project.
Baristo-Farrell Redevelopment Project
Riverside County
Pursuant to the pass-through agreement with Riverside County, the County receives its share of the 1%
General Levy(the "County Share"), which is approximately 26.7%. In any year in which Tax Increment
revenues are $2 million or less the County will receive 50% of the County Share. When annual Tax
Increment Revenues exceed $2 million, the County will also receive 100% of the County Share of the
amount of Tax Increment Revenues in excess of$2 million. At such time as the County Share paid to the
Agency equals $7.5 million, the County will thereafter receive 100%of the County Share. Of the County
Share retained by the Agency,the Agency is entitled to retain 30%in a"County Capital Improvement Fund"
to be used for specified projects. In addition, the County will also receive any Tax Increment Revenues
generated by any tax override levied to service any County debt established after formation of the
Redevelopment Project. As of June 30, 2017, the Agency had retained approximately $4,890,000 of the
County Share.
Riverside County Flood Control District
I
Pursuant to the pass-through agreement with the Riverside County Flood Control District, the Agency
currently receives 50% of the 1% General Levy attributable to the District (the "District Share"). The
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District Share is approximately 4.2%. The amount of the District Share received by the Agency is set aside
to construct specific flood control improvements and not pledged to repay the Bonds. The projections
include a full 100%deduction of the District Share.
Desert Water Agency
In September, 1991, the Agency entered into an agreement with the Water Agency. The Agency agreed to
pass through 25% of the Water Agency's share of the 1% General Levy, which is approximately 1.8%,
attributable to increases in assessed valuation of the Redevelopment Project above the valuation shown on
the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund,the Water Agency contributes it proportionate share of such amounts.
In addition,the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Riverside County Superintendent of Schools
Pursuant to the pass-through agreement with the RCo. School District, the RCo. School District receives
its share of the 1%General Levy(the"RCo. School District Share"),which is approximately 3.9%. Of the
RCo. School District Share,the Agency retains 50%. In any year in which the Agency sets aside funds in
the Low and Moderate Income Housing Fund, the RCo. School District will contribute its proportionate
share of such amount. The RCo. School District will also receive any Tax Increment Revenues generated
by any tax override levied to service any RCo. School District debt established either prior to or after
formation of the Redevelopment Project.
Desert Community College District(formerly known as Coachella Valley Community College District)
Pursuant to the pass-through agreement with the College District,the College District receives its share of
the I%General Levy(the"College District Share"),which is approximately 7.1%. Of the College District
Share,the Agency retains 50%. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund, the College District will contribute its proportionate share of such amount. The
College District will also receive any Tax Increment Revenues generated by any tax override levied to
service any College District debt established either prior to or after formation of the Redevelopment Project.
Coachella Valley Mosquito Abatement District
Pursuant to the pass-through agreement with the CVMAD, the CVMAD receives its share of the 1%
General Levy(the"CVMAD Share"),which is approximately 1.3%. In any year in which the Agency sets
aside funds in the Low and Moderate Income Housing Fund,the CVMAD will contribute its proportionate
share of such amount. In addition, the CVMAD will receive the CVMAD Share of the Tax Increment
Revenues generated by a 2% inflationary growth in the base year assessed value of the Redevelopment
Project.
Palm Springs Unified School District
Pursuant to the pass-through agreement with the PSUSD,the PSUSD receives its share of the I%General
Levy(the"PSUSD Share"),which is approximately 25.0%. Of the PSUSD Share,the Agency retains 50%.
In addition,the PSUSD will receive the PSUSD Share of the Tax Increment Revenues generated by a 2%
inflationary growth in the base year assessed value of the Redevelopment Project. In any year in which the
Agency sets aside funds in the Low and Moderate Income Housing Fund, the PSUSD will contribute its
proportionate share of such amount. The PSUSD will also receive any Tax Increment Revenues generated
by any tax override levied to service any PSUSD debt established either prior to or after formation of the
Redevelopment Project.
B-18
Tahquitz-Andreas Redevelopment Project
Riverside County
Pursuant to the pass-through agreement with Riverside County, the County receives its share of the 1%
General Levy (the "County Share"), which is approximately 26.7%. However, until such time as the
cumulative amount of Tax Increment Revenues exceeded $5 million, the County received 10% of the
County Share. When cumulative Tax Increment Revenues were between $5 and $10 million; the County
received 25%of the County Share. When cumulative Tax Increment Revenues were between$10 and$15
million, the County received 50% of the County Share. When cumulative Tax Increment Revenues were
between $15 and $20 million, the County received 60% of the County Share. When cumulative Tax
Increment Revenues were between $20 and $25 million, the County received 75% of the County Share.
After cumulative Tax Increment Revenues exceeded $25 million, or when the County had deferred a total
of $3,796,730 of the County Share, the County receives 100% of the County Share. The cumulative
$25,000,000 limit was reached in Fiscal Year 2011/12.
Desert Water Agency
In September, 1991,the Agency entered into an agreement with the Water Agency. The Agency agreed to
pass through 25% of the Water Agency's share of the 1% General Levy, which is approximately 1.8%,
attributable to increases in assessed valuation of the Redevelopment Project above the valuation shown on
the 1990/91 assessment roll. In any year in which the Agency sets aside funds in the Low and Moderate
Income Housing Fund,the Water Agency contributes it proportionate share of such amounts.
In addition,the Water Agency receives any Tax Increment Revenues generated by any tax override levied
to service any Water Agency debt.
Riverside County Flood Control District
Pursuant to the pass-through agreement with the Riverside County Flood Control District, the Agency
currently reimburses the Flood Control District for 100%of the District Share of the 1%General Levy. The
District Share is approximately 4.2%.
Coachella Valley Mosquito Abatement District
Pursuant to the pass-through agreement with CVMAD, the CVMAD receives its share of the 1% General
Levy(the"CVMAD Share"), which is approximately 1.3%. Until such time as the cumulative amount of
Tax Increment Revenues exceeded $5 million, the CVMAD received 10% of the CVMAD Share. When
cumulative Tax Increment Revenues were between$5 and$10 million,the CVMAD received 25%and the
Agency receives the remaining 75% of the CVMAD Share. When cumulative Tax Increment Revenues
were between$10 and$15 million,the CVMAD received 50%and the Agency received the remaining 50%
of the CVMAD Share. When cumulative Tax Increment Revenues were between $15 and$20 million,the
CVMAD received 60% and the Agency received the remaining 40% of the CVMAD Share. When
cumulative Tax Increment Revenues were between $20 and $25 million, the CVMAD received 75% and
the Agency received the remaining 25%of the CVMAD Share. After cumulative Tax Increment Revenues
exceeded $25 million, or when the Agency has received a total of$181,804 of the CVMAD Share, the
CVMAD receives 100% of the CVMAD Share. The cumulative $25,000,000 limit was reached in Fiscal
Year 2011/12.
Canyon Redevelopment Project
Riverside County
Pursuant to the pass-through agreement with the Riverside County, the Agency receives 25% of the 1%
General Levy attributable to the County(the"County Share")until such time as the Agency has received a
B-19
88
cumulative allocation of the County Share of$15,000,000. Thereafter, 100% of the County Share will be
paid to the County. The County Share is approximately 26.7%. As of June 30, 2017, the Agency has
retained approximately$1,826,000 of the County Share.
Riverside County Flood Control District
Pursuant to the pass-through agreement with the Riverside County Flood Control District, the Agency
received 75% of the 1% General Levy attributable to the District(the"District Share") during the first 10
years of the Redevelopment Project, 50% of the District Share during the second 10 years of the
Redevelopment Project and receives 20% of the District Share thereafter. The District Share is
approximately 4.2%.
Palm Springs Unified School District
Pursuant to the pass-through agreement with the PSUSD,the Agency receives 50%of the I%General Levy
attributable to PSUSD (the "PSUSD Share"). The PSUSD Share is approximately 25%. In any year in
which the Agency sets aside funds in the Low and Moderate Income Housing Fund, the PSUSD will
contribute its proportionate share of such amount. The PSUSD will also receive any Tax Increment
Revenues generated by any tax override levied to service any PSUSD debt established either prior to or
after formation of the Redevelopment Project. Further, the PSUSD Share retained by the Agency shall be
deposited in a separate fund and used solely for improvements authorized by the District.
Desert Community College District
Pursuant to the pass-through agreement with the College District, the Agency receives 50% of the 1%
General Levy attributable to College District (the"College District Share"). The College District share is
approximately 7.1%. In any year in which the Agency sets aside funds in the Low and Moderate Income
Housing Fund, the College District will contribute its proportionate share of such amount. The College
District will also receive any Tax Increment Revenues generated by any tax override levied to service any
College District debt established either prior to or after formation of the Redevelopment Project. Further,
the College District Share retained by the Agency shall be deposited in a separate fund and used solely for
improvements authorized by the District.
Coachella Valley Mosquito Abatement District
Pursuant to the pass-through agreement with the Coachella Valley Mosquito Abatement District,the Agency
reimburses CVMAD for 100% of the CVMAD Share of the 1% General Levy. The CVMAD Share is
approximately 1.3%. In any year in which the Agency sets aside funds in the Low and Moderate Income
Housing Fund, the Agency may credit the CVMAD Share for its proportionate share of such amount.
Desert Water Agency
Pursuant to the pass-through agreement with the Water Agency,the Agency agreed to reimburse the Water
Agency for 25%of the Water Agency's share of the Tax Increment Revenues generated by the I%General
Levy. In any year in which the Agency sets aside funds in the Low and Moderate Income Housing Fund,
the Water Agency will contribute its proportionate share of such amount. The Water Agency share is
approximately 1.8%.
In addition, the Water Agency will receive any Tax Increment Revenues generated by any tax override
levied to service any Water Agency debt.
Cemetery District
Pursuant to the pass-through agreement with the Cemetery District, the Agency reimburses the Cemetery
District for 100% of the Cemetery District Share of the Tax Increment Revenues generated by the 1%
B-20 89
General Levy. The Cemetery District Share is approximately 0.15%. In any year in which the Agency sets
aside funds in the Low and Moderate Income Housing Fund, the Agency may credit the Cemetery District
Share for its proportionate share of such amount.
Riverside County Superintendent of Schools
Pursuant to the pass-through agreement with the RCo. School District, the RCo. School District receives
its share of the 1%General Levy(the"RCo. School District Share"),which is approximately 3.9%. Of the
RCo. School District Share, the Agency retains 40%. In any year in which the Agency sets aside funds in
the Low and Moderate Income Housing Fund, the RCo. School District will contribute its proportionate
share of such amount. The RCo. School District will also receive any Tax Increment Revenues generated
by any tax override levied to service any RCo. School District debt established either prior to or after
formation of the Redevelopment Project.
Tax Sharing Statutes
Certain provisions were added to the Redevelopment Law by the adoption of AB 1290 in 1994. A
discussion of these provisions as they relate to the Project Areas follows. If new territory was added to a
Redevelopment Project,under Section 33607.5 of the Redevelopment Law,any affected taxing entity would
share in the Tax Increment Revenues generated by such added area pursuant to a statutory formula
("Statutory Tax Sharing").
In addition, pursuant to Section 33333.6(e)(2) of the Redevelopment Law, if the Former Agency deleted
the time limit to incur indebtedness in a Redevelopment Project or increased the total amount of Tax
Increment Revenues to be allocated to a Redevelopment Project or increases the duration of the
redevelopment plan for a Redevelopment Project and the period for receipt of Tax Increment Revenues,
Statutory Tax Sharing will also be required under Section 33607.7 of the Redevelopment Law with all
affected taxing agencies not already a party to a tax sharing agreement, once the original limitations have
been reached. The original limitation is shown in the following table, and payments to taxing entities
pursuant to Section 33607.7, commenced in the fiscal year shown below.
Last Date to Payments Under
Incur Debt Prior to Tax Sharing
Redevelopment Proiect Elimination Statutes Commenced
Central Business District 1/l/2004 2004/05
North Palm Canyon 1/1/2004 2004/05
South Palm Canyon 1/l/2004 2004/05
Oasis 7/10/2004 2005/06
Highland-Gateway 11/20/2004 2005/06
Ramon-Bogie l/l/2004 2004/05
Project No. 9 12/29/2008 2009/10
Baristo-Farrell 1/l/2004 2004/05
Tahquitz-Andreas l/l/2004 2004/05
Canyon 7/19/2011 2012/13
Source: Successor Agency.
