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HomeMy WebLinkAboutCC, RDA, PFA Item No. 5 (CFD 2006-01 Bonds)CITY OF LADELSII`IOIZE --em u DREAM EXTREME- CITY OF LAKE ELSINORE JOINT REPORT TO CITY COUNCIL, REDEVELOPMENT AGENCY, AND PUBLIC FINANCING AUTHORITY TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL HONORABLE CHAIRWOMAN AND MEMBERS OF THE REDEVELOPMENT AGENCY HONORABLE CHAIRMAN AND MEMBERS OF THE PUBLIC FINANCING FROM: ROBERT A. BRADY CITY MANAGER/EXECUTIVE DIRECTOR DATE: JANUARY 25, 2011 SUBJECT: 1. PUBLIC HEARING RESOLUTIONS APPROVING THE ISSUANCE OF LAKE ELSINORE PUBLIC FINANCING AUTHORITY TAX ALLOCATION REVENUE BONDS (LAUNCH RAMP PROJECT), 2011 SERIES A, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $6,000,000; APPROVING A BOND PURCHASE CONTRACT, A PROJECT AREA NO. I LOAN AGREEMENT, A CONTINUING DISCLOSURE AGREEMENT AND A PRELIMINARY OFFICIAL STATEMENT; AND AUTHORIZING THE TAKING OF CERTAIN OTHER ACTIONS RELATED THERETO; 2. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, MAKING FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445.1 RELATING TO PAYMENT OF ALL OR PART OF THE COSTS OF THE BOAT LAUNCH PROJECT; 3. RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE FUNDING OF THE BOAT LAUNCH PROJECT AGENDA ITEM NO. 5 Page 1 of 29 Resolutions Re Bonds and Boat Launch Project Funding January 25, 2011 Page 2 Background The Lake is the centerpiece of the City's recreational resources and a valuable contributor to the vitality and economic development of the community. Safe and reliable access to the Lake is essential to maximizing its resource value. The existing boat launch facility is in a dilapidated physical condition and provides limited access to the Lake. The boat launch is currently under water and can be utilized only when the Lake is at an elevation of approximately 1240-feet mean sea level (MSL) which is below the optimal Lake level. The City has received a $3 million grant from the State of California for the purpose of constructing a modern boat launch and related ancillary facilities to be located at the City Campground (the "Boat Launch Project"). The Boat Launch Project will result in a usable launch up to elevation 1255 MSL, the maximum normal level of the Lake. The general items of work to be performed include dredging, earthwork, grading, electrical, plumbing, AC & concrete pavement, stormwater drainage, landscaping, dock pilings and compliance with environmental permit conditions for constructing the following improvements: • Demolition of old boat launch facility; • Six lane boat launch ramp, with boat staging area; • Vehicle and boat trailer parking lot with 270 spaces; • Restroom facility with eight stalls; • Entry kiosk; • Two 400-foot long floating breakwater/dock system with anchor guide piles; • Landscaped picnic area with lighting, and • Fish Cleaning Station. In order for the Boat Launch Project to move forward and utilize the State's grant, additional funding is necessary. Discussion All of the Lake edge is within a redevelopment project area and improvements to and around the Lake, including the proposed Boat Launch Project with greater access to the Lake promotes both recreational and economic development opportunities benefitting the project areas and the community as a whole. The City's/Agency's Finance Team has been studying for several months the potential sources for funding construction of the Boat Launch Project. Redevelopment Project Area No. 1 has sufficient tax increment revenues available to pay debt service on bonds, the proceeds of which can be used to assist in the funding of the Boat Launch Project. Additional or alternative funding sources are simply not available. Page 2 of 29 Resolutions Re Bonds and Boat Launch Project Funding January 25, 2011 Page 3 The Boat Launch Project is consistent with and in furtherance of the goals and objectives of the Amended and Restated Redevelopment Plan for the Rancho Laguna Redevelopment Project Area No. 1 (the "Redevelopment Plan") and the Agency's Redevelopment and Housing Implementation Plan for 2009-2014 (the "Implementation Plan"). These include the elimination of blighting by providing for the planning, development, re-planning, redesign, redevelopment, reconstruction and rehabilitation of public improvements and facilities that are currently stagnant, improperly utilized and/or inadequately served as may be appropriate or necessary in the interest of the general welfare. Consistent