HomeMy WebLinkAboutResolution - FA 14-03 STATE OF CALIFORNIA } RESOLUTION NO. FA 14-03
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 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
09960.00000T688377. 1
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
WHEREAS, the Authority will consent to the actions to be
undertaken by the City as legislative body of the District.
NOW, THEREFORE, THE SAN JACiTO 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 2.13ecause 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.
2
09960.00000%868837Z 1
SECTION 5. This Resolution shall become effective on the date on which it is
adopted.
PASSED, APPROVED AND ADOPTED, this 30th day of October, 2014,
by the following vote:
Ayes: Bartel, Kotyuk, Ruiz, Ledezma
Nays: None
Absent: Miller
Abstain: None
City of San Jacinto
Af)"So I L"JeZMC,
Alonso Ledezma, Chairm
v//
ATTEST.
Richard Miller, Secretary
APPROVED AS TO FOR
Best Best & Krieger LLP
Jeffrey S. Ballinger,e general Counsel
3
09960.00000\8688377.1