B-21 20
In general,the amounts to be paid pursuant to Statutory Tax Sharing are as follows:
(a) commencing in the first fiscal year after the limitation has been reached, an amount equal to 25%
of tax increment revenues generated by the incremental increase of the current year assessed
valuation over the assessed valuation in the fiscal year that the limitation had been reached, after
the amount required to be deposited in the Low and Moderate Income Housing Fund has been
deducted;
(b) in addition to amounts payable as described in (a) above, commencing in the I I1h fiscal year after
the limitation has been reached, an amount equal to 21% of tax increment revenues generated by
the incremental increase of the current year assessed valuation over the assessed valuation in the
preceding 10`h fiscal year that the limitation had been reached, after the amount required to be
deposited in the Low and Moderate Income Housing Fund has been deducted; and
(c) in addition to amounts payable as described in(a)and(b)above,commencing in the 31 s`fiscal year
after the limitation has been reached,an amount equal to 14%of tax increment revenues generated
by the incremental increase of the current year assessed valuation over the assessed valuation in
the preceding 30`h fiscal year that the limitation had been reached, after the amount required to be
deposited in the Low and Moderate Income Housing Fund has been deducted.
(d) The City may elect to receive a portion of the tax increment generated in(a)above,after the amount
required to be deposited in the Low and Moderate Income Housing Fund has been deducted.
(e) The Successor Agency may subordinate the amount required to be paid to an affected taxing entity
to any indebtedness after receiving the consent of the taxing entity.
With respect to a taxing entity that is a party to a tax sharing agreement, tax sharing payments would
continue pursuant to the Tax Sharing Agreement after the original limitations in the Redevelopment Plan
were passed.
Projected Tax Revenues
Deposit of projected Tax Revenues in the Redevelopment Property Tax Trust Fund in the amounts and at
the times projected by the Successor Agency depends on the realization of certain assumptions relating to
the Tax Increment Revenues. The projections of Tax Increment Revenues and the corresponding Tax
Revenues from the Redevelopment Projects shown on the following tables were based on the assumptions
shown below. The Successor Agency believes the assumptions upon which the projections are based are
reasonable; however, some assumptions may not materialize and unanticipated events and circumstances
may occur.
(a) The 2017/18 preliminary secured roll was increased by 2%annually for inflation in future years.
(b) The values of unsecured personal property have been maintained throughout the projections at the
2017/18 preliminary unsecured roll value.
(c) The amount of unitary revenues have been maintained throughout the projections at their 2016/17
amounts.
(d) For the purposes of the projections, it was assumed that no additional assessed value would be
added to the tax rolls as a result of new construction.
(e) No reduction has been made for the possessory interest value on tribal land.
B-22 g
(f) No potential future Proposition 8 adjustments or potential reductions in value as a result of pending
assessment appeals are reflected in the projections.
(g) A tax rate of$1.00 per$100 of assessed value applied to the taxable property in the Project Areas
was used to determine Tax Increment Revenues.
(h) Projected Tax Revenues do not reflect supplemental property taxes.
(i) Projected Tax Revenues include a deduction for administrative costs charged by Riverside County.
These fees,while deducted from the Redevelopment Property Tax Trust Fund("RPTTF") deposit,
have been prorated between the Redevelopment Projects for purposes of the projections.
0) Projected Tax Revenues include a deduction for payments due to taxing agencies under Tax Sharing
Agreements or applicable Tax Sharing Statutes. The increases, if any, in tax sharing percentages
under the Tax Sharing Agreements occur when a cumulative milestone is reached,projected based
on the assumptions(a)through(i)above.
TABLE NO.B-7
SUCCESSOR AGENCY PROJECTED TAX REVENUES
Merged Merged Tax Revenues
Fiscal Project No. 1 Project No.2 Before Senior Tax
Year Tax Revenues Tax Revenues Senior Obligations Obligations Revenues
2017 $7,416,000 $4,301,900 $11,717,900 $(1,669,330) $10,048,570
2018 7,936,100 4,659,100 12,595,200 (179,609) 12,416,592
2019 8,059,300 4,748,300 12,807,600 (179,617) 12,627,983
2020 8,214,200 4,840,100 13,054,300 (180,318) 12,873,982
2021 8,308,900 4,933,200 13,242,100 (180,712) 13,061,388
2022 8,436,200 5,028,200 13,464,400 (175,800) 13,288,600
2023 8,523,300 5,120,700 13,644,000 (175,887) 13,468,113
2024 8,517,700 5,215,900 13,733,600 (175,667) 13,557,933
2025 8,606,400 5,312,500 13,919,900 (180,140) 13,738,760
2026 8,696,300 5,411,100 14,107,400 (178,999) 13,928,401
2027 6,796,300 5,511,800 12,308,100 (177,551) 12,130,549
2028 6,859,200 5,347,000 12,206,200 (175,796) 12,030,404
2029 6,805,900 5,451,900 12,257,800 (178,734) 12,079,066
2030 6,866,900 5,558,100 12,425,000 (176,058) 12,248,943
2031 6,929,100 5,667,100 12,596,200 (178,074) 12,418,126
2032 6,993,700 5,777,900 12,771,600 (179,477) 12,592,123
2033 7,059,400 5,891,500 12,950,900 (180,265) 12,770,635
2034 7,126,000 6,006,100 13,132,100 (180,440) 12,951,660
0) 2007 Series B Bonds only,beginning in Fiscal Year 2017/18.
Source: Municipal Advisor.
B-23 9 2
TABLE NO.B-8
PROJECTED TAX REVENUES
MERGED PROJECT NO. 1
Gross County Contractual Statutory
Tax Admin Tax Tax Tax
Increment Charge Sharing Sharine Revenue
2017 $12,170,000 $(160,600) $(3,865,600) $ (727,800) $7,416,000
2018 13,272,000 (175,100) (4,226,100) (934,700) 7,936,100
2019 13,590,000 (179,400) (4,367,200) (984,100) 8,059,300
2020 13,912,000 (183,600) (4,480,200) (1,034,000) 8,214,200
2021 14,242,000 (188,000) (4,598,800) (1,156,300) 8,308,900
2022 14,515,000 (191,700) (4,669,500) (1,217,600) 8,436,200
2023 14,711,000 (194,200) (4,713,600) (1,279,900) 8,523,300
2024 14,910,000 (196,800) (4,852,400) (1,343,100) 8,517,700
2025 15,114,000 (199,600) (4,900,400) (1,407,600) 8,606,400
2026 15,321,000 (202,300) (4,949,400) (1,473,000) 8,696,300
2027 13,156,000 (173,600) (4,995,100) (1,191,000) 6,796,300
2028 13,321,000 (175,800) (5,045,700) (1,240,300) 6,859,200
2029 13,489,000 (178,000) (5,213,800) (1,291,300) 6,805,900
2030 13,660,000 (180,300) (5,269,500) (1,343,300) 6,866,900
2031 13,834,000 (182,600) (5,325,400) (1,396,900) 6,929,100
2032 14,012,000 (185,000) (5,382,600) (1,450,700) 6,993,700
2033 14,195,000 (187,300) (5,442,100) (1,506,200) 7,059,400
2034 14,380,000 (189,800) (5,501,700) (1,562,500) 7,126,000
Source: Municipal Advisor.
B-24
93
TABLE NO.B-9
PROJECTED TAX REVENUES
CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT
Gross County Contractual Statutory
Tax Admin Tax Sharing Tax Tax
Increment Charge DWA Sharing Revenue
2017 $1,765,000 $(23,300) $(1,900) $(128,800) $1,611,000
2018 1,959,000 (25,900) (2,600) (198,800) 1,731,700
2019 2,002,000 (26,400) (2,700) (214,300) 1,758,600
2020 2,045,000 (27,000) (2,900) (230,000) 1,785,100
2021 2,090,000 (27,600) (3,100) (246,200) 1,813,100
2022 2,135,000 (28,200) (3,200) (262,500) 1,841,100
2023 2,182,000 (28,800) (3,400) (279,400) 1,870,400
2024 2,229,000 (29,400) (3,500) (296,400) 1,899,700
2025 2,277,000 (30,100) (3,700) (313,800) 1,929,400
2026 2,326,000 (30,700) (3,900) (331,500) 1,959,900
Source: Municipal Advisor.
B-25 94
TABLE NO.B-10
PROJECTED TAX REVENUES
NORTH PALM CANYON REDEVELOPMENT PROJECT
Gross County Contractual Tax Sharing Statutory
Tax Admin Flood Tax Tax
Increment Charge County Control CVMAD Cemetery DWA Sharing Revenue
2017 $1,472,000 $(19,400) $(393,200) $ (62,300) $(15,300) $(1,700) $(4,400) $(172,400) $ 803,300
2018 1,614,000 (21,300) (431,200) (68,300) (16,800) (1,900) (4,900) (206,700) 862,900
2019 1,656,000 (21,900) (442,400) (70,100) (17,200) (2,000) (5,100) (216,900) 880,400
2020 1,699,000 (22,400) (453,900) (71,900) (17,700) (2,000) (5,200) (227,300) 898,600
2021 1,742,000 (23,000) (465,400) (73,700) (18,100) (2,100) (5,400) (237,700) 916,600
2022 1,787,000 (23,600) (477,400) (75,600) (18,600) (2,100) (5,500) (248,600) 935,600
2023 1,832,000 (24,200) (489,400) (77,500) (19,000) (2,200) (5,700) (259,500) 954,500
2024 1,878,000 (24,800) (501,700) (79,500) (19,500) (2,200) (5,900) (270,700) 973,700
2025 1,925,000 (25,400) (514,300) (81,400) (20,000) (2,300) (6,000) (282,100) 993,500
2026 1,973,000 (26,000) (527,100) (83,500) (20,500) (2,300) (6,200) (293,700) 1,013,700
2027 2,022,000 (26,700) (540,200) (85,600) (21,000) (2,400) (6,400) (305,600) 1,034,100
2028 2,072,000 (27,400) (553,500) (87,700) (21,500) (2,500) (6,600) (317,700) 1,055,100
2029 2,123,000 (28,000) (567,200) (89,800) (22,100) (2,500) (6,700) (330,000) 1,076,700
2030 2,175,000 (28,700) (581,100) (92,000) (22,600) (2,600) (6,900) (342,600) 1,098,500
2031 2,228,000 (29,400) (595,200) (94,300) (23,100) (2,600) (7,100) (355,500) 1,120,800
2032 2,282,000 (30,100) (609,600) (96,600) (23,700) (2,700) (7,300) (368,600) 1,143,400
2033 2,337,000 (30,800) (624,300) (98,900) (24,300) (2,800) (7,500) (381,900) 1,166,500
2034 2,394,000 (31,600) (639,600) (101,300) (24,900) (2,800) (7,700) (395,600) 1,190,500
Source: Municipal Advisor.
B-26 9 5
TABLE NO.B-11
PROJECTED TAX REVENUES
SOUTH PALM CANYON REDEVELOPMENT PROJECT
Gross County Contractual Tax Sharing Statutory
Tax Admin Flood Tax Tax
Increment Charge County Control CVMAD Cemetery DWA Sharing Revenue
2017 $ 791,000 $(10,400) $(147,900) $(33,500) $(5,100) $ (600) $(2,000) $ (71,600) $519,900
2018 892,000 (11,600) (164,900) (37,300) (5,700) (700) (2,300) (93,700) 565,800
2019 908,000 (12,000) (206,200) (38,400) (7,100) (800) (2,400) (100,000) 541,100
2020 934,000 (12,300) (212,100) (39,500) (7,300) (800) (2,500) (106,400) 553,100
2021 962,000 (12,700) (218,500) (40,700) (7,500) (900) (2,600) (113,100) 566,000
2022 990,000 (13,100) (224,800) (41,900) (7,700) (900) (2,700) (119,900) 579,000
2023 1,018,000 (13,400) (231,200) (43,100) (7,900) (900) (2,800) (126,700) 592,000
2024 1,047,000 (13,800) (279,700) (44,300) (10,200) (1,200) (2,900) (133,700) 561,200
2025 1,077,000 (14,200) (287,700) (45,600) (10,500) (1,200) (3,000) (140,900) 573,900
2026 1,107,000 (14,600) (295,700) (46,800) (10,800) (1,200) (3,100) (148,200) 586,600
2027 1,137,000 (15,000) (303,800) (48,100) (11,100) (1,300) (3,200) (155,600) 598,900
2028 1,169,000 (15,400) (312,300) (49,500) (11,400) (1,300) (3,300) (163,200) 612,600
2029 1,201,000 (15,900) (320,900) (50,800) (15,600) (1,800) (3,400) (171,000) 621,600
2030 1,233,000 (16,300) (329,400) (52,200) (16,000) (1,800) (3,500) (178,800) 635,000
2031 1,267,000 (16,700) (338,500) (53,600) (16,500) (1,900) (3,700) (186,900) 649,200
2032 1,300,000 (17,200) (347,300) (55,000) (16,900) (1,900) (3,800) (195,100) 662,800
2033 1,335,000 (17,600) (356,700) (56,500) (17,300) (2,000) (3,900) (203,500) 677,500
2034 1,370,000 (18,100) (366,000) (58,000) (17,800) (2,000) (4,000) (212,000) 692,100
Source: Municipal Advisor.
