HomeMy WebLinkAbout2022-15 TPFA ResolutionRESOLUTION NO. TPFA 2022-15
A RESOLUTION OF THE BOARD OF DIRECTORS OF
THE TEMECULA PUBLIC FINANCING AUTHORITY
APPROVING THE PREPAYMENT OF FINANCING LEASE
AGREEMENTS ENTERED INTO BY THE CITY OF
TEMECULA IN 2011 AND 2018 RELATING TO THE
FINANCING AND REFINANCING OF CAPITAL
PROJECTS FOR THE CITY AND AUTHORIZING AND
DIRECTING CERTAIN ACTIONS WITH RESPECT
THERETO
RESOLVED, by the Board of Directors (the "Board") of the Temecula Public Financing
Authority (the "Authority"), as follows:
WHEREAS, in 2011, the City of Temecula (the "City"), together with the Authority,
entered into a lease transaction to refund (a) certificates of participation delivered in 2001 to
finance and refinance the construction of various community recreation facilities, and (b)
certificates of participation delivered in 2008 to finance the construction of the Temecula Civic
Center (the "2011 Lease Financing");
WHEREAS, in 2018, the City, together with the Authority, entered into a lease
transaction to finance the construction and equipping of a new recreation center in Margarita
Park in place of the former YMCA including the demolition of the existing building and pool
and construction and equipping of a new building and pool (the "2018 Lease Financing");
WHEREAS, in connection with the 2011 Lease Financing, the City entered into a
financing lease agreement which requires the City to make semi-annual lease payments (which
include a principal component and an interest component) from its general fund (the "2011 Lease
Agreement") and in connection with the 2018 Lease Financing, the City entered into a financing
lease agreement which requires the City to make semi-annual lease payments (which include a
principal component and an interest component) from its general fund (the "2018 Lease
Agreement");
WHEREAS, the lease payments made by the City under the 2011 Lease Agreement were
assigned to Compass Mortgage Corporation, since succeeded by PNC Bank, National
Association (the "Bank"), which, in exchange for such assignment, advanced funds to the City to
refund the 2001 certificates of participation and the 2008 certificates of participation;
WHEREAS, the lease payments made by the City under the 2018 Lease Agreement were
also assigned to the Bank which, in exchange for such assignment, advanced funds to the City to
finance the construction and equipping of a new recreation center in Margarita Park in place of
the former YMCA including the demolition of the existing building and pool and construction
and equipping of a new building and pool;
WHEREAS, the remaining principal amount of the 2011 Lease Agreement is
$12,482,000 and the remaining principal amount of the 2018 Lease Agreement is $4,982,079;
WHEREAS, the current terms of the 2011 Lease Agreement preclude the option by the
City to prepay the agreement until December 1, 2026, and the current terms of the 2018 Lease
Agreement preclude the option by the City to prepay the agreement until September 1, 2028;
WHEREAS, the City desires to prepay the 2011 Lease Agreement and the 2018 Lease
Agreement in advance of the stated prepayment dates and has requested that the Bank waive the
stated prepayment dates and permit the immediate prepayment of the 2011 Lease Agreement and
the 2018 Lease Agreement;
WHEREAS, the Bank has agreed to waive the stated prepayment dates and to permit the
immediate prepayment of the 2011 Lease Agreement and the 2018 Lease Agreement at the
current remaining principal amount thereof in exchange for the payment of a release fee equal to
1% of the principal amount of each agreement plus accrued interest from the last interest
payments made by the City;
WHEREAS, the prepayment amount for the 2011 Lease Agreement, assuming
prepayment on December 15, 2022, is $12,624,606.85 (remaining principal amount of
$12,482,000.00, plus a 1% release fee of $124,820.00, and accrued interest from December 1,
2022 of $17,786.85); and
WHEREAS, the prepayment amount for the 2018 Lease Agreement, assuming
prepayment on December 15, 2022, is $5,038,999.25 (remaining principal amount of
$4,982,079.00, plus a 1% release fee of $49,820.79, and accrued interest from December 1, 2022
of $7,099.46);
NOW, THEREFORE, it is hereby DECLARED and ORDERED, as follows:
Section 1. The Board hereby approves the prepayment by the City of the 2011 Lease
Agreement in the total amount of $12,624,606.85 and approves the prepayment by the City of
the 2018 Lease Agreement in the total amount of $5,038,999.25.
Section 2. The Chair of the Board or the Executive Director is hereby authorized and
directed to execute any and all documents required to properly consummate the prepayment of
the 2011 Lease Agreement and the 2018 Lease Agreement including, but not limited to, and
documents required to terminate the encumbrances on the real estate of the City that was
employed in connection with the 2011 Lease Financing and the 2018 Lease Financing and any
and such other agreements, documents and certificates and to take such other actions as may be
necessary to effect the purposes of this resolution.
Section 3. This resolution shall take effect upon its adoption by the Board.
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PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula
Public Financing Authority this 130' day of December, 2022.
ATTEST:
Randi Joh , ecretary
[SEAL]
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Matt Rahn, Chair
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss
CITY OF TEMECULA )
I, Randi Johl, Secretary of the Temecula Public Financing Authority, do hereby certify
that the foregoing Resolution No. TPFA 2022-15 was duly and regularly adopted by the Board
of Directors of the Temecula Public Financing Authority at a meeting thereof held on the I P
day of December, 2022, by the following vote:
AYES: 5 BOARD MEMBERS:
NOES: 0 BOARD MEMBERS:
ABSTAIN: 0 BOARD MEMBERS:
ABSENT: 0 BOARD MEMBERS:
Alexander, Edwards, Rahn, Schwank,
Stewart
None
None
None
Randi Johl, Secretary