Loading...
HomeMy WebLinkAboutRDA RES 126RESOLUTION NO. 126 s A RESOLUTION OF THE PALM DESERT REDEVELOPMENT ,AGENCY PROVIDING FOR THE ISSUANCE OF ITS NON-NEGOTIABLE PROMISSORY NOTE The Palm Desert Redevelopment Agency hereby finds, resolves, determines and orders as follows: Section 1. The Palm Desert Redevelopment Agency (the "Agency"), is a redevelopment agency, a public body, cor- porate and politic, duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Community Redevelopment Law (California Health and Safety Code Sections 33000, et seq.) and the powers of the Agency include the power to borrow money from a private lending institution for any redevelopment project for any of the purposes of the Community Redevelopment Law, and to execute instruments necessary or convenient to the exercise of such power. Section 2. The Redevelopment Plan for a redevelop- ment project k5lown and designated as Project Area No. 1 (the "Project") has heretofore been adopted and approved and all requirements of law for, and precedent to; the adoption and approval of such Redevelopment Plan have been duly complied with. Section 3. Under and pursuant to the Community Redevelopment Law and under and pursuant to this Resolution, Redevelopment Ag zy RESOLUTION 126 WLS49-2A a non-negotiable promissory note (the "Note") of the Agency in the principal amount of one million five hundred thousand dollars ($1,500,000) shall be issued and delivered by the Agency to City National Bank for the purpose of financing a portion of the cost of the redevelopment of the Project and for other purposes related thereto. Section 4. The Note shall be a special obliga- tion of the Agency and payable as to both principal and interest from tax revenues allocated to the Agency pursuant to California Health and Safety Code Section 33674. The Note and the interest thereon shall not be paid from any proceeds from the sale, lease or other disposition of property in Project Area No. 1, nor shall the payment of such principal and interest be secured by any interest in property used or to be used in a trade or business or in payments in respect of such property, or derived from payments in respect of property, or borrowed money, used or to be used in a trade or business, within the meaning of Section 103 (b) (2) (B) of the Internal Revenue Code, 1954, as amended, and the regulations adopted thereunder. The Note, and the interest thereon, is not a debt of the City of Palm Desert, the State of California or any of its po- litical subdivisions and neither the City of Palm Desert, the State of California nor any of its political subdivi- sions is liable on the Note, nor in any event shall the Note - 2 Resolution 12( Redevelopment Agency WLS49-3A and the interest thereon be payable out of any funds or properties other than those of the Agency as provided in this Resolution. The Note does not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. The validity of the Note is not and shall not be dependent upon the completion of the Project or upon the performance by anyone of an obligation related to the Project. This Note may be called before maturity and redeemed at the option of the Agency on any interest payment date. Nothing in this Resolution shall preclude the redemption and payment of the Note prior to maturity, or the payment thereof at maturity, from the proceeds of a refund- ing note or other refunding obligation or obligations is- sued pursuant to law. Nothing in this Resolution shall prevent the Agency from making advances of its own funds howsoever derived to any of the uses and purposes mentioned in this Resolution. The form of the Note shall be substantially in the form set forth in Exhibit A, attached hereto and by this reference incorporated herein. Section 5. The Note shall be in the principal amount of one million five hundred thousand dollars ($1,500,000). The Note shall be dated December 19, 1980 and shall mature on June 19, 1984. - 3 RESOLUTION NO. 126 Section 6. The Note shall bear interest at a rate of ten percent (10%) per annum, payable semiannually on June 19th and December 19th of each year, beginning December 19, 1981. The Note shall bear interest until the principal thereof has been paid. Section 7. The Note and the interest thereon shall be payable in lawful money of the United States of America at the office of the Agency in Palm Desert, California. Section 8. The Note shall be signed on behalf of the Agency by its Chairman (or, in the absence of the Chairman, the Vice Chairman), Treasurer and Executive Director. The foregoing officers are hereby authorized and