B-27 FJ
TABLE NO.B-12
PROJECTED TAX REVENUES
RAMON-BOGIE REDEVELOPMENT PROJECT
Gross County Contractual Tax Sharing Statutory
Tax Admin Flood Tax Tax
Increment Charge County Control CVMAD Cemetery CVWD DWA Sharing Revenue
2017 $1,792,000 $(23,700) $(482,400) $(62,600) $(17,600) $(2,000) $ - $(5,700) $(209,900) $ 988,100
2018 1,878,000 (24,800) (505,500) (65,600) (18,400) (2,100) - (6,000) (230,900) 1,024,700
2019 1,916,000 (25,300) (515,800) (66,900) (18,800) (2,100) - (6,200) (240,100) 1,040,800
2020 1,954,000 (25,800) (526,000) (68,300) (25,600) (2,900) - (6,300) (249,400) 1,049,700
2021 1,993,000 (26,300) (536,500) (69,600) (26,100) (3,000) - (6,500) (259,000) 1,066,000
2022 2,033,000 (26,800) (547,300) (71,000) (26,600) (3,000) - (6,600) (268,700) 1,093,000
2023 2,074,000 (27,400) (558,300) (72,500) (27,100) (3,100) - (6,800) (278,700) 1,100,100
2024 2,115,000 (27,900) (569,300) (73,900) (27,700) (3,200) - (6,900) (288,800) 1,117,300
2025 2,158,000 (28,500) (580,900) (75,400) (28,200) (3,200) - (7,100) (299,200) 1,135,500
2026 2,201,000 (29,100) (592,500) (76,900) (28,800) (3,300) - (7,200) (309,700) 1,153,500
2027 2,245,000 (29,600) (604,300) (78,400) (29,400) (3,400) - (7,400) (320,400) 1,172,100
2028 2,290,000 (30,200) (616,400) (80,000) (30,000) (3,400) - (7,500) (331,400) 1,191J00
2029 2,336,000 (30,800) (628,800) (81,600) (30,600) (3,500) - (7,700) (342,600) 1,210,400
2030 2,383,000 (31,500) (641,500) (83,300) (31,200) (3,600) - (7,900) (354,100) 1,229,900
2031 2,430,000 (32,100) (654,100) (84,900) (31,800) (3,600) - (8,000) (365,600) 1,249,900
2032 2,479,000 (32,700) (667,300) (86,600) (32,400) (3,700) - (8,200) (377,600) 1,270,500
2033 2,529,000 (33,400) (680,800) (88,400) (33,100) (3,800) - (8,400) (389,700) 1,291,400
2034 2,579,000 (34,000) (694,200) (90,100) (33,700) (3,900) - (8,600) (402,000) 1,312,500
Source: Municipal Advisor.
B-28 97
TABLE NO.B-13
PROJECTED TAX REVENUES
OASIS REDEVELOPMENT PROJECT
Gross County Contractual Tax Sharing Statutory
Tax Admin Flood Tax Tax
Increment Charge County Control CVMAD DWA Sharing Revenue
2017 $467,000 $ (6,200) $(124,800) $(19,800) $ (6,100) $(1,600) $ (57,600) $250,900
2018 624,000 (8,200) (166,700) (26,400) (8,100) (2,100) (95,600) 316,900
2019 637,000 (8,400) (170,200) (27,000) (8,300) (2,200) (98,900) 322,000
2020 651,000 (8,600) (173,900) (27,500) (8,500) (2,200) (102,200) 328,100
2021 665,000 (8,800) (177,700) (28,100) (8,600) (2,300) (105,600) 333,900
2022 679,000 (9,000) (181,400) (28,700) (8,800) (2,300) (109,100) 339,700
2023 694,000 (9,200) (185,400) (29,400) (9,000) (2,400) (112,700) 345,900
2024 709,000 (9,400) (189,400) (30,000) (9,200) (2,500) (116,300) 352,200
2025 724,000 (9,600) (193,400) (30,600) (9,400) (2,500) (120,000) 358,500
2026 740,000 (9,800) (197,700) (31,300) (9,600) (2,600) (123,800) 365,200
2027 756,000 (10,000) (202,000) (32,000) (9,800) (2,600) (127,700) 371,900
2028 772,000 (10,200) (206,200) (32,700) (10,000) (2,700) (131,600) 378,600
2029 788,000 (10,400) (210,500) (33,300) (10,200) (2,700) (135,500) 385,400
2030 805,000 (10,600) (215,100) (34,100) (10,500) (2,800) (139,600) 392,300
2031 822,000 (10,900) (219,600) (34,900) (10,700) (2,900) (143,800) 399,300
2032 840,000 (11,100) (224,400) (35,500) (10,900) (2,900) (148,100) 407,100
2033 858,000 (11,300) (229,200) (36,300) (11,100) (3,000) (152,400) 414,700
2034 876,000 (11,600) (234,000) (37,100) (11,400) (3,000) (156,800) 422,100
Source: Municipal Advisor.
B-29
98
TABLE NO.B-14
PROJECTED TAX REVENUES
HIGHLAND-GATEWAY REDEVELOPMENT PROJECT
Gross County Contractual Tax Sharing Statutory
Tax Admin Flood Tax Tax
Increment Charge County Control CVWD CVMAD DWA Sharing Revenue
2017 $ 730,000 $ (9,600) $ (39,400) $ (900) $ - $ (7,700) $(2,000) $ (87,500) $582,900
2018 814,000 (10,700) (87,800) (1,000) - (8,500) (2,300) (109,000) 594,700
2019 833,000 (11,000) (89,800) (1,000) - (8,700) (2,400) (113,900) 606,200
2020 852,000 (11,200) (91,900) (1,000) - (8,900) (2,400) (118,700) 617,900
2021 871,000 (11,500) (93,900) (1,000) - (9,100) (2,500) (123,700) 629,300
2022 891,000 (11,800) (96,100) (1,100) - (9,300) (2,600) (128,800) 641,300
2023 911,000 (12,000) (98,300) (1,100) - (9,600) (2,700) (133,900) 653,400
2024 932,000 (12,300) (150,800) (1,100) - (9,800) (2,700) (139,200) 616,100
2025 953,000 (12,600) (154,200) (1,100) (10,000) (2,800) (144,600) 627,700
2026 974,000 (12,900) (157,600) (1,200) (10,200) (2,900) (150,100) 639,100
2027 996,000 (13,100) (161,100) (1,200) (10,400) (3,000) (155,700) 651,500
2028 1,018,000 (13,400) (164,700) (1,200) (10,700) (3,000) (161,400) 663,600
2029 1,041,000 (13,700) (280,700) (1,200) (10,900) (3,100) (167,200) 564,200
2030 1,064,000 (14,000) (286,900) (1,300) (11,200) (3,200) (173,200) 574,200
2031 1,087,000 (14,300) (293,100) (1,300) (11,400) (3,300) (179,100) 584,500
2032 1,111,000 (14,700) (299,500) (1,300) (11,600) (3,400) (185,300) 595,200
2033 1,136,000 (15,000) (306,300) (1,400) (11,900) (3,500) (191,700) 606,200
2034 1,161,000 (15,300) (313,000) (1,400) (12,200) (3,600) (198,100) 617,400
Source: Municipal Advisor.
B-30 99
TABLE NO.B-15
PROJECTED TAX REVENUES
REDEVELOPMENT PROJECT NO.9
Gross County Contractual Tax Sharing Statutory
Tax Admin Flood Supt of College School Tax Tax
Increment Charge County Control CVMAD Cemetery Schools DWA District District Sharing Revenue
2017 $5,153,000 $(68,000) S(1,379,700) $(208,200) $(67,300) $(6,100) S(80,500) $(17,000) $(148,000) $(518,300) $ - $2,659,900
2018 5,501,000 (72,600) (1,472,900) (222,300) (71,900) (6,600) (85,900) (18,200) (157,900) (553,300) - 2,839,400
2019 5,638,000 (74,400) (1,509,500) (227,800) (73,600) (6,700) (88,100) (18,700) (161,900) (567,100) - 2,910,200
2020 5,777,000 (76,300) (1,546,800) (233,400) (75,500) (6,900) (90,200) (19,200) (165,900) (581,100) - 2,981,700
2021 5,919,000 (78,100) (1,584,800) (239,200) (77,300) (7,100) (92,500) (19,700) (169,900) (595,400) (71,000) 2,984,000
2022 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (20,300) (172,300) (603,500) (80,000) 3,016,500
2023 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (20,800) (172,300) (603,500) (89,000) 3,007,000
2024 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (21,300) (172,300) (603,500) (98,000) 2,997,500
2025 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (21,900) (172,300) (603,500) (107,000) 2,987,900
2026 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (22,500) (172,300) (603,500) (116,000) 2,979,300
2027 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (23,000) (172,300) (603,500) (126,000) 2,967,800
2028 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (23,600) (172,300) (603,500) (135,000) 2,958,200
2029 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (24,200) (172,300) (603,500) (145,000) 2,947,600
2030 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (24,800) (172,300) (603,500) (155,000) 2,937,000
2031 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (25,400) (172,300) (603,500) (166,000) 2,925,400
2032 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (26,100) (172,300) (603,500) (176,000) 2,914,700
2033 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (26,700) (172,300) (603,500) (187,000) 2,903,100
2034 6,000,000 (79,200) (1,606,500) (242,400) (78,400) (7,200) (93,700) (27,400) (172,300) (603,500) (198,000) 2,891,400
Source: Municipal Advisor.
r I
c I
a B-31
TABLE NO.B-16
PROJECTED TAX REVENUES
MERGED PROJECT NO.2
Gross County Contractual Statutory
Tax Admin Tax Tax Tax
Increment Charge Sharing Sharing Revenue
2017 $ 7,456,000 $ (98,400) $(2,716,300) $(339,400) $4,301,900
2018 8,198,000 (108,300) (3,016,700) (413,900) 4,659,100
2019 8,388,000 (110,700) (3,092,800) (436,200) 4,748,300
2020 8,583,000 (113,300) (3,170,800) (458,800) 4,840,100
2021 8,781,000 (115,900) (3,250,100) (481,800) 4,933,200
2022 8,983,000 (118,600) (3,330,900) (505,300) 5,028,200
2023 9,189,000 (121,300) (3,413,700) (533,300) 5,120,700
2024 9,400,000 (124,100) (3,498,100) (561,900) 5,215,900
2025 9,614,000 (126,900) (3,593,600) (591,000) 5,312,500
2026 9,833,000 (129,800) (3,671,500) (620,600) 5,411,100
2027 10,057,000 (132,700) (3,761,400) (651,100) 5,511,800
2028 10,284,000 (135,700) (4,119,400) (681,900) 5,347,000
2029 10,517,000 (138,800) (4,212,700) (713,600) 5,451,900
2030 10,753,000 (141,900) (4,307,400) (745,600) 5,558,100
2031 10,995,000 (145,100) (4,404,400) (778,400) 5,667,100
2032 11,241,000 (148,400) (4,502,800) (811,900) 5,777,900
2033 11,493,000 (151,700) (4,603,800) (846,000) 5,891,500
2034 11,748,000 (155,100) (4,706,100) (880,700) 6,006,100
Source: Municipal Advisor.
B-32
1� �
TABLE NO.B-17
PROJECTED TAX REVENUES
TAHQUITZ-ANDREAS REDEVELOPMENT PROJECT
Gross County Contractual Tax Sharing Statutory
Tax Admin Flood Tax Tax
Increment Charge County Control CVMAD DWA Sharing Revenue
2017 $1,305,000 $(17,200) $(348,600) $(55,200) $(16,900) $ - $(105,200) $ 761,900
2018 1,392,000 (18,400) (371,900) (58,900) (18,100) (200) (126,300) 798,200
2019 1,429,000 (18,900) (381,800) (60,500) (18,600) (300) (135,300) 813,600
2020 1,467,000 (19,400) (391,900) (62,100) (19,100) (400) (144,500) 829,600
2021 1,505,000 (19,900) (402,100) (63,700) (19,500) (600) (153,800) 845,400
2022 1,544,000 (20,400) (412,500) (65,300) (20,100) (700) (163,300) 861,700
2023 1,584,000 (20,900) (423,200) (67,000) (20,600) (900) (173,000) 878,400
2024 1,625,000 (21,500) (434,100) (68,800) (21,100) (1,000) (182,900) 895,600
2025 1,667,000 (22,000) (445,300) (70,500) (21,600) (1,100) (193,100) 913,400
2026 1,709,000 (22,600) (456,600) (72,300) (22,200) (1,300) (203,300) 930,700
2027 1,753,000 (23,100) (468,300) (74,200) (22,800) (1,500) (213,900) 949,200
2028 1,797,000 (23,700) (480,100) (76,000) (23,300) (1,600) (224,600) 967,700
2029 1,842,000 (24,300) (492,100) (77,900) (23,900) (1,800) (235,600) 986,400
2030 1,888,000 (24,900) (504,400) (79,900) (24,500) (1,900) (246,700) 1,005,700
2031 1,935,000 (25,500) (516,900) (81,900) (25,100) (2,100) (258,100) 1,025,400
2032 1,983,000 (26,200) (529,800) (83,900) (25,800) (2,300) (269,800) 1,045,200
2033 2,032,000 (26,800) (542,900) (86,000) (26,400) (2,400) (281,600) 1,065,900
2034 2,081,000 (27,500) (555,900) (88,000) (27,000) (2,600) (293,600) 1,086,400
Source: Municipal Advisor.
