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HomeMy WebLinkAboutRDA RES 232RESOLUTION NO. 232 RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING A ._._ GROUND LEASE THE PALM DESERT REDEVELOPMENT AGENCY HEREB Y FINDS, DETERMINES, RESOL VES AND ORDERS AS FOLLOWS: Section 1. Pursuant to notice duZy given, the Agency has held a full and fair public hearing on the lease by the Agency to B. Robert Bonnett and Patrick E. 9onnett {collectively, the "Lessee") of certain real property generalZy Zocated on Fred Waring Drive adjacent to the Sheriff Station in the City of Pa1m Desert pursuant to the Ground Lease on file in the City Clerks office. Section 2. The Agency has made available to the public through the office of the City Clerk of the City of Pa1m Desert a copy of such Ground Lease together with a summary of the cost thereof to the Agency, such Summary attached hereto as Exhibit A. Whi1e the consideration to be paid by the Lessee to the Agency may be Iess than the estimated fair rental value of the suhject real property, such lesser consideration is necessary to — effectuate the purposes of the RedeveZopment Plan for the reasons set forth in the Summary. Section 3. The Agency hereby approves the financing plan for the construction of the office building described in the Ground Lease, such financing to be made to the Lessee through a qualified mortgage Iender, or the purchase of a loan made by a qualified mortgage Zender, to the Lessee or by a Zoan to a qualified mortgage Iender in accordance with the Ioan documents to be prepared by Agency Caunsel in accardance with applicable Zaw. Section 4. The Ground Lease, and such loan documents, are hereby approved. The officers of the Agency indicated therein are hereby authorized and directed, for and on behaZf of the A_qency, to execute the Ground Lease and such loan documents, a�ld to approve any changes or modifications thereto which have been recommended by the Executive Director of the Agency, so lon_q as the term of the Ground Lease sha11 not exceed 30 years, and the Zoan made by or through the qualified mortgage lender bears interest at a rate not to exceed 10 percent per annum. The signature of an officer or officers of the Agency thereon shall be deemed to be approval of any such changes or modifications. RESOL UTION NO. 232 PASSED, APPROVED and ADOPTED at a regular meeting of the City Counci3 of the City of Pa1m Desert on this 26th day of July, 1990 by the following vote, to wit: AYES: BENSON, ICELLY, SNYDER, WILSON, CRITES NOES: NONE ABSENT: NONE ABSTAIN: NONE �� ---��-�'� -- -` , i-- -- -_ % '/ �-L " 'c.�� : > BUF RD A CRITE , Chairman ATTEST : - � `� � , � SHEILA R. GIL IGAN, Ci t City of Pa1m Desert, Ca /d1g . L� erk fornia P.ESOLUTION ^10. 232 EXHIBIT "A" SUMMARY OF COST OF GROUND LEASE BETWEEN PALM DESERT REDEVELOPMENT AGENCY, AS LESSOR, AND 9. ROBERT BONNETT AND PATRICR E. 90NNETT, AS LESSEE The Agency acquired the subject real property, which is the site of the Ground Lease, and an adjacent 57 acres in 1988 for a tota.Z purchase price of $129,000 per acre. The Agency acquired such real property using the proceeds of bonds of the Agency. The net interest cost on such bonds is 8.0849 percent. There are no clearance costs to the Agency associated with the subject Ground Lease. There are no reZocation costs to the Agency associated with the subject Ground Lease. There are no improvements to be provided by the Agency pursuant to the subject Ground Lease. The estimated fair rental value subject reaZ property to be conveyed, uses permitted under the Redevelopment 1, as amended, is 64,500 per year for � of the interest in the determined at the highest Plan for Project Area No. term of 30 years. The rental payments which the Lessee wi1Z be required to pay to the Agency pursuant to the Ground Lease is only nominal. While the rental payments to be paid by the Lessee may be less than the fair rental vaZue of the interest to be con veyed by the Agency, such Ground Lease is important to the ultimate development of Project Area No. 1, as amended, and to the ul tima te deveZopmen t of the Ci vi c Cen ter, and wi 11 serve as a further catalyst to attract other development which wi11 generate additional tax increment revenues to be aZlocated to the Agency. Under the terms of the Ground Lease, the Lessee will be required to construct an office building on the subject real property. The Agency wi11 require the Lessee to provide reduced rents to certain tenants of the office building, such as the Coachelia Valley Association of Governments and to other potential users of the subject property, so as to provide an office building complex wi th tenan ts whi ch are compa tibZ e wi th o ther users in the Ci vi c Center which provide a cohesive element of the Civic Center.