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HomeMy WebLinkAboutCC RES 02-064RESOLUTION NO. 02- 64 A RESOLUTION OF THE CITY OF PALM DESERT AMENDING RESOLUTION NOS. 93-54, 93-92, 95-15, 97-23, 99-70, 99-114, AND 01-94 WITH RESPECT TO THE REDEVELOPMENT REVOLVING FUND INTEREST RATES RECITALS A. The Community Redevelopment Law (Health and Safety Code Section 33000, et. seq.) provides for the establishment of a special fund to be kept in the treasury of the City of Palm Desert known as the Redevelopment Revolving Fund. B. On June 6, 1993, the City Council of the City of Palm Desert (the "City Council") adopted its Resolution No. 93-54 establishing a Redevelopment Revolving Fund, C. On June 6, 1993, the Palm Desert Redevelopment Agency (the "Agency") adopted its Resolution No. 275 agreeing to the terms and conditions with respect to the establishment of the Redevelopment Revolving Fund as set forth in the Agency's Resolution No. 275 and the City Council's Resolution No. 93-54. D. Whereas appropriations have been made to the Redevelopment Revolving Fund as set forth in the City Council's Resolution Nos. 93-54, 93-92, 95-15, 97-23, 99-70, 99-114, and 01-94. The terms and conditions of which were agreed to as set forth in the Agency's Resolution Nos. 275, 288, 305, 340, 376, 384, 424. E. Pursuant to the above -described resolutions, from time to time, the City has paid moneys in the Redevelopment Revolving Fund to, or on behalf of, the Agency in the total sum of $32,802,917, which sum constitutes a loan from the City to the Agency, the entire principal balance of which loan remains outstanding. F. Notwithstanding the provisions of the above -described resolutions, the City and the Agency desire to modify the terms and conditions governing the repayment by the Agency to the City of moneys paid to or on behalf of the Agency from the Redevelopment Revolving Fund, including the sum of $32,802,917. NOW THEREFORE, THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND AMENDS AS FOLLOWS: Section 1. Notwithstanding the provisions of the resolutions being amended, the loan described in the Recitals hereof previously made by the City to the Agency from moneys in the Redevelopment Revolving Fund in the principal amount of $32,802,917 shall be repaid to the City by the Agency together with simple interest on the unpaid principal balance thereof computed at a rate per annum equal to the average monthly rate earned G:\RDA1Maria Hun(\WPDATA\jmoore\cpdreso.wpd RESOLUTION NO. 02- 64 by the City from its investments in the Local Agency Investment Fund. In consideration for the postponement of principal payments on loans made from the Revolving Fund for a period of two years from the date hereof, and renewable annually thereafter, the Agency may pay an additional amount of interest over the LAIF rate of up to four percent per annum for those projects of benefit to Project Area No. 1, and up to two percent per annum for those projects of benefit to Project Areas Nos. 2, 3 and 4, from July 1, 2002 to the date of repayment. Interest shall be payable annually in arrears. Agency at its sole option may prepay, without premium or penalty, any amount of the principal of the loan at any time and from time to time. Any amount so paid shall first be credited against principal. Section 2. Moneys hereafter expended or paid by the City to the Agency from the Redevelopment Revolving Fund shall constitute a loan by the City to the Agency and shall be repaid to the City by the Agency together with simple interest on the unpaid balance thereof computed at a rate per annum equal to the average monthly rate earned by the City from its investments in the Local Agency investment Fund from the date such moneys are expended or paid to the date of repayment. In consideration for the postponement of principal payments on loans made from the Revolving Fund for a period of two years from the date hereof, and renewable annually thereafter, the Agency may pay an additional amount of interest over the LAIF rate of up to four percent per annum for those projects of benefit to Project Area No. 1, and up to two percent per annum for those projects of benefit to Project Areas Nos. 2, 3 and 4 from July 1, 2002 to the date of repayment. Interest shall be payable annually in arrears. The Agency may prepay, without penalty, any amount of the principal of the loan at any time and from time to time prior to the maturity date. Any amounts so paid shall first be credited against accrued interest and the balance shall be credited against principal. Section 3. Investment earnings on moneys in the Redevelopment Revolving Fund shall be credited to the Fund. Section 4. The Finance Director of the City is hereby authorized and directed to cooperate with the Finance Director of the Agency to establish such accounting and other procedures as may be necessary, convenient or desirable under the circumstances to accomplish the purposes and intent of this Resolution. Section 5. The City hereby accepts and agrees to the provisions of the Resolution of the Agency entitled "A Resolution of the Palm Desert Redevelopment Agency Amending Resolution Nos. 275, 288, 305, 340, 376, 384, and 425 with respect to the Redevelopment Revolving Fund Interest Rates" as evidenced by its restatement of the terms and conditions thereof, and this Resolution and the terms and conditions hereof constitute covenants of the City to the Agency, and this Resolution constitutes an agreement between the City and the Agency. G:\RDA\Maria Hunt\WPDATA\ moore\cpdreso.wpd 2 RESOLUTION NO. 02-64 Section 6. The Secretary is hereby authorized and directed to cause a copy of this Resolution to be transmitted to the Agency. Section 7. The members of the City Council and the officers, employees and counsel of the City are hereby authorized to do all acts and things which may be required of them by this Resolution. All such acts and things heretofore done are hereby approved, ratified and confirmed. PASSED, APPROVED AND ADOPTED this 13tliay of following vote to wit: June AYES: BENSON, CRITES, FERGUSON, SPIEGEL, KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE Sheila R. Gilli lerk G:\RDA\Maria Hunt\WPDATA\jmoore\cpdreso.wpd 3 Richard S. Kelly, Mayor , 2002, with the