B-33 1 Q
�,D
TABLE NO.B-18
PROJECTED TAX REVENUES
BARISTO-FARRELL REDEVELOPMENT PROJECT
Gross County Contractual Tax Sharing Statutory
Tax Admin Flood Suptof School Tax Tax
Increment Charge County Control CVMAD Schools DWA District Sharing Revenue
2017 $2,918,000 $(38,500) $ (512,400) $(123,500) $(30,300) $(45,300) $(10,400) $(291,800) $(136,900) $1,728,900
2018 3,202,000 (42,300) (588,300) (135,500) (33,300) (49,700) (11,400) (320,200) (168,200) 1,853,100
2019 3,282,000 (43,300) (609,600) (138,900) (34,100) (51,000) (11,700) (328,200) (177,100) 1,888,100
2020 3,364,000 (44,400) (631,600) (142,300) (34,900) (52,200) (12,000) (336,400) (186,100) 1,924,100
2021 3,447,000 (45,500) (653,700) (145,800) (35,800) (53,500) (12,300) (344,700) (195,200) 1,960,500
2022 3,532,000 (46,600) (676,400) (149,400) (36,700) (54,900) (12,600) (353,200) (204,600) 1,997,600
2023 3,619,000 (47,800) (699,700) (153,100) (37,600) (56,200) (12,900) (361,900) (214,200) 2,035,600
2024 3,707,000 (48,900) (723,200) (156,800) (38,500) (57,600) (13,200) (370,700) (223,900) 2,074,200
2025 3,797,000 (50,100) (747,200) (160,600) (39,400) (59,000) (13,600) (379,700) (233,800) 2,113,600
2026 3,889,000 (51,300) (771,800) (164,500) (40,400) (60,400) (13,900) (388,900) (243,900) 2,153,900
2027 3,983,000 (52,600) (796,900) (168,500) (41,400) (61,900) (14,200) (398,300) (254,300) 2,194,900
2028 4,078,000 (53,800) (1,089,500) (172,500) (42,400) (63,300) (14,600) (407,800) (264,800) 1,969,300
2029 4,176,000 (55,100) (1,115,600) (176,700) (43,400) (64,900) (14,900) (417,600) (275,600) 2,012,200
2030 4,275,000 (56,400) (1,142,100) (180,900) (44,400) (66,400) (15,300) (427,500) (286,500) 2,055,500
2031 4,377,000 (57,800) (1,169,300) (185,200) (45,500) (68,000) (15,600) (437,700) (297,700) 2,100,200
2032 4,480,000 (59,100) (1,196,800) (189,500) (46,500) (69,600) (16,000) (448,000) (309,100) 2,145,400
2033 4,586,000 (60,500) (1,225,200) (194,000) (47,600) (71,200) (16,400) (458,600) (320,800) 2,191,700
2034 4,693,000 (61,900) (1,253,800) (198,600) (48,800) (72,900) (16,700) (469,300) (332,600) 2,238,400
Source: Municipal Advisor.
r
0
W B-34
TABLE NO.B-19
PROJECTED TAX REVENUES
CANYON REDEVELOPMENT PROJECT
Cross County Contractual Tax Sharing Statutory
Tax Admin Flood Supt of College School Tax Tax
Increment Charge County Control CVMAD Cemetery Schools District District DWA Sharine Revenue
2017 $3,233,000 $(42,700) $(647,800) $(109,400) $(33,600) $(3,800) $(60,200) $ (92,300) $(323,300) $(11,500) $ (97,300) $1,811,100
2018 3,604,000 (47,600) (722,100) (122,000) (37,400) (4,300) (67,200) (102,900) (360,400) (12,900) (119,400) 2,007,800
2019 3,677,000 (48,500) (736,700) (124,500) (38,200) (4,400) (68,500) (105,000) (367,700) (13,100) (123,800) 2,046,600
2020 3,752,000 (49,500) (751,800) (127,000) (39,000) (4,500) (69,900) (107,100) (375,200) (13,400) (128,200) 2,086,400
2021 3,829,000 (50,500) (767,200) (129,600) (39,800) (4,500) (71,400) (109,300) (382,900) (13,700) (132,800) 2,127,300
2022 3,907,000 (51,600) (782,800) (132,200) (40,600) (4,600) (72,800) (111,500) (390,700) (13,900) (137,400) 2,168,900
2023 3,986,000 (52,600) (798,700) (134,900) (41,400) (4,700) (74,300) (113,800) (398,600) (14,200) (146,100) 2,206,700
2024 4,068,000 (53,700) (815,100) (137,700) (42,300) (4,800) (75,800) (116,100) (406,800) (14,500) (155,100) 2,246,100
2025 4,150,000 (54,800) (831,500) (140,500) (43,100) (4,900) (77,300) (118,500) (415,000) (14,800) (164,100) 2,285,500
2026 4,235,000 (55,900) (848,500) (143,300) (44,000) (5,000) (78,900) (120,900) (423,500) (15,100) (173,400) 2,326,500
2027 4,321,000 (57,000) (865,800) (146,300) (44,900) (5,100) (80,500) (123,300) (432,100) (15,400) (182,900) 2,367,700
2028 4,409,000 (58,200) (883,400) (149,200) (45,800) (5,200) (82,200) (125,900) (440,900) (15,700) (192,500) 2,410,000
2029 4,499,000 (59,400) (901,400) (152,300) (46,700) (5,300) (83,800) (128,400) (449,900) (16,100) (202,400) 2,453,300
2030 4,590,000 (60,600) (919,700) (155,400) (47,700) (5,400) (85,500) (131,000) (459,000) (16,400) (212,400) 2,496,900
2031 4,683,000 (61,800) (938,300) (158,500) (48,700) (5,600) (87,300) (133,700) (468,300) (16,700) (222,600) 2,541,500
2032 4,778,000 (63,100) (957,300) (161,700) (49,600) (5,700) (89,000) (136,400) (477,800) (17,100) (233,000) 2,587,300
2033 4,875,000 (64,400) (976,800) (165,000) (50,600) (5,800) (90,800) (139,200) (487,500) (17,400) (243,600) 2,633,900
2034 4,974,000 (65,700) (996,600) (168,400) (51,700) (5,900) (92,700) (142,000) (497,400) (17,800) (254,500) 2,681,300
Source: Municipal Advisor.
Fr
O
pp, B-35
APPENDIX C
CITY OF PALM SPRINGS INFORMATION STATEMENT
General Information
The City of Palm Springs is located at the edge of the Coachella Valley in central Riverside County, sited
at the base of Mt. San Jacinto. The City is located 107 miles east of Los Angeles and 120 miles west of
the Arizona border. Palm Springs covers a geographical area of 96 square miles. Neighboring
communities include Palm Desert, Rancho Mirage,Desert Hot Springs and Cathedral City.
A major Southern California resort destination, Palm Springs attracts both local vacationers, distant
"snowbirds" and permanent retirees. Palm Springs is very much an event-oriented city. The Palm
Springs International Film Festival is an annual event. With premieres, parties, conferences and
celebrations, this festival epitomizes the Palm Springs lifestyle.
The Palm Springs area is well known for its championship golf courses. The Humana Challenge
(formerly the Bob Hope Classic), the Kraft Nabisco Championship and the Frank Sinatra Celebrity
Invitational Golf Tournament are three well-publicized celebrity events. With over 80 golf courses in the
Palm Springs area, the Professional Golf Association holds tournaments in the area several times
throughout its annual tour.
There are over 200 hotels and inns in Palm Springs and throughout the Coachella Valley.
Accommodating vacationers and visitors plays a major role in the City's economy,providing a significant
amount of transient occupancy tax and sales tax.
General Organization
The City of Palm Springs was incorporated as a general law city on April 20, 1938, and, operates under
the council/manager form of government. It became a charter city on July 12, 1994. The City is
governed by a five-member council consisting of four members each elected at large for four-year
alternating terms and a Mayor elected to a four-year term. Positions of City Manager and City Attorney
are filled by appointments of the Council. The City of Palm Springs currently employs approximately
403 full-time staff members including sworn officers and fire personnel.
Governmental Services
Public Safety and Welfare
The City of Palm Springs Police Department consists of 132 sworn police officers and non-sworn
personnel providing patrol, traffic, animal control and investigations. There are 4 operating fire stations
located in and operated by the City, staffed by 57 fire personnel. The City also provides parking control
in the downtown business district.
Public Services
Water is supplied to Palm Springs by the Desert Water Agency. Sewer service is provided by the City.
Although the City operates two cogeneration facilities which provide electricity to certain municipally
owned facilities, Southern California Edison provides electricity to the citizens of the City of Palm
Springs. The City owns and operates the Palm Springs International Airport, with 5 major airlines and 8
regional airlines serving over 1.7 million passengers in 2013.
c1 105
Community Services
Other services provided by the City include building permit and inspection, planning and zoning,
landscape and public infrastructure maintenance, street cleaning, traffic signal maintenance, municipal
code compliance and rent control.
Parks and Recreation
The City operates the Palm Springs Public Library, a 33,000 square foot facility with over 100,000 items
available, as well as free wireless internet access and downloadable books for Kindle. The Village Green,
located in the heart of downtown Palm Springs, includes the Historical Society Museum, the Cornelia
White historical site and Ruddy's General Store Museum. The Palm Springs Department of Parks and
Recreation provides citizens with a variety of park and recreational services on a year round basis.
Facilities include two community centers, eight parks, a dog park, an Olympic size community pool,
twelve tennis courts, the 18-hole Tahquitz Creek— Legends golf course and the 18-hole Tahquitz Creek—
Resort golf course, a 30,000 square feet skate park and five playgrounds, as well as biking and hiking
trails. Frances Stevens Park is home to Palm Canyon Theatre, a regional Actors Equity theatre, and an
art/festival center.
Community Information
The City of Palm Springs is served by the Palm Springs Unified School District, with 16 elementary
schools, 5 middle schools, 3 comprehensive high schools, 1 continuation high school, 2 independent
study programs, and an extensive adult education program serving the Coachella Valley. In addition,
higher education in the Coachella Valley includes the College of the Desert, a local accredited junior
college, with a main campus in Palm Desert, and East Valley Center in Indio, and a planned West Valley
Campus in Palm Springs. In the nearby City of Palm Desert, a satellite campus of California State
University, San Bernardino("CSUSB") offers curriculum towards a B.A. in various disciplines as well as
Bachelor of vocational education; special B.A. in paralegal administration, and 6 masters degree
programs, including education and public administration. Teaching credentials are also available. In
addition, CSUSB is currently working with local government agencies to select a site for a permanent
independent campus in the Coachella Valley.
Medical services in the Coachella Valley are provided by a number of local and regional facilities. The
Desert Regional Medical Center, located in Palm Springs, is a 367-bed acute care regional medical center
that is home to the Coachella Valley's only designated trauma center. Eisenhower Medical Center, in
nearby Rancho Mirage, is a health care complex comprised of a 542-bed hospital, the Annenberg Center
for Health Sciences at Eisenhower, the Barbara Sinatra Children's Center at Eisenhower and the Betty
Ford Center on the Eisenhower campus. The 158-bed JFK Memorial Hospital is part of Tenet, California,
and is located in Indio.
Palm Springs has many visitor attractions in addition to the weather and championship golf courses. The
Palm Springs Aerial Tramway, rising 8,516 feet up Mt. San Jacinto, is the world's largest rotating tramcar.
Mt. San Jacinto State Park offers 54 miles of hiking trails located within a 13,000 acre pristine wilderness.
Centuries ago, ancestors of the Agua Caliente Cahuilla Indians settled in the Palm Springs area and
developed extensive and complex communities in Palm, Murray,Andreas, Tahquitz and Chino Canyons.
Many traces of these communities exist in the canyons today, including rock art, house pits and
foundations, irrigation ditches,dams,reservoirs,and trails.
