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HomeMy WebLinkAboutCC RES 2010-61RESOLUTION NO. 2010-61 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING A LOAN FROM THE GOLF COURSE MAINTENANCE FUND 241 FUND TO THE DESERT WILLOW GOLF RESORT OPERATING 520 FUND WHEREAS, the City Council has authorized the construction of Desert Willow Golf Resort Lakeview Terrace expansion to accommodate projected increase demands from golf resort outings, dining. and banquet services: and WHEREAS, the City has authorized the Kitchen/Building expansion at the Desert Willow Clubhouse to accommodate projected demands on the clubhouse from the expanded Lakeview Terrace; and WHEREAS, the current management agreement requires Kemper Sports Management Company to maintain a daily cash balance of $500,000 in the operating account; and WHEREAS, the City Council has determined it is desirable to proceed at this time with capital improvements to the clubhouse and to loan the necessary funds from the Golf Resort Maintenance Fund 241, subject to repayment, as described below. NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY DETERMINE, ORDER AND RESOLVE, as follows: to wit: The City Council herby authorizes a loan from the Golf Course Maintenance Fund 241 to the Desert Willow Golf Resort Operating Fund 520 in the amount not to exceed $500,000, subject to simple interest on the unpaid principal balance thereof, computed at a per annum rate of four percent 4% from the date of loan disbursement to the date of repayment. The principal on loan will be repaid to the golf course maintenance fund on September 30, 2015. Interest on the outstanding principal will be paid annually on September 30. PASSED, APPROVED and ADOPTED this 27th day of July 2010, by the following vote AYES: BENSON, FERGUSON, SPIEGEL, and FINERTY NOES: NONE ABSENT: KELLY ABSTAIN: NONE ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT REDEVELOPMENT AGENCY r CINS FINE Y, ( HAIRMANg