HomeMy WebLinkAboutResolution - 3543 STATE OF CALIFORNIA ) RESOLUTION NO. 3543
COUNTY OF RIVERSIDE ) ss
CITY OF SAN JACINTO )
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
JACINTO, CALIFORNIA APPROVING A MEMORANDUM A
MEMORANDUM OF UNDERSTANDING WITH RESPECT TO CFD
2002-1.
WHEREAS, the City of San Jacinto has formed its Community Facilities
District No. 2002-1 (Rancho San Jacinto, Phase 2) ("CFD No. 2002-1") and, in
connection therewith, has issued its Special Tax Bonds 2002 Series A in the
original principal amount of$17,126,599.65 (the "2002 CFD Bonds®) and which are
currently outstanding in the amount of$19,365,000; and
WHEREAS, the 2002 CFD Bonds are secured by special taxes (the
"Special Taxes") levied by the City on property within the boundaries of CFD No.
2002-1 according to a rate and method of apportionment; and
WHEREAS, the Special Taxes levied against the following parcels
(individually, a "Parcel" and collectively, the "Parcels") are delinquent:
Assessor's Parcel No.
438-030-012-3
438-040-006-9
438-040-007-0
438-040-008-1
438-040-009-2
439-180-105-7
437-310-029-7
WHEREAS, on April 11, 2011, the City obtained a Judgment in Judicial
Foreclosure; Order of Sale Thereon in the amount of $1,412,741.74 against said
parcels, 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 the City's
judgment was held, but there were no bids for the property and the judgment
remains unpaid. In addition, the special tax installments for these parcels are
delinquent for Tax Years 2010/11, 2011/12 and 2012/13 and these delinquencies
have been removed from the Tax Roll on January 21, 2014 and forwarded to
foreclosure counsel; and
WHEREAS, the Parcels were recently sold to Tower Music City, LLC, and
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five (5) of the Parcels are currently in an escrow that requires the satisfaction of the
City's judgment and the payment of the subsequent delinquencies related thereto
before conveyance of the property; and
WHEREAS, the new property owner has proposed the payment of
$2,519,025 in satisfaction of the County ad valorem taxes, the City's judgment, plus
the subsequent delinquencies, which will require the waiver of delinquent penalties,
redemption penalties and post-judgment interest by the City, and as payment for
the special taxes due on the Parcels for Fiscal Year 2013-14; and
WHEREAS, the City and Tower Music City wish to enter into a
Memorandum of Understanding (the "MOU") with respect to the Parcels, to provide
for (i) Tower tendering cash sufficient to pay the settlement amount described
below; (5) terms of transfer of five (5) parcels described in Exhibit D (the "Water
District Parcels") to Eastern Municipal Water District ("EMWD"); (iii) the instructions
to the trustee and fiscal agent regarding the disbursement of the settlement
amount; (iv) the terms and conditions for the formation of a proposed new
community facilities district on the remaining two undeveloped parcels (the
"Undeveloped Parcels"); and (v) the proposed terms of future development of the
Undeveloped Parcels by Tower, subject to the limitations set forth in the
accompanying MOU; and
WHEREAS, the City and Tower wish to provide mutual assurances that
goals for development within the City will be met and that Tower may proceed with
development of the Parcels in a reasonable manner, subject to the limitations set
forth in law and those contained in the MOU; and
WHEREAS, the City and Tower have obtained the consent of 100% of the
owners of the San ,Jacinto Financing Authority 2002 Local Agency Revenue Bonds,
Series A (Tranches A through D).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN
JACINTO DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. Findings. The City Council finds that all of the preceding
recitals are true and correct.
Section 2. Approval of MOU. The City Council hereby approves the
accompanying MOU, along with such changes that may be acceptable to the City
Manager and City Attorney. The City Manager, or his designee, is authorized to
execute the MOU, as well as any other documents or instruments, and is
authorized to take such further actions, necessary or convenient to carrying out
the purposes of the MOU.
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Section 3e Certification. The City Clerk shall certify to the passage
and adoption of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED AND ADOPTED this 30°h day of October, 2014, by
the following vote:
Ayes: Bartel, Kotyuk, Ruiz, Ledezma
Nays: None
Absent: Miller
Abstain: None
City of San Jacinto:
to so Ii
Alonso Ledezma, Mayor
ATTEST:
Richard Miller, City Clerk
APPROVED AS TO FORM:
Best Best & Krieger LLP
Jeffrey S. Ballirfger, City Attorney
zaa3s.7oazak43s6csU 3
CERTIFICATION
I, Richard Miller, City Clerk of the City of San Jacinto, do certify that the foregoing
Resolution No. 3543 was passed, adopted and approved at a special meeting of
the City Council of the City of San Jacinto held on the 30th day of October, 2014,
by the following vote:
Ayes: Bartel, Kotyuk, Ruiz, Ledezma
Nays: None
Absent: Miller
Abstain: None
WITNESS MY HAND AND OFFICIAL. SEAL. this 30th day of October, 2014.
Richard Miller, City Clerk
City of San Jacinto
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