directed to sign the Note in accordance with this Resolution. Section 9. In connection with the issuance and delivery of the Note, City National Bank shall be provided with the Official Statement of the Agency, attached hereto as Exhibit B. PASSED, APPROVED and ADOPTED this 18th day of December 1980, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SHEILA R. GILLIGAN,/SECRETARY CHAIRMAN 0 JAMES E. VICE CHAIR; PHERSON 4 WLS49-6A NON-NEGOTIABLE PROMISSORY NOTE THE PALM DESERT REDEVELOPMENT AGENCY (the "Agen- cy"), a public body corporate and politic, duly created, established and authorized to transact business and exercise its powers under and pursuant to the Community Redevelopment Law (California Health and Safety Code Sections 33000 et seq.), for value received, hereby promises to pay to City National Bank on June 19, 1984, subject to the right of prior redemption, upon presentation and surrender of this Note, the sum of one million five hundred thousand dollars ($1,500,000) with interest thereon from the date hereof at the rate of ten percent (10%) per annum, interest payable semiannually on June 19th and December 19th of each and every year, beginning December 19, 1981, until this Note is paid. Both principal and interest are payable in lawful money of the United States of America at the office of the Agency in Palm Desert, California. This Note and the interest thereon are not a debt of the City of Palm Desert, the State of California or any of its political subdivisions and neither the City of Palm Desert, the State of California, nor any of its political subdivisions is liable thereon, nor in any event shall this Note or interest thereon be payable out of any funds or properties other than the funds of the Agency hereinafter -1- EXHIBIT A WLS49-7A mentioned. This Note does not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation or restriction. This Note has been issued pursuant to and in full conformity with the Constitution and laws of the State of California and in particular the Community Redevelopment Law (California Health and Safety Code Sections 33000, et selc.) for the purpose of financing a portion of the cost of a redevelopment project known and designated as Project Area No. 1 and is authorized by and issued pursuant to Resolu- tion No. 126 (the "Resolution") adopted by the Agency on December 18, 1980. By the acceptance of this Note, City National Bank assents to all of the terms, conditions, and provisions of the Resolution. The principal of this Note and the interest thereon is payable from tax revenues and other funds, all as more particularly set forth in the Resolution. This Note is non-negotiable. This Note may be called before maturity and redeemed at the option of the Agency on any interest payment date. It is hereby recited, certified and declared that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the issu- ance of this Note exist, have happened and have been performed -2- 1 1 WLS49-8A in due time, form and manner as required by the Constitution and laws of the State of California. IN WITNESS WHEREOF, the Palm Desert Redevelopment Agency caused this Note to be signed on its behalf by its Chairman, Treasurer and Executive Director and this Note to be dated December 19, 1980. S.y Wilson J Ch rman, • Palm Desert Redevelopment Agency Paul E. Byers / Treasurer, Palm Desert Red lopment Agency Ma'Etin uman Executive Director, Palm Desert Redevelopment Agency -3- Resolution 126 Exhibit B OFFICIAL STATEMENT This Official Statement has been prepared by the Palm Desert Redevelopment Agency (the "Agency") in connec- tion with the issuance of and delivery by the Agency to City National Bank of one million five hundred thousand dollars ($1,500,000) principal amount of a non-negotiable promissory note of the Agency (the "Note"). The Note is dated December 19, 1980, bears interest payable December 19, 1981, and thereafter semiannually on June 19th and December 19th of each year, at the rate of ten percent (10%) per annum and matures on June 19, 1984. The Note may be called before maturity and redeemed on any interest payment date. The Note is payable, both principal and interest, from certain tax revenues. Those tax revenues constitute that portion of taxes levied each year by or for the benefit of the State of California, any city, county, district or other public corporation upon taxable property in Project Area No. 1 of the Agency which are received by the Agency and allocated to and paid into a special fund pursuant to Section 16 of Article XVI of the Constitution of the State of California and California