The Palm Springs Art Museum is located in downtown Palm Springs, and the museum's extensive
permanent collection includes significant works by western, contemporary and glass artists, and features
temporary exhibitions from internationally acclaimed artists. Located inside the Palm Springs Art
Museum, the Annenberg Theater presents an eclectic mix of live events including national touring
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companies. In addition, the Palm Springs Air Museum offers one of the world's finest collections of
functioning World War II aircraft.
Palm Springs has several special events that attract visitors from near and far: VillageFest, a weekly
street fair held every Thursday along Palm Canyon Drive in the heart of the City's downtown; the Festival
of Lights parade; Palm Springs Modernism Week; and the Palm Springs International Film Festival.
Founded in 1990 by then Mayor Sonny Bono, the Palm Springs International Film Festival celebrated its
25th anniversary in January 2014. The Festival included over 400 screenings of more than 200 films
from approximately 60 countries. The Festival presents a majority of the films submitted for
consideration in the Best Foreign Language category for the Academy Awards, as well as a large number
of American independent and international features and documentaries marking their world, North
American or U.S. debuts. Screenings are held on 15 screens throughout Palm Springs. The Festival's
Awards Gala draws the biggest actors and actresses, celebrity filmmakers, media, industry professionals
and film fans from all over the world to kick off the winter awards season in style.
Transportation
Interstate 10 runs adjacent to Palm Spring's northern City limits. This route provides access to the
Southern California freeway system to the west, as well as Arizona to the east. Rail freight service is
available from Southern Pacific Transportation. Bus services are provided by Continental Trailways,
Greyhound Bus Lines and Sunline System, both local and distant. Palm Springs International Airport is
the only commercial airport in Riverside County and is served by 5 major airlines.
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Population
The following table provides population growth for Palm Springs and Riverside County between 2013
and 2017.
TABLE NO.C-1
CHANGE IN POPULATION
PALM SPRINGS AND RIVERSIDE COUNTY
2013-2017
PALM SPRINGS RIVERSIDE COUNTY
January 1 Percentage Percentage
Year Population Change Population Chance
2013 45,596 2,266,290
2014 45,983 0.9% 2,291,699 1.1%
2015 46,391 0.9% 2,318,762 1.2%
2016 46,866 1.0% 2,348,213 1.3%
2017 47,379 1.1% 2,384,783 1.6%
%Change Between 2013-2017 3.9% 5.2%
Source: State of California, Department of Finance, "E-4 Population Estimates for Cities, Counties and the State,
2011-2017, with 2010 Census Benchmark"Sacramento,California,May 2017.
Per Capita Personal Income
The most recent available per capita personal income information for Palm Springs,Riverside County,the
State of California and the United States are summarized in the following table.
TABLE NO.C-2
PER CAPITA PERSONAL INCOME
CITY OF PALM SPRINGS,RIVERSIDE COUNTY,STATE OF CALIFORNIA AND UNITED STATES
2011—2015
Year Palm Springs Riverside County cq State of California(4 United States(0
2011 $36,875 $31,828 $45,820 $42,453
2012 37,498 32,263 48,312 44,267
2013 36,920 32,765 48,471 44,462
2014 34,947 33,867 50,988 46,614
2015 36,782 35,599 53,741 48,112
For Riverside County, State of California and United States, per capita personal income was computed using
Census Bureau midyear population estimates. Estimates for 2011-2015 reflect county population estimates
available as of March 2016.
Note: All dollar estimates are in current dollars(not adjusted for inflation).
Last updated: November 17,2016,new estimates for 2015;revised estimates for 2011-2014.
Source: U.S. Department of Commerce, Bureau of Economic Analysis; and City of Palm Springs Comprehensive
Annual Financial Report.
C-4 108
Employment
As of May 2017, the civilian labor force for the City was approximately 22,100 of whom 21,300 were
employed. The unadjusted unemployment rate as of May 2017 was 3.8% for the City as compared to
4.6% for the County and 4.2% for the State. Civilian labor force, 'employment and unemployment
statistics for the City, County, the State and the nation, for the years 2012 through 2016 are shown in the
following table:
TABLE NO.C-3
CITY OF PALM SPRINGS
CIVILIAN LABOR FORCE,EMPLOYMENT AND UNEMPLOYMENT
ANNUALAVERAGES
Civilian Unemployment
Year Labor Force Employment Unemployment Rate
2012
City of Palm Springs 20,500 18,600 2,000 9.6%
Riverside County 988,600 873,600 115,100 11.6%
California 18,523,800 16,602,700 1,921,100 10.4%
United States 154,975,000 142,469,000 12,506,000 8.1%
2013
City of Palm Springs 20,800 19,100 1,700 8.1%
Riverside County 998,800 899,900 98,900 9.9%
California 18,624,300 16,958,700 1,665,600 8.9%
United States 155,389,000 143,929,000 11,460,000 7.4%
2014
City of Palm Springs 21,200 19,800 1,400 6.7%
Riverside County 1,017,000 933,800 83,200 8.2%
California 18,755,000 17,348,600 1,406,400 7.5%
United States 155,922,000 146,305,000 9,617,000 6.2%
2015
City of Palm Springs 21,800 20,600 1,200 5.5%
Riverside County 1,035,200 965,500 69,600 6.7%
California 18,893,200 17,723,300 1,169,900 6.2%
United States 157,130,000 148,834,000 8,296,000 5.3%
2016
City of Palm Springs 22,100 21,000 1,100 5.0%
Riverside County 1,051,800 988,000 63,800 6.1%
California 19,102,700 18,065,000 1,037,700 5.4%
United States 159,187,000 151,436,000 7,751,000 4.9%
Source: California State Employment Development Department and United States Bureau of Labor Statistics.
C-5 109
Industry
The City is located in the Riverside-San Bernardino-Ontario Metropolitan Statistical Area ("MSA"). As
of May 2017,six major job categories constitute 77.5% of the workforce. They are government (17.1%),
service producing (16.5%), educational and health services (15.0%), leisure and hospitality (11.5%),
professional and business services (9.9%), and goods producing (7.5%). The May 2017 unemployment
rate in the MSA was 4.5%. The State of California May 2017 unemployment rate(unadjusted) was 4.2%.
TABLE NO.C-4
RIVERSIDE-SAN BERNARDINO-ONTARIO MSA
WAGE AND SALARY WORKERS BY INDUSTRY(1)
(in thousands)
Industry 2013 2014 2015 2016 2017
Government 229.6 232.7 237.2 243.9 249.1
Other Services 41.1 43.6 44.3 45.1 46.4
Leisure and Hospitality 137.0 145.8 152.8 161.2 167.4
Educational and Health Services 187.3 194.1 203.5 214.2 218.6
Professional and Business Services 130.3 134.2 143.2 144.0 144.3
Financial Activities 42.0 43.2 44.0 44.8 45.5
Information 11.6 11.3 11.5 11.7 11.5
Transportation,Warehousing and Utilities 76.7 83.6 93.5 102.0 108.2
Service Producing
Retail Trade 162.1 166.3 171.4 176.8 177.0
Wholesale Trade 56.0 59.0 61.7 63.1 63.3
Manufacturing
Nondurable Goods 30.0 30.8 32.8 34.3 35.0
Durable Goods 57.1 59.9 62.9 64.4 63.8
Goods Producing
Construction 68.1 76.3 83.4 91.7 108.2
Mining and Logging 1.2 1.3 1.4 0.9 0.8
Total Nonfarm 1,230.1 1,282.1 1,343.6 1,398.1 1,439.1
Farm 17.1 17.1 17.2 17.4 16.2
Total (all industries) 1 2 1,299.2
2 1 1.415 5 1 4
00 Annually,as of May.
Note: The unemployment rate is calculated using unrounded data. Data may not add due to rounding.
Source: State of California Employment Development Department, Labor Market Information Division, "Industry
Employment&Labor Force-by month,March 2016 Benchmark."
C-6 110
TABLE NO.C-5
CITY OF PALM SPRINGS
MAJOR EMPLOYERS
The major employers operating within the City and their respective number of employees as of June 30,
2016 are as follows:
Name of Company Employment Tvpe of Business/Service
Desert Regional Medical Center 1,000-4,999 Medical Services
Spa Resort Casino 1,000-4,999 Casino
Hard Rock Hotel-Palm Springs 500-999 Hotel
Care Fusion 250-499 Medical Equipment-Manufacturing
City of Palm Springs 250-499 Government Services
Desert Sun 250-499 Daily Newspaper
Kaplan College 250-499 Education
Palm Springs Riviera Resort 250-499 Hotel
Savoury's Inc. 250-499 Full Service Catering
Walmart Supercenter 250-499 Discount Retail
Source: City of Palm Springs.
The City is not aware of any significant changes in its largest employers since June 2016.
Commercial Activity
The following table summarizes the volume of retail sales and taxable transactions for the City of Palm
Springs for 2011 through 2015 (the most recent year for which statistics are available from the State
Board of Equalization for the full year).
TABLE NO.C-6
CITY OF PALM SPRINGS
TOTAL TAXABLE TRANSACTIONS
(in thousands)
2011-2015
Retail and Retail and Total Taxable
Food Services Food Services Transactions Issued Sales
Year $0( 00's) %Chanee Permits $0( 00's) %Change Permits
2011 $662,012 1,409 $ 880,426 1,973
2012 728,329 10.0% 1,459 955,731 8.6% 2,036
2013 758,274 4.1% 1,459 985,824 3.2% 2,033
2014 803,028 5.9% 1,575 1,036,541 5.1% 2,175
2015 814,310 1.4% N/A(1) 1,039,923 0.3% N/A���
Beginning in 2015,the State Board of Equalization no longer publishes this information.
Source: California State Board of Equalization, "Taxable Sales in California.
C-7 11
Taxable transactions by type of business for the City of Palm Springs for 2011 through 2015 (the most
recent year for which statistics are available from the State Board of Equalization for the full year) are
summarized in Table No. C-7.
TABLE NO.C-7
CITY OF PALM SPRINGS
TAXABLE TRANSACTIONS BY TYPE OF BUSINESS
(in thousands)
2011-2015
2011 2012 2013 2014 201512)
Retail and Food Services
Clothing and Clothing
Accessories Stores $ 35,678 S 39,934 $ 43,508 $ 44,157
Food and Beverage Stores 44,267 49,225 53,658 54,612
Food Services and Drinking Places 177,414 193,066 205,742 231,193
Home Furnishings and
Appliance Stores 11,699 12,737 14,440 15,655
Building Materials and Garden
Equipment and Supplies 81,638 89,755 89,238 98,618
Gasoline Stations 103,943 122,154 124,041 121,691
Other Retail Group 207,373 (1) 221,4580) 153,937 t'> 237,102 0)
Total Retail and Food Services 662,012 728,329 758,274 803,028 $ 814,310
All Other Outlets 218,415 227,402 227,550 233,513 225,613
Total All Outlets
o) Sales for General Merchandise Stores and Motor Vehicle and Parts Dealers are included with "Other Retail
Group."
Beginning in 2015,the State Board of Equalization stopped publishing Industry-level data.
Note: Detail may not compute to total due to rounding.
Source: California State Board of Equalization, "Taxable Sales in California."
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Building Activity
The following table summarizes building activity valuations for the City of Palm Springs for the five
fiscal years 2011/12 through 2015/16.
TABLE NO.C-8
CITY OF PALM SPRINGS
BUILDING ACTIVITY AND VALUATION
2011/12-2015/16
2011/12 2012/13 2013/14 2014/15 2015/16
Residential $ 32,659,420 $ 63,187,869 $ 69,377,439 $ 74,300,111 $ 56,131,946
Commercial 46,516,379 36,836,647 57,675,274 129,424,575 94,709,347
Total Valuation $ 79,175,799 $100,024,516 $127,052,713 $203,724,686 �150,841,293
Number of New Residential Units 111 162 157 171 121
Source: City of Palm Springs.
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APPENDIX D
CITY AUDITED FINANCIAL STATEMENTS FOR THE FISCAL
YEAR ENDED JUNE 309 2016
D-1 114
APPENDIX E
FORM OF CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the"Disclosure Certificate") is executed and delivered by
the Successor Agency to the Palm Springs Community Redevelopment Agency (the "Issuer") in
connection with the issuance of its Tax Allocation Refunding Parity Bonds, 2017 Series A ("Series A
Bonds") and Taxable Tax Allocation Refunding Parity Bonds, 2017 Series B ("Series B Bonds," and
together with the Series A Bonds, the "Bonds"). The Bonds are being issued pursuant to an indenture of
Trust, dated as of July 1, 2014, as amended and supplemented by a First Supplemental Indenture of Trust
and a Second Supplemental Indenture of Trust, dated as of October 1, 2017, by and between the Issuer
and U.S. Bank National Association (the "Trustee") (collectively, the"Indenture"). The Issuer covenants
and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer for the benefit of the holders and beneficial owners of the Bonds and in order
to assist the Participating Underwriters in complying with S.E.C. Rule 15c2-12.
