HomeMy WebLinkAboutCC RES 2017-36RESOLUTION NO. 2017-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AUTHORIZING AND APPROVING A LOAN FROM THE CITY'S
UNOBLIGATED GENERAL RESERVES FUND TO THE DESERT WILLOW GOLF
RESORT OPERATING 520 FUND IN AN AMOUNT NOT TO EXCEED $2,000,000
WHEREAS, the City Council has approved the new management agreement to operate
and manage the Desert Willow Golf Resort; and
WHEREAS, the City has agreed to deposit up to $2,000,000 into the Desert Willow
Operating Accounts ($1,500,000 immediately and up to an additional $500,000 provided for in
the agreement) to provide projected operating cash flow to fund the day-to-day operations of
Desert Willow Golf Resort including the daily operations of the restaurant; and
WHEREAS, the City Council has determined it is desirable to proceed with the new
management agreement to operate and manage Desert Willow Golf Resort and to loan the
necessary funds from the unobligated general fund reserves, 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:
Section 1. The above recitals are true and correct.
Section 2. The City Council hereby authorizes and approves a loan from the
unobligated general fund reserves to the Desert Willow Golf Resort Operating Fund 520 in the
amount of up to $2,000,000 (with an initial deposit of $1,500,000) subject to simple interest on
the unpaid principal balance thereof, computed at a per annum rate to be determined annually
by the City Manager of up to four percent (4%), from the date of deposit by the City, to the date
of repayment.
Section 3. The principal on loan will be repaid on June 30, 2022. Interest on the
outstanding principal will be paid annually on June 30.
Section 4. The Director of Finance is hereby directed to take any such actions to
facilitate the loan described herein.
Section 5. The City Manager or his/her designee is hereby authorized and directed to
take any such actions to implement this resolution.
PASSED, APPROVED and ADOPTED thisl3th day of April 2017, by the following
vote to wit:
AYES: JONATHAN, KELLY, NESTANDE, WEBER, and HARNIK
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ATTEST:
RAC ELL D. KLASSEN, Y CLERIn
CITY OF PALM DESERT, CALIFORNIA
JAI C. HARNIK, MAYOR