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HomeMy WebLinkAboutCC RES 2015-82RESOLUTION NO. 2015- 82 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING A 5-YEAR EXTENSION ON THE $500,000 LOAN FROM THE GOLF COURSE MAINTENANCE FUND 441 FUND TO THE DESERT WILLOW GOLF RESORT OPERATING 520 FUND WHEREAS, the City Council had authorized the construction of Desert Willow Terrace and the Kitchen Renovation projects to accommodate anticipated increased demands on Golf Resort Outing and Banquet services; 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 had determined it is desirable to proceed at that time with improvements to the Kitchen and clubhouse and to loan the necessary funds from the golf resort maintenance fund 441, subject to repayment in 5 years due September 30, 2015; and WHEREAS, the City Council has determined to approve a 5-year extension on the repayment of the original loan, as described below. NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY DETERMINE, ORDER AND RESOLVE, as follows: The City Council herby authorizes a five-year extension on the $500,000 loan from the golf course maintenance 441 fund to the Desert Willow Golf Resort Operating 520 Fund. The loan will continue to be subject to simple interest on the unpaid principal balance thereof, computed at a per annum rate of four percent 4% from the date of payment to the date of repayment. The principal on the loan will be repaid to the golf course maintenance fund on September 30, 2020. Interest on the outstanding principal will be paid annually on September 30. to wit: PASSED, APPROVED and ADOPTED this 24 day ofSeptembei2015, by the following vote AYES: HARNIK, JONATHAN, SPIEGEL, TANNER, and WEBER NOES: NONE ABSENT: NONE ABSTAIN: NONE 'ROBERT A. Jriibrw, ATTEST: (, LLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA TEMPORE