HomeMy WebLinkAbout480 RESOLUTION NO. 480
RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE
FORMER REDEVELOPMENT AGENCY OF THE CITY OF REDLANDS APPROVING AN
ARBITRAGE REBATE PAYMENT AND ADOPTING AN AMENDMENT TO THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR FISCAL YEAR 2016-17
RECITALS
WHEREAS,the Redevelopment Agency of the City of Redlands(the"Prior 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 of the Health and Safety Code of the State of California) (the"Law"),
and the powers of the Prior Agency included the power to issue bonds for any of its corporate
purposes; and
WHEREAS,the Prior Agency has previously issued its Redevelopment Agency of the City
of Redlands Redlands Redevelopment Project, Tax Allocation Refunding Bonds, Series 1998A
(the"1998 Bonds"); and
WHEREAS,the Prior Agency has previously issued its Redevelopment Agency of the City
of Redlands Redlands Redevelopment Project, Tax Allocation Bonds, Series 2003A (the "2003
Bonds"); and
WHEREAS,the Prior Agency has previously issued its Redevelopment Agency of the City
of Redlands Redlands Redevelopment Project Area,Tax Allocation Bonds,Taxable Series 2007A
(the "2007 Bonds"; and, together with the 1998 Bonds and the 2003 Bonds, the "Prior Bonds");
and
WHEREAS, on June 28, 2011, the California Legislature adopted ABxI 26 (the
"Dissolution Act")and ABxl 27 (the"Opt-in Bill"); and
WHEREAS, on November 1, 2011,the City Council of the City of Redlands (the"City")
approved Resolution 7089 electing to serve as the Successor Agency to the former Redevelopment
Agency of the City of Redlands(the"Successor Agency")pursuant to Section 34173 of the Health
and Safety Code; and
WHEREAS, the California Supreme Court subsequently upheld the provisions of the
Dissolution Act and invalidated the Opt-in Bill resulting in the dissolution of the Prior Agency as
of February 1, 2012; and
WHEREAS,the Prior Agency,including its redevelopment powers,assets and obligations,
was transferred on February 1, 2012 to the Successor Agency to the Redevelopment Agency of
the City of Redlands (the "Successor Agency"); and
WHEREAS,on or about June 27,2012,AB1484 was adopted as a trailer bill in connection
I:lcclerk\ResolutionslREDEVELOPMENT-SUCCESSOR AGENCY\Successor Agency Nos 452-1480 Arbitrage
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with the 2012-13 California Budget; and
WHEREAS, AB1484 specifically authorizes the issuance of refimding bonds by the
Successor Agency to refund the bonds or other indebtedness of the Prior Agency to provide savings
to the Successor Agency, provided that (A) the total interest cost to maturity on the refunding
bonds plus the principal amount of the refunding bonds shall not exceed the total remaining interest
cost to maturity on the bonds to be refunded plus the remaining principal of the bonds to be
refunded,and(B)the principal amount of the refunding bonds shall not exceed the amount required
to defease the refunded bonds, to establish customary debt service reserves, and to pay related
costs of issuance; and
WHEREAS, on March 16, 2016, the Successor Agency issued its Tax Allocation
Refunding Bonds, Series 2016A and Taxable Tax Allocation Refunding Bonds, Series 2016B
(collectively,the"2016 Bonds")to refund the outstanding Prior Bonds in their entirety; and
WHEREAS, following the refunding of the 1998 Bonds, BLX Group, LLC, retained to
perform the arbitrage calculations on the 1998 Bonds, informed the Successor Agency that an
arbitrage rebate payment is due to the Internal Revenue Service (the "Service") in the amount of
$316,344.21 resulting from the refunding of the 1998 Bonds (together with interest and penalties
that may become due to the Service,the"Rebate Payment"); and
WHEREAS, the Dissolution Act prohibits the Successor Agency from making payments
except as included on a Recognized Obligation Payment Schedule ("ROPS") approved by the
Oversight Board and the California Department of Finance ("DOF"); and
WHEREAS, the Rebate Payment is not included on the RODS for Fiscal Year 2016-17
("ROPS 16-17");therefore the Successor Agency must amend ROPS 16-17 to include the Rebate
Payment; and
WHEREAS,in accordance with the Internal Revenue Code,the provisions of the Indenture
requiring the Successor Agency to pay the Rebate Payment survive the refunding of the 1998
Bonds; therefore, the Successor Agency's obligation to pay the Rebate Payment constitutes an
enforceable obligation under the Dissolution Act; and
WHEREAS, the Successor Agency desires to direct the Executive Director of the
Successor Agency and his authorized designees to take all actions necessary to authorize payment
of the Rebate Payment to the Service,including without limitation obtaining Oversight Board and
DOF approval of the Rebate Payment as an enforceable obligation, preparing an amendment to
ROPS 16-17 to include the Rebate Payment as an enforceable obligation payable during Fiscal
Year 2016-17, obtaining Oversight Board and DOF approval of such amendment to ROPS 16-17
and submitting the Rebate Payment and related documentation to the Service in accordance with
the 1998 Indenture and the Internal Revenue Code, as applicable.
NOW THEREFORE,BE IT BEREBY RESOLVED by the Successor Agency as
follows:
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Section 1. The above recitals are true and correct and are a substantive part of this
Resolution.
Section 2. This Resolution is adopted pursuant to Health and Safety Code Section
34177.
Section 3. The Rebate Payment is required by the 1998 Indenture and is therefore an
enforceable obligation of the Successor Agency.
Section 4. The Successor Agency hereby authorizes and directs the Executive Director
to take all actions necessary to authorize payment of the Rebate Payment to the Service,including
without limitation obtaining Oversight Board and DOF approval of the Rebate Payment as an
enforceable obligation and to submit the Rebate Payment and related documentation to the Service
in accordance with the 1998 Indenture and the Internal Revenue Code, as applicable.
Section 5. The Successor Agency hereby adopts the amended Recognized Obligation
Payment Schedule as presented by staff that lists enforceable obligations of the former
redevelopment agency for the period of January 1, 2017 through June 30, 2017. The Successor
Agency hereby authorizes and directs the Executive Director to take all actions necessary to obtain
Oversight Board and DOF approval of such amendment to RODS 16-17.
Section 6. The Successor Agency hereby finds and determines that the amendment to
ROPS 16-17 presented herewith is necessary to enable the Successor Agency to make the Rebate
Payment.
Section 7. The Chairman of the Successor Agency, the Executive Director of the
Successor Agency, the Secretary of the Successor Agency, and any other proper officer of the
Successor Agency,acting singly,be and each of them hereby is authorized and directed to execute
and deliver any and all documents and instruments necessary or appropriate to accomplish the
purposes of this Resolution, including without limitation Sections 4 and 5 hereof.
Section 8. This Resolution shall take effect immediately upon its adoption.
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IN WITNESS WHEREOF,this Resolution is adopted and approved the 16th day of August,2016.
ADOPTED, SIGNED AND APPROVED this 16'h day of August, 2016.
...........
1-;71
Paul W. Foster, Chairman
ATTEST:
Sam. Irwin, c e ary
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I, Sam Irwin, Secretary of the Successor Agency of the former Redevelopment Agency of the City
of Redlands, hereby certify that the foregoing Resolution was duly adopted by the Successor
Agency of the former Redevelopment Agency of the City of Redlands at a special meeting thereof,
held on the 16th day of August, 2016,by the following vote:
AYES: Boardmembers Harrison, Gilbreath, Barich, James; Chairman Foster
NOES: None
ABSTAIN: None
ABSENT: None
Sam Irwin, Secretary
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