HomeMy WebLinkAboutResolution - FA 14-02 k STATE OF CALIFORNIA ) RESOLUTION NO. FA 14-02
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE SAN JACINTO FINANCING
AUTHORITY, CALIFORNIA, RESCINDING RESOLUTION
NO. FA 14-01, CONCERNING THE AUTHORIZATION FOR
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 Sheriffs 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 five (5) 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
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owners unrelated to the owner responsible for the delinquencies under certain
conditions; and
WHEREAS, On April 1, 2014, the Authority adopted Resolution No. FA
14-01, a resolution waiving all delinquent penalties and redemption penalties for owners
unrelated to the owner responsible for the delinquencies under certain conditions; and
WHEREAS, at the time of the Authority's adoption of such resolution, it
was reported to the Authority that the new property owner would develop the property
as residential uses; and
WHEREAS, since the time of the Authority's adoption of such resolution,
however, the Authority has independently learned that the new owner intends to transfer
several of the parcels to Eastern Municipal Water District, for groundwater recharge
purposes, using recycled water; and
WHEREAS, the Authority believes that this new information is material to
the Authority's determination of how to proceed with this property, and that further
information and study is required before the Authority would support such uses; and
WHEREAS, therefore, the Authority wish to rescind Resolution No. FA 14-
01, in order to enable the Authority to more fully explore the proposed use of the
property and that use's impact to the City, the Authority, the bondholders, and other
taxpayers.
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.Based on the Authority's discovery of the above-referenced material facts,
which were withheld from the Authority staff and the Authority by Tower
Music City, LLC and Eastern Municipal Water District, the Authority hereby
rescinds Resolution No. FA 14-01 adopted on April 1, 2014.
SECTION 3.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 4. This Resolution shall become effective on the date on which it is adopted.
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PASSED, APPROVED AND ADOPTED, this 15th day of April, 2014, by the
following vote.
Ayes: Bartel, Kotyuk, Miller, Ruiz, Ledezma
Nays: None
Absent: None
Abstain: None
City of San Jacinto Finance Authority
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Alonso Ledezma, Chairm l�
ATTEST:
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Richard Miller, Secretary
APPROVED AS TO FORM:
Best Best & Krieger LLP
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Jeffrey-6. Ballinger, G eral Counsel
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