with the structure of recent bonds issuances, the proposed Bonds would be issued by the Public Finance Authority and the proceeds then loaned to the Redevelopment Agency. The Redevelopment Agency will then, in keeping with its commitment to eliminate blight and assist in the economic redevelopment of Project Area No. 1, contribute the net bond proceeds to the Boat Launch Project. The Agency will pledge tax increment revenues from Project Area No. 1 in order to meet debt service payments for the next 10 years. The Bonds will be sized in an amount necessary to complete the funding of the Boat Launch Project. Because of the uncertainty of interest rates, it is recommended that the City and Agency authorize the issuance of the Bonds in an amount not to exceed $6,000,000. This higher par amount allows for some flexibility in the final pricing of the bonds. Documents To Be Approved Approval of the attached Resolutions will authorize the execution of the following documents: 1. Indenture of Trust 2. Loan Agreements 3. Preliminary Official Statement 4. Continuing Disclosure 5. Bond Purchase Contract. In addition to the Bond approval, Health and Safety Code Section 33445.1 requires that the City make certain findings before the Redevelopment Agency commits funding for public improvement projects. Those findings include: 1. The development of the Boat Launch Project is of primary benefit to the Project Area. 2. The construction of the Boat Launch Project will help to eliminate blight in the Project Area. 3. There are no other reasonable means of financing the Boat Launch Project available to the community. Page 3 of 29 Resolutions Re Bonds and Boat Launch Project Funding January 25, 2011 Page 4 4. The payment of redevelopment funds is consistent with the Agency's Redevelopment and Housing Implementation Plan for 2009-2014 adopted pursuant to Health and Safety Code Section 33490. 5. The construction of recreational and replacement facilities like the Boat Launch Project is provided for in the Redevelopment Plan. A City resolution containing these findings is attached for the City Council's consideration. Finally, the Redevelopment Agency is obligated to make findings that assisting in the funding of the Boat Launch Project will: 1. Assist in the elimination of blight 2. Effectuate the purposes of the Redevelopment Plan 3. Comply with the Agency's Redevelopment and Housing Implementation Plan for 2009-2014 An Agency resolution containing these findings is attached for the Agency Board's consideration. Fiscal Impac The authorization will result in additional bonded indebtedness to the Redevelopment Agency in an amount not to exceed $6,000,000. Public Notice Process The item has been noticed by way of a published notice of public hearing and through the regular Agenda notification process. Legal Review Bond Counsel has reviewed the related financing documents and approved them as to form. Recommendation City: Adopt City Resolution No. 2011-_ authorizing issuance of bonds and authorize bond documents; and Adopt City Resolution No. 2011-_ Making Findings Pursuant to Health and Safety Code Section 33445.1. Page 4 of 29 Resolutions Re Bonds and Boat Launch Project Funding January 25, 2011 Page 5 RDA Adopt Agency Resolution No. 2011-_ authorizing issuance of bonds and authorize bond documents; and Adopt Agency Resolution No. 2011-_ authorizing the funding of the Boat Launch Project. PFA Adopt PFA Resolution No. 2011-_ authorizing issuance of bonds and authorize bond documents. Prepared by: James R. Riled Director of Admi rative Services Barbara Leibold City Attorney/Agency General Counsel Approved by: Robert A. Brady City Manager/Executive Director r, Page 5 of 29 Page 6 of 29 RESOLUTION NO. 2011- RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, MAKING FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445.1 RELATING TO PAYMENT OF ALL OR PART OF THE COSTS OF THE BOAT LAUNCH PROJECT WHEREAS, the Redevelopment Agency of the City of Lake Elsinore(the "Agency"), a public body, corporate and politic, established pursuant to and existing under the California Community Redevelopment Law (the "CRL"; Health and Safety Code Section 33000 et seq.), was created by the City Council of the City of Lake Elsinore (the "City"); and WHEREAS, the Agency is undertaking activities necessary for the implementation of the Redevelopment Plan (the "Redevelopment Plan") for the Lake Elsinore Rancho Laguna Redevelopment