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HomeMy WebLinkAboutCC RES 04-002RESOLUTION NO. 04-2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR THE COST OF THE INSTALLATION AND CONSTRUCTION OF CERTAIN PUBLIC ONSITE AND OFFSITE IMPROVEMENTS, INCLUDING IMPROVEMENTS FOR A 40 ACRE AFFORDABLE HOUSING PROJECT SITE THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. On June 14, 2001, the Palm Desert Redevelopment Agency (the "Agency") approved a Disposition and Development Agreement with Palm Desert Development for the construction of a 162-unit multi -family rental project on approximately 12.43 acres (Parcel 1) of a 40-acre site (the "Site") located in the City of Palm Desert between 42nd Avenue and Merle Drive, west of Cook Street in Project Area No. 3 of the Agency (the "DDA"). The DDA requires that the units be rented exclusively to very low and lower income households at affordable rents. A covenant is recorded with the Riverside County Recorder which maintains the units as affordable for a period of not less than 55 years. Pursuant to the DDA, the Agency is responsible for all costs associated with bringing underground utilities, including water and sewer service, to the site, providing street improvements on 42nd Avenue and Merle Drive, providing traffic striping as conditioned by the Planning Department and other off -site improvements required by the City, Agency or other agencies. A portion of the remainder of the Site (Parcel 2) is proposed to be developed with an affordable senior rental housing project consisting of 26 units and 109 single-family for -sale homes that will be available to and occupied by persons and families of low or moderate income. The senior rental housing project will be owned by the Agency and the units will be made affordable for a period of not less than 55 years. The single- - family for -sale homes will have covenants recorded with the Riverside County Recorder to maintain the units as affordable for a period of not less than 45 years. Infrastructure required to serve these units include street improvements along the border between Parcel 1 and Parcel 2 between 42nd Avenue and Merle Drive and along the north side of Merle Drive between the western boundary of the Site and Cook Street, including pavement, curb, gutter and sidewalks. New sewer and water mains will also be installed which will provide the main service to both the multi -family and single-family units. Gas, electrical, telephone and cable television services will also be provided internally. The remainder of the Site is proposed to be developed with additional parking for the City's soccer park (Parcel 3), and a City corporation yard expansion (Parcel 4). A sidewalk will be installed and constructed on the north side of 42nd Avenue between the western boundary of the Site and Cook Street and on the south side of 42nd Avenue between the western boundary of the Site and the eastern boundary of Parcel 3 and P6402/0001/758276v1 Resolution No. 04-2 between the western boundary of Parcel 4 and Cook Street to serve the soccer park, the corporation yard, and existing commercial development to the north of the Site. Section 2. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.), and in particular Sections 33334.2 (e)(2) and 33445 thereof, the Agency proposes to pay for the cost of the installation and construction of the above -described improvements (the "Improvements"). That portion of the Improvements adjacent to, and/or serving, the above -described affordable housing units to be constructed on the Site (the "Affordable Housing Units"), including all of the improvements described in the first two paragraphs of Section 1 hereof, will directly benefit such Affordable Housing Units. The street improvements, including curbs, gutters and sidewalks, are necessary to provide vehicular and pedestrian access for the Affordable Housing Units, mitigate safety hazards, and help prevent flooding. The water and sewer improvements will eliminate health and safety hazards and are necessary for the development of the Affordable Housing Units. The utility improvements are necessary to provide basic services to the Affordable Housing Units, such as electricity and telephone service. All of the foregoing improvements are essential for the benefit of the health, safety and welfare of the inhabitants of the Affordable Housing Units. The Agency will use moneys in its Low and Moderate Income Housing Fund (the "Housing Fund") to pay for such portion of the Improvements in a manner determined pursuant to Health and Safety Code Section 33334.2(e). The remainder of the Improvements may not be of direct benefit to the Affordable Housing Units, but will serve the residents and taxpayers of Project Area No. 3 (the "Project Area") and the City. Prior reports to the City Council document, and this City Council has previously determined that the Project Area is a blighted area requiring redevelopment in the interest of the health, safety and general welfare of the people of the City. The Project Area is an area 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 Area contains vacant and underutilized properties, properties that suffer from depreciated or stagnant property values, and deteriorated, aged and obsolete buildings. In addition, the Project Area is 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 Area. As set forth above, the Improvements provide vehicular and pedestrian access, mitigate health and safety hazards, help prevent flooding, and are necessary to provide basic services. The Improvements assist in the elimination of conditions of blight within the Project Area that are caused by inadequate public improvements. This in turn will assist in eliminating a factor that prevents or substantially hinders the economically P6402/0001/758276v1 Resolution No. 04-2 viable use or capacity of buildings or Tots and will encourage private -sector investment in the Project Area, thereby facilitating the redevelopment of the Project Area. The installation and construction of the Improvements will promote the economic viability of Project Area businesses, attract new businesses, encourage business expansion and encourage private sector investment in the Project Area. The Agency will pay for that portion of the Improvements that are not of direct benefit to the Affordable Housing Units from any available revenues of the Agency, excluding moneys in the Housing Fund. Section 3. The City has no moneys available to pay for the cost of the Improvements. The budget constraints of the City prevent the City from financing the cost of these improvements. 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 benefiting 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 4. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City Council: i) The Improvements are of benefit to the Project Area and the immediate neighborhood in which the project is located; (ii) the payment of funds for the cost of the Improvements will assist in the elimination of one or more blighting conditions inside the Project Area by remedying the lack of adequate public infrastructure; (iii) the payment of funds by the Agency for the cost of the Improvements is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; (iv) no other reasonable means of financing the Improvements is available to the City; (v) that portion of the Improvements that are adjacent to and/or serve the Affordable Housing Units are part of the new construction of affordable housing units for low or moderate income persons that are directly benefited by such portion of the Improvements; vi) that portion of the Improvements that are adjacent to and/or serve the Affordable Housing Units are a - reasonable and fundamental component of such housing units; and vii) the Agency has required, or will require, the Affordable Housing Units to remain available at affordable housing cost to, and occupied by, persons and families of extremely low, very low, low or moderate income for not less than 55 years with respect to rental units and 45 years with respect to for -sale single-family units. Section 5. The City Council hereby approves payment for the cost of the installation and construction of the Improvements from any revenues of the Agency lawfully available therefore, including funds held in the Housing Fund with respect to that portion of the Improvements that are adjacent to and/or serve the Affordable Housing Units, in an amount not to exceed $2,100,000 from the Housing Fund and $350,000 from other available revenues of the Agency. Moneys in the Housing Fund shall only be used to pay for that portion of the Improvements that are adjacent to and/or serve the Affordable Housing Units and the proportion of costs of the improvements to be paid for out of the Housing Fund shall be determined in accordance with Health and Safety Code Section 33334.2(e)(2). P6402/0001 /758276v 1 Resolution No. 04-2 PASSED, APPROVED and ADOPTED this January ,2004. 22nd AYES: CRITES, BENSON, FERGUSON, BELLY, SPIEGEL NOES: NONE ABSENTS: NONE ABSTAINS: NONE Attest: SS' D. RLASSEN, CITY CLERIC R‘.4a/‘ ,,q0ed OBERT A. SPIEGEL, MAID day of P6402/0001/758276v1