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HomeMy WebLinkAbout04-171 - Resolutions RESOLUTION NO. 04-171 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA, CALIFORNIA, COVENANTING NOT TO ISSUE ANY ADDITIONAL BONDS, EXCEPT REFUNDING BONDS, FOR IMPROVEMENT AREA NO. 1 OF CITY OF RANCHO CUCAMONGA COMMUNITY FACILITIES DISTRICT NO. 2003-01 RECITALS: A. The City Council (the "City Council") of the City of Rancho Cucamonga, California (the "City'), previously established City of Rancho Cucamonga Community Facilities District No. 2003-01 (the "District") with two improvement areas, Improvement Area No. 1 ("Improvement Area No. 1") and Improvement Area No. 2 ("Improvement Area No. 2") therein, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act") to finance certain public facilities to serve an open-air regional shopping center (the "Commercial Center"). B. The Commercial Center will be developed on property located in Improvement Area No. 1 by Victoria Gardens Mall pursuant to a ground lease with FC Victoria Gardens-C ("FC Victoria") and LC Cucamonga Commercial, Inc. ("LC Cucamonga'). The Commercial Center will include at least three major retail stores to be constructed on parcels of land conveyed by FC Victoria and LC Cucamonga to the May Department Stores Company, J.C. Penney Properties, Inc. and Macy's West, Inc., respectively (the "Major Parcels"). C. Under the provisions of the Act, on May 21, 2003, the City Council adopted Resolution No. 03-125, which authorized the issuance of the City of Rancho Cucamonga, Community Facilities District No. 2003-01, Improvement Area No. 1 Special Tax Bonds, Series 2003-A, in the aggregate principal amount of not to exceed $16,000,000. D. The Bonds were issued and sold in the aggregate principal amount of $14,645,000 pursuant to a fiscal agent agreement dated as of July 1, 2003, by and between the City and Wells Fargo Bank, National Association as Fiscal Agent. E. Each year while the Bonds remain outstanding, the City will levy and collect a special tax (the "Special Tax") against properties in Improvement Area No. 1 in accordance with the rate, method of apportionment and manner of collection of the Special Tax for Improvement Area No. 1 (the "Rate and Method"). The Bonds are payable from the proceeds of the Special Tax. Resolution No. 04-171 Page 2 of 3 F. As security for the payment of the Special Tax, a special tax lien (the "Special Tax Lien") was recorded in the Office of the County Recorder of the County of San Bernardino (the "County Recorder'), which encumbers non-exempt property located within Improvement Area No. 1, including the Major Parcels. G. The May Department Stores Company, J.C. Penney Properties, Inc. and Macy's West, Inc. have provided the City with written notice of their intent to prepay the Special Tax pursuant to Section H of the Rate and Method. H. Section H of the rate and Method provides that the owner of a Major Parcel will have the option to prepay and permanently satisfy the Special Tax obligation provided (i) all of the Bonds (being any bonds or other debt, whether in one or more series, issued by the City of Rancho Cucamonga Community Facility District No. 2003-01 (the "CFD") and secured solely by Special Taxes levied on property within the boundaries of Improvement Area No. 1 of the CFD have already been issued or the City Council has covenanted that it will not issue any additional Bonds (except refunding bonds) to be supported by the Special Tax levied under the Rate and Method; (ii) the Major Parcel has been classified for the fiscal year of the prepayment as "Undeveloped Property" under the Rate and Method; (iii) a building permit has been issued for the Major Parcels for new construction, other than the construction of a garage, parking lot, parking structure or street; and (iv) there are no delinquent Special Taxes with respect to the Major Parcel at the time of prepayment. I. FC-Victoria Gardens-C, Inc. and LC Cucamonga Commercial, Inc., the owners of all property within Improvement Area No. 1 other than the Major Parcels, have requested the City Council to adopt this Resolution. J. The City's District Administrator has determined that the conditions in Paragraph H (ii), (iii) and (iv) hereof have been met. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO CUCAMONGA DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1: The above recitals are all true and correct. SECTION 2: The City Council hereby covenants that it will not issue any additional Bonds (except refunding bonds) to be supported by the Special Tax levied under the Rate and Method. SECTION 3: For any parcel for which the Special Tax is prepaid in accordance with Section H of the Rate and Method, staff is hereby directed to prepare and record in the office of the County Recorder a Notice of Cancellation of Special Tax Lien pursuant to California Government Code Section 53344, which shall identify with particularity the Special Tax which has been prepaid and permanently satisfied, and which shall release any such parcel from the Special Tax Lien. Resolution No. 04-171 Page 3 of 3 PASSED, APPROVED, AND ADOPTED this 2nd day of June 2004. AYES: Alexander, Gutierrez, Howdyshell, Kurth, Williams NOES: None ABSENT: None ABSTAINED: None ta4 William J. Al ander, Mayor ATTEST: lkta D bra J. AdaV, CMC, City Clerk I, DEBRA J. ADAMS, CITY CLERK of the City of Rancho Cucamonga, California, do hereby certify that the foregoing Resolution was duly passed, approved and adopted by the City Council of the City of Rancho Cucamonga, California, at a Regular Meeting of said City Council held on the 2nd day of June 2004. Executed this 3`d day of June 2004, at Rancho Cucamonga, California. Debra J. Adams,gWC, City Clerk