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HomeMy WebLinkAbout5927_CCv0001.pdf RESOLUTION NO. 5927 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS MODIFYING RESOLUTION NO. 5911 OF THE CITY COUNCIL OF THE CITY OF REDLANDS WHEREAS, the City Council (the "City Council") of the City of Redlands (the "City") has conducted proceedings under and pursuant to the Mello-Roos Community Facilities Act of 1982 (the "Act") to form the City of Redlands Community Facilities District No. 2004-1 (Northwest Development Project) (the "District"), to authorize the levy of a special tax (the "Special Tax") within the District and to issue bonds secured by the Special Tax, the proceeds of which are to be used to finance certain facilities located in the District; WHEREAS, on June 19, 2001, the City Council adopted a resolution entitled "A Resolution of the City Council of the City of Redlands Authorizing the Issuance of not to Exceed $10,000,000 Aggregate Principal Amount of City of Redlands Community Facilities District No. 2001-1 (Northwest Development Project) Special Tax Bonds, Series 2001, Approving the Execution and Delivery of an Indenture, a Bond Purchase Agreement and a Continuing Disclosure Certificate and the Preparation of an Official Statement and Other Matters Related Thereto" (the `Bond Resolution"), authorizing the issuance of City of Redlands Community Facilities District No. 2001-1 (Northwest Development Project) Special Tax Bonds, Series 2001 (the"Bonds"), in an aggregate principal amount of not to exceed$10,000,000; WHEREAS, subsequent to the adoption of the Bond Resolution, it has been determined that the value of the real property that would be subject to the Special Tax to pay debt service on the Bonds may not be at least equal to the greater of the City's minimum requirement or three times the principal amount of the Bonds to be sold and the principal amount of all other bonds outstanding that are secured by a special tax levied pursuant to the Act on property within the District or a special assessment levied on property within the District (the "Minimum Value"); WHEREAS, the City Council is authorized by the Act to sell bonds pursuant to the Act only if it determines prior to the award of sale of the Bonds that the value of the real property that would be subject to the Special Tax to pay debt service on the Bonds will be at least equal to the Minimum Value unless the City Council finds and determines that the proposed Bonds do not present any unusual credit risk due to the availability of credit enhancements or for other reasons specified by the City Council pursuant to Section 53345.8 of the Act; WHEREAS, in order to minimize the credit risk with respect to the Bonds, it has been determined that, to the extent the value of the real property that would be subject to the Special Tax to pay debt service on the Bonds is not at least equal to the Minimum Value, a portion of the proceeds of the Bonds will be deposited in an escrow fund subject to release only upon receipt of an appraisal establishing such Minimum Value; DOCSLA 1:39439].1 WHEREAS, in order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and secured and to secure the payment of the principal thereof, premium, if any, and interest thereon, the City Council, in the Bond Resolution, previously approved (a) an Indenture proposed to be entered into by and between the District and U.S. Bank Trust National Association, as trustee (the "Trustee") (such Indenture, in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the "Indenture"), and (b) a Preliminary Official Statement to be used in connection with the offering and sale of the Bonds (such Preliminary Official Statement in the form presented to this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being referred to herein as the "Preliminary Official Statement"); WHEREAS, there has been prepared and submitted to this meeting a modified form of the Indenture containing provisions which, to the extent the value of the real property that would be subject to the Special Tax to pay debt service on the Bonds is not at least equal to the Minimum Value, provide that a portion of the proceeds of the Bonds will be deposited in an escrow fund subject to release only upon receipt of an appraisal establishing such Minimum Value, and a modified form of Preliminary Official Statement which reflects such modifications; WHEREAS, the District desires to proceed to issue and sell the Bonds and to authorize the execution of such documents and the performance of such acts as may be necessary or desirable to effect the offering, sale and issuance of the Bonds; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Redlands as follows: Section 1. All of the above recitals are true and correct. Section 2. Subject to the provisions of Section 3 hereof, the City Council hereby ratifies and affirms its authorization under the Bond Resolution for the issuance of the Bonds, in the aggregate principal amount of not to exceed $10,000,000, on the terms and conditions set forth in, and subject to the Iimitations specified in, the Indenture, as herein modified. Section 3. The Indenture, as modified, in substantially the form submitted to this meeting and made a part hereof as though set forth herein, be and the same is hereby approved. Section 4. The Preliminary Official Statement, as modified, in substantially the form presented to this meeting and made a part hereof as though set forth in full herein, with such changes therein as may be approved by the Mayor of the City, or such other members of the City Council as the Mayor may designate, the Mayor Pro Tem of the City, the City Manager or the Finance Director of the City, be and the same is hereby approved, and the use of the Preliminary Official Statement in connection with the offering and sale of the Bonds is hereby authorized and approved. DOCSLA 1:390391.1 2 Section 5. Pursuant to Section 53345.8 of the Act, the City Council hereby finds and determines that, as a result of the modifications to the Indenture provided for in this Resolution, the proposed Bonds do not present any unusual credit risk. Section 6. Except as otherwise modified in this Resolution, the City Council hereby ratifies and affirms the Bond Resolution. Section 7. This Resolution shall take effect immediately upon its adoption. APPROVED and ADOPTED by the City Council of the City of Redlands on July 17, 2001. - Mayor of the City of Redlands ATTEST: Ci Clerk ofi of Redlands DOCSLA1:390391.1 3