Project Area No. I ("Project Area") approved and adopted by the City Council of the City of Lake Elsinore (the "City Council"), by Ordinance No. 607 and subsequently amended by Ordinance No. 624, Ordinance No. 987, Ordinance No. 1249 and Ordinance No. 1260; and WHEREAS, the City desires to fund certain boat launch improvements at the Lake Elsinore Campground located at 32040 Riverside Drive, Lake Elsinore (the "Property") for purposes of constructing a modern boat launch facility and ancillary improvements to serve boaters and other recreational uses utilizing Lake Elsinore along with the surrounding beaches, parks and campgrounds (the "Boat Launch Project"); and WHEREAS, the Property's existing boat launch was constructed approximately 40 years ago and is characterized by deteriorating and uneven surface materials, potholes and slippery embankment areas; and WHEREAS, the Property's existing boat launch is only usable in limited circumstances when the Lake's elevation is below 1240-feet mean sea level (MSL) whereas the Boat Launch Project will result in a usable launch up to elevation 1255 MSL, the maximum normal level of the Lake; and WHEREAS, Lake Elsinore has been widely characterized as the community's economic engine, attracting thousands of visitors each year to the largest natural freshwater lake in Southern California. Because most boaters own vessels that are less than 26-feet in length, Lake Elsinore is ideally suited to serve their needs, particularly as regional drinking water reservoirs like Lake Perris and Diamond Valley become increasingly restrictive to boaters; and WHEREAS, CRL Section 33445.1 states that the Agency may, with the consent of the City Council, pay all or a part of the value for construction of any building, facility or structure, or other improvement which is publicly owned and is located outside and Page 7 of 29 not contiguous to the Project Area, but is located within the community, if the City Council makes certain findings; and WHEREAS, the Property is located outside of the Project Area and the development of the Boat Launch Project will to serve to expand and enhance the public's recreational use of Lake Elsinore along with the public beaches, parks and campgrounds consistent with the Redevelopment Plan and will aid in the elimination of blight in Project Area; and WHEREAS, the City Council and the Agency considered funding for the proposed Boat Launch Project by the Agency at the regularly scheduled City Council and Agency meeting on January 25, 2011. THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. Based on the information presented in the staff report and at the public hearing, the City Council hereby finds and determines that: (1) The construction of the Boat Launch Project will be publically owned and is of primary benefit to the Project Area; (2) The construction of the Boat Launch Project will benefit the Project Area by helping to eliminate blight within the Project Area; and (3) No other reasonable means of financing the construction of the Boat Launch Project is available to the community, including, but not limited to, general obligation bonds, revenue bonds, special assessment bonds, or bonds issued pursuant to the Mello-Roos Community Facilities Act of 1982. In determining whether other means of financing are feasible, the City Council has taken into account the following relevant factors, including: (A) Legal factors, such as the eligibility of the improvements for funding under the governing statutes; (B) Economic factors, such as prevailing interest rates and market conditions; and (C) Political factors, such as the priority of commitments of other public funding sources, the ability or willingness of property owners or taxpayers to bear the cost of any special assessments, taxes, or other charges, and the likelihood of obtaining voter approval, if required. (4) The payment of funds for the cost of the Boat Launch Project is consistent with the Agency's Implementation Plan for 2009-2014; and Page 8 of 29 (5) The provision for park/recreation facilities and replacement facilities is provided for in the Redevelopment Plan. SECTION 3. The Acting City Clerk shall certify to the passage and adoption of this resolution and the same shall thereupon take effect and be in force. