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HomeMy WebLinkAboutOB Reso No 2015-002RESOLUTION NO. OB- 2015 -002 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING THE ISSUANCE AND SALE OF SUBORDINATED TAX ALLOCATION REFUNDING BONDS BY THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the Redevelopment Agency of the City of Lake Elsinore (the "Former Agency") was a public body, corporate and politic, duly created, established and authorized to transact business and exercise its powers under and pursuant to the provisions of the Community Redevelopment Law (Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the State of California) (the "Law'), and the powers of the Former Agency included the power to issue Bonds for any of its corporate purposes; and WHEREAS, the Former Agency previously entered into that certain Project Area No. I Loan Agreement with the Lake Elsinore Public Financing Authority (the "Authority ") dated as of January 1, 2011 pursuant to which the Authority loaned the proceeds of its Lake Elsinore Public Financing Authority Tax Allocation Revenue Bonds (Launch Ramp Project), 2011 Series A, to the Former Agency (the "Launch Ramp Project Loan ") and the Former Agency pledged its tax increment revenues from Project Area I as the security for the repayment of the Launch Ramp Project Loan (the "Launch Ramp Project Loan Obligation "); and WHEREAS, the Former Agency previously issued its $3,260,000 initial aggregate principal amount Redevelopment Agency of the City of Lake Elsinore Subordinate Tax Allocation Bonds (Project Area No. II) Series 2011 (the 'Project Area II Agency Bonds ") and its $1,350,000 initial aggregate principal amount Redevelopment Agency of the City of Lake Elsinore Subordinate Tax Allocation Bonds (Project Area No. III) Series 2011 (the "Project Area III Agency Bonds'; and, together with the Project Area II Bonds, the "Summerly Project Agency Bonds "); which were purchased by the Authority using proceeds of its Lake Elsinore Public Financing Authority Local Agency Revenue Bonds (Summerly Project), 2011 Series A; and WHEREAS, the Summerly Project Agency Bonds and the Launch Ramp Project Loan Obligation are referred to collectively in this Resolution as the "Refunded Obligations "; and WHEREAS, on June 28, 2011, the California Legislature adopted ABx1 26 (the "Dissolution Act") and ABx1 27 (the "Opt -in Bill "); and OVERSIGHT BOARD RESOLUTION NO. OB- 2015 -002_ Page 2 WHEREAS, the California Supreme Court subsequently upheld the provisions of the Dissolution Act and invalidated the Opt -in Bill resulting in the Former Agency being dissolved as of February 1, 2012; and WHEREAS, the powers, assets and obligations of the Former Agency were transferred on February 1, 2012 to the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore (the "Successor Agency "); and WHEREAS, on or about June 27, 2012, AB1484 was adopted as a trailer bill in connection with the 2012 -13 California Budget; and WHEREAS, California Health and Safety Code Section 34177.5(a) authorizes successor agencies to refund outstanding bonds or other indebtedness to be refunded provided that (i) the total interest cost to maturity on the refunding bonds or other indebtedness plus the principal amount of the refunding bonds or other indebtedness shall not exceed the total remaining interest cost to maturity on the bonds or other indebtedness to be refunded plus the remaining principal of the bonds or other indebtedness to be refunded, and (ii) the principal amount of the refunding bonds or other indebtedness shall not exceed the amount required to defease the refunded bonds or other indebtedness, to establish customary debt service reserves, and to pay related costs of issuance; and WHEREAS, the Successor Agency desires to issue its Successor Agency to the Redevelopment Agency of the City of Lake Elsinore Subordinated Tax Allocation Refunding Bonds, Series 2015 (the "2015 Bonds ") for the purpose of refunding the Refunded Obligations and to achieve debt service savings; and WHEREAS, the Successor Agency has previously approved all matters relating to the issuance and sale of the 2015 Bonds; and WHEREAS, the Oversight Board desires to approve all matters relating to the issuance and sale of the 2015 Bonds as required by Sections 34177.5(f) and 34180 of the Health and Safety Code of the State of California. NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Each of the foregoing recitals is true and correct. Section 2. The issuance by the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore of the 2015 Bonds in an aggregate principal amount not to exceed $10,000,000 for the purpose of achieving debt service savings in accordance with Health & Safety Code Section 34177.5(a)(1) and the pledge of property tax revenues to the 2015 Bonds pursuant to the Indenture approved by Section 2 of the Successor Agency Resolution (as authorized by California Health and Safety Code Section 34177.5(a) and (g)) are hereby approved as provided for in the Indenture. The 2015 Bonds may be issued as a single issue, or from time to time in OVERSIGHT BOARD RESOLUTION NO. OB- 2015 -002_ Page 3 separate series, as the Successor Agency shall determine. The approval of the issuance of the 2015 Bonds by the Successor Agency and the Oversight Board shall constitute the approval of each and every separate series of 2015 Bonds, without the need for any further approval from the Oversight Board. Section 3. The Chairman of the Oversight Board and the other officers and members of staff having responsibility for the affairs of the Successor Agency to the Redevelopment Agency of the City of Lake Elsinore are hereby authorized to execute such documents and certificates necessary to assist the Successor Agency in the issuance of the Bonds. Section 4. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED AND ADOPTED at a special meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, held this 26th day of May, 2015. Piester,Chairperson, rsight Board to the Successor7�gency of the Redevelopment Agency of the City of Lake Elsinore ATTEST: �Jww��& Virgin a . BI m, Secretary STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF LAKE ELSINORE ) I, Virginia J. Bloom, Clerk of the Oversight Board of the City of Lake Elsinore, California, hereby certify that Resolution No. OB -2015 -002 was adopted by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, California, at a Special meeting held on the 26th day of May 2015, and that the same was adopted by the following vote: AYES: Board Members Vice -Chair Kelley NOES: None ABSENT: Chairman Oster ABSTAIN: None Tisdale, Lassey, M. Williams, P. Williams, Landon and V� I Virginia V. Blo mh Clerk of the Board J