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Home My WebLink AboutSA Res SA21-02 2021-09-27RESOLUTION SA 21-02 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY REQUESTING THE ORANGE COUNTYWIDE OVERSIGHT BOARD TO FORMALLY DISSOLVE THE SUCCESSOR AGENCY, MAKING A FINDING OF EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT AND TAKING RELATED ACTIONS RECITALS: A. Pursuant to AB X1 26 (enacted in June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal. 4th 231 (2011), the Redevelopment Agency of the City of Seal Beach (the "Former Agency") was dissolved as of February 1, 2012, and the Successor Agency to the Seal Beach Redevelopment Agency (the "Successor Agency") was constituted. B. Pursuant to Section 34179(j) of the California Health and Safety Code ("HSC"), from and after July 1, 2018, the Orange Countywide Oversight Board (the "Oversight Board") is the oversight board for the Successor Agency. C. The Successor Agency is tasked with winding down the Former Agency's affairs. D. Pursuant to HSC Section 34187(b), the Successor Agency shall submit to the Oversight Board a request, with a copy to the Orange County Auditor - Controller (the "County Auditor -Controller"), to formally dissolve the Successor Agency within 30 days of meeting the following criteria (collectively, the "Dissolution Criteria"): (i) all enforceable obligations have been retired or paid off; and, (ii) all real property has been disposed of pursuant to HSC Section 34181 or 34191.4; and, (iii) all outstanding litigation has been resolved. E. The Successor Agency is not a party to any outstanding litigation. F. All of the Successor Agency's real property (transferred from the Former Agency upon dissolution) has been disposed of pursuant to HSC Section 34181 or the Successor Agency's long-range property management plan ("LRPMP"), which LRPMP was approved by the California State Department of Finance (the "DOF") on February 28, 2014, per HSC Section 34191.4. 12805-0001 \25305200.doc Resolution Number SA 21-02 G. At the time of the Former Agency's dissolution, there were three outstanding series of bonds issued by the Former Agency: (i) Tax Allocation Refunding Bonds, 2000 Series A (Riverfront Redevelopment Project) (the "2000A Tax Allocation Bonds"), (ii) Subordinate Tax Allocation Refunding Bonds, 2000 Series B (Riverfront Redevelopment Project) (the "2000B Tax Allocation Bonds"), and (iii) Mobile Home Park Revenue Bonds (Seal Beach Mobile Home Park Project) Series 2000A (the "Mobile Home Park Bonds"). H. The final maturity date of the 2000B Tax Allocation Bonds was October 1, 2018 and have been fully paid. I. The Successor Agency redeemed all remaining 2000A Bonds in November 2020 and they are no longer outstanding. J. The Mobile Home Park Bonds were issued pursuant to an Indenture of Trust, dated as of December 1, 2000 (the "Indenture"). K. Proceeds of the Mobile Home Park Bonds were used to make a loan (the "Loan") to LINC Community Development Corporation ("LINC") for the acquisition of a mobile home park (the "Mobile Home Park") pursuant to a Loan Agreement, dated as of December 1, 2000 (the "Loan Agreement"). L. Seal Beach Shores, Inc. ("SBS") is the successor -in -interest to LINC with respect to the Mobile Home Park and the Loan Agreement. M. Debt service (i.e., principal and interest payments) on the Mobile Home Park Bonds was secured by, and payable solely from, repayments of the Loan by SBS (and its predecessor, LINC) pursuant to the Loan Agreement. N. As permitted by the terms of the Indenture and the Loan Agreement, SBS elected to prepay the Loan in full, and caused a corresponding redemption of all remaining Mobile Home Park Bonds on September 20, 2021. O. Upon the redemption of the Mobile Home Park Bonds, all of the Successor Agency's enforceable obligations have been retired or paid off. P. With the Successor Agency having met the Dissolution Criteria of HSC Section 34187(b), this Board of Directors (the "Board") desires to request the Oversight Board to approve the formal dissolution of the Successor Agency. Q. Pursuant to HSC Section 34187(b), the Oversight Board must take action within 30 days to