Health and Safety Code Section 33670 (the "Tax Revenues"). The boundaries of Project Area No. 1 are set forth in Attachment A. WLS37-2B 12/5/80 The Agency has no power to levy and collect taxes but derives its Tax Revenues from taxes levied on property within Project Area No. 1 by other property taxing agencies. Any legislative or other property tax reduction or provision of additional sources of income to property taxing agencies which has the effect of reducing the property tax rate in Project Area No. 1 would necessarily reduce the amount of Tax Revenues that would otherwise be available to pay interest and principal on the Note. Broadened property tax exemptions would have a similar effect. Conversely, any increase in the present property tax rate or assessed valuation, or any reduction or elimination of present exemptions would necessarily increase the amount of Tax Revenues available to pay principal and interest on the Note. On June 6, 1978, voters approved the so-called "Jarvis -Gann Initiative", which added Article XIIIA to the California Constitution and restricts the taxing power of California public agencies. Section 1 of Article XIIIA limits the maximum ad valorem tax on real property to one percent (1%) of full cash value, to be collected by counties and apportioned according to law. Section 2 of Article XIIIA defines "full cash value" as the "County Assessor's valuation of real property as shown on the 1975-76 tax bill under 'full cash value' or, thereafter, the appraised value of real property when purchased, newly constructed, or a change in ownership has occurred after the 1975 assessment." -2- 1 WLS37-3B 12/18/80 Legislation enacted by the California Legislature to implement Article IIIA provides that local agencies may not levy any property tax except to pay service on indebted- ness approved by the voters prior to July 1, 1978, and that each county will levy the maximum tax permitted by Article XIIIA of $4.00 per $100 of assessed valuation, based on the traditional practice of using twenty-five percent (25%) of full cash value as the assessed value for tax purposes. Recent legislation has been enacted which affects the business inventory tax exemption. Chapter 1150 of the Statutes of 1979 was approved by the Governor as an urgency measure in September, 1979. Under prior State law, the State paid fifty percent (50%) of the taxes that were levied against business inventory. Under Chapter 1150, the State will pay as a subvention an amount equal to one hundred percent (100%) of taxes that would otherwise be due (excluding taxes to pay for voter approved indebtedness) from business inventory commencing with the 1980-81 fiscal year. Chapter 610 of the Statutes of 1980 took effect on July 18, 1980 to provide State reimbursement of revenues lost due to the elimination of business inventory assess- ments. In brief summary, Chapter 610 specifies a formula to be used in computing the assessed valuation for tax alloca- tion purposes. For the 1980-81 fiscal year, an amount equal to the assessed valuation for business inventories in a -3- WLS37-4B 12/17/80 project area in the 1979-80 fiscal year multiplied by a factor specified in Chapter 610 is added to the actual assessed valuation shown on the 1980-81 assessment roll and increased by a percentage equal to the State Reimbursement for Inventory Tax Factor. Generally, the State Reimbursement for Inventory Tax Factor for a redevelopment agency is the percentage change in cost of living plus the percentage change in the population as determined pursuant to Chapter 610. For the 1981-82 fiscal year and each fiscal year thereafter, Chapter 610 provides that the assessment roll be increased by the prior year's computation for business inventories, increased by a percentage equal to the State Reimbursement for Inventory Tax Factor. On November 6, 1979, voters approved the so-called "Gann Initiative," which added Article XIIIB to the Califor- nia Constitution and places a spending limitation on Cali- fornia public agencies. Under Article XIIIB, state and local governmental entities have an annual "appropriations limit" and may not spend certain moneys which are called "appropriations subject to limitation" (consisting of tax revenues, state subventions and certain other funds) in an amount which exceeds the "appropriations limit." In general terms, the "appropriations limit" is to be based on certain 1978-79 fiscal year expenditures, and is to be adjusted annually to reflect changes in consumer prices, population, -4- WLS37-58 12/3/80 and services provided by these entities. Among