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HomeMy WebLinkAbout10-01 TPFA Resolution RESOLUTION NO. TPFA 10 -01 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY AUTHORIZING THE PURCHASE AND SALE OF TAX ALLOCATION HOUSING BONDS OF THE REDEVELOPMENT AGENCY OF THE CITY OF TEMECULA, AND APPROVING OTHER MATTERS RELATED THERETO THE BOARD OF DIRECTORS OF THE TEMECULA PUBLIC FINANCING AUTHORITY OF THE CITY OF TEMECULA DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City of Temecula and the Redevelopment Agency of the City of Temecula (the "Agency ") have entered into a Joint Exercise of Powers Agreement (the "Agreement ") creating the Temecula Public Financing Authority (the "Authority "). Section 2. Pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Law "), the Authority is authorized to purchase bonds issued by the Agency, the proceeds of which are to be used to finance public capital improvements, working capital, liability and other insurance needs, or projects whenever there are significant public benefits, as determined by the Authority, and pursuant to the Law and the Agreement, the Authority is further authorized to sell bonds so purchased to public or private purchasers by means of public or negotiated sales. Section 3. The Authority desires to purchase from the Agency not to exceed $15,000,000 aggregate initial principal amount of the Agency's Temecula Redevelopment Project No. 1 Tax Allocation Housing Bonds (the "Bonds "), with the purchase price to be paid solely from the proceeds received from the Authority's concurrent sale of the Bonds to Stone & Youngberg LLC (the "Underwriter "). Section 4. The Treasurer of the Agency, following consultation with the Agency's Financial Advisor for the Bonds and the Underwriter, will determine if the Bonds will be issued as (a) bonds the interest on which is excluded from the gross income of the owners thereof for purposes of federal income taxation ( "Tax- Exempt Bonds "); (b) bonds to be designated in the indenture of trust for the Bonds as "Build America Bonds" under the provisions of the American Recovery and Reinvestment Act of 2009, the interest on which is included in the gross income of the owners thereof for federal income tax purposes ( "Build America Bonds "); or (c) both a series of Tax - Exempt Bonds and a series of Build America Bonds. Section 5. The Agency has caused a bond purchase contract to be submitted to the Authority for approval; and the Authority now desires to approve the bond R:lrPFA Resos 2010/TPFA 10 -01 1 purchase contract and any other documents necessary for the purchase and sale of the Bonds as provided below. Section 6. Pursuant to the Law, this Board of Directors hereby finds and determines that the issuance of the Bonds and the purchase and sale thereof by the Authority will result in savings in effective interest rates, bond underwriting costs and bond issuance costs and thereby result in significant public benefits to the Agency and the Authority within the contemplation of Section 6586 of the Law. Section 7. The proposed bond purchase contract (the "Bond Purchase Agreement "), by and among the Agency, the Authority and the Underwriter, in the form on file with the Secretary of the Authority, is hereby approved. The Executive Director of the Authority is hereby authorized and directed, for and in the name and on behalf of the Authority, to accept the request that the Authority purchase the Bonds from the Agency and to accept the offer of the Underwriter to purchase the Bonds from the Authority, each subject to the terms and conditions of the Bond Purchase Agreement, and to execute and deliver the Bond Purchase Agreement; provided, however, that, the net interest cost of any Bonds issued as Tax - Exempt Bonds shall not exceed 7.50 %, the net interest cost of any Bonds issued as Build America Bonds shall not exceed 9.50% and the Underwriter's discount (without regard to any original issue discount) shall not be more than 2.00% of the principal amount of the Bonds. The final aggregate principal amount of the Bonds shall be the amount set forth in the executed Bond Purchase Agreement, not to exceed an aggregate of $15,000,000. The approval of any additions or changes in such form of the Bond Purchase Agreement shall be conclusively evidenced by the execution and delivery by the Executive Director or his designee of the Purchase Contract. Section 8. The Chairperson, the Executive Director, the Treasurer and the Secretary of the Authority, and any and all other officers of the Authority, are hereby authorized and directed, for and in the name and on behalf of the Authority, 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 purchase and sale of the Bonds as described herein. Whenever in this Resolution any officer of the Authority is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such officer to act on his or her behalf in the case such officer shall be absent or unavailable. Section 9. This Resolution shall take effect upon its adoption. R:/TPFA Resos 2010/TPFA 10 -01 2 PASSED, APPROVED, AND ADOPTED by the Board of Directors of the Temecula Public Financing Authority of the City of Temecula this 9th day of February, 2010. Comerchero, Chairperson ATTEST: Susan . Jo es, MMC City Cle Bo- d Secreta [SEAL] 1 1 R:/TPFA Resos 2010/TPFA 10-01 3 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss CITY OF TEMECULA ) I, Susan W. Jones, MMC, City Clerk/Board Secretary of the Temecula Public Financing Authority of the City of Temecula, do hereby certify that the foregoing Resolution No. TPFA 10 -01 was duly and regularly adopted by the Board of Directors of the Temecula Public Financing Authority of the City of Temecula at a meeting thereof held on the 9th day of February, 2010, by the following vote: • AYES: 5 BOARD MEMBERS: Edwards, Naggar, Roberts, Washington, Comerchero NOES: 0 BOARD MEMBERS: None ABSENT: 0 BOARD MEMBERS: None ABSTAIN: 0 BOARD MEMBERS: None i 1111 - Susa W. Jones, MMC City Cler Board Secretary 1 R:/TPFA Resos 2010ITPFA 10-01 4