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HomeMy WebLinkAboutCC Reso 2020-50 • RESOLUTION NO. 2020-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY APPROVING THE SUBORDINATION OF STATUTORY PASS-THROUGH PAYMENTS ALLOCATED TO THE CITY OF CATHEDRAL CITY IN CONNECTION WITH THE MERGED REDEVELOPMENT PROJECT AREA TO TAX ALLOCATION REVENUE REFUNDING BONDS TO BE ISSUED BY THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF CATHEDRAL CITY WHEREAS, AB 1484 added Section 34177.5 of the Health and Safety Code of the State of California, which provides, among other provisions, that a successor agency has the authority, rights, and powers of redevelopment agencies for the purpose of issuing bonds or incurring other indebtedness for specified purposes, including but not limited to refunding existing bonds or other indebtedness of the former redevelopment agency; and WHEREAS, the Successor Agency to the Redevelopment Agency of the City of Cathedral City (the "Successor Agency") intends to issue three series of revenue refunding bonds (collectively, the "Bonds"), to be payable and secured by the tax increment revenue derived from the Merged Redevelopment Project Area in the City (the "Project Area"); and WHEREAS, Section 33607.5 of the Health and Safety Code of the State of California provides that the Successor Agency may be required to pay certain amounts to the City of Cathedral City (the "City") from the tax increment derived from the Project Area in the City ("Statutory Pass-Through Payments"); and WHEREAS, the City does not currently receive Statutory Pass-Through Payments; and WHEREAS, the City desires to subordinate the payment of such Statutory Pass- Through Payments to the debt service on the Bonds, if at any point the City is entitled to receive Statutory Pass-Through Payments while the Bonds are outstanding; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City, as follows: The City hereby approves the subordination of any Statutory Pass-Through Payments that the City is currently, or may in the future be, entitled to receive to the payment of debt service on the Bonds. 101117993.2 1 PASSED and ADOPTED at a regular meeting of the City Council of the City of Cathedral City on this 14th day of October 2020, by the following vote: AYES: Boardmembers Lamb, Gutierrez and Carnevale; Vice-Chairman Gregory and Chairman Aguilar NOES: None ABSENT: None ABSTAINED: None ayor of the Ci of Cathedral City Attest: ot • City CIk of the City of Cathedral City • 101117993.2 A-2 STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) SS CITY OF CATHEDRAL CITY ) I, Tracey R. Martinez, City Clerk of the City of Cathedral, California, do hereby certify that the foregoing Resolution No. 2020-50 was duly and regularly adopted at a regular meeting of the City Council of the City of Cathedral City, held on the 14th day of October 2020 by the following vote: AYES: Councilmembers Lamb, Gutierrez and Carnevale; Mayor Pro Tern Gregory and Mayor Aguilar NOES: None ABSENT: None ABSTAINED:None Pv` �i►.I ity Clerk 101117993.2 3