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Home My WebLink AboutOB-114RESOLUTION NO. OB-114 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY MAKE A FINDING TO RE-ESTABLISH LOAN AGREEMENT RELATING TO FORMER AGENCY PROPERTY ACQUISITIONS AS AN ENFORCEABLE OBLIGATION AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. The Palm Desert Redevelopment Agency (the "Former Agency") was a duly constituted redevelopment agency pursuant to provisions of the Community Redevelopment Law (the "Redevelopment Law") set forth in Section 33000 et seq. of the California Health and Safety Code ("HSC"). B. Pursuant to the Redevelopment Law, the Former Agency undertook a program to redevelop four project areas and, in that connection, borrowed money from the City of Palm Desert (the "City") from time to time to finance the acquisition of real property for redevelopment purposes. C. As of the date of this Resolution, amounts borrowed by the Former Agency from the City in connection four separate property acquisitions remain outstanding (collectively, the "Loan"), with such Loan consisting of: (i) $6,000,000 in principal amount borrowed in 1986 pursuant to the City Council's Resolution No. 86-112A (as superseded and replaced by City Council Resolution No. 93-54) and the Former Agency's Resolution No. 203 (as superseded and replaced by Resolution No. 275), (ii) $8,000,000 in principal amount borrowed in 1995 pursuant to the City Council's Resolution No. 95-15 and the Former Agency's Resolution No. 305, (iii) $2,055,000 in principal amount borrowed in 1997 pursuant to the City Council's Resolution No. 97-23 and the Former Agency's Resolution No. 376, and (iv) $6,600,000 in principal amount borrowed in 1999 pursuant to the City Council's Resolution No. 99-114 and the Former Agency's Resolution No. 384. D. All of the $22,655,000 in principal amount of the Loan, and accrued interest thereon, are currently outstanding and unpaid. 12812-000I\1774614.1 RESOLUTION NO. OB-114 E. The Former Agency's repayment obligations with respect to the Loan was memorialized by the above -mentioned City Council resolutions, as supplemented and amended by the City Council's Resolution No. 02-64, and the above -mentioned Former Agency resolutions, as supplemented and amendeby the Former Agency's Resolution No. 448 (collectively, such City Council resolutions and Former Agency resolutions, constituting the "Loan Agreement") F. Pursuant to AB X1 26 (enacted in June 2011), and the California Supreme Court's decision in Califomia Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Ca1.4th 231 (2011), the Former Agency was dissolved as of February 1, 2012, the Successor Agency was established, and an oversight board to the Successor Agency (the "Oversight Board") was established. G. Pursuant to HSC Sections 34171(d) and 34178, the Loan Agreement became unenforceable on the Successor Agency as of February 1, 2012; provided, however, that pursuant to HSC Section 34191.4(b), the Loan shall be re-established and the Loan Agreement shall be deemed to be an enforceable obligation after the Successor Agency receives a finding of completion (a "Finding of Completion") from the State Department of Finance (the "DOF") under HSC 34179.7, if the Oversight Board makes a finding that the Loan was for legitimate redevelopment purposes. H. The DOF issued a Finding of Completion to the Successor Agency on May 13, 2013. I. M. The Board of Directors of the Successor Agency adopted Resolution No. SA -RDA 042on February 12 , 2015, as an application requesting the Oversight Board to make a finding that the Loan was made for legitimate purposes for the purposes of HSC Section 34191.4(b). J. After having reviewed the information relating to the Loan Agreement, the Oversight Board wishes to adopt this Resolution, finding that the Loan was made for legitimate redevelopment purposes and authorizing future repayment of the Loan by the Successor Agency, subject to the requirements of HSC Section 34191.4(b). K. It is recognized that, pursuant to HSC Section 34191.4(b), the repayment amount authorized each fiscal year for the all loans re-established pursuant to HSC Section 34191.4(b) to be repaid by the Successor Agency to the City shall not exceed one-half of the increase between the amount distributed to taxing entities pursuant to HSC Section 34183(a)(4) in that fiscal year and the amount distributed to taxing entities pursuant to HSC Section 34183(a)(4) in the 2012-13 base year. L. It is further recognized that HSC Section 34191.4(b)(2) provides that 20 percent of each Loan repayment will be deducted and transferred to the Low and Moderate Income Housing Asset Fund established and held by the Palm Desert 2 12812-0001\1774614 RESOLUTION NO. OB-114 Housing Authority, in the Housing Authority's capacity as the housing successor to the Former RDA pursuant to HSC Section 34176. NOW, THEREFORE, THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. For the purposes of HSC Section 34191.4, the Oversight Board hereby finds that the Loan was for legitimate redevelopment purposes, and the Loan Agreement is an enforceable obligation; provided, that the repayment terms thereunder shall be modified in accordance with the requirements of HSC Section 34191.4(b). Section 3. The Finance Officer of the Successor Agency is hereby authorized to develop a repayment schedule for the Loan in accordance with the requirements of Section 34191.4(b). Recognizing that the actual dollar amount to be repaid by the Successor Agency for each scheduled repayment is subject to the availability of funds from the Redevelopment Property Tax Trust Fund and the limitations set forth in HSC Section 34191.4(b), the Finance Officer of the Successor Agency is hereby authorized to modify the repayment schedule from time to time based on the requirements of HSC Section 34191.4(b) and the actual circumstances at the time of the modification. Section 4. The members of the Oversight Board and the officers of the Successor Agency are hereby authorized, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution. APPROVED and ADOPTED this 23rd day of February , 201 5 AYES: BUCK, CARVER, KINNAMON, LARSON, RODRIGUEZ, and SPIEGEL NOES: NONE ABSENT: JONATHAN ABSTAIN: NONE AeA ROBERT A. SPIEGEL, HAI ATTEST: R a ' ELLE D. KLASSEN, SECRETARY OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENC9� 12812-000I\1774614 3 RESOLUTION NO. OB -114 [THIS PAGE LEFT INTENTIONALLY BLANK.]