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 25th day of January, 2011. AMY BHUTTA, MAYOR CITY OF LAKE ELSINORE ATTEST: ROBERT BRADY, CITY MANAGER ACTING CITY CLERK APPROVED AS TO FORM: BARBARA LEIBOLD, CITY ATTORNEY Page 9 of 29 STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF LAKE ELSINORE }SS I, ROBERT BRADY, Acting City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. 2011- _ was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 25th day of January 2011, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ROBERT BRADY ACTING CITY CLERK Page 10 of 29 RESOLUTION NO. 2011-_ RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, RESOLUTION APPROVING THE FUNDING OF THE BOAT LAUNCH PROJECT WHEREAS, the Redevelopment Agency of the City of Lake Elsinore ("Agency") is a pubic body, corporate and politic, organized and existing under the Community Redevelopment Law of the State of California (Cal. Health & Safety Code 33000 et seq.: "CRL"); and WHEREAS, the Agency is undertaking activities necessary for the implementation of the Redevelopment Plan (the "Redevelopment Plan") for the Lake Elsinore Rancho Laguna Redevelopment Project Area No. I ("Project Area") approved and adopted by the City Council of the City of Lake Elsinore (the "City Council'), by Ordinance No. 607 and subsequently amended by Ordinance No. 624, Ordinance No. 987, Ordinance No. 1249 and Ordinance No. 1260; and WHEREAS; in order to increase the economic, recreational and general public benefits related to the use and vitality of the Lake Elsinore Campground and Recreation Area and in furtherance of the goals and objectives of the Redevelopment Plan, the Agency desires to assist in the funding of a modern boat launch facility at the Campground (the 'Boat Launch Project) by way of the Lake Elsinore Public Financing Authority Tax Allocation Revenue Bonds (Launch Ramp Project), 2011 Series A, In The Aggregate Principal Amount Not To Exceed $6,000,000 (the "Bonds"). WHEREAS, the Agency has considered all terms and conditions of the proposed Boat Launch Project, and has determined that the assistance in funding construction of Boat Launch Project is in the best interests of the Agency and in accord with the public purposes and provisions of applicable state and local laws. NOW, THEREFORE, THE REDEVELOPMENT AGENCY BOARD DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS: SECTION 1. Based on the information presented in the staff report and at the public hearing, the Agency hereby finds and determines that the financial assistance of the Boat Launch Project, pursuant to the Bonds, will assist in the elimination of blight and is necessary to effectuate the purposes of the Redevelopment Plan. SECTION 2. Based on the information presented in the staff report and at the public hearing, the Agency hereby finds and determines that the financial assistance for construction of the Boat Launch Project, in accordance with the terms and provisions of the Bonds, complies with the Redevelopment and Housing Implementation Plan for 2009-2014 adopted by the Agency pursuant to Section 33490 of the CRL. Page 11 of 29 Resolution No. 2011- Page 2 of 3 SECTION 3. The Agency hereby finds and determines that the Agency's commitment of Agency funds for the Boat Launch Project is not an "approval" within the meaning of the word set forth in CEQA Guidelines section 15352 and that the City has previously conducted a meaningful environment review and adopted a mitigated negative declaration with respect to the Boat Launch Project. SECTION 4. The Acting Agency Secretary shall certify to the passage and adoption of this resolution and the same shall thereupon take effect and be in force. PASSED, APPROVED AND ADOPTED at a regular meeting of the Redevelopment Agency of the City of Lake Elsinore, California, this 25th day of January, 2011. MELISSA MELENDEZ, CHAIRWOMAN ATTEST: ROBERT BRADY, EXECUTIVE DIRECTOR ACTING AGENCY SECRETARY APPROVED AS TO FORM: BARBARA LEIBOLD, AGENCY GENERAL COUNSEL Page 12 of 29 Resolution No. 2011- Page 3 of 3 STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF LAKE ELSINORE }SS I, ROBERT BRADY, Acting Agency Secretary of the City of Lake Elsinore, California, hereby certify that Resolution No. 2011- _ was adopted by the Redevelopment Agency of the City of Lake Elsinore, California, at a regular meeting held on the 25th day of January 2011, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: ROBERT BRADY ACTING AGENCY SECRETARY Page 13 of 29 Page 14 of 29 Page 1 of 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING A PROJECT AREA NO. I LOAN AGREEMENT TO BE ENTERED INTO BY THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE IN CONNECTION WITH THE ISSUANCE OF THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY TAX ALLOCATION REVENUE BONDS (LAUNCH RAMP PROJECT), 2011 SERIES A, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $6,000,000; AND AUTHORIZING THE TAKING OF CERTAIN OTHER ACTIONS RELATED THERETO WHEREAS, the Lake Elsinore Public Financing Authority (the "Authority") is a joint exercise of powers authority duly organized and existing under and pursuant to that certain Joint Exercise Powers Agreement by and between the City of Lake Elsinore (the "City") and the Redevelopment Agency of the City of Lake Elsinore (the "Agency"), under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act"), and is authorized pursuant to Article 4 of the Act to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations to provide financing and refinancing for capital improvements of member entities of the Authority; and WHEREAS, for the purpose of assisting the Agency in the financing of certain Lake Elsinore launch ramp improvements and related facilities (the "Facilities'), the Authority has determined to issue its Tax Allocation Revenue Bonds (Launch Ramp Project), 2011 Series A (the `Bonds"); and WHEREAS, the proceeds of the Bonds will be loaned to the Agency pursuant to a Project Area No. I Loan Agreement (the 'Project Area No. I Loan Agreement') to be repaid from certain tax increment revenues of the Agency derived from Project Area No. I; and WHEREAS, to that end, each of the Agency and the Authority have adopted a resolution on the date hereof, approving said financing; and WHEREAS, the City has heretofore held a public hearing pursuant to Section 6586.5 of the Act; NOW, THEREFORE, the City Council of the City of Lake Elsinore, California, does hereby resolve as follows: Section 1. The City Council hereby approves the Agency entering into the Project Area No. I Loan Agreement. 1 Page 15 of 29 CC Resolution No. 2011- Page 2 of 3 Section 2. The City hereby finds and determines that (i) the Facilities are to be located within the boundaries of the City and (ii) there are significant public benefits arising from the Authority's issuance of the Bonds to assist the Agency in financing the Facilities, including, but not limited to, employment benefits from undertaking the acquisition of the Facilities in a timely fashion, as contemplated by Section 6586 of the Act. Section 3. Any one of the Authorized Officers, Bond Counsel, Disclosure Counsel and the other consultants to and agents of the City, are each hereby authorized and directed to do all things and take all actions necessary or desirable to effectuate the transactions contemplated by this Resolution, and to execute such other assignments, agreements, certificates, receipts, endorsements, orders, opinions and other documents in connection with such transactions, including, without limitation, closing documents in connection with the issuance of the Bonds, and all actions heretofore taken by the officers, employees and agents of the City in connection with the issuance of the Bonds are hereby ratified, approved and confirmed in every respect. An Authorized Officer shall include the Mayor, the City Manager, the Director of Administrative Service, and any designee of any of them. Section 4. This Resolution shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Lake Elsinore, California, this 25th day of January, 2011. AMY BHUTTA, MAYOR CITY OF LAKE ELSINORE ATTEST: [NAME] CITY CLERK APPROVED AS TO FORM: BARBARA ZEID LEIBOLD CITY ATTORNEY 2 Page 16 of 29 CC Resolution No. 2011- Page 3 of 3 STATE OF CALIFORNIA COUNTY OF RIVERSIDE SS CITY OF LAKE ELSINORE I, [NAME], City Clerk of the City of Lake Elsinore, California, hereby certify that Resolution No. was adopted by the City Council of the City of Lake Elsinore, California, at a regular meeting held on the 25th day of January, 2011, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: [NAME] CITY CLERK 3 Page 17 of 29 Page 18 of 29 Page 1 of 5 RESOLUTION NO. A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING THE ISSUANCE OF LAKE ELSINORE PUBLIC FINANCING AUTHORITY TAX ALLOCATION REVENUE BONDS (LAUNCH RAMP PROJECT), 2011 SERIES A, IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $6,000,000; APPROVING A BOND PURCHASE CONTRACT, A PROJECT AREA NO. I LOAN AGREEMENT, A CONTINUING DISCLOSURE AGREEMENT AND A PRELIMINARY OFFICIAL STATEMENT; AND AUTHORIZING THE TAKING