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Home My WebLink AboutRDA RES 297RESOLUTION NO. 297 A RESOLUTION OF THS PALM D$SSRT RSDEVSLOPKSNT AG$NCY APPROVING PAYl NT BY TiiB AG iCY FOR ALL OR PART OF TI COST OF TFIS INSTALLATION AND CONSTRUCTION OF PUBLIC IMPitOVS1 NTS Z'i PALM DSS$RT RED LOPMSNT AGBNCY IiERSBY FINDS, DSTSRMINgS, RBSOLYSS AND ORD$RS AS FOLLOiiS: Sgction 1. The Desert Sands Unified School District is a taxing agency with territory located within the boundaries of Project Area No. 1, As Amended, Project Area No. 2, Project Area No. 3 and Project Area No. 4 of the Palm Desert Redevelopment Agency (collectively, the "Project Areas"). Section 2. Pursuant to former Health and 5afety Code Section 33401, the City Council of the City of Palm Desert (the "City Council"), the Palm Desert Redevelopment Agency (the "Agency") and the Desert Sands Unified School District (the "District") entered into agreements entitled, "Agreement for Cooperation Between the Desert Sands Unified School District, the Palm Desert Redevelopment Agency and the City of Palm Desert" dated September 12, 1985; "Agreement Regarding Cooperation (Project Area No. 1, As Amended: Desert Sands Unified School District)' dated February 13, 1992; "Agreement for Cooperation among the Desert Sands Unified School District, the City of Palm Desert and the Palm Desert Redevelopment Agency" dated April 14, 1988; "Agreement Regarding Cooperation fProject Area No. 3; Desert Sands Unified School District)" dated February 13, 1992; and "Agreement Regarding Cooperation (Project Area No. 4; Desert sands Unified School District)" dated as of May 18, 1993 (collectively, the "Agreements"). Section 3 Pursuant to the Agreements, and in order to alleviate any financial burden or detriment (as defined in prior Health and Safety Code Section 33012 ) to the,. District caused by the projects, the Aqency, or the County of Riverside Auditor-Controller or official responsible for the distribution of taxes, shall, as long as tax increment revenues are allocated to the Agency pursuant to Health and Safety Code Section 33670(b) for each respective Project Area, pay into a special trust account for the exclusive benefit of the District (collectively, the "District Capital Fund") a portion of the tax increment revenues allocated to the Agency from each respective Project Area which is attributable to and derived from the general tax rate of one percent levied within the respective Project Area and which in turn is attributable to and derived from the share of the one percent levy made on behalf of the District general fund. The moneys in the District Capital Fund shall be used by the District for the construction, alteration, reconstruction, repair, maintenance, acquisition or operation of District facilities. RSSOI.UTION NO. 297 Sectio� 4._ Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, e sea.), and in particular Section 33445 thereof, the Agency proposes to pay for all or part of the cost of the cost of the installation and construction of improvements to Palm Desert Hiqh School athletic facilities, including the installation and construction of tennis courts and a running track and improvements to the baseball field and the sprinkler system, and to pay for all or part of the cost of the installation and construction of improvements to computer technoloqical facilities, including the installation of required wiring facilities, at the following schools: Palm Desert High School, 43-570 Phyllis Jackson, Palm Desert; George washinqton Elementary Schoal, 45-768 Portola Avenue, Palm Desert; Abraham Lincoln Elementary School, 74-100 Rutledge way, Palm Desert; Palm Desert Middle School, 74-200 Rutledge way, Palm Desert; and Gerald Ford Elementary School, 44210 Warner Trail, Palm Desert. �}i section 5. The Agency hereby finds and declares that, notwithstanding any other provision of the Agreements, any payment by the Agency to, or on behalf of the District, for all or part of the value of the land for and the cost of the installation and construction of any building, facility, structure or other improvement which is publicly owned shall be deemed a prepayntent of the Agency's obligation to annually deposit tax increment revenues into the District Capital Fund pursuant to the Agreements. The amount of any such payment by the Agency, together with an interest factor to be added thereto, calculated in accordance with the manner hereafter set forth, shall be an offset against the obligation of the Agency to annually deposit tax increment revenues into the District Capital Fund. The Agency may retain that portion of the tax increment revenues otherwise required to be deposiLed into the District Capital Fund until such time as the amount of such tax increment revenues equals the amount of the payment together with the interest factor to be added thereto. If such payment �is made with money borrowed by the Agency, then the interest £actor to be added to the amount of the payment shall be the rate of interest paid by the Agency on the money borrowed by the Agency. In addition, there shall be added to the amount of the payment of any borrowed money the pro rata share of the Agency's costs and expenses incurred in connection with such borrowing, including, but not limited to, the underwriter's discount, costs of issuance, contributions to a reserve fund, and capitalized interest, if any. If the payment by the Agency is not made with borrowed money, then the interest factor to be added to the amount of the payment shall be equal to the average rate of return on all Agency investments over the prior 12-month period. 2 r•rr- . R$SOLUTION NO. 297 Section 6. The Project Areas are characterized by buildings and structures, used or intended to be used for living, commercial, industrial, or other purposes, which are unfit or unsafe to occupy for such purposes and are conducive to juvenile delinquency and crime because of, among other things, inadequate provision for recreation facilities. in addition, the Project Areas are characterized by properties which suffer from economic dislocation, deterioration or disuse because of the existence of inadequate public improvements and public facilities which cannot be remedied by private or qovernmental action without redevelopment, which causes a reduction of, or lack of, proper utilization of the Project Areas to such an extent that it constitutes a serious physical, social or economic burden on the City that cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone. The District serves the residents of the City of Palm Desert and surrounