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Home My WebLink AboutResolution 2005-056 accepting redhawk canyon CFD no. 1 certification regarding compliance with amended and restated development agreement and IGA MARANA RESOLUTION NO. 2005-56 RELATING TO DEVELOPMENT; ACCEPTING THE RED HAWK CANYON COMMUNITY FACILITIES DISTRICT NO. 1 CERTIFICATION REGARDING COMPLIANCE WITH THE TERMS OF THE AMENDED AND RESTATED DEVELOPMENT AGREEMENT AND INTER- GOVERNMENTAL AGREEMENT (RED HAWK CANYON) DATED JANUARY 27, 1995 AND AMENDED JUNE 20, 1995 IN ANTICIPATION OF THE SALE OF DISTRICT REFUNDING BONDS IN THE APPROXIMATE AGGREGATE PRINCIPAL AMOUNT OF $5,070,000. WHEREAS, Red Hawk Canyon Community Facilities District No.1 is planning to sell re- funding bonds in the aggregate principal amount of approximately $5,070,000 on May 26, 2005; and WHEREAS, approval of the certificate of compliance required under paragraph 6.7 of the Amended and Restated Development Agreement and Intergovernmental Agreement (Red Hawk Can- yon) dated January 27, 1995, will enable the timely sale of bonds by Red Hawk Canyon Community Facilities District No.1; and WHEREAS, the Mayor and Council of the Town of Maran a feel it is in the best interests of the public to accept said certificate of compliance. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE TOWN OF MARANA, that the certificate of compliance submitted by Red Hawk Canyon Commu- nity Facilities District No.1, attached to and incorporated by this reference in this resolution as Ex- hibit A is hereby accepted for and on behalf of the Town of Maran a, and the Mayor is authorized to sign it on the Town's behalf IT IS FURTHER RESOLVED that the Town's Manager and staff are hereby directed and au- thorized to undertake all other and further tasks required or beneficial to carry out the terms, obliga- tions, and objectives of the aforementioned intergovernmental agreement. PASSED, ADOPTED, and APPROVED by the Mayor and Council of the Town of Maran a, Arizona, this 17th day of May, 2005. ~~ 1/ ~\"\'''''''/~ u- ~~ V- ~~~ ~f.r*";r~ S~\' ""'~~ Mayor Ed Honea æ ¡.;;~... CS()REAL!~~T£ , i ;:; 'I !'-. ATTEST: ~ "1 'II"."\\\~ ~ APPROVED AS TO FORM: ~111:f¡a1~\\\~ ............. ~ ... 1<,. ,....,. ..............."....-... . --............. " RED HAWK CANYON COMMUNITY FACILITIES DISTRICT NO.1 CERTIFICATION REGARDING COMPLIANCE WITH THE TERMS OF THE DEVELOPMENT AGREEMENT (RED HAWK CANYON) Pursuant to the provisions of Section 6.7(x) of the Amended and Restated Development Agreement and Intergovernmental Agreement (Red Hawk Canyon) dated as of January 27, 1995, and the First Amendment to the Amended and Restated Development Agreement and Intergovernmental Agreement (Red Hawk Canyon), dated as of June 20, 1995 (together, the "Development Agreement"), the undersigned, on behalf of the Red Hawk Canyon Community Facilities District No. I (the "District"), hereby certifies as follows: I. The District will authorize the issuance of District assessment revenue refunding bonds in an approximate aggregate principal amount of $5,070,00 (the "2005 Refunding Bonds") [see Section 3.IC of the Indenture of Trust and Security Agreement, as amended and supplemented by the First Supplement to Indenture of Trust and Security Agreement (together, the "Indenture")]. The District has not authorized the issuance or sale of revenue or general obligation bonds. 2. The plan of finance for the 2005 Refunding Bonds will include a debt service reserve fund equal to ten percent (10%) of the outstanding principal amount of the 2005 Refunding Bonds, such amount may be reduced if required by federal tax law (see definition of "Reserve Fund Requirement" in the Indenture). 3. The 2005 Refunding Bonds will be secured by an assessment lien that is subject only to the lien for general taxes (see A.R.S. § 48-721(B», and the District has extended the assessment lien until June 1,2009, or until the 2005 Refunding Bonds are fully paid. 4. The 2005 Refunding Bonds will mature on June I, 2009, and will bear interest at a rate not to exceed 7.0% per annum (see Section 3.IC ofthe Indenture). 