HomeMy WebLinkAboutCity Council Item No. 09CITY OF
LADE . LSIIYORX
DREAM EXTREME.
REPORT TO CITY COUNCIL
TO: HONORABLE MAYOR
AND MEMBERS OF THE CITY COUNCIL
FROM: ROBERT A. BRADY
CITY MANAGER
DATE: APRIL 12, 2011
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, ACTING AS LEGISLATIVE BODY FOR CITY
OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1
(SUMMERLY), DECLARING ITS OFFICIAL INTENT THAT THE
DISTRICT ISSUE OBLIGATIONS FOR CERTAIN PUBLIC
IMPROVEMENTS AND TO ALLOW FOR THE REIMBURSEMENT OF
EXPENDITURES MADE PRIOR TO THE ISSUANCE OF SUCH
OBLIGATIONS
Background
In connection with the proposed development of the Summerly project within the
Eastlake Specific Plan, the City established a Community Facilities District in 2006
(CFD No. 2006-1). The purpose of CFD No. 2006-1 is to assist the developer in
financing public improvements necessary for development of the Summerly project.
CFD No. 2006-1 is funded by special taxes levied on property owners within the district.
The Summerly project developer, McMillin Summerly LLP, anticipates requesting that
bonds be issued which will be paid from the special taxes levied within the district. As a
preliminary matter, certain federal requirements must first be satisfied in order to use
the bond proceeds to reimburse the developer for public improvements costs incurred
prior to the issuance of the bonds.
Discussion
Federal law (section 1.150-2 of the Treasury Regulations promulgated under section
150 of the Internal Revenue Code) require that a public agency declare its official intent
to use the proceeds of any CFD bonds for public improvement expenditures incurred
prior to the issuance of the bonds.
The attached resolution contains a declaration of the official intent necessary to satisfy
Federal law. The resolution does not, however, authorize the issuance of bonds.
AGENDA ITEM NO. 9
Page 1 of 5
Resolution Regarding CFD No. 2006-1
April 12, 2010
Page 2
Accordingly, the City Council retains full discretion to consider whether or not to
authorize the issuance of bonds at a later date.
Fiscal Impact
There is no fiscal impact.
Recommendations
1. Adopt Resolution No. 2011-021 declaring the City Council's official intent that
CFD No. 2006-1 issue obligations for certain public improvements and to allow
for the reimbursement of expenditures made prior to the issuance of such
obligation.
Prepared by: James Rile
Director of A inistrative Services
Approved by: Robert A. Brady
City Manager
ATTACHMENTS
1. Resolution No. 2011-021
Page 2 of 5
RESOLUTION NO. 2011-021
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE
ELSINORE, CALIFORNIA, ACTING AS LEGISLATIVE BODY FOR CITY
OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006-1
(SUMMERLY), DECLARING ITS OFFICIAL INTENT THAT THE
DISTRICT ISSUE OBLIGATIONS FOR CERTAIN PUBLIC
IMPROVEMENTS AND TO ALLOW FOR THE REIMBURSEMENT OF
EXPENDITURES MADE PRIOR TO THE ISSUANCE OF SUCH
OBLIGATIONS
WHEREAS, the City Council of City of Lake Elsinore, California, acting as
Legislative Body for City of Lake Elsinore Community Facilities District No. 2006-1
(Summerly) (the "District") pursuant to the Mello-Roos Community Facilities Act of 1982
(the "Act") desires and intends that the District finance the acquisition and construction
of certain public facilities and related costs (the "Public Facilities"), and the payment of
development impact fees, environmental mitigation fees or charges imposed by City of
Lake Elsinore, California (the "City") or by Elsinore Valley Municipal Water District (the
"Water District") (the "Fees" and, with the Public Facilities, the "Public Improvements
Project") related to the development of a residential project within the District commonly
known as "Summerly"; and
WHEREAS, the City, acting on behalf of the District, previously has entered into
that certain Funding, Construction and Acquisition Agreement with Laing CP-Lake
Elsinore LLC (including any successor or assignee, the "Owner") dated for identification
purposes as of February 28, 2006, which agreement remains in full force and effect and
more particularly describes the Public Improvements Project;
WHEREAS, the District expects to cause the execution, delivery, and sale of
bonds, notes, or other obligations, in one or more series, for the purpose of providing
financing for the Public Improvements Project in a principal amount of not to exceed
$40,000,000 (the "Obligations"); and
WHEREAS, the Legislative Body expects that certain expenditures relating to the
Public Improvements Project will be incurred and paid from other sources of money
made available to the District, the City or the Water District by the City, the Owner or
other persons prior to the issuance of the Obligations (the "Reimbursable Public
Improvements Expenditures"); and
WHEREAS, the Legislative Body reasonably expects that a portion of the
proceeds of the Obligations will be used to reimburse all or a portion of the
Reimbursable Public Improvements Expenditures; and
THE CITY COUNCIL OF THE CITY OF LAKE ELSINORE, CALIFORNIA,
ACTING AS LEGISLATIVE BODY FOR CITY OF LAKE ELSINORE COMMUNITY
Page 3 of 5
FACILITIES DISTRICT NO. 2006-1 (SUMMERLY), DOES HEREBY RESOLVE,
DECLARE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. The District hereby declares its official intent, subject to further
approval of the Legislative Body, to use the proceeds of the Obligations to reimburse
Reimbursable Public Improvement Expenditures. It is intended that this Resolution
shall constitute a declaration of "official intent" within the meaning of section 1.150-2 of
the Treasury Regulations promulgated under section 150 of the Internal Revenue Code
of 1986.
SECTION 2. The adoption of this Resolution shall not bind the District to proceed
with the execution and delivery of the Obligations until and unless all other necessary
actions and approvals are taken or received in accordance with all applicable laws.
SECTION 3. All actions heretofore taken by the officers, or their respective
designees, and the employees and agents of the City, on behalf of the District, in
connection with the financing of the Public Improvements Project are hereby ratified and
confirmed. The officers and their designees, the employees and agents of the City,
acting on behalf of the District, are hereby authorized to take any and all actions in
connection with the financing of the Public Improvements Project and as may be
necessary and consistent with the purposes of this resolution.
SECTION 4. The 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 12th day of April, 2011.
AMY BHUTTA, MAYOR
CITY OF LAKE ELSINORE
ATTEST:
VIRGINIA BLOOM
CITY CLERK
APPROVED AS TO FORM:
BARBARA LEIBOLD, CITY ATTORNEY
Page 4 of 5
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE
CITY OF LAKE ELSINORE }SS
I, VIRGINIA BLOOM, 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 12th day of April, 2011, and
that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
VIRGINIA BLOOM
CITY CLERK
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