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Home My WebLink About10-059 CC Resolution 1 RESOLUTION NO. 10 -59 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TEMECULA AUTHORIZING THE REDEMPTION OF OUTSTANDING BONDS OF THE $18,690,000 COMMUNITY FACILITIES DISTRICT NO. 88 -12 OF THE CITY OF TEMECULA (YNEZ CORRIDOR) SPECIAL TAX REFUNDING BONDS, 1998 SERIES A THE CITY COUNCIL OF THE CITY OF TEMECULA DOES RESOLVE AS FOLLOWS: SECTION 1. Recitals. The City Council finds, determines and declares as follows: (a) Prior to incorporation of the City of the City of Temecula ( "City "), the County of Riverside (the "County ") initiated and conducted proceedings pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, Chapter 2.5 (commencing with § 53311) of Division 2 of Title 5 of the Government Code (the "Mello -Roos Act "), for the establishment of Community Facilities District No. 88 -12 (Ynez Corridor) of the County of Riverside, State of California (the "District "), the authorization of a bonded indebtedness for the District in an aggregate principal amount not to exceed $60,000,000, and the levy of special taxes on parcels of taxable property therein to pay the principal of and interest on bonds which may be issued to represent such bonded indebtedness and to finance the design and construction of certain public facilities through the adopted Resolution Nos. 89 -390, 89- 89-449 and 90 -046. (b) The County issued 119,000,000 Community Facilities District No. 88 -12 of the County of Riverside (Ynez Corridor) Series 1992 Special Tax Bonds" ( "1992 Bonds ") (c) Among the public facilities financed with the proceeds of the bonds of the District are the construction and widening of Ynez Road to a six (6) lane width from the north property line of the property where the Advanced Cardiovascular Systems (now owned by Abbott Laboratories) building is located southerly to its intersection with Rancho California Road, the construction of the Apricot Street (now known as Overland Drive) over - crossing of Interstate 15, including the acquisition of the right -of -way therefore, the addition of loop -ramps and related, bridge widenings at the entrances of Rancho California Road and Winchester Road to Interstate 15, the acquisition of land for the future development of regional and local parks, and the acquisition of all or a portion of Solano Way, a portion of Ynez Road at its intersection with Solano Way and all or a portion of certain water, sewer and storm drain improvements located therein (the "Public Facilities "), all of which projects are required by the City and the County and which will be of general benefit to residents throughout the City and the surrounding area. R: /Resos 2010 /Resos 10 -59 1 (d) On June 14, 1991, the City and the owners of real property in the District ( "Owners ") entered into that certain agreement entitled "Agreement Regarding Sales Tax Revenues as to Businesses Located within the Boundaries of Community Facilities District No. 88 -12 (Ynez Corridor) of the County of Riverside, State of California" ( "Reimbursement Agreement "). 1) The purpose of the Reimbursement Agreement is to set forth terms and conditions whereby the City would appropriate and make available for the payment of the principal of and interest on the Bonds of the District a portion of the sales and use tax revenues received by the City from businesses located within the District. 2) The - territory within the District is located entirely within the City and has been developed for commercial, industrial and residential uses, and such commercial and industrial uses has provide significant sales and use tax revenues to the City as contemplated by the City at the time the Reimbursement Agreement was approved. 3) The City has benefited both from the construction of the Public Facilities and the increase in sales and use tax revenues that have been derived from commercial and industrial businesses located within the District. 4) Prior to incorporation of the City, the Board of Supervisors of the County, as an inducement to the Owners to proceed with the financing of the construction of the Public Facilities and the development of their property to provide such sales and use tax revenues, agreed with the Owners to annually appropriate and make available for the payment of principal of and interest on the bonds of the District a portion of the sales and use tax revenues received by the County from commercial and industrial businesses located within the District. 5) To the extent that the Public Facilities are a community -wide benefit, it was the intent of the City to make a portion of the sales and use tax revenues received from businesses located within the District to reimburse Owners for payment of the principal and interest on the Bonds of the District (e) The County transferred the administration of the District to the City by that certain "Agreement for Transfer of Governance of Community Facilities District No. 88- 12 of the County of Riverside (Ynez Corridor)" between the County and the City dated October 15, 1997. (f) The 1992 Bonds were refunded in 1998 by 118,690,000 Community Facilities District No. 88 -12 of the City of Temecula (Ynez Corridor) Special Tax Refunding Bonds, 1998 Series A" (the "Bonds "). As part of the issuance of the Bonds, the City entered into various agreements described in the Official Statement that provided for the issuance and administration of the Bonds, including but not limited to the redemption of the Bonds. R: /Resos 2010 /Resos 10 -59 2 (g) The purposes of the Reimbursement Agreement have been fulfilled. By redeeming the Bonds, the City will eliminate its obligation under the Reimbursement Agreement while the benefits of the Public Improvements will continue to be enjoyed by the Owners in the District. SECTION 2. The City Council hereby approves the redemption of the outstanding Bonds and hereby directs and authorizes the City Manager, or his designee, to undertake and complete all actions required pursuant to the Bond Documents to effectuate the redemption of the outstanding Bonds. SECTION 3. The City Council hereby authorizes the use of money from the City's general fund for the redemption of the Bonds. SECTION 4. The Mayor, City Manager, Finance Director, Treasurer and City Clerk of the City, and any and all other officers of the City, are hereby authorized and directed, for and in the name and on behalf of the City, 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, instruments of conveyance, warrants and other documents which they, or any of them, may deem necessary or advisable in order to consummate the lawful redemption of the Bonds as described herein. SECTION 5. The City Clerk shall certify to the adoption of this Resolution. SECTION 6. This Resolution shall be effective on the date of its adoption. PASSED, APPROVED, AND ADOPTED by the City Council of the City of Temecula this 27 day of July 2010. Jeff Comerchero, Mayor ATTEST: (�lJ Susan . Jo es, MMC ity Cl k [SEAL] R: /Resos 2010 /Resos 10 -59 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk of the City of Temecula, do hereby certify that the foregoing Resolution No. 10 -59 was duly and regularly adopted by the City Council of the City. of Temecula at a meeting thereof held on the 27 day of July 2010, by the following vote: AYES: 5 COUNCIL MEMBERS: Edwards, Naggar, Roberts, Washington, Comerchero NOES: 0 COUNCIL MEMBERS: None ABSENT: 0 COUNCIL MEMBERS: None ABSTAIN: 0 COUNCIL MEMBERS: None Susa W. Jones, MMC City Clerk R: /Resos 201 Mews 10 -59 4