Section 2. Definitions. In addition to the definitions set forth in the Indenture, which apply to
any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms have the following meanings:
"Annual Report" means any Annual Report provided by the Issuer pursuant to, and as described
in, Sections 3 and 4.
"Annual Report Date"means March 31 in each year,beginning March 31, 2018.
"Dissemination Agent" means Harrell & Company Advisors, LLC, or any successor
Dissemination Agent designated in writing by the Issuer and which has filed with the Issuer a written
acceptance of such designation.
"Listed Events"means any of the events listed in Section 5(a) or 5(b).
"MSRB" means the Municipal Securities Rulemaking Board, which has been designated by the
Securities and Exchange Commission as the sole repository of disclosure information for purposes of the
Rule.
"Official Statement"means the Official Statement dated 2017 relating to the Bonds.
"Participating Undervvriter" means any of the original underwriters of the Bonds required to
comply with the Rule in connection with offering of the Bonds.
"Rule" means Rule 15c2-12 adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934,as the same may be amended from time to time.
Section 3. Provision of Annual Reports.
(a) The Issuer shall, or shall cause the Dissemination Agent to, not later than the
Annual Report Date, commencing March 31, 2018 with the report for the 2016/17 Fiscal Year,
provide to the MSRB, in an electronic format as prescribed by the MSRB, an Annual Report
which is consistent with the requirements of Section 4. Not later than 5 days prior to the Annual
Report Date, the Issuer shall provide the Annual Report to the Dissemination Agent (if other than
the Issuer). The Annual Report may be submitted as a single document or as separate documents
comprising a package, and may include by reference other information as provided in Section 4;
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provided that the audited financial statements of the Issuer may be submitted separately from the
balance of the Annual Report, and later than the Annual Report Date if not available by that date.
If the Issuer's fiscal year changes, it shall give notice of such change in the same manner as for a
Listed Event under Section 5(c). The Dissemination Agent(if other than the Issuer) shall have no
duty or obligation to review such Annual Report.
(b) If the Issuer does not provide (or cause the Dissemination Agent to provide) an
Annual Report by the Annual Report Date, the Issuer shall provide (or cause the Dissemination
Agent to provide) to the MSRB, in an electronic format as prescribed by the MSRB, a notice in
substantially the form attached as Exhibit A.
(c) With respect to each Annual Report, the Dissemination Agent shall:
(i) determine each year prior to the Annual Report Date the then-
applicable rules and electronic format prescribed by the MSRB for the filing of
annual continuing disclosure reports; and
(ii) if the Dissemination Agent is other than the Issuer, file a report
with the Issuer certifying that the Annual Report has been provided pursuant to
this Disclosure Certificate, and stating the date it was provided.
(d) The Issuer shall also electronically file a copy of the Annual Report with the
Insurer.
Section 4. Content of Annual Reports. The Issuer's Annual Report shall contain or incorporate
by reference the following:
(a) Audited Financial Statements prepared in accordance with generally accepted
accounting principles as promulgated to apply to governmental entities from time to time by the
Governmental Accounting Standards Board. If the Issuer's audited financial statements are not
available by the Annual Report Date, the Annual Report shall contain unaudited financial
statements in a format similar to the financial statements contained in the final Official Statement,
and the audited financial statements shall be filed in the same manner as the Annual Report when
they become available. The audited Financial Statements of the Issuer may be included in the
City of Palm Springs'Comprehensive Annual Financial Report if no separate Financial Statement
is prepared for the Issuer.
(b) Unless otherwise provided in the audited financial statements filed on or before the
Annual Report Date, financial information and operating data with respect to the Issuer for the
prior fiscal year of the type included in the Official Statement (to the extent not included in the
Issuer's audited financial statements):
(i) Table No. 1 -Merged Project No. 1 Historical Assessed Valuations;
(ii) Table No. 2 -Merged Project No. 2 Historical Assessed Valuations;
(iii) Table No. 3 -Merged Project No. 1 Historical Increment Revenues;
(iv) Table No.4 -Merged Project No. 2 Historical Increment Revenues;
(v) Table No. 5 -Redevelopment Property Tax Trust Fund Deposits;
(vi) Table No. 6 -Merged Project No. 1 Ten Largest Taxpayers;
(vii) Table No. 7 - Merged Project No. 2 Ten Largest Taxpayers; and
E-2 11 6
(viii) Table No. 8—Projected Tax Revenues and Debt Service Coverage.
(c) In addition to any of the information expressly required to be provided under
paragraphs (a) and (b) of this Section, the Issuer shall provide such further information, if any, as
may be necessary to make the specifically required statements, in the light of the circumstances
under which they are made,not misleading.
Any or all of the items listed above may be included by specific reference to other documents,
including official statements of debt issues of the Issuer or related public entities, which are available to
the public on the MSRB's Internet web site or filed with the Securities and Exchange Commission. The
Issuer shall clearly identify each such other document so included by reference.
Section 5. Reporting of Listed Events.
(a) Reportable Events. The Successor Agency shall, or shall cause the Dissemination
(if not the Successor Agency)to,give notice of the occurrence of any of the following events with
respect to the Bonds:
(1) Principal and interest payment delinquencies.
(2) Unscheduled draws on debt service reserves reflecting financial
difficulties.
(3) Unscheduled draws on credit enhancements reflecting financial
difficulties.
(4) Substitution of credit or liquidity providers, or their failure to perform.
(5) Defeasances.
(6) Rating changes.
(7) Tender offers.
(8) Bankruptcy, insolvency, receivership or similar event of the obligated
person.
(9) Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability, Notices of Proposed Issue
(IRS Form 5701-TEB) or other material notices or determinations with
respect to the tax status of the security, or other material events affecting
the tax status of the security.
(b) Material Reportable Events. The Successor Agency shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Bonds, if
material:
(1) Non-payment related defaults.
(2) Modifications to rights of security holders.
(3) Bond calls.
E-3 1 '�
(4) The release, substitution, or sale of property securing repayment of the
securities.
(5) The consummation of a merger, consolidation, or acquisition involving
an obligated person or the sale of all or substantially all of the assets of
the obligated person, other than in the ordinary course of business, the
entry into a definitive agreement to undertake such an action or the
termination of a definitive agreement relating to any such actions, other
than pursuant to its terns.
(6) Appointment of a successor or additional trustee, or the change of name
of a trustee.
(c) Time to Disclose. Whenever the Successor Agency obtains knowledge of the
occurrence of a Listed Event, the Successor Agency shall, or shall cause the Dissemination Agent
(if not the Successor Agency) to, file a notice of such occurrence with EMMA, in an electronic
format as prescribed by the MSRB,in a timely manner not in excess of 10 business days after the
occurrence of the Listed Event.
Section 6. Identifying Information for Filings with the MSRB. All documents provided to the
MSRB under the Disclosure Certificate shall be accompanied by identifying information as prescribed by
the MSRB.
Section 7. Termination of Reporting Obligation. The Issuer's obligations under this Disclosure
Certificate shall terminate upon the legal defeasance, prior redemption or payment in full of all of the
Bonds.
Section 8. Dissemination Agent. The Issuer may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate, and may
discharge any such Agent, with or without appointing a successor Dissemination Agent. The initial
Dissemination Agent shall be the Harrell & Company Advisors, LLC. The Dissemination Agent may
resign by providing thirty days prior written notice to the Issuer.
Section 9. Amendment. Notwithstanding any other provision of this Disclosure Agreement, the
Successor Agency may amend this Disclosure Agreement, provided no amendment increasing or affecting
the obligations or duties of the Dissemination Agent shall be made without the consent of such party, and
any provision of this Disclosure Agreement may be waived if such amendment or waiver is supported by
an opinion of counsel expert in federal securities laws acceptable to the Successor Agency to the effect
that such amendment or waiver would not, in and of itself, cause the undertakings herein to violate the
Rule if such amendment or waiver had been effective on the date hereof but taking into account any
subsequent change in or official interpretation of the Rule.
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Issuer from disseminating any other information, using the means of dissemination set forth in
this Disclosure Certificate or any other means of communication, or including any other information in
any Annual Report or notice of occurrence of a Listed Event, in addition to that which is required by this
Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of
occurrence of a Listed Event in addition to that which is specifically required by this Disclosure
Certificate, the Issuer shall have no obligation under this Disclosure Certificate to update such
information or include it in any future Annual Report or notice of occurrence of a Listed Event.
E-4
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Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this
Disclosure Certificate any Participating Underwriter or any holder or beneficial owner of the Bonds may
take such actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the Issuer to comply with its obligations under this Disclosure
Certificate. A default under this Disclosure Certificate shall not be deemed an Event of Default under the
Indenture,and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer or
the Dissemination Agent to comply with this Disclosure Certificate shall be an action to compel
performance.
Section 12. Duties, Immunities and Liabilities of Dissemination Agent. The Dissemination
Agent shall have only such duties as are specifically set forth in this Disclosure Certificate, and the Issuer
agrees to indemnify and save the Dissemination Agent (if other than the Issuer), its officers, directors,
employees and agents, harmless against any loss, expense and liabilities which it may incur arising out of
or in the exercise or performance of its powers and duties hereunder, including the costs and expenses
(including attorneys fees) of defending against any claim of liability, but excluding liabilities due to the
Dissemination Agent's negligence or willful misconduct. The obligations of the Issuer under this Section
shall survive resignation or removal of the Dissemination Agent and payment of the Bonds.
The Dissemination Agent shall be paid compensation by the Issuer for its services provided
hereunder in accordance with its schedule of fees as agreed to between the Dissemination Agent and the
Issuer from time to time and all expenses, legal fees and advances made or incurred by the Dissemination
Agent in the performance of its duties hereunder. The Dissemination Agent may conclusively rely upon
the Annual Report provided to it by the Issuer as constituting the Annual Report required of the Issuer in
accordance with this Disclosure Certificate and shall have no duty or obligation to review such Annual
Report. The Dissemination Agent shall have no duty to prepare the Annual Report nor shall the
Dissemination Agent be responsible for filing any Annual Report not provided to it by the Issuer in a
timely manner in a form suitable for filing with the MSRB. In accepting the appointment under this
Agreement, the Dissemination Agent is not acting in a fiduciary capacity to the Holders or Beneficial
Owners of the Certificates, the Issuer, the Participating Underwriters or any other party or person. No
provision of this Disclosure Certificate shall require the Dissemination Agent to risk or advance or expend
its own funds or incur any financial liability. Any company succeeding to all or substantially all of the
Dissemination Agent's corporate trust business shall be the successor to the Dissemination Agent
hereunder without the execution or filing of any paper or any further act.
Section 13. Beneficiaries. This Disclosure Certificate inures solely to the benefit of the Issuer,
the Dissemination Agent, the Participating Underwriters and holders and beneficial owners from time to
time of the Bonds,and creates no rights in any other person or entity.
Date: ,2017
SUCCESSOR AGENCY TO THE PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY
By:
City Manager of the City of Palm Springs
E-5 1 .19
EXHIBIT A
NOTICE OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: Successor Agency to the Palm Springs Community Redevelopment Agency
Name of Bond Issues: Tax Allocation Refunding Parity Bonds, 2017 Series A
Taxable Tax Allocation Refunding Parity Bonds,2017 Series B
Date of Issuance: 2017
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report with respect to the
above-named Bonds as required by Section 5.16 of the Indenture, dated as of October 1, 2017, between
the Issuer and U.S. Bank National Association as, trustee. The Issuer anticipates that the Annual Report
will be filed by
Dated:
SUCCESSOR AGENCY TO THE PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY
By:
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APPENDIX F
PROPOSED FORM OF BOND COUNSEL OPINIONS
[TO BE PROVIDED BY BOND COUNSEL]
F-I 121
APPENDIX G
THE BOOK-ENTRY SYSTEM
The following description of the Depository Trust Company ("DTC'), the procedures and record
keeping with respect to beneficial ownership interests in the Bonds, payment of principal, interest and
other payments on the Bonds to DTC Participants or Beneficial Owners, confirmation and transfer of
beneficial ownership interest in the Bonds and other related transactions by and between DTC, the DTC
Participants and the Beneficial Owners is based solely on information provided by DTC. Accordingly, no
representations can be made concerning these matters and neither the DTC Participants nor the
Beneficial Owners should rely on the foregoing information with respect to such matters, but should
instead confirm the same with DTC or the DTC Participants, as the case may be.
Neither the issuer of the Bonds (the "Issuer') nor the trustee, fiscal agent or paying agent
appointed with respect to the Bonds (the "Agent') take any responsibility for the information contained in
this Appendix.
