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HomeMy WebLinkAboutPFA Reso No 2014-002 Revenue Bonds (Summerly 1A B)RESOLUTION NO. PFA- 2014 -002 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE LAKE ELSINORE PUBLIC FINANCING AUTHORITY APPROVING THE ISSUANCE OF LAKE ELSINORE PUBLIC FINANCING AUTHORITY LOCAL AGENCY REVENUE BONDS (SUMMERLY IA B), 2015 SERIES A IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $4,000,000 PURSUANT TO AN INDENTURE OF TRUST, AUTHORIZING THE SALE OF SUCH BONDS UPON CERTAIN TERMS AND CONDITIONS, AUTHORIZING THE PREPARATION OF AN OFFICIAL STATEMENT, A PURCHASE CONTRACT AND A COMMITMENT AGREEMENT AND PURCHASE CONTRACT FOR THE PURCHASE AND SALE OF LOCAL OBLIGATION BONDS OF THE CITY OF LAKE ELSINORE COMMUNITY FACILITIES DISTRICT NO. 2006 -1 (SUMMERLY) AND TAKING 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, the City Council of the City of Lake Elsinore, as the legislative body of the City of Lake Elsinore Community Facilities District No. 2006 -1 (Summerly) (the "District'), has authorized the issuance of City of Lake Elsinore Community Facilities District No. 2006 -1 (Summerly) Special Tax Bonds, 2015 Series (Improvement Area B) (the "Local Obligations ") for the purpose of financing the purchase, construction, expansion or rehabilitation of certain real and other tangible property with an estimated useful life of five years or longer, including public infrastructure facilities which the City or the District is authorized by law to construct, own or operate, which are necessary to meet increased demands placed upon the City as a result of development or rehabilitation occurring within the District (the "Facilities "); and WHEREAS, for the purpose of assisting the City and the District in financing the Facilities, the Authority has determined to issue its Local Agency Revenue Bonds (Summerly IA B), 2015 Series A ( the "Bonds "); and WHEREAS, the Authority intends to use a portion of the proceeds of the Bonds to purchase the Local Obligations pursuant to a Commitment Agreement and Purchase Contract for Purchase and Sale of Local Obligation Bonds (the "Commitment Agreement and Purchase Contract') to be entered into between the Authority and the District; and 47184351.1 Resolution No. PFA- 2014 -002 Page 2 WHEREAS, the City, as 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's financing of 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 finance the Facilities, as contemplated by Section 6586 of the Act; 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 $4,000,000 pursuant to the Indenture of Trust (the "Indenture "), in substantially the form on file with the Secretary of the Authority and presented to the Board at this meeting. Any one of the Chairperson, the Executive Director and the Secretary of the Authority, and each of them, and any designee of any of them (collectively, 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, 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 3. The Authority hereby authorizes the preparation of a Preliminary Official Statement, the Purchase Contract and the Commitment Agreement and Purchase Contract, all relating to the sale of the Bonds or the Local Obligations. The approval of the Preliminary Official Statement, the Purchase Contract and the Commitment Agreement and Purchase Contract in substantially final forms shall occur at a subsequent meeting of the Board of Directors of the Authority, and such approval is hereby made a condition precedent to the sale and issuance of the Bonds and the Local Obligations. Furthermore, to the extent 50% of the homes in Improvement Area B of the District have closed escrow, each of the respective home builders shall secure its obligations to pay special taxes with a letter of credit acceptable to an Authorized Officer in the amounts equal to 2 years of debt service for such parcels owned by the respective home builder, which letter of credit can be released when a home builder has sold and closed escrow on at least 80% of the parcels being developed by such home owner. Section 4. 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 47184351.1 2 Resolution No. PFA- 2014 -002 Page 3 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 5. This Resolution shall become effective immediately upon adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the Board of Directors of the Lake Elsinore Public Financing Authority this 9th day of December, 2014. j 4�1 . DARYL HICKMAN CHAIRPERSON ATTEST- VIRGW4A B OOM SECRETAR / APPROVED AS TO FO im. BA BARA ZEI LEI OLD COUNSEL TO AUTHORITY 47184351.1 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Virginia J. Bloom, City Clerk of the City of Lake Elsinore, California, hereby certify that PFA Resolution No. 2014 -002 was adopted by the Public Financing Authority of the City of Lake Elsinore, California, at a regular meeting held on the 9th day of December 2014, and that the same was adopted by the following vote: AYES: Vice Chair Tisdale, Chair Hickman, Agency Member Manos, Agency Member Magee, and Agency Member Johnson NOES: None ABSENT: None ABSTAIN: None Virgini . BI r, Authority Clerk