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HomeMy WebLinkAboutCC RES 07-01RESOLUTION NO. 07-1 A RESOLUTION OF THE CITY OF PALM DESERT CONSENTING TO PAYMENT BY THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT FOR THE COST OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 44911 CABRILLO AVENUE FOR A CHILDCARE CENTER, AND AUTHORIZING EXECUTION OF A CONVEYANCE AGREEMENT AND ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE REDEVELOPMENT AGENCY RELATED TO SAID PROPERTY. THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. The Redevelopment Agency of the City of Palm Desert (the "Agency") has previously paid the costs of the acquisition and development of certain property located at 44911 Cabrillo Avenue, Palm Desert, CA (the "Property") for use as a childcare facility (the "Facility"). The Agency wishes to convey the Facility to the City of Palm Desert (the "City"), after which the City will own the Facility. Due to the transfer of ownership of the Facility to the City, the City is complying with California Health and Safety Code Sections 33445 and 33679 of the Community Redevelopment Law. The subject property is located in the City of Palm Desert and within Redevelopment Project Area No. 1 (the "Project Area"). The City Council has previously determined that the Project Area is an area in which the combination of conditions of blight is so prevalent and so substantial that it causes a reduction of, or lack of, proper utilization of the area 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 which 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 social services facilities which cannot be remedied by private or governmental action without redevelopment. The Property previously was a vacant, dilapidated and outmoded childcare facility, which the Agency caused to be rehabilitated. The acquisition and development of the Property thereby assists in the elimination of conditions of blight within the Project Area that are caused by underutilized property, which in turn assists in eliminating a factor that prevents or substantially hinders the economically viable use of land and encourages private -sector investment in the Project Area. In addition, the Facility helps residents of the Project Area with children who need to work, encourages business expansion and aids the effort to revitalize the Project Area, as well as providing safe childcare and early childhood educational opportunities for children in the Project Area. As a result, the Facility contributes to an improved business climate by assuring local employers that they will have employees available, and thus assists in eliminating conditions of economic blight within the Project Area. Section 2. The acquisition and development of the Facility are not within the City's budget. No moneys of the City are available to pay for the cost of such acquisition and RESOLUTION NO. 07-1 development. 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 Agency has published and made available the summary report required by Section 33670 on the Facility, a copy of which is attached hereto as Exhibit A, and the City Council held a duly noticed public hearing on the use of tax increment funds for the Facility on January 11, 2007. Section 4. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City: (i) the Facility is of benefit to the Project Area and the immediate neighborhood in which the Faculty is located; (ii) no other reasonable means of financing the Facility is available to the community; and (iii) the payment of funds for the cost of such acquisition will assist in the elimination of one or more blighting conditions inside the Project Area and is consistent with the Agency's implementation plan and the goals and objectives of such plan adopted pursuant to Health and Safety Code Section 33490. Section 5. The City Council hereby consents to the use of Agency funds for the cost of the acquisition and development of the Facility. Section 6. The City Council hereby approves that certain Conveyance Agreement between the Agency and the City related to the transfer of the Faculty (the "Conveyance Agreement") and that certain Assignment and Assumption of Leases between the Agency and the City (the "Assignment"), and authorizes the City Manager to execute the Conveyance Agreement and Assignment on behalf of the City and to take any and all other steps necessary to implement the Conveyance Agreement and Assignment. PASSED, APPROVED and ADOPTED this 11a' day of January 2007 by the following vote, to wit: AYES: BENSON, FERGUSON, friarA..i, SPIEGEL, and KELLY NOES: NONE ABSENTS: NONE ABSTAINS: NONE Attest: Racilelle D. RTassen, y Clerk Ric it".„.0 and S. Kelly, Mayor G:\RDA\Beth Longman\Staff Reports\Walker\City Res Approving Pint (Wallaroo) 011 I07.DOC