No assurances can be given that DTC, DTC Participants or Indirect Participants will distribute
to the Beneficial Owners (a)payments of interest,principal or premium, if any, with respect to the Bonds,
(b) certificates representing ownership interest in or other confirmation or ownership interest in the
Bonds, or (c) redemption or other notices sent to DTC or Cede & Co., its nominee, as the registered
owner of the Bonds, or that they will so do on a timely basis, or that DTC, DTC Participants or DTC
Indirect Participants will act in the manner described in this Appendix. The current "Rules"applicable
to DTC are on file with the Securities and Exchange Commission and the current "Procedures" of DTC
to be followed in dealing with DTC Participants are on file with DTC.
1. The Depository Trust Company("DTC"),New York,NY,will act as securities depository
for the securities (the "Securities"). The Securities will be issued as fully-registered securities registered
in the name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by an
authorized representative of DTC. One fully-registered Security certificate will be issued for each issue
of the Securities, each in the aggregate principal amount of such issue, and will be deposited with DTC.
If, however, the aggregate principal amount of any issue exceeds $500 million, one certificate will be
issued with respect to each $500 million of principal amount, and an additional certificate will be issued
with respect to any remaining principal amount of such issue.
2. DTC, the world's largest securities depository, is a limited-purpose trust company
organized under the New York Banking Law, a "banking organization" within the meaning of the New
York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the
meaning of the New York Uniform Commercial Code, and a"clearing agency" registered pursuant to the
provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds and provides asset
servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and municipal debt
issues, and money market instruments (from over 100 countries) that DTC's participants ("Direct
Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants
of sales and other securities transactions in deposited securities, through electronic computerized book-
entry transfers and pledges between Direct Participants' accounts. This eliminates the need for physical
movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities brokers
and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is a
wholly-owned subsidiary of The Depository Trust & Clearing Corporation ("DTCC"). DTCC is the
holding company for DTC, National Securities Clearing Corporation and Fixed Income Clearing
Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its regulated
subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S.
securities brokers and dealers, banks, trust companies, and clearing corporations that clear through or
maintain a custodial relationship with a Direct Participant, either directly or indirectly ("Indirect
G-1
1,3
2
Participants"). DTC has a Standard & Poor's rating of AA+. The DTC Rules applicable to its
Participants are on file with the Securities and Exchange Commission. More information about DTC can
be found at www.dtcc.com. The information contained on such Internet site is not incorporated herein by
reference.
3. Purchases of Securities under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Securities on DTC's records. The ownership interest of
each actual purchaser of each Security ("Beneficial Owner") is in turn to be recorded on the Direct and
Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their
purchase. Beneficial Owners are,however, expected to receive written confirmations providing details of
the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant
through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in the
Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting
on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in Securities,except in the event that use of the book-entry system for the Securities is
discontinued.
4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with
DTC are registered in the name of DTC's partnership nominee, Cede & Co., or such other name as may
be requested by an authorized representative of DTC. The deposit of Securities with DTC and their
registration in the name of Cede&Co. or such other DTC nominee do not effect any change in beneficial
ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC's records
reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which
may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible
for keeping account of their holdings on behalf of their customers.
5. Conveyance of notices and other communications by DTC to Direct Participants, by
Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory
requirements as may be in effect from time to time. Beneficial Owners of Securities may wish to take
certain steps to augment the transmission to them of notices of significant events with respect to the
Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents.
For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the
Securities for their benefit has agreed to obtain and transmit notices to Beneficial Owners. In the
alternative, Beneficial Owners may wish to provide their names and addresses to the registrar and request
that copies of notices be provided directly to them.
6. Redemption notices shall be sent to DTC. If less than all of the Securities within an issue
are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct
Participant in such issue to be redeemed.
7. Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with
respect to Securities unless authorized by a Direct Participant in accordance with DTC's MMI
Procedures. Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after
the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct
Participants to whose accounts Securities are credited on the record date(identified in a listing attached to
the Omnibus Proxy).
8. Redemption proceeds, distributions, and dividend payments on the Securities will be
made to Cede&Co., or such other nominee as may be requested by an authorized representative of DTC.
DTC's practice is to credit Direct Participants' accounts upon DTC's receipt of funds and corresponding
detail information from Issuer or Agent, on payable date in accordance with their respective holdings
shown on DTC's records. Payments by Participants to Beneficial Owners will be governed by standing
instructions and customary practices, as is the case with securities held for the accounts of customers in
G-2
123
bearer form or registered in "street name," and will be the responsibility of such Participant and not of
DTC, Agent, or Issuer, subject to any statutory or regulatory requirements as may be in effect from time
to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such
other nominee as may be requested by an authorized representative of DTC) is the responsibility of Issuer
or Agent, disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and Indirect
Participants.
9. DTC may discontinue providing its services as depository with respect to the Securities at
any time by giving reasonable notice to Issuer or Agent. Under such circumstances, in the event that a
successor depository is not obtained, Security certificates are required to be printed and delivered.
10. Issuer may decide to discontinue use of the system of book-entry transfers through DTC
(or a successor securities depository). In that event, Security certificates will be printed and delivered to
DTC.
11. The information in this section concerning DTC and DTC's book-entry system has been
obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for the
accuracy thereof.
G-3 124
APPENDIX H
SPECIMEN MUNICIPAL BOND INSURANCE POLICY
H-1
SOURCES AND USES OF FUNDS
Successor Agency to the Palm Springs Community Redevelopment Agency
2017 Tax Allocation Refunding Bonds
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Dated Date 11/01/2017
Delivery Date 11/O1/2017
Sources: 2007 Series A 2007 Series C Total
Bond Proceeds:
Par Amount 11,580,000.00 5,595,000.00 17,175,000.00
Net Premium 1,337,508.05 1,337,508.05
12,917,508.05 5,595,000.00 18,512,508.05
Uses: 2007 Series A 2007 Series C Total
Refunding Escrow Deposits:
Cash Deposit 11544,407.36 5,425,569.08 17,9695976.44
Delivery Date Expenses:
Cost of Issuance 144,960.70 70,039.30 215,000.00
Underwriter's Discount 69,480.00 36,367.50 105,847.50
Bond Insurance 125,354,53 45,775.56 171,130.09
Surety Bond Premium 32,221.19 15,568.01 47,789.20
372,016.42 167,750.37 539,766.79
Other Uses of Funds:
Rounding Amount 1,084.27 1,680.55 2,764.82
12,917,508.05 5,595,000.00 18,512,508.05
Note: Rates as of July 2017
Prepared by Harrell&Company Advisors Page t
126
SUMMARY OF REFUNDING RESULTS
Successor Agency to the Palm Springs Community Redevelopment Agency
2017 Tax Allocation Refunding Bonds
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
2007 Series A 2007 Series C Total
Dared Date 11/O1/2017 11/O1/2017 11/01/2017
Delivery Date 11/O1/2017 11/0112017 11/O1/2017
Arbitrage Yield 3.228533% 3,228533% 3.228533%
Escrow Yield
Value of Negative Arbitrage
Bond Par Amount 11,580,000.00 5,595,000.00 17,175,000.00
True Interest Cost 3.051566% 3.781353% 3.254620%
Net Interest Cost 3.240316% 3.796981% 3.400195%
All-In TIC 3.316521% 4,093032% 3.532547%
Average Coupon 4.195732% 3.728976% 4.061675%
Average Life 11.461 9.558 10.841
Par amount of refunded bonds 12,420,000.00 5,355,000,00 17,775,000.00
Average coupon of refunded bonds 4.959322% 6.411000% 5.364206%
Average life of refunded bonds 11,469 10.289 11.114
PV of prior debt 14,871,086.50 6,532,109,44
Net PVSavings 1,911,368.56 1,000,133.56 2,911,502.12
Percentage savings of refunded bonds 15.389441% 18.676630% 16.379759%
Prepared by Harrell&Company Advisors Page 2
127
BOND PRICING
Successor Agency to the Palm Springs Community Redevelopment Agency
2007 Series A
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Maturity Call Call
Bond Component Date Amount Rate Yield Price Date Price
Serial Bonds(Tax-Exempt):
09/01/2018 390,000 3.000% 0.970% 101.679
09/O1/2019 310,000 4.000% 1.150% 105.154
09/01/2020 305,000 4.000% 1.280% 107.543
09/01/2021 175,000 5.000% 1.430% 113.268
09/O1/2022 160,000 5.000% 1.560% 115.953
1,340,000
Insured Serial Bonds(Tax-Exempt):
09/01/2023 115,000 5.000% 1.720% 118.128
09/01/2024 570,000 5.000% 1.900% 119.775
09/01/2025 110,000 5.000% 2.050% 121.245
09/01/2026 855.000 5,000% 2.250% 121.915
09/01/2027 905,000 5.000% 2.380% 122.846
09/01/2028 950,000 5.000% 2.490% 121.769 C 09/01/2027 IWOOO
09/01/2029 1,000,000 5.000% 2.610% 120.606 C 09/01/2027 100.000
09/01/2030 1,045,000 5.000% 2.720% 119.552 C 09/01/2027 100.000
09/01/2031 1,115,000 3.000% 3.170% 98,105
09/01/2032 1,155,000 3.000% 3.240% 97.188
09/01/2033 1,190,000 4.000% 3.330% 105.575 C 09/01/2027 100.000
09YO112034 1,230,000 4.000% 3.390% 105.061 C 09/01/2027 100.000
10,240,000
11,580,000
Dated Date 11/01/2017
Delivery Date 11/01/2017
First Coupon 03/O112018
Par Amount 11,580,000.00
Premium 1.337,508.05
Production 12,917,508.05 111.550156%
Underwriter's Discount (69,480.00) (0.600000%)
Purchase Price 12,848,028.05 110.950156%
Accrued Interest
Net Proceeds 12,848,028.05
Prepared by Harrell&Company Advisors Page 3
128
BOND PRICING
Successor Agency to the Palm Springs Community Redevelopment Agency
