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HomeMy WebLinkAboutCC RES 02-032RESOLUTION NO. 02-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY OF PART OF THE VALUE OF THE LAND FOR AND THE COST OF THE INSTALLATION AND CONSTRUCTION OF THREE INTERCHANGE PROJECTS IN THE CITY OF PALM DESERT, CALIFORNIA THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The Coachella Valley Association of Governments ("CVAG"), the County of Riverside (the "County") and the City of Palm Desert (the "City") entered into a Monterey Interchange Reimbursement Agreement, a Cook Interchange Reimbursement Agreement, and a Washington Street Interchange Reimbursement Agreement, all dated April 13, 1995 (collectively, the "Agreements"). The Agreements provided for the funding of three highway interchange projects in the areas of Washington Street, Cook Street and Monterey Avenue in the City of Palm Desert (collectively, the "Interchange Projects"). Subsequent thereto, CVAG and the City entered into an Interchange Reimbursement Agreement, dated November 22, 1995 (the "Interchange Reimbursement Agreement"), which agreement modified the provisions of the Agreements relating to the funding of the Interchange Projects. Under CVAG's customary method of funding eligible projects with member jurisdictions, a jurisdiction pays its proportionate share of one-half of the applicable costs (the "Jurisdiction One -Half') and CVAG pays the other one-half (the "CVAG One -Half') with the CVAG One - Half being paid after project completion as a reimbursement to the jurisdiction. However, in the case of the Interchange Projects, a compelling need existed to fund and construct the Interchange Projects notwithstanding that the applicable member jurisdictions did not have sufficient funding in place. Therefore, CVAG agreed to advance the additional funding necessary to construct the Interchange Projects, including the City of Palm Desert's proportionate share of the Jurisdiction One -Half. The CVAG One -Half was financed with the proceeds of a highway financing measure approved by the voters of Riverside County in November, 1988, and the proceeds of a Transportation Uniform Mitigation Fee levied by CVAG and a number of its member agencies. Moneys from the State of California under a program known as the "State -Local Transportation Partnership Program" were available to pay one-half of the Jurisdiction One -Half. At the time of entering into the Agreements, it was contemplated that the City and other public entities benefitted by the Interchange Projects would form a road and bridge benefit district for purposes of levying a benefit fee to fund the remaining one-half of the Jurisdiction One -Half. However, it was not possible to form such a district. In light of the unavailability to the City of a benefit fee to fund a portion of the cost of the Interchange Projects, CVAG and the City entered into the Interchange Reimbursement Agreement which modified the funding provisions of the Agreements. The Interchange Reimbursement Agreement provides that the City will reimburse CVAG for one-half of the Jurisdiction One -Half from its own sources. Based on current cost estimates, the cost to the City of such one-half of the Jurisdiction One -Half is $7,485,687. The City used Measure A Funds to advance the sum of $917,279 for the purchase of right-of-way relating to the Washington Street Interchange leaving a balance of $6,568,408. Such sum is payable to CVAG in annual installments of $250,000 each, commencing in fiscal year 1997-98 and continuing annually thereafter each fiscal year, with the unpaid balance of $4,818,408 (or such lesser or higher amount based on actual costs) due and payable on or before June 30, 2005. P6402\0001\687350.5 Resolution No. 02-32 Section 2. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et s q.), and in particular Section 33445 thereof, the Palm Desert Redevelopment Agency (the "Agency") is paying for the City's proportionate share of one-half of the Jurisdiction One -Half of the cost of the Interchange Projects, less the sum of $917,279 for which Measure A Funds were available. The subject Interchanges are located in the areas of Washington Street, Cook Street, and Monterey Avenue in the City of Palm Desert. The Cook Street Interchange is located in Project Area No. 2 and the Washington Street Interchange is located in close proximity to Project Area No. 4. All three of the subject Interchanges serve all four of the Agency's Project Areas (collectively, the "Project Areas"). The City Council has previously determined that the Project Areas are areas in which the combination of conditions of blight are so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the areas 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. Among other things, the Project Areas contains vacant and underutilized properties, properties which suffer from depreciated or stagnant property values, and deteriorated, aged and obsolete buildings. In addition, the Project Areas are characterized by the existence of inadequate public improvements and public facilities, including inadequate circulation improvements, which cannot be remedied by private or governmental action without redevelopment. The lack of adequate public improvements hinders economic development opportunities and contributes to the existence of depreciated and stagnant property values and impaired investments in the Project Areas. The I-10 is a major interstate serving the City of Palm Desert and the Project Areas. The Interchange Projects improve traffic circulation within the Project Areas and mitigate congestion and safety hazards, all for the benefit of the health, safety and welfare of the residents and taxpayers of the Project Areas. The Interchange Projects thereby assist in the elimination of conditions of blight within the Project Areas which are caused by inadequate public improvements. This in turn will assist in eliminating a factor which prevents or substantially hinders the economically viable use or capacity of buildings or lots and will encourage private - sector investment in the Project Areas, thereby facilitating the redevelopment of the Project Areas. The installation and construction of the Interchange Projects will promote the economic viability of Project Area businesses, attract new businesses, encourage business expansion and encourage private sector investment in the Project Areas. Section 2. The budget constraints of the City prevent the City from financing the Interchange Projects by any means. Except for Measure A Funds which funded a portion of the City's proportionate share of the cost of the Interchange Projects, no moneys of the City are available to pay for the cost of the Interchange Projects. 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 or special tax financing could overburden benefitting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 3. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City Council: (i) the Interchange Projects are of benefit to the Project Areas and the immediate neighborhood in which the project is located; (ii) the payment of funds for the acquisition of the land for and the cost of the Interchange Projects will assist in the elimination of one or more blighting conditions inside the Project Areas; (iii) the payment of funds for the acquisition of land for and the cost of the Interchange Projects is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code P6402\0001 \687350.5 - 2 - Resolution No. 02-32 Section 33490; and (iv) no other reasonable means of financing the Interchange Projects is available to the City. Section 4. The City Council hereby approves payment by the Agency for the City's proportionate share of one-half of the Jurisdiction One -Half of the cost of the Interchange Projects from any revenues of the Agency lawfully available therefor, including tax increment revenues derived from the Project Areas. Any moneys paid initially by the City to CVAG (except for the Measure A Funds and State funds described in Section 1 hereof) pursuant to the Interchange Reimbursement Agreement constitutes a loan of such moneys by the City to the Agency, and the Agency will repay such loan to the City, from time to time, upon demand of the City. At the City's option, the City may, from time to time, demand payment from the Agency to pay any installment due under the Interchange Reimbursement Agreement directly. April AYES: NOES: ABSENTS: ABSTAINS: PASSED, APPROVED and ADOPTED this 11TH , 2002. BENSON, FERGUSON, SPIEGEL, KELLY NONE CRITES NONE Sheila R. Gilligan, C' y Clerk CITY OF PALM DESER, , ALIFORNIA 4‘4:412 Richard S. Kelly, Mayo day of P6402\0001 \6873 50.5 -3-