OF CERTAIN OTHER ACTIONS RELATED THERETO WHEREAS, the Lake Elsinore Public Financing Authority (the "Authority") is a joint exercise of powers authority duly organized and existing under and pursuant to that certain Joint Exercise Powers Agreement by and between the City of Lake Elsinore (the "City") and the Redevelopment Agency of the City of Lake Elsinore (the "Agency'), under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act'), and is authorized pursuant to Article 4 of the Act to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations to provide financing and refinancing for capital improvements of member entities of the Authority; and WHEREAS, for the purpose of assisting the Agency in financing certain Lake Elsinore launch ramp improvements and related facilities, the Authority has determined to issue its Tax Allocation Revenue Bonds (Launch Ramp Project), 2011 Series A (the "Bonds'); and WHEREAS, the proceeds of the Bonds will be loaned to the Agency pursuant to a Project Area No. I Loan Agreement (the "Project Area No. I Loan Agreement") to be repaid from certain tax increment revenues of the Agency derived from Project Area No. I; and NOW, THEREFORE, the Redevelopment Agency of the City of Lake Elsinore does hereby resolve as follows: Section 1. The Agency hereby approves the issuance of the Bonds in the aggregate principal amount not to exceed $6,000,000. Section 2. The Agency hereby approves the Project Area No. I Loan Agreement in substantially the form on file with the Secretary of the Agency and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver the Project Area No. I Loan Agreement, with such insertions and changes I Page 19 of 29 RDA Resolution No. 2011- Page 2 of 5 as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. An Authorized Officer shall include the Chairman, the Executive Director and the Secretary of the Agency, and each of them, and any designee of any of them. Section 3. The Agency hereby approves the Bond Purchase Contract, in substantially the form on file with the Secretary of the Agency and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver the Bond Purchase Contract, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. The underwriter's discount for the Bonds specified in the Bond Purchase Contract shall not exceed 2.0%, exclusive of original issue discount. The Bonds shall bear interest at a rate or rates not to exceed 7.0% per annum. Section 4. The Agency hereby approves the form of the Preliminary Official Statement ( the "Preliminary Official Statement"), in substantially the form on file with the Secretary of the Agency, with such changes and modifications as shall be necessary or appropriate for completion to the satisfaction of the Executive Director of the Agency, and approval by Fulbright & Jaworski L.L.P., the Authority's Disclosure Counsel. The Executive Director is authorized and directed, on behalf of the Agency to deem the Preliminary Official Statement "final" pursuant to Rule 15c2-12 under the Securities and Exchange Act of 1934. The Agency further approves distribution of the Preliminary Official Statement by the Underwriter to persons who may be interested in purchasing the Bonds. The Board hereby approves the final Official Statement describing the Bonds. Distribution of the final Official Statement by the Underwriter is hereby approved. The Executive Director, subject to approval by the Authority's Disclosure Counsel, is hereby authorized and directed to approve any changes in or additions to the final form of the Official Statement to conform to the requirements of the Bond Purchase Contract and the Indenture, as applicable. Section 5. The Agency hereby approves the Continuing Disclosure Agreement in substantially the form on file with the Secretary of the Agency and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Agency, to execute and deliver the Continuing Disclosure Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 6. The Authorized Officers, the other officers and employees of the Agency, the members of the Agency's Governing Board, Bond Counsel, Disclosure 2 Page 20 of 29 RDA Resolution No. 2011- Page 3 of 5 Counsel and the other consultants to and agents of the Agency, are each hereby authorized and directed to do all things and take all actions necessary or desirable to effectuate the transactions contemplated by this Resolution, and to execute such other assignments, agreements, certificates, receipts, endorsements, orders, opinions and other documents in connection with such transactions, including, without limitation, closing documents in connection with the issuance of the Bonds, and all actions heretofore taken by the officers, employees and agents of the Agency in connection with the issuance of the Bonds are hereby ratified, approved and confirmed in every respect. Section 7. This Resolution shall become effective immediately upon adoption. 