HomeMy WebLinkAboutRes 2024-036RESOLUTION NO. 2024-036
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT MAKING FINDINGS PURSUANT TO THE HEALTH AND
SAFETY CODE SECTION IN CONNECTION WITH A PROPOSED
DISPOSITION, DEVELOPMENT AND LOAN AGREEMENT BETWEEN
THE PALM DESERT HOUSING AUTHORITY AND CHELSEA
INVESTMENT CORPORATION, (OR ITS DESIGNEE)
RECITALS:
A. Pursuant to Health and Safety Code Section 34175(b) and the California
Supreme Court’s decision in California Redevelopment Association, et al. v. Ana
Matosantos, et al. (53 Cal. 4th 231 (2011), on February 1, 2012, all assets, properties,
contracts, leases, books and records, buildings, and equipment of the former Palm Desert
Redevelopment Agency (“Former Agency”) transferred to the control of the Successor
Agency to the Former Agency (the “Successor Agency”).
B. By its Resolution No. 2012-07 the City Council of the City of Palm Desert
elected that all assets, rights, powers, liabilities, duties, and obligations associated with
housing activities of the Former Agency be transferred from the Successor Agency to the
Palm Desert Housing Authority (the “Authority”).
C. By its Resolution No. HA-47, the Authority accepted the housing functions
and assets of the Former Agency.
D. The Authority owns an approximately 1.84 acre lot located off Country Club
Drive in the City of Palm Desert, California described as APN No. 622 -370-014 (the
“Property”). The Authority proposes to convey the Property to Chelsea Investment
Corporation (or its designee) (“Chelsea”) for the purpose of Chelsea constructing forty
(40) units of housing, thirty-nine (39) of which will be made available for rental to qualified
households of low-income, very-low income and extremely low-income, (10) of which
shall be designated for use by individuals with developmental disabilities and one (1) of
which shall be used for on-site management pursuant to a Disposition and Development
and Loan Agreement between the Authority and Chelsea (the “Agreemen t”).
E. Following notice duly given, the Authority has held a full and fair public
hearing on the conveyance by the Authority of the Property to Chelsea pursuant to Health
and Safety Code Section 33433. The Authority has made available to the public throu gh
the offices of the Authority Secretary and City Clerk a copy of the Agreement, and a
Summary Report (the “Report”) describing, among other matters, the cost of the
Agreement to the Authority, prior to the public hearing as required by Health and Safety
Code Section 33433.
F. Health and Safety Code Section 33433(a) and (b) generally provide that
before any property of the Former Agency, acquired in whole or in part, directly or
indirectly, with tax increment moneys is sold for development pursuant to the
redevelopment plan, the sale must first be approved by the legislative body by resolution
after a public hearing and the resolution must contain certain findings. Pursuant to its
Resolution No. 2013-11, the City Council authorized the Authority, as housing successor
to the Former Agency, to convey property for the development of housing projects
pursuant to Health and Safety Code Section 33433.
DocuSign Envelope ID: 188932DC-0920-4D4D-9955-CDE7C7E8921C
Resolution No. 2024-036 Page 2
THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
SECTION 1. On the basis of the Report and other information, the City Council
hereby finds and determines (i) that the consideration received by the Authority pursuant
to the Agreement for the conveyance of the Property is not less than the fair reuse value
of the Property at the use and with the covenants and conditions and development costs
authorized by the conveyance of the Property as described in the Agreement, and (ii) that
the conveyance of the Property pursuant to the Agreement will provide housing for low -
income persons consistent with the implementation plan adopted by the Former Agency
pursuant to California Health and Safety Code Section 33490. The City Council further
finds that use of moneys in the Authority’s Low and Moderate Income Housing Asset
Fund in accordance with the Agreement is of benefit to the project areas of the Former
Agency.
SECTION 2. The officers of the City are hereby authorized and directed, jointly
and severally, to do all things which they may deem necessary or proper in order to
effectuate the purposes of this Resolution and the transactions contemplated hereby; and
any such actions previously taken by such officers are hereby ratified, confirmed and
approved.
ADOPTED ON JUNE 13, 2024.
KARINA QUINTANILLA
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2024-036 is a full, true, and correct copy, and was duly adopted at a
regular meeting of the City Council of the City of Palm Desert on June 13, 2024, by the
following vote:
AYES: HARNIK, KELLY, NESTANDE, TRUBEE, AND QUINTANILLA
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
RECUSED: NONE
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of Palm Desert, California, on ___________________.
ANTHONY J. MEJIA
CITY CLERK
DocuSign Envelope ID: 188932DC-0920-4D4D-9955-CDE7C7E8921C
6/27/2024