HomeMy WebLinkAboutRes 2025-019RESOLUTION NO. 2025-019
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
AMENDMENT TO 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 Corpor ation (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, dated June 13, 2024, between the Authority and Chelsea (the “Ag reement”).
E. The Authority and Chelsea desire to amend the Agreement in accordance with the
Amendment to Disposition, Development, and Loan Agreement, attached hereto and
incorporated herein and on file in the office of the Agency Secretary and City Clerk (the
“Amendment”).
F. Following notice duly given, the City Council and Authority have held a full and fair
joint 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 through the offices of the Authority Secretary and City Clerk a copy of the
Agreement and the Amendment, and a Summary Report (the “Report”) describing,
among other matters, the cost of the Agreement, as amended by the Amendment, to the
Authority, prior to the joint public hearing as required by Health and Safety Code Section
33433.
G. 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
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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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Desert,
California, as follows:
SECTION 1. On the basis of the Report and other information received by the
City, the City Council hereby finds and determines (i) that the consideration received by
the Authority pursuant to the Agreement, as amended by the Amendment, for the
conveyance of the Property is not less than the fair market value of the Property at its
highest and best use in accordance with the redevelopment plan as described in the
Agreement, as amended by the Amendment, and (ii) that the conveyance of the Property
pursuant to the Agreement, as amended by the Amendment, 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, as amended by the Amendment, 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 MARCH 27, 2025
JAN C. HARNIK
MAYOR
ATTEST:
ANTHONY J. MEJIA
CITY CLERK
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I, Anthony J. Mejia, City Clerk of the City of Palm Desert, hereby certify that
Resolution No. 2025-019 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 March 27, 2025, by the
following vote:
AYES: NESTANDE, PRADETTO, QUINTANILLA, TRUBEE, AND HARNIK
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 ___March 28, 2025 .
_________________________
ANTHONY J. MEJIA
CITY CLERK
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EXHIBIT “A”
FORM OF AMENDMENT TO DISPOSITION, DEVELOPMENT, AND LOAN
AGREEMENT
(Attached.)
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