HomeMy WebLinkAboutResolution - 3498 STATE OF CALIFORNIA ) RESOLUTION NO. 3498
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY OF SAN JACINTO,
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 City Council ("City Council") of the City of San Jacinto
("City") acts as the legislative body of the City of San Jacinto Community Facilities
District No. 2002-1 (Rancho San Jacinto Phase 2) ("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.
09960.0000018688361. 1
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN
JACINTO RESOLVES AS FOLLOWS:
SECTION 1.The Recitals set forth above are true and correct and are hereby
incorporated and adopted as findings by the City Council 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.
SECTION 3.Therefore, pursuant to Section 53340(f)(1), the City Council hereby
authorizes the City Manager to waive all statutory penalties and post-
judgment interest related to the seven (7) parcels of vacant land now
owned by Tower Music City, LLC and further authorizes the acceptance of
$1,997,612.00 as satisfaction of the City's judgment and the subsequent
delinquencies for Tax Years 2010/11, 2011/12 and 2012/13 related to the
seven (7) Tower Music City parcels.
SECTION 4. By this action, the City Manager shall provide instructions to the Fiscal
Agent for the deposit and administration of the funds following receipt by
the City.
SECTION 5. 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.
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SECTION 6. This Resolution shall become effective on the date on which it is adopted.
PASSED, APPROVED AND ADOPTED, at a regular meeting of the City
Council on the 1 st day of April, 2014.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
City of San Jacinto
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A onso Ledezma, Mayor
ATTEST:
Richard Miller, City Clerk
APPROVED AS TO FORM:
Best Best & Krieger LLP
7S
Jeffr,6 8. Ballinger, City Attorney
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