HomeMy WebLinkAboutCC RES 05-080RESOLUTION NO. 05-80
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 IMPROVEMENTS, INCLUDING
IMPROVEMENTS FOR AFFORDABLE MULTI -FAMILY
HOUSING, SENIOR RENTAL HOUSING AND SINGLE
FAMILY HOMES FOR SALE
RECITALS:
A. The Palm Desert Redevelopment Agency (the "Agency") entered
into a Disposition and Development Agreement with Palm Desert Development, dated
June 14, 2001, as amended by an Amendment to Disposition and Development
Agreement, dated May 13, 2004, and as further amended by a Second Amendment to
Disposition and Development Agreement, dated 26 May 2005, (collectively, the "DDA")
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") in the City of Palm Desert (the "City").
Pursuant to the DDA, the Agency is responsible for all costs associated with the
following improvements: (i) bringing underground utilities, including water and sewer
service, to the Site, (ii) providing street improvements on 42nd Avenue and Merle Drive,
(iii) providing traffic striping as conditioned by the Planning Department, and (iv) other
off -site improvements required by the City, Agency or other agencies.
B. The Agency entered into an Agreement with ComDyn PD, LLC for
Fee Developer Services for Agency Owned Property Located in the City, dated as of
August 26, 2005, for the development of a portion of the remainder of the Site (Parcel 2)
with an affordable senior rental housing project consisting of 27 units and 94 single-
family for -sale homes that will be available to and occupied by persons and families of
low or moderate income (together with the units described in paragraph A., above, the
"Affordable Housing Units"). Infrastructure required to serve these units on Parcel 2
consist of (i) 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 westem boundary of the Site and Cook Street, including pavement, curb, gutter and
sidewalks, (ii) new sewer and water mains and (iii) gas, electrical, telephone and cable
televisions services (together with the improvements described in paragraph A., above,
the "Improvements").
C. Pursuant to the provisions of the Community Redevelopment Law
(Califomia Health and Safety Code Section 33000, et seq.) and in particular, Sections
33334.2(e)(2) and 33445 thereof, the Agency may pay for the cost of the Improvements.
D. On January 22, 2004, the City Council of the City of Palm Desert
(the "City Council") adopted Resolution No. 04-2, which approved payment by the
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Resolution No. 05-80
Agency for the cost of the Improvements and for certain other improvements for the
Site, and the City Council made the findings and determinations required by the
Community Redevelopment Law with respect to such payments.
E. Resolution No. 04-2 approved payment for the cost of the
Improvements from any revenues of the Agency lawfully available therefor, including
funds held in the Agency's Low and Moderate Income Housing Fund (the "Housing
Fund") in a manner determined pursuant to Health and Safety Code Section 33334.2 (e)
(2) in an amount not to exceed $2,100,000.
F. The Agency has spent approximately $1,650,000 from the Housing
Fund to date for the Improvements and the City Council has determined that the cost of
the installation and construction of the Improvements requires additional funds.
THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The above recitals, and each of them, are true and correct.
Section 2. 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 the 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 3. The City Council hereby confirms the findings and
determinations of the City Council relating to the Improvements set forth in Sections 2
and 4 of Resolution No. 04-2.
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Resolution No. 05-80
Section 4. The City Council hereby approves payment of an additional
amount not to exceed $3,895,000 for the cost of installation and construction of the
Improvements from any revenues of the Agency lawfully available therefor, including
funds held in the Housing Fund and the proportion of the 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).
PASSED, APPROVED and ADOPTED this 13th day of October, 2005, by the
following vote to wit:
AYES:BENSON, KELLY, SPIEGEL, FERGUSON
NOES: NONE
ABSENTS: CRITES
ABSTAINS: NONE
Jim Fer+us`o��or Pro-Tempore
Attest:
,cs
achelle D. Klassen, City Clerk
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