other provisions of Article XIIIB, if these entities' revenues in any year exceeded the amounts permitted to be spent, the excess would have to be returned by revising tax rates or fee schedules over the subsequent two years. To the extent of any such revision of tax rates, Tax Revenues may be affected, since allocations of Tax Revenues to the Agency are a product of the taxes levied by certain property taxing agencies having jurisdiction within Project Area No. 1. There are many uncertainties and ambiguities in Article XIIIB which will require clarification by the State Legislature or the courts. Accordingly, the Agency cannot now determine what the precise effect of Article XIIIB upon its operations and financial obligations will be. Recently enacted Chapter 1342 of the Statutes of 1980 provides that Tax Revenues are not "proceeds of taxes" within the meaning of Article XIIIB and that allocation and expenditures of Tax Revenues are not appropriations subject to limitation under Article XIIIB. However, the constitutionality of Article XIIIB has not been decided by any court. Certain loans have been made to the Agency by the City of Palm Desert (the "City"). The outstanding principal amount of those loans is eight hundred fifty thousand ninety-nine dollars and fifty-eight cents ($850,099.58). Interest on those loans is payable at a variable interest -5- WLS37-6B 12/17/80 rate which is tied to prevailing rates of return available to the City on its investments. Those loans are to be repaid from Tax Revenues. Tax Revenues which have been allocated to the Agency thus far from Project Area No. 1 are set forth in Table 1, below: TABLE I Fiscal Year Assessed Valuation Tax Revenues 1974-75 $ 8,702,039 - 1976-77 $12,560,100 $450,077.35 1977-78 $14,947,406 691,831.40 1978-79 $17,004,967 332,117.12 1979-70 $20,976,846 517,836.00 1980-81 $26,955,062 825,000.00 (esti- mated) The Agency projects that an additional one million four hundred fifty-one thousand six hundred dollars ($1,451,600) in Tax Revenues will be allocated to the Agency during the 1983-84 fiscal year. This projection reflects certain assumptions by the Agency, namely that increased Tax Revenues will be allocated to the Agency resulting from certain developments anticipated to occur in Project Area No. 1. Those developments are set forth geographically on Attachment B and include the following: -6- WLS37-7B 12/3/80 1. PDR Associates Restaurant Row. "PDR Associates Restaurant Row" is a completed commercial development of approximately 44,000 square feet set on an 8.5-acre parcel. The development is to consist of five sit-down restaurants and related facilities. 2. Chazen Development Co. - Shopping Center. "Chazen Development Co. - Shopping Center" is a planned commercial development to include a Safeway grocery market, two free-standing branch banking institutions, and other commercial uses. Construction has commenced and the projected completion date is the summer of 1981. When completed, this development would consist of approximately 71,220 square feet on a 2.9-acre parcel. 3. Hughes Investment - Shopping Center. "Hughes Investment - Shopping Center" is a completed commercial development of approximately 75,259 square feet on a 5.4-acre parcel. The development is to consist of restaurant, commercial, service and professional uses. 4. Hahn - Towncenter. "Hahn - Towncenter" is a planned regional shopping center to include major retailers such as the May Co., Bullocks, Buffums and Montgomery Ward. Construction is projected to commence in the spring of 1981 and to be completed by the fall of 1982. When completed, this development would consist of approximately 723,204 square feet on a 62-acre parcel. -7- WLS37-8B 12/17/80 5. Dunham - San Luis Rex. "Dunham - San Luis Rey" is a completed commercial development of approximately 32,000 square feet on a 1.64-acre parcel. The development is to consist of a branch banking institution and adjacent commercial and professional uses. 6. Martin Building. The "Martin Building" is a completed professional office building consisting of approxi- mately 9,500 square feet on a 14,400 square -foot parcel. 7. Fuller Building. The "Fuller Building" is a completed commercial and professional office building consisting of approximately 27,984 square feet on a 28,728- square-foot parcel. 8. Stein-Brief/Vista-Resort/Racquet Club. "Stein-Brief/Vista-Resort/Raquet Club" is a planned hotel and condominium development to include a racquet club and related commercial uses. Construction is projected to commence in the fall of 1981 and to be completed by the spring of 1983. When completed this development would consist of a 414-unit hotel and condominium complex, approxi- mately 50,000 square feet of related commercial space and approximately 21,365 square feet of racquet club and related facilities, all on a 29.29-acre parcel. 