3 Page 21 of 29 RDA Resolution No. 2011- Page 4 -of 5 PASSED, APPROVED AND ADOPTED at a regular meeting of the Redevelopment Agency of the City of Lake Elsinore, California, this 25th day of January, 2011. MELISSA A. MELENDEZ, CHAIRMAN LAKE ELSINORE REVELOPMENT AGENCY ATTEST: [NAME] AGENCY SECRETARY APPROVED AS TO FORM: BARBARA ZEID LEIBOLD AGENCY COUNSEL 4 Page 22 of 29 RDA Resolution No. 2011- Page 5 of 5 STATE OF CALIFORNIA COUNTY OF RIVERSIDE SS CITY OF LAKE ELSINORE I, [NAME], Agency Secretary of the Redevelopment Agency of the City of Lake Elsinore, California, hereby certify that Resolution No. was adopted by the Redevelopment Agency of the City of Lake Elsinore, California, at a regular meeting held on the 25th day of January, 2011, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: [NAME] AGENCY SECRETARY 5 Page 23 of 29 Page 24 of 29 Page 1 of 5 RESOLUTION NO. A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY APPROVING THE ISSUANCE OF LAKE ELSINORE PUBLIC FINANCING AUTHORITY TAX ALLOCATION REVENUE BONDS (LAUNCH RAMP PROJECT), 2011 SERIES A IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $6,000,000; APPROVING AN INDENTURE OF TRUST, A BOND PURCHASE CONTRACT, A PROJECT AREA NO. I LOAN AGREEMENT AND A PRELIMINARY OFFICIAL STATEMENT; AND AUTHORIZING THE TAKING OF CERTAIN OTHER ACTIONS RELATED THERETO WHEREAS, the Lake Elsinore Public Financing Authority (the "Authority") is a joint exercise of powers authority duly organized and existing under and pursuant to that certain Joint Exercise Powers Agreement by and between the City of Lake Elsinore (the "City") and the Redevelopment Agency of the City of Lake Elsinore (the "Agency"), under the provisions of Articles 1 through 4 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Act"), and is authorized pursuant to Article 4 of the Act to borrow money for the purpose of financing the acquisition of bonds, notes and other obligations to provide financing and refinancing for capital improvements of member entities of the Authority; and WHEREAS, for the purpose of assisting the Agency in financing certain Lake Elsinore launch ramp improvements and related facilities (the "Facilities"), the Authority has determined to issue its Tax Allocation Revenue Bonds (Launch Ramp Project), 2011 Series A (the "Bonds'); and WHEREAS, the proceeds of the Bonds will be loaned to the Agency pursuant to a Project Area No. I Loan Agreement (the "Project Area No. I Loan Agreement") to be repaid from certain tax increment revenues of the Agency derived from Project Area No. I; and WHEREAS, the City, one of the members of the Authority, has heretofore held a public hearing pursuant to Section 6586.5 of the Act and in connection therewith has approved the Authority assisting the Agency in financing the Facilities and has found and determined that (i) the Facilities are to be located within the boundaries of the City and (ii) there are significant public benefits arising from the Authority's issuance of the Bonds to assist the Agency in financing the Facilities, including, but not limited to, employment benefits from undertaking the acquisition of the Facilities in a timely fashion, as contemplated by Section 6586 of the Act; I Page 25 of 29 PFA Resolution No. 2011- Page 2 of 5 NOW, THEREFORE, the Board of Directors of the Lake Elsinore Public Financing Authority does hereby resolve as follows: Section 1. The foregoing recitals are true and correct and the Authority hereby so finds and determines Section 2. The Authority hereby approves the issuance of the Bonds in the aggregate principal amount not to exceed $6,000,000 pursuant to the Indenture of Trust, in substantially the form on file with the Secretary of the Authority and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Indenture of Trust, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. An Authorized Officer shall include any member of the Board of Directors, the Chairman, the Executive Director, the Treasurer, the Secretary, or any officer of the