approve the Successor Agency's request to dissolve and, after such approval, submit the request to the DOF. R. Pursuant to HSC Section 34187(e), after the DOF's approval of the Successor Agency's request to dissolve, the Successor Agency shall dispose of all remaining assets as directed by the Oversight Board and the proceeds of such 12805-0001\2530520v3.doc Resolution SA 21-02 disposition shall be transferred to the County Auditor -Controller (the "Final Transfer"). S. In connection with the redemption of the Mobile Home Park Bonds, pursuant to the Indenture, the bond trustee returned to the Successor Agency, the amount of $528,034.42 (the "Released Bond Funds"), from the "Rental Assistance Fund" held under the Indenture. T. The Successor Agency's remaining assets consist only of the Released Bond Funds and remaining administration funds from prior RPTTF disbursements. U. Upon the Oversight Board's and the DOF's approval of the Successor Agency's request to dissolve, the Successor Agency will transfer the Released Bond Funds to the County Auditor -Controller for the Final Transfer. NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. The Board hereby finds and determines that all of the Dissolution Criteria set forth in HSC Section 34187(b) for the Successor Agency's dissolution have been met. Section 3. The Board hereby requests the Oversight Board to adopt a resolution (the "OB Resolution") to: (i) approve the Successor Agency's request to formally dissolve, (ii) direct the transfer of the Released Bond Funds to the County Auditor -Controller for the Final Transfer, and (iii) submit this Resolution and the OB Resolution to the DOF in accordance with HSC Section 34187(b). Section 4. The Agency Clerk is hereby directed to cause copies of this Resolution to be submitted to: (i) the Oversight Board, and (ii) the County Auditor - Controller. 12805-0001 \2530520v3.doc Resolution Number SA 21-02 Section 5. The Board hereby finds and determines that the request to dissolve the Successor Agency set forth herein (and the dissolution of the Successor Agency pursuant to such request) shall constitute a change in the organization or reorganization of local governmental agencies that does not alter the geographic areas within which the powers are exercised for the purposes of the California Environmental Quality Act (California Public Resources Code Section 21000 of seq.). Therefore, such request and dissolution shall be exempt from environmental review, pursuant to Section 15320 of Title 14 of the California Code of Regulations. In addition, it can be seen with certainty that such request and the dissolution of the Successor Agency will not have a significant effect on the environment. Therefore, such request and dissolution shall be exempt from environmental review, pursuant to Section 15061(b)(3) of Title 14 of the California Code of Regulations. Section 6. The officers and the other Staff members of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things, including the execution of any instruments, which they may deem necessary or advisable to effectuate this Resolution and any such actions previously taken are hereby ratified and confirmed. PASSED, APPROVED and ADOPTED by the Board of Directors of the Successor Agency to the Seal Beach Redevelopment Agency at a regular meeting held on the 27th day of September, 2021, by the following vote: AYES: Agency Members: Kalmick, Varipapa, Moore, Sustarsic, Massa-Lavitt NOES: Agency Members: ABSENT: Agency Members: ABSTAIN: Agency Members: jv-lfaTlly� Joe Kalmick, Chair ATTEST: Gloria D. Harper, Secretary 0� 12805-0001 \2530520v3.doc Resolution SA 21-02 STATE OF CALIFORNIA } COUNTY OF ORANGE } SS CITY OF SEAL BEACH } I, Gloria D. Harper, Secretary of the Successor Agency to the Seal Beach Redevelopment Agency, do hereby certify that the foregoing resolution is the original copy of Resolution 21-02 on file in the office of the City Clerk of the City of Seal Beach, passed, approved, and adopted by the Successor Agency to the Seal Beach Redevelopment Agency at a regular meeting held on the 27th day of September, 2021. Gloria D. arper, Secretary 12805-0001 \2530520v3.doc