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HomeMy WebLinkAboutRes 00-139 and 409 Expenditures for Publicly Owned Facility PALM DESERT REDEVELOPMENT AGENCY • STAFF REPORT DATE: DECEMBER 14, 2000 TO: CITY MANAGER, HONORABLE MAYOR, AND MEMBERS OF THE CITY COUNCIL EXECUTIVE DIRECTOR, HONORABLE CHAIRMAN, AND MEMBERS OF THE AGENCY BOARD FROM: DAVID YRIGOYEN, REDEVELOPMENT MANAGER SUBJECT: EXPENDITURES FOR PUBLICLY OWNED FACILITY RECOMMENDATION: 1 . That the City Council open the joint Public Hearing with the Agency Board regarding the expenditure of funds for the construction of the Visitor Information Center and approve Resolution No. 00-139 . A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF A PUBLICLY OWNED VISITORS' INFORMATION CENTER. 2. That the Agency Board open the joint Public Hearing with the City Council regarding the expenditure of funds for the construction of the Visitor Information Center and approve Resolution No. 409 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PAYMENT BY THE AGENCY FOR ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF A PUBLICLY OWNED VISITORS' INFORMATION CENTER. BACKGROUND: Staff has been working on development of the 12 acre site at the southwest area of El Paseo and Highway 111 . An aspect of that development is a Visitor Information Center that will ultimately become a publicly owned facility and transferred to the City at completion. With this in mind, the Health and Safety Code requires the legislative body make certain findings with regards to the payment for such publicly owned facilities. These findings are as follows: STAFF REPORT Page 2 of 2 DAVID YRIGOYEN December 14, 2000 EXPENDITURES FOR PUBLICLY OWNED FACILITY 1. That the buildings, facilities, structures, or other improvements are of benefit to the project area. 2. That no other reasonable means of financing the buildings, facilities, structures, or other improvements are available to the community. 3. That the payment of funds for the acquisition of land or the cost of buildings, facilities, structures, or other improvements will assist in the elimination of blighting conditions inside the project area. The Resolution under consideration identifies and provides for these findings to be made by the legislative body. REVIEWED AND CONCUR: DAVID RIGOYEN ay& Rede elopment Manager Executive Director maf CITY COUNCIL 1ION: APPROVED DENIED RECEIVED OTHER AMINO MEETINr DATE . - 1 - v • AYES: ,�. .. * .00: � .' A r. NOES: .. �1�tIA ABSENT 11A Qu,,c. ABSTAIN: sellAJ O {{ VERIFIED BY: Original. on File with C Clerk's Office (NQ BY R- A ON i .-1 y--0C) VERIFIED BY: Original on file with Ci y erk's Office SUMMARY OF PAYMENT BY THE PALM DESERT • REDEVELOPMENT AGENCY OF ALL OR A PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF A VISITORS' INFORMATION CENTER The Palm Desert Redevelopment Agency (the "Agency") owns a parcel of real property located in the City of Palm Desert, California, which is bounded by the Palm Valley Stormwater Channel on the west, El Paseo on the east, Painters Path on the south, and Highway 111 on the north. The Agency proposes to pay for all or a part of the cost of the installation and construction of a Visitors' Information Center on the site. The total estimated amount of taxes allocated to the Agency pursuant to Health and Safety Code Section 33670(b) proposed to be used to pay the installation and construction of the Visitors' Information Center, including interest payments, is $ 2,017,000. The Agency has on hand proceeds of tax allocation bonds issued by the Agency, which may be used to finance the Visitors' Information Center. The interest cost on those bonds ranges from approximately 4%to 5.95% per annum. The Visitors' Information Center will be located in Project Area No. 1 of the Agency. Project Area No. 1 is an area in which the combination of blight is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. Project Area No. 1 contains vacant properties and properties which suffer from economic dislocation, deterioration or disuse, including depreciated or stagnant property values and impaired investments. Such conditions tend to further deterioration and disuse because of the lack of incentive to landowners and their inability to improve, modernize or rehabilitate their property while the condition of the neighboring property remains unchanged. The Visitors' Information Center will provide a new, modern and efficient facility to serve the residents and taxpayers of the City, including, in particular, the residents and taxpayers of Project Area No. 1. The construction of the building on previously vacant, underutilized land will promote tourism, assist in the revitalization of Project Area No. 1, encourage private sector investment in Project Area No. 1, and create job opportunities for the residents of Project Area No. 1 and the City, all for the benefit of the health, safety and welfare of the residents and taxpayers of the City. The budget constraints of the City prevent the City from paying for the cost of the installation and construction of the Visitors' Information Center by any means. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing is subject to a majority protest and special tax financing requires a two-thirds vote of the electorate. SUMMARY OF PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY OF ALL OR A PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF A VISITORS' INFORMATION CENTER The Palm Desert Redevelopment Agency (the "Agency") owns a parcel of real property located in the City of Palm Desert, California, which is bounded by the Palm Valley Stormwater Channel on the west, El Paseo on the east, Painters Path on the south, and Highway 111 on the north. The Agency proposes to pay for all or a part of the cost of the installation and construction of a Visitors' Information Center on the site. The total estimated amount of taxes allocated to the Agency pursuant to Health and Safety Code Section 33670(b) proposed to be used to pay the installation and construction of the Visitors' Information Center, including interest payments, is $ 2,017,000. The Agency has on hand proceeds of tax allocation bonds issued by the Agency, which may be used to finance the Visitors' Information Center. The interest cost on those bonds ranges from approximately 4% to 5.95% per annum. The Visitors' Information Center will be located in Project Area No. 1 of the Agency. Project Area No. 1 is an area in which the combination of blight is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. Project Area No. 1 contains vacant properties and properties which suffer from economic dislocation, deterioration or disuse, including depreciated or stagnant property values and impaired investments. Such conditions tend to further deterioration and disuse because of the lack of incentive to landowners and their inability to improve, modernize or rehabilitate their property while the condition of the neighboring property remains unchanged. The Visitors' Information Center will provide a new, modern and efficient facility to serve the residents and taxpayers of the City, including, in particular, the residents and taxpayers of Project Area No. 1. The construction of the building on previously vacant, underutilized land will promote tourism, assist in the revitalization of Project Area No. 1, encourage private sector investment in Project Area No. 1, and create job opportunities for the residents of Project Area No. 1 and the City, all for the benefit of the health, safety and welfare of the residents and taxpayers of the City. The budget constraints of the City prevent the City from paying for the cost of the installation and construction of the Visitors' Information Center by any means. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing is subject to a majority protest and special tax financing requires a two-thirds vote of the electorate. RESOLUTION NO. 409 I • A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PAYMENT BY THE AGENCY FOR ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF A PUBLICLY OWNED VISITORS' INFORMATION CENTER THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.), and in particular Sections 33445 and 33679 thereof, the Palm Desert Redevelopment Agency (the "Agency") proposes to pay for all or part of the cost of the installation and construction of a Visitors' Information Center to be located in the City of Palm Desert, California on a site which is bounded by the Palm Valley Stormwater Channel on the west, El Paseo on the east, Painters Path on the south and Highway 111 on the north. The Visitors' Information Center will be located in Project Area No. 1 of the Agency. Project Area No. 1 is an area in which the combination of conditions of blight is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. Project Area No. 1 contains vacant properties and properties which suffer from economic dislocation, deterioration or disuse, including depreciated or stagnant property values and impaired investments. Such conditions tend to further deterioration and disuse because of the lack of incentive to landowners and their inability to improve, modernize or rehabilitate their property while the condition of the neighboring property remains unchanged. The Visitors' Information Center will provide a new, modern and efficient facility to serve the residents and taxpayers of the City, including the residents and taxpayers of Project Area No. 1, and the other Project Areas of the Agency as well. The construction of the building on previously vacant, underutilized land will promote tourism, assist in the revitalization of Project Area No. 1, encourage private sector investment in Project Area No. 1, and create job opportunities for the residents of Project Area No. 1 and the City, all for the benefit of the health, safety and welfare of the residents and taxpayers of the City. Section 2. The budget constraints of the City prevent the City from paying for the cost of the installation and construction of the Visitors' Information Center by any means. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing is subject to a majority protest and special tax financing requires a two-thirds vote of the electorate. Section 3. The Agency hereby finds and determines that based upon the foregoing and other information presented to the Agency: (i) the above-described Visitors' Information Center is of benefit to Project Area No. 1 and to the immediate P6402\0001\629163.2 RESOLUTION NO. 409 neighborhood in which the project is located; (ii) the payment of funds for the cost of the Visitors' Information Center will assist in the elimination of one or more blighting conditions inside Project Area No. 1 by, among other things, assisting in the promotion of tourism and the revitalization of Project Area No. 1, encouraging private sector investment and creating job opportunities for the residents of Project Area No. 1 and the City; (iii) the payment of funds for the cost of the Visitors' Information Center is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; and (iv) no other reasonable means of financing the Visitors Information Center is available to the City. Section 4. Following notice duly given, the City Council and the Agency have held a public hearing pursuant to Health and Safety Code Section 33679 on the payment by the Agency for all or a part of the cost of the Visitors' Information Center. Section 5. The Agency hereby approves payment by the Agency for all or a part of the cost of the installation and construction of the Visitors' Information Center from any revenues lawfully available to the Agency. PASSED, APPROVED and ADOPTED this 14th day of December 2000. AYES: BENSON, CRITES, KELLY, SPIEGEL, FERGUSON NOES: NONE ABSENT: NONE ABSTAIN: NONE JIM FERGUSON, CHAIRMAN Attest: Sheila R. Gilligan, Secretary P6402\0001\629163.2 2 RESOLUTION NO. 00-139 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF A PUBLICLY OWNED VISITORS' INFORMATION CENTER THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.), and in particular Sections 33445 and 33679 thereof, the Palm Desert Redevelopment Agency (the "Agency") proposes to pay for all or part of the cost of the installation and construction of a Visitors' Information Center to be located in the City of Palm Desert, California on a site which is bounded by the Palm Valley Stormwater Channel on the west, El Paseo on the east, Painters Path on the south and Highway 111 on the north. The Visitors' Information Center will be located in Project Area No. 1 of the Agency. Project Area No. 1 is an area in which the combination of conditions of blight is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. Project Area No. 1 contains vacant properties and properties which suffer from economic dislocation, deterioration or disuse, including depreciated or stagnant property values and impaired investments. Such conditions tend to further deterioration and disuse because of the lack of incentive to landowners and their inability to improve, modernize or rehabilitate their property while the condition of the neighboring property remains unchanged. The Visitors' Information Center will provide a new, modern and efficient facility to serve the residents and taxpayers of the City, including, in particular, the residents and taxpayers of Project Area No. 1. The construction of the building on previously vacant, underutilized land will promote tourism, assist in the revitalization of Project Area No. 1 , encourage private sector investment in Project Area No. 1 , and create job opportunities for the residents of Project Area No. 1 and the City, all for the benefit of the health, safety and welfare of the residents and taxpayers of the City. Section 2. The budget constraints of the City prevent the City from paying for the cost of the installation and construction of the Visitors' Information Center by any means. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements of two-thirds of the electorate. Assessment financing is subject to a majority protest and special tax financing requires a two-thirds vote of the electorate. Section 3. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City Council: i) the above- described Visitors' Information Center is of benefit to Project Area No. 1 and to the P6402\0001\630993.1 1 RESOLUTION NO. 00-139 immediate neighborhood in which the project is located; (ii) the payment of funds for the cost of the Visitors' Information Center will assist in the elimination of one or more blighting conditions inside Project Area No. 1 by, among other things, assisting in the promotion of tourism and the revitalization of Project Area No. 1, encouraging private sector investment and creating job opportunities for the residents of Project Area No. 1 and the City; (iii) the payment of funds for the cost of the Visitors' Information Center is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; and (iv) no other reasonable means of financing the Visitors Information Center is available to the City. Section 4. Following notice duly given, the City Council and the Agency have held a public hearing pursuant to Health and Safety Code Section 33679 on the payment by the Agency for all or a part of the cost of the Visitors' Information Center. Section 5. The City hereby approves payment by the Agency for all or a part of the cost of the installation and construction of the Visitors' Information Center from any revenues lawfully available to the Agency. PASSED, APPROVED and ADOPTED this 14th day of December 2000. ' AYES: BENSON, CRITES, KELLY, SPIEGEL, FERGUSON NOES: NONE ABSENT: NONE ABSTAIN: NONE Attest: JIM FERGUSION, MAYOR Sheila R. Gilligan, City Clerk P6402\0001\630993.1 2