9. Bernard Solomon - The Fountains. "Bernard Solomon - The Fountains" is a planned hotel, condominium and commercial development to include a 220-unit hotel and -8- WLS37-98 12/18/80 condominium complex, approximately 57,000 square feet of grocery market and related uses, approximately 47,757 square feet of commercial shops and approximately 8,000 square feet of a branch banking institution, all on a 28-acre parcel. Construction is projected to commence in the fall of 1981, and to be completed by the spring of 1983. The estimated "built -out" value and anticipated Tax Revenues from each of the above described developments is set forth in Table II, below: TABLE II Estimated Estimated Anticipated Development Built -Out Value Tax Revenue 1. PDR Associates Restaurant Row 2. Chazen Development Co. - Shopping Center 3. Hughes Investment - Shopping Center 4. Hahn - Towncenter 5. Dunham - San Luis Rey 6. Martin Building 7. Fuller Building 8. Stein-Brief/Vista- Resort/Racquet Club 9. Bernard Solomon - The Fountains $ 1,400,000 2,700,000 2,200,000 71,000,000 1,300,000 700,000 860,000 50,000,000 15,000,000 Dated: December 19, 1980. -9- $ 14,000 27,000 22,000 710,000 13,000 7,000 8,600 500,000 150,000 V 1uaatio 1 .rw • M1 . • ti . • 11 ' • I• s• I : _j • • I • ,.- it Ir -_. .-�__r �- • 1 • • • ,r -ter•- ' •••t•• :i ice.• ��. � • "S../ � � �tl- ! //• , -: -L •�� • ;r.: l� • • L r=a • „• :. err r�i �` ; �• +��� :�:, • I •-I • ��t• •ue••. �� I: ••^ • • • • • r' . — .I . - -111111.• •.� _-` r• ammo - 4.. • Pi: 111:11 • k E. • • V • • T Iiffr es M • s• NB NMI C'WM— _ •••••M • C t •E. A � A� ISw O w •! =I MEM �• •• • • I rat �. �• l:. , __ i I I In I WLS37-25A CERTIFICATE AS TO OFFICIAL STATEMENT I, Martin J. Bouman, Executive Director of the Palm Desert Redevelopment Agency DO HEREBY CERTIFY, to the best of my knowledge and belief, and after reasonable investigation, as follows: 1. The information contained in the Official Statement of the Palm Desert Redevelopment Agency (the "Agency") dated December 19, 1980, relating to the issuance by the Agency of one million five hundred thousand dollars ($1,500,000) principal amount of a non-negotiable promis- sory note, does not contain any untrue statement of a material fact and does not omit to state any material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading. 2. Since the date of the Official Statement no event has occurred which should have been set forth in an amendment or supplement to the Official Statement. 3. There has been no material adverse change in the operation of the Agency or the City of Palm Desert since the date of the Official Statement. Dated this 19th day of December, 80 Mar ' n i Bouman Executive Director, Palm Desert Redevelopment Agency CERTIFICATE AS TO ARBITRAGE I, Martin J. Bouman, Executive Director of the Palm Desert Redevelopment Agency (the "Agency"), being duly charged, with others, with the responsibility for the issu- ance of one million five hundred thousand dollars ($1,500,000) principal amount of a non-negotiable promissory note (the "Note") being issued this day, DO HEREBY CERTIFY, to the best of my knowledge and belief, and after reasonable investigation, as follows: 1. The Note is being issued to finance a portion of the cost of a redevelopment project known and designated as Project Area No. 1, including, but not limited to, the improvement of conditions which have retarded development in Project Area No. 1 in the past. 2. On the basis of the facts, estimates and circumstances in existence on the date of this Certificate, I reasonably expect the following with respect to the Note and with respect to the use of the proceeds of the Note: A. The amount of proceeds received by the Agency from the delivery of the Note in the amount of one million five hundred thousand dollars ($1,500,000) will be applied, in accordance with Resolution No. 126 of the Agency, to finance a portion of the cost of the redevelopment of Project Area No. 1. WLS37-22A B. Substantial binding obligations to commence the redevelopment of Project Area No. 1 have been incurred or will have been incurred within six (6) months after the date hereof. C. Work on the redevelopment of Project Area No. 1 will proceed with due diligence to the completion thereof. D. All of the proceeds from the Note and the earnings thereof will be expended to finance a portion of the cost of the redevelopment of Project Area No. 1 prior to the date three (3) years from the date of this Certificate. E. Prior to the expenditure of the proceeds from the Note to finance a portion of the cost of the redevelopment of Project Area No. 1, such proceeds may be invested without regard to yield restriction in certain permitted securities and obligations. 