Discussion and possible action to adopt VCFD RES. 2024-04 approving and authorizing the reduction of the Standby Letter of Credit for the Vistancia Community Facilities District Series 2020 General Obligation Bonds.

In accordance with the Vistancia Community Facilities District (VCFD) Series 2020 Depository Agreement, Vistancia Residential, LLC established an irrevocable Letter of Credit (LOC) in the amount of $2,272,500.

Per Section 1.12(B) of the Depository Agreement, upon receipt by the Issuer Representative in any fiscal year of evidence satisfactory to the Issuer Representative that, for such Fiscal Year, a tax rate of $2.10 per $100 of limited assessed valuation of property within the boundaries of the District owned by other than Vistancia Residential and Vistancia Master Holdings would have been sufficient to pay Maximum Annual Debt Service for any subsequent Fiscal Year plus the historical, annual, average of amounts necessary for payment of amounts described in Section 9.1 of the Restated Development Agreement as of such fiscal year for that fiscal year, the face amount of LOC may be reduced by $1,136,250.

After receipt of proof of satisfaction of such condition, the Board is to approve in writing such reduction, and the Depository is to be notified as such by the Issuer Representative and directed to take such action as is necessary to reduce appropriately the Letter of Credit.  Proof of satisfaction of such condition is included as an attachment to this communication.

On September 8, 2020 the VCFD Board adopted resolution VCFD 2020-03 authorizing and approving: (1) an Amended and Restated Feasibility Report; (2) the sale and issuance of general obligation bonds series 2020; and (3) approving the form and authorizing the execution of an Amended and Restated Development, Financing Participation and Intergovernmental Agreement, the Standby Contribution Agreement, Letter of Credit Depository Agreement and all other necessary documents relating to the series 2020 bond transaction; 

Staff recommends adoption of the attached Resolution as presented.

This resolution has no fiscal impact.