HomeMy WebLinkAboutResolution - FA 14-01 STATE OF CALIFORNIA ) RESOLUTION NO. FA 14-01
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE SAN JACINTO FINANCING
AUTHORITY, CALIFORNIA, AUTHORIZING THE WAIVER
OF CERTAIN AMOUNTS IN SATISFACTION OF
JUDGMENT IN JUDICIAL FORECLOSURE AND FOR
SUBSEQUENT DELINQUENT SPECIAL TAXES AS TO
NEW PROPERTY OWNER
WHEREAS, the San Jacinto Financing Authority (the "Authority") owns all
of the bonds (the "Bonds") issued by City of San Jacinto Community Facilities District
No. 2002-1 (Rancho San Jacinto Phase 2) ("District"); and
WHEREAS, the City Council ("City Council") of the City of San Jacinto
("City") acts as the legislative body of the District which was duly formed on or about
September 10, 2002; and
WHEREAS, on April 11, 2011, the City, on behalf of the bondholders for
the District, obtained a Judgment in Judicial Foreclosure; Order of Sale Thereon in the
amount of $1,412,741.74 against seven parcels of vacant real property owned by
Ocean Springs, LLC for delinquent special taxes for Tax Years 2008/09 and 2009/10;
and
WHEREAS, on December 1, 2011, a Sheriff's Sale Under Foreclosure
was held under the City's judgment for the Ocean Springs property with a minimum bid
of$1,480,887.72 but there were no bidders and the judgment remains unsatisfied; and
WHEREAS, subsequently, the special taxes for the Ocean Springs
property became delinquent for Tax Years 2010/11, 2011/12 and 2012/13 and these
delinquent installments have been removed from the Riverside County Tax Roll and
forwarded to foreclosure counsel; and
WHEREAS, subsequently, certain of the Ocean Springs property was
conveyed to Tower Music City, LLC which has now requested a waiver of the statutory
penalties and post-judgment interest in order to satisfy the judgment related to seven (7)
of the parcels and redeem these parcels from foreclosure for the unpaid subsequent
delinquencies; and
WHEREAS, California Government Code section 53340(f)(1) authorizes
the legislative body to waive all delinquent penalties and redemption penalties for
owners unrelated to the owner responsible for the delinquencies under certain
conditions, all of which are herein satisfied; and
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WHEREAS, the Authority will consent to the actions to be undertaken by
the City as legislative body of the District.
NOW, THEREFORE, THE SAN JACINTO FINANCING AUTHORITY
RESOLVES AS FOLLOWS:
SECTION 1.The Recitals set forth above are true and correct and are hereby
incorporated and adopted as findings by the Authority as though fully set
forth herein.
SECTION 2.Because the District's special taxes related to the Ocean Spring property
have been delinquent since 2008, and there were no bidders at the prior
foreclosure sale in 2011, it is unlikely that the property will ever be
redeemed at the full judgment price or that the subsequent delinquent
special taxes will be paid in full. The Mello-Roos Act at Section
53340(f)(1) allows the legislative body to waive all delinquency penalties
and redemption penalties to allow a new owner unrelated to the owner
responsibility for the delinquencies to redeem the property from
foreclosure. Moreover, it is in the bondholders' interest for the City to
consider the waiver of statutory penalties and post-judgment interest in an
effort to engender the redemption and eventual development of the
property and the Authority to approve such waiver.
SECTION 3.By this action, the Authority accepts the terms of the above provisions and
directs the Executive Director to provide instructions to the Trustee for the
deposit and administration of the funds following receipt by the City.
SECTION 4.If any provision or clause of this Resolution or its application to any
particular set of facts or circumstances is held invalid, such invalidity shall
not affect other provisions of this Resolution that can be given effect
without the invalid provision or application, and to this end, the provisions
of this Resolution are declared to be severable.
SECTION 7. This Resolution shall become effective on the date on which it is adopted.
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PASSED, APPROVED AND ADOPTED, this 1st day of April, 2014.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
City of San Jacinto Finance Authority
19 O dety�
Alonso Ledezma, Chairm
ATTEST:
Ric and Miller, Secretary
APPROVED AS TO FORM:
Best Best & Krieger LLP
J ffre Kal ringer eneral Counsel
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