3. The Agency has neither received notice that its Certificate may not be relied upon with respect to its own issues of debt obligations nor has it been advised that any such adverse action by the Commissioner of Internal Revenue is contemplated. 4. To the best of my knowledge and belief there are no facts, estimates or circumstances other than those expressed herein that would materially affect the expecta- tions herein expressed. On the basis of the foregoing, I -2- WLS37-23A expect that the proceeds from the Note will not be used in the manner that would cause the Note to be an "arbitrage bond" as that term is defined by Section 103(c) of the Internal Revenue Code of 1954, as amended to the date of this Certificate, Temporary Treasury Section B.4 and Pro- posed Treasury Regulation Sections 1.103-13, 1.103-14 and 1.103-15. IN WITNESS WHEREOF, I have hereunto set my hand this 19th day of December, 1980. Mart ouman Exe .tive Director, Palm Desert Redevelopment Agency WLS37-26A INCUMBENCY CERTIFICATE I, Sheila R. Gilligan, Secretary of the Palm Desert Redevelopment Agency, DO HEREBY CERTIFY as follows: 1. That the Palm Desert Redevelopment Agency (the "Agency") is a public body, corporate and politic, duly created, established and authorized to transact business and exercise its powers under and pursuant to the Community Redevelopment Law (California Health and Safety Code Sec- tions 33000, et sec.). 2. That the Agency was activated by Ordinance No. 53 of the City of Palm Desert, adopted October 24, 1974, and filed with the Secretary of State on November 10, 1974, and the Agency has not been superseded or dissolved. 3. That on the date of this Certificate, the members and officers of the Agency duly appointed thereto, qualified therefor, and acting therein, were as follows: S. Roy Wilson Chairman James E. McPherson Member Alexis D. Newbrander Member Romeo S. Puluqi Member Walter H. Snyder Member Martin J. Bouman Executive Director Paul E. Byers Treasurer Sheila R. Gilligan Secretary Steven L. Dorsey Legal Counsel WLS37-27A 4. That a duly called adjourned regular meeting of the Agency was held on December 18, 1980, at 7:30 p.m., in the Council Chambers, City of Palm Desert. Dated this 19th day of December, 1980. f .7/ ;/.r( y i�z--/ 'Sheila R. Gil gan I Secretary, Palm Desert Redevelopment Agency y�J Pa opment Agency 11, MStin ; 0.:•uman Execut ve Director, Palm Desert Redevelopment Agency WLS37-19A SIGNATURE CERTIFICATE We, S. Roy Wilson, Paul E. Byers and Martin J. Bouman, Chairman, Treasurer and Executive Director, respectively, of the Palm Desert Redevelopment Agency (the "Agency"), DO HEREBY CERTIFY that we have signed, by manual signatures, one million five hundred thousand dollars ($1,500,000) principal amount of a non-negotiable promissory note of the Agency (the "Note"), dated December 19, 1980, bearing interest payable on December 19, 1981, and thereafter semiannually on June 19th and December 19th of each year, at the rate of ten percent (10%) per annum and maturing on June 19, 1984. We are, at the time we signed the Note and also on the date of this Certificate, which is the date of actual delivery of the Note to City National Bank, the duly appointed, qualified and acting officers indicated herein and authorized to execute the Note. Dated this 19th day of December, 1984. S. OW i,Y§ &c� Ch irm n, Palm Desert Redevelopment Agency Paul E. Byers Treasurer, I HEREBY CERTIFY that each of the above signatures WLS37-20B is the true and genuine signature of the person who is now the duly chosen, qualified and acting officer indicated by the official title following such signature. Bank '. Ty Iv,R 1 o,J,- I aA I` By (7.0 Ti e v,u.4.._ br WLS37-28A NO LITIGATION CERTIFICATE I, Steven L. Dorsey, Legal Counsel for the Palm Desert Redevelopment Agency (the "Agency") DO HEREBY CERTIFY that with respect to the issuance by the Agency of one million five hundred thousand dollars ($1,500,000) principal amount of a non-negotiable promissory note dated as of December 19, 1980 (the "Note"), no litigation of any nature is now pending or threatened restraining or enjoining the issuance and delivery of the Note or the levy, collection or allocation of