5. With this Certification, there is a concurrently considered Second Amendment to the Development Agreement that allows for the Pima County Assessor's full cash value of the property to be used instead of the MAl appraisal for purposes of establishing a wholesale value of the property of not less than the principal amount of the 2005 Refunding Bonds, thus, providing not less than a I to I ratio of land value to principal amount of the 2005 Refunding Bonds. Moreover, the District certifies that the Pima County Assessor's full cash value of the property is in excess of $6.8 million. 6. The 2005 Refunding Bonds will be offered and sold to "qualified institutional buyers," as such term is defined by the Securities Exchange Commission in Rule 144A, and will have restrictions that prevent the sale or transfer of such 2005 Refunding Bonds in authorized denominations of other than $250,000 or more, unless and until such 2005 Refunding Bonds C:IWINNTITEMPlnotes2CBB501-1150333.doc meet certain requirements set forth in the Development Agreement, as amended (see Section 3.4B(2) ofthe Indenture). 7. The 2005 Refunding Bonds will have a minimum denomination of $250,000 or more and will have restrictions that prevent the sale or transfer of such 2005 Refunding Bonds in principal amounts less than $250,000 (see definition of "Authorized Denomination" and Sections 3.1B; 3.4C; 3.5A; and 4.3 of the Indenture). 8. The Development Agreement indemnifies the Town and its agents and employees and holds the Town and its agents and employees harmless for, from and against any and all claims and costs incurred, including, but not limited to, reasonable attorneys' fees incurred in a challenge in any subsequent judicial or administrative proceeding to the sale of the 2005 Refunding Bonds. 9. The Official Statement relating to the 2005 Refunding Bonds, the Indenture and the form of the 2005 Refunding Bonds clearly indicates that neither the general fund of the Town, Pima County nor that of the State of Arizona or any political subdivision of any of them (other than the District) is liable for the payment or repayment of any obligation, liability, bond, or indebtedness of the District, and neither the credit nor the taxing power of the Town, Pima County, the State of Arizona, or any political subdivision of any of them (other than the District) shall be pledged therefor. 10. The assessments levied against any parcel will be prepaid prior to the transfer of legal title of such parcel to any residential lot owner, therefore, a document disclosing the existence of the assessment lien will not be required (see the Development Agreement). Should, in the future, an assessment not be prepaid, a document disclosing the lien will be prepared. 11. U.S. Home Corporation has provided "Developer's Equity" of at least $0.25 in infrastructure and community improvements for each dollar of principal amount of the 1995 Bonds and the 2005 Refunding Bonds. Specifically, U.S. Home Corporation constructed a golf course at the cost of at least $3,500,000. 12. Each of the undersigned is an authorized representative of the respective entity, and is duly authorized to execute, agree and accept this Certificate on behalf of the respective entity. 13. IN WITNESS WHEREOF, the undersigned hereunto set their hands this '7 day of May, 2005. RED HAWK CANYON COMMUNITY FACIL¡IST CTNO.l By h ; -' Its ~ - ,- /Y¡r/;} - 2 - C:IWINNTITEMPlnotes2CBB501-1150333.doc 1672702.1 AGREED AND ACCEPTED: U.S. HOME CORPORATION By r~ ~ Its (..~».:.;- T .....~h... ~ l).~ C:IWINNTI TEMPlnotes2CBB501-1150333.doc 1672702.1 ACCEPTED FOR, AND ONLY FOR THE PURPOSES PROVIDED IN SECTION 6.7(x) OF THE DEVELOPMENT AGREEMENT THIS IT- DAY OF MAY, 2005 TOWN OF MARANA, ARIZONA By ~~ Its =N\ 01. 'f - 3 -