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HomeMy WebLinkAboutSA Reso 2014-05 Delinquent Tax ReceivablesRESOLUTION NO. SA- 2014 -005 A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING ASSIGNMENT OF DELINQUENT TAX RECEIVABLES TO THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR PRIOR FISCAL YEARS, AND AUTHORIZING EXECUTION AND DELIVERY OF RELATED DOCUMENTS AND ACTIONS WHEREAS, under Section 6516.6 of the Government Code of the State of California (the "Law "), a local agency is authorized to sell and assign to a joint powers authority any or all of its right, title, and interest in and to the enforcement and collection of delinquent and uncollected ad valorem property taxes, special taxes and assessments, and property- related fees and charges that have been levied by or on behalf of such agency for collection on the secured, unsecured, or supplemental property tax rolls in accordance with such terms and conditions as are set forth in an agreement with the joint powers authority; and WHEREAS, the California Statewide Communities Development Authority (the "Authority ") is an existing joint powers authority and, as such, is authorized under the Law to issue its bonds, notes, certificates of participation or other obligations for the purpose of providing funds to purchase delinquent taxes and assessments in accordance with the Law upon terms and conditions which are acceptable to the local agency from whom such delinquent taxes and assessments are acquired; and WHEREAS, the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (the "Successor Agency "), as successor to the former Redevelopment Agency of the City of Lake Elsinore (the "Former Agency "), acts as legislative body for an existing community facilities district known as Redevelopment Agency of the City of Lake Elsinore CFD No. 90 -2 (the "CFD "); and WHEREAS, the Former Agency previously issued is special tax bonds captioned "$7,340,000 Redevelopment Agency of the City of Lake Elsinore Community Facilities District No. 90 -2 (Tuscany Hills Public Improvements) Special Tax Parity Bonds, 2007 Series A" (the "CFD Bonds "), debt service on which is secured solely by special taxes levied on certain property within the CFD (the "Special Taxes "); and WHEREAS, the Special Taxes may only be, used to pay debt service on the CFD Bonds and administrative costs directly related to the CFD, and for no other purpose; and WHEREAS, certain Special Taxes are currently delinquent (the "Delinquent Special Taxes "); and WHEREAS, the Authority has requested the Successor Agency to authorize the sale of its Delinquent Special Taxes to the Authority for the fiscal years ending June 30 in each of the years 2009 through 2016 (the "Covered Fiscal Years ") at a purchase price equal to 110% of the principal amount of Delinquent Special Taxes which are eligible for sale and assignment; and SUCCESSOR AGENCY RESOLUTION NO. SA 2014 -005 Page 2of3 WHEREAS, the Authority has made arrangements to issue and sell one or more series of certificates of participation representing a participation interest in all of the Delinquent Special Taxes received from the Successor Agency and delinquent taxes and assessments from other participating local agencies, which will be sold to a designee of Tower Capital Management, LLC, a Delaware limited liability company ( "Tower Capital "); and WHEREAS, the Board of the Successor Agency wishes at this time to approve the foregoing financing plan and authorize the execution and delivery of all related documents and actions; NOW, THEREFORE, THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Authorization of Sale of Delinquent Special Taxes. The Successor Agency hereby approves and authorizes the sale of Delinquent Special Taxes, in whole or in part, for any one or more of the Covered Fiscal Years, to the Authority for a minimum purchase price of 110% of the amount thereof. Section 2. Authorization to Execute Financing Documents. In order to implement the financing plan approved under Section 1, the Successor Agency hereby authorizes the Executive Director or the Director of Administrative Services (each, an "Authorized Officer "), to execute and deliver one or more agreements between the Authority and the Successor Agency whereby the Successor Agency sells Delinquent Special Taxes to the Authority upon terms and conditions which are acceptable to an Authorized Officer. An Authorized Officer is hereby authorized and directed to execute such agreements in the name and on behalf of the Successor Agency. The material terms of each such agreement shall include the following: (a) the Delinquent Special Taxes shall be sold to the Authority for a purchase price at least equal to 110% of their par amount, which shall be paid to the Successor Agency upon the closing of the transaction in funds that are immediately available to the Successor Agency; (b) as a result of such sale, the Authority shall be entitled to receive all amounts collected in respect of such Delinquent Special Taxes, including applicable interest and penalties, provided that all such collections shall continue to be made in the manner prescribed by law; (c) such sale of Delinquent Special Taxes shall be without recourse to the Successor Agency, and the Successor Agency shall not incur any liability or assume any responsibility to the Authority for the collection of the Delinquent Special Taxes; -2- SUCCESSOR AGENCY RESOLUTION NO. SA 2014 -005 Page 3of3 (d) all costs of financing the purchase of Delinquent Special Taxes by the Authority shall be the sole responsibility of the Authority, and the Successor Agency shall not have any liability for payment of such costs; and (e) in order to provide funds for the financing of the Delinquent Special Taxes, the Authority shall be authorized to sell one or more series of certificates of participation to Tower Capital. Section 3. Official Actions. The Chairperson, the Executive Director, the Director of Administrative Services, the Secretary, 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, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, amendments to existing bond indentures or similar instruments, instruments of conveyance, warrants and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the sale of Delinquent Special Taxes to the Authority for the Covered Fiscal Years. Whenever in this Resolution any officer of the Successor Agency is authorized 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 if such officer is absent or unavailable. Section 4. Effective Date. This Resolution shall take effect from and after the date of approval and adoption thereof. PASSED, APPROVED AND ADOPTED at a regular meeting of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, held this 28th day of October, 2014 by the following vote: A APPROVED AS TO FORM: I/ Virginia � Bloon-V Secretary Naja0a John46n,,�,hairperson ATTEST: Ajv—t,cL- e-- Ba ara Leibold, Successor Agency Counsel -3- STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Virginia J. Bloom, Clerk of the Board of the Successor Agency of the Redevelopment Agency for the City of Lake Elsinore, California, hereby certify that Resolution No. SA 2014 -005 was adopted by the Successor Agency, at a regular meeting held on the 28th day of October 2014, and that the same was adopted by the following vote: AYES: Agency Member Tisdale, Vice Chair Manos, Agency Member Hickman, Agency Member Magee, and Chair Johnson NOES: None ABSENT: None ABSTAIN: None Virgini . Boo , Clerk of the Board