taxes to pay the interest and principal or in any manner questioning the proceedings or the authority under which the Note is issued or affecting the validity of the Note thereunder; that neither the corporate existence of the Agency nor the title of the present officers to their respective offices is being contested; and that no steps or proceedings of any kind have been taken to revoke, recall or repeal the proceedings for the issuance of the Note. Dated this 19th day of December, 1980. Steven L. Dorse Legal Counsel, Palm Desert Redevelopment Agency WLS37-24A CITY NATIONAL BANK RECEIPT I, J.E. Sigler, on behalf of City National Bank, hereby acknowledge receipt from the Palm Desert Redevelop- ment Agency of its non-negotiable promissory note in the principal amount of one million five hundred thousand dollars ($1,500,000.00), issued pursuant to Resolution No. 126 of the Agency adopted on December 18, 1980. Dated this 19th day of December, 1980. J.E(,/Sigler heelVice President and Manager City National Bank WLS37-29A TREASURER'S RECEIPT I, Paul E. Byers, Treasurer of the Palm Desert Redevelopment Agency, DO HEREBY CERTIFY that on December 19, 1980, I received from City National Bank the sum of one million five hundred thousand dollars ($1,500,000). Paul E. Byers�� Treasurer, Palm Desert Redevelopment Agency RICMARD RICHARDS GLENN R. WATSON ROBERT G. BEVCRLY GILBERT DREYFUSS MARRY L. GERSHON J. R. VAUGMAN DOUGLAS W. ARGUE JAMES K. HERBERT JAMCS J. COOK MARK L. LAMKEN ARNOLD SIMON PATRICK C.0000MLAN RICMARD N. DINEL DAROLD D. PIEPER FREO A. FENSTER BARBARA MEIERS ALLCN E.RENNETT STEVCN L. DORSEY MARY L. WALKER WILLIAM L. STRAUSZ ROBCRT M. GOLDFRIED ANTHONY B. DREWRY BURTON MARK SCNKFOR MITCHELL E. ABBOTT TIMOTHY L. NEUFELO GARY L.OILLIG PHILIP KARPEL GREGORY W. STEPANICICH ROCHELLE BROWNE DONALO STERN MICHAEL JCNKINS MARIANNE GOOOWIN CAROLYN HOPKINS CARLBURG JOHN LEVINE TIMOTHY J. PARIS JEFFREY BERKOWITZ RICHARDS, WATSON, DREYFUSS & GERSHON ATTORNEYS AT LAW A PROFESSIONAL CORPORATION December 19, 1980 Palm Desert Redevelopment Agency City National Bank THIRTY-EIGHTH FLOOR 333 SOUTH HOPE STREET LOS ANGELES, CALIFORNIA 90071 )213) 626-6464 CABLE ADDRESS RI C H WAT OF COUNSEL RONALD M. GREENBERG A morTsvoKAl CORPORATION We have examined certified copies of proceedings taken in connection with the issuance of one million five hundred thousand dollars ($1,500,000.00) principal amount of a non-negotiable promissory note (the "Note") of the Palm Desert Redevelopment Agency (the "Agency"). We have also examined supplemental documents furnished to us and the Note and have obtained such certificates and documents from public officials as we have deemed necessary for purposes of this opinion. The Note is issued under and pursuant to the Community Redeveloment Law (California Health and Safety Code Sections 33000, et seq.) and Resolution No. 126 adopted by the Agency on December 18, 1980, (the "Resolution"). The Note is dated December 19, 1980, bears interest payable December 19, 1981, and thereafter semiannually on June 19th and December 19th of each year, at the rate of ten percent (10%) per annum and matures on June 19, 1984. The Note may be called before maturity and redeemed as provided in the Resolution. From such examination, we are of the opinion that the proceedings for the issuance of the Note have been taken in accordance with the laws and Constitution of the State of California, and in particular the Community Redevelopment Law, and that the Note, having been issued in duly authorized form and executed by the proper officials and delivered to and paid for by City National Bank, constitutes the legal and binding special obligation of the Agency and is payable from tax revenues and from certain other funds as provided in the Resolution. The tax revenues constitute that portion Palm Desert Redevelopment Agency December 19, 1980 Page Two of taxes levied each year by or for the benefit of the State of California, any city, county, district or other public corporation upon taxable property in Project Area No. 1 of the Agency which are received by the Agency and allocated to and paid into a special fund pursuant to Section 16 of Article XVI of the Constitution of the State of California and California Health and Safety Code Section 33670. We are further of the opinion that interest on the Note is exempt from federal income taxes and all taxes imposed by the State of California, except inheritance, gift and franchise taxes under existing statutes, regulations, rulings and court decisions. Respectfully submitted, irefee4df.P•refook., WLS49-15B