2007 Series C
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Maturity
Bond Component Date Amount Rate Yield Price
Taxable Serial Bonds:
09/01/2018 290,000 1.898% 1.898% 100.000
09/01/2019 260,000 2.298% 2.298% 100.000
09/01/2020 270,000 2,597% 2.597% 100.000
09/01/2021 275,000 2.808% 2.808% 100.000
09/01/2022 285,000 2.958% 2.958% 100.000
1,380,000
Insured Taxable Serial Bonds:
09/01/2023 290,000 2.928% 2,928% 100,000
09/01/2024 300,000 3.078% 3.078% 100.000
09/01/2025 305,000 3.205% 3.205% 100.000
09/O1/2026 315,000 3.355% 3.355% 100.000
09/01/2027 330,000 3A55% 3.455% 100.000
09/01/2028 340,000 3.605% 3.605% 100.000
09/01/2029 355,000 3.755% 3.755% 100,000
09/01/2030 365,000 3.855% 3.855% 100.000
09/O1/2031 380,000 3.955% 3.955% 100.000
09/01/2032 400,000 4.055% 4.055% 100.000
09/01/2033 410,000 4.155% 4.155% 100.000
09/01/2034 425,000 4,255% 4,255% 100.000
4,215,006
5,595,000
Dated Date 11/01/2017
Delivery Date 11/01/2017
First Coupon 03/01/2018
Par Amount 5,595.000.00
Original Issue Discount
Production 5,595,000.00 100.000000%
Underwriter's Discount (36,367.50) (0.6500000/,)
Purchase Price 5,558,632.50 99.350000%
Accrued Interest
Net Proceeds 5,558,632.50
Prepared by Harrell&Company Advisors Page 4
129
BOND DEBT SERVICE
Successor Agency to the Palm Springs Community Redevelopment Agency
2017 Tax Allocation Refunding Bonds
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Period
Ending Principal Coupon Interest Debt Service
09/01/2018 680,000 ** % 571,324,71 1,251,324.71
09/01/2019 570,000 ** % 668,385.46 1,238,385.46
09/01/2020 575,000 ** % 650,010.66 1,225,010.66
09/01/2021 450,000 ** % 630,798.76 1,080,798.76
09/01/2022 445,000 ** % 614,326.76 1,059,326.76
09/01/2023 405,000 ** % 597,896.46 1,002,896.46
09/01/2024 870,000 ** % 583,655.26 1,453,655.26
09/01/2025 415,000 ** % 545,921.26 960,921.26
09/01/2026 1,170,000 ** % 530,646.00 1,700,646.00
09/01/2027 1,235,000 ** % 477,327.76 1,712,327.76
09/01/2028 1,290,000 ** % 420,676.26 1,710,676.26
09/01/2029 1,355,000 ** % 360,919.26 1,715,919.26
09/01/2030 1,410,000 ** % 297,589.00 1,707,589.00
09/01/2031 1,495,000 ** % 231,268.26 1,726,268.26
09/01/2032 1,555,000 ** % 182,789.26 1,737,789.26
09/01/2033 1,600,000 ** % 131,919.26 1,731,919.26
09/01/2034 1,655,000 ** % 67,283.76 1,722,283.76
17,175,000 7,562,738.15 24,737,738,15
Prepared by Harrell&Company Advisors Page 5
130
BOND DEBT SERVICE
Successor Agency to the Palm Springs Community Redevelopment Agency
2007 Series A
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Period Debt
Ending Principal Coupon Interest Service
09/01/2018 390,000 3.000% 412,875 802,875
09/01/2019 310,000 4.000% 483,750 793,750
09/01/2020 305,000 4.000% 471,350 776,350
09/01/2021 175,000 5,000% 459,150 634,150
09/01/2022 160,000 5.000% 450,400 610,400
09/01/2023 115,000 5.000% 442,400 557,400
09/01/2024 570,000 5.000% 436,650 1,006,650
09/01/2025 110,000 5.000% 408,150 518,150
09/01/2026 855,000 5.000% 402,650 1,257,650
09/O1/2027 905,000 5.000% 359,900 1,264.900
09/01/2028 950,000 5.000% 314,650 1,264,650
09/01/2029 1,000,000 5.000% 267,150 1,267,150
09/01/2030 1,045,000 5.000% 217,150 1,262,150
09/01/2031 1,115,000 3.000% 164,900 1,279,900
09/01/2032 1,155,000 3.000% 131,450 1,286,450
09/01/2033 1,190,000 4.000% 96,800 1,286,800
09/01/2034 1,230,000 4,000% 49,200 1,279,200
11,580,000 5,568,575 17,148,575
Prepared by Harrell&Company Advisors Page 6
131
BOND DEBT SERVICE
Successor Agency to the Palm Springs Community Redevelopment Agency
2007 Series C
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Period
Ending Principal Coupon Interest Debt Service
09/01/2018 290,000 1.898% 158,449.71 448,449.71
09/01/2019 260,000 2.298% 184,635.46 444,635.46
09/01/2020 270,000 2.597% 178,660.66 448,660.66
09/01/2021 275,000 2,808% 171,648.76 446,648.76
09/01/2022 285,000 2.958% 163,926.76 448,926.76
09/01/2023 290,000 2.928% 155,496.46 445,496A6
09/01/2024 300,000 3.078% 147,005.26 447,005.26
09/01/2025 305,000 3.205% 137,771.26 442,771.26
09/01/2026 315,000 3.355% 127,996.00 442,996.00
09/01/2027 330,000 3.455% 117,427.76 447,427.76
09/01/2028 340,000 3.605% 106,026.26 446,026.26
09/01/2029 355,000 3.755% 93,769.26 448,769.26
09/01/2030 365,000 3,855% 80,439.00 445,439.00
09/O1/2031 380,000 3.955% 66,368.26 446,368.26
09/01/2032 400,000 4.055% 51,339.26 451,339.26
09/01/2033 410,000 4.155% 35,119.26 445,119.26
09/01/2034 425,000 4.255% 18,083.76 443,083.76
5,595,000 1,994,163.15 7,589,163.15
Prepared by Harrell&Company Advisors Page 7
132
SAVINGS
Successor Agency to the Palm Springs Community Redevelopment Agency
2017 Tax Allocation Refunding Bonds
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Prior Refunding
Date Debt Service Debt Service Savings
09/01/2018 1,473,534.06 1,251,324.71 222,209.35
09/01/2019 1,462,648.70 1,238,385.46 224,263.24
09/01/2020 1,450,916.02 1,225,010.66 225,905.36
09/01/2021 1,302,790.42 1,080,798.76 221,991.66
09/01/2022 1,279,279.96 1,059,326.76 219,953.20
09/01/2023 1,225,464.10 1,002,896.46 222,567.64
09/01/2024 1,677,461.60 1,453,655.26 223,806.34
09/01/2025 1,182,797.46 960,921.26 221,876.20
09/01/2026 1,928,096.66 1,700,646.00 227,450.66
09/01/2027 1,933,863.66 1,712,327.76 221,535.90
09/01/2028 1,935,848.46 1,710,676.26 225,172.20
09/01/2029 1,939,051.06 1,715,919.26 223,131.80
09/01/2030 1,933,150.90 1,707,589.00 225,561.90
09/01/2031 1,948,468.56 1,726,268.26 222,200.30
09/01/2032 1,958,683.46 1,737,789.26 220,894,20
09/01/2033 1,953,725.06 1,731,919.26 221,805.80
09/01/2034 1,944,163.90 1,722,283.76 221,880.14
28,529,944.04 24,737,738.15 3,792,205.89
Savings Summary
Savings PV date 11/01/2017
PV of savings from cash flow 2,908,737.30
Plus:Refunding funds on hand 2,764.82
Net PV Savings 2,911,502.12
Prepared by Harrell&Company Advisors Page 8
133
SAVINGS
Successor Agency to the Palm Springs Community Redevelopment Agency
2007 Series A
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Prior Refunding
Date Debt Service Debt Service Savings
09/01/2018 945,225.00 802,875.00 142,350.00
09/01/2019 936,200.00 793,750.00 142,450.00
09/01/2020 921,968.76 776,350.00 145,618.76
09/01/2021 777,306.26 634,150.00 141156.26
09/01/2022 752,900.00 610,400.00 142,500.00
09/01/2023 699,150.00 557,400.00 141.750.00
09/01/2024 1,152,175.00 1,006,650.00 145,525.00
09/01/2025 659,500.00 518,150.00 141,350.00
09/01/2026 1,402,750.00 1,257,650.00 145,100.00
09/01/2027 1,407,750.00 1,264,900.00 142,850.00
09/01/2028 1,410,250.00 1,264,650.00 145,600.00
09/01/2029 1,410,250.00 1,267,150.00 143,100.00
09/01/2030 1,407,750.00 1,262,150.00 145,600.00
09/01/2031 1,422,750.00 1,279,900.00 142,850.00
09/01/2032 1,429,250.00 1,286,450.00 142,800.00
09/01/2033 1,427,500.00 1,286,800.00 140,700.00
09/01/2034 1,422,750.00 1,279,200.00 143,550.00
19,585A25.02 17,148,575.00 2,436,850,02
Savings Summary
Savings PV date 11/01/2017
Savings PV rate 2.954940%
PV of savings from cash flow 1,910,284.29
Plus:Refunding funds on hand 1,084.27
Net PV Savings 1,911,368.56
Prepared by Harrell&Company Advisors Page 9
134
SAVINGS
Successor Agency to the Palm Springs Community Redevelopment Agency
2007 Series C
Debt Service Savings Analysis for July 26,2017 Successor Agency Agenda
Prior Refunding
Date Debt Service Debt Service Savings
09/01/2018 528,309.06 448,449.71 79,859.35
09/01/2019 526,448.70 444,635.46 81,813.24
09/01/2020 528,947.26 448,660.66 80,286.60
09/01/2021 525,484.16 446,648.76 78,835.40
09/01/2022 526,379.96 448,926.76 77,453.20
09/01/2023 526,314.10 445,496.46 80,817.64
09/01/2024 525,286.60 447,005.26 78,281.34
09/01/2025 523,297.46 442,771.26 80,526.20
09/01/2026 525,346.66 442,996.00 82,350.66
09/01/2027 526,113.66 447,427.76 78,685.90
09/01/2028 525,598.46 446,026.26 79,572.20
09/01/2029 528,801.06 448,769.26 80,031.80
09/01/2030 525,400.90 445,439.00 79,961.90
09/01/2031 525,718.56 446,368.26 7%350.30
09/01/2032 529,433.46 451,339,26 78,094.20
09/01/2033 526,225.06 445,119.26 81,105.80
09/01/2034 521,413.90 443,083.76 78,330.14
8,944,519.02 7,589,163.15 1,355,355.87
Savings Summary
Savings PV date 11/01/2017
Savings PV rate 3.839776%
PV of savings from cash flow 998,453.01
Plus:Refunding funds on hand 1,680.55
Net PV Savings 1,000,133.56
Prepared by Harrell&Company Advisors Page 10
135
Comparison of Financing Fees - Successor Agency Tax Allocation Bonds
Fees
Financial
Underlying Bond Disclosure Advisor OS Financial Fiscal FA/FC Underwriter
Issuer ParAmount Closing Date Rating Insurance Final Maturity Counsel Counsel Prep Fee Advisor Consultant Combined All Other Total COI COI Discount Discount
Tustin 55,940,000 9/15/2016 AA- No 2040 130,000 C 0 51,000 25,000 86,000 89,OD0 305,000 0.55% 335,640 0.60%
Whittier 44,615,000 9/1/2015 A+ Yes 2038 90,000 35,000 0 50,000 22,500 72,500 47,921 245,421 0.55% 214,993 0.48%
Stanton 36,110,000 1/4/2017 A+ Yes 2040 67,500 25,000 10,0D0 A 70,000 B 0 70,000 76,678 249,178 0.69% 236,521 0.66%
Santa Cruz County 35,000,0t10 8/3/2017 A+ Yes 2036 105,175 27,500 10,000 A 83,125 B 0 83,125 111 290,000 0.93% 124,000 0.35%
Petaluma 33,945,000 6/15/2017 AA- No 2039 50,000 20,000 0 44,000 18,000 62,000 107,787 239.787 0.71% 215,670 0.64%
Lama Linda 33,710,000 10/26/2016 A+ Yes 2030 70,000 40,000 0 45,000 25,000 70,DD0 76,029 256,029 0.76% 337,100 1.00%
Chula Vista 29,315,000 6/22/2016 A+ Yes 2036 94,000 C 10,000 A 67,500 B 0 67,500 58,063 219,563 0.75% 253,729 0.52%
Orange 28,850,000 12/4/2014 A+ Yes 2023 69,500 40,000 0 41,OD0 25,255 66,255 47,442 223,197 0.77% 181,819 0.63%
Santa Fe Springs 25,270,000 7/28/2016 A+ No 2024 65,000 45,000 0 57,500 D 0 57,500 17,810 185,310 0.73% 189,525 0.7.9%
Coachella 24,625,000 2/10/2016 A- Yes 2036 75,000 7,500 0 84,000 D 0 84,000 83,723 250,223 1,02% 210,406 0,85%
Tulare 21,930,OD0 2/16/2017 BBB+ Yes 2040 65,000 40,000 0 44,0D0 30,000 74,000 41,000 220,000 1.D0% 201,150 0.92%
West Sacramento 20,705,000 7/7/2016 A yes 2036 65,000 C 0 47,500 23,000 70,500 89,500 225,000 1.09% 113,878 0.55%
Indian Wells 20,575,000 7/22/2015 A yes 2027 55,000 45,D00 0 68,500 25,000 93,500 183,001 376,501 1.83% 106,905 0.52%
Desert Hot Springs 20,020,000 6/21/2017 BBB- yes 2039 50,000 45,000 0 72,500 D 0 72,500 74,389 241,889 1.21% 184,184 0.92%
Palm Springs 17,175,000 11/1/2017 A+ Yes 2034 70,000 30,000 10,000 A 60,000 8 0 60,000 45,000 215,000 1.25% 105,000 0.61%
Redlands 16,610,OD0 3/16/2016 A Yes 2022 40,000 30,000 0 38,250 19,500 57,750 40,107 167,857 1.01% 71,556 0.43%
Scotts Valley 13,000,OD0 4/4/2017 A yes 2039 65,OD0 30,000 0 67,500 26,730 94,230 90,280 279,510 2.15% 72,355 0.56%
Shatter 12,530,000 12/28/2016 A- Yes 2036 50,000 30,000 0 49,500 30,000 79,500 118,977 278,377 2.22% 115,975 0.93%
Brea 11,965,OD0 10/31/2016 A yes 2026 52,OD0 35,000 0 37,0D0 16,025 53,025 33,331 173,356 1.45% 82,607 0.69%
Lincoln 8,250,000 12/15/2016 A+ Yes 2033 101,500 C 0 51,000 23,000 74,OD0 47,900 223,400 2.71% 5ZS15 0.64%
A:Harrell&Co prepared the official statement,eliminating a portion of the cost of disclosure counsel who typically prepares this documentand charges a higher fee
B:Harrell&Cc prepared the tax increment projections,eliminating the fee for the Fiscal Consultant(this Is a firm who prepares the tax data and projections required by the ratingagency)
C: Bond Counsel and Disclosure Counsel Fees were combined
D:Combined Financial Advisor and Fiscal Consultant Fees(other than Harrell),simllar to B
EXHIBIT A
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