Authority designated by the Chairman or the Executive Director as an Authorized Officer. Section 3. The Authority hereby authorizes the sale of the Bonds to the Underwriter pursuant to and in accordance with the Bond Purchase Contract, in substantially the form on file with the Secretary of the Authority and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Bond Purchase Contract, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. The underwriter's discount for the Bonds specified in the Bond Purchase Contract shall not exceed 2.0%, exclusive of original issue discount. The Bonds shall bear interest at a rate or rates not to exceed 7.0% per annum. Section 4. The Authority hereby approves the form of the Preliminary Official Statement, in substantially the forms on file with the Secretary of the Authority, with such changes and modifications as shall be necessary or appropriate for completion to the satisfaction of the Executive Director of the Authority, and approval by Fulbright & Jaworski L.L.P., the Authority's Disclosure Counsel. The Executive Director is authorized and directed, on behalf of the Authority to deem the Preliminary Official Statement "final" pursuant to Rule 15c2-12 under the Securities and Exchange Act of 1934. The Authority further approves distribution of the Preliminary Official Statement by the Underwriter to persons who may be interested in purchasing the Bonds. The Board hereby approves the final Official Statement describing the Bonds. Distribution of the final Official Statement by the Underwriter is hereby approved. The Executive Director, subject to approval by the Authority's Disclosure Counsel, is hereby authorized and directed to approve any changes in or additions to the final form of the Official Z Page 26 of 29 PFA Resolution No. 2011- Page 3 of 5 Statement to conform to the requirements of the Bond Purchase Contract and the Indenture of Trust, as applicable. Section 5. The Authority hereby approves the Project Area No. I Loan Agreement in substantially the form on file with the Secretary of the Authority and presented to the Board at this meeting. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Authority, to execute and deliver the Project Area No. I Loan Agreement, with such insertions and changes as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 6. Any one of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the Authority, to evaluate and select one or more municipal bond insurers for all or any portion of the Bonds and to execute and deliver such contracts and agreements with such bond insurers as may be approved by the Authorized Officer executing the same, subject to the provisions of this Resolution, such approval to be conclusively evidenced by such execution and delivery. Section 7. The Authorized Officers, the other officers and employees of the Authority, the members of the Authority's Board of Directors, Bond Counsel, Disclosure Counsel and the other consultants to and agents of the Authority, are each hereby authorized and directed to do all things and take all actions necessary or desirable to effectuate the transactions contemplated by this Resolution, and to execute such other assignments, agreements, certificates, receipts, endorsements, orders, opinions and other documents in connection with such transactions, including, without limitation, closing documents in connection with the issuance of the Bonds, and all actions heretofore taken by the officers, employees and agents of the Authority in connection with the issuance of the Bonds are hereby ratified, approved and confirmed in every respect. Section 8. This Resolution shall become effective immediately upon adoption. 3 Page 27 of 29 PFA Resolution No. 2011- Page 4 of 5 PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors of the Lake Elsinore Public Financing Authority this 25th day of January, 2011. DARYL HICKMAN CHAIRMAN ATTEST: [NAME] SECRETARY APPROVED AS TO FORM: BARBARA ZEID LEIBOLD AUTHORITY COUNSEL Page 28 of 29 PFA Resolution No. 2011- Page 5 of 5 STATE OF CALIFORNIA COUNTY OF RIVERSIDE SS CITY OF LAKE ELSINORE I, [NAME], Secretary of the Lake Elsinore Public Financing Authority, hereby certify that Resolution No. was adopted by the Board of Directors of the Lake Elsinore Public Financing Authority, at a regular meeting held on the 25th day of January, 2011, and that the same was adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: [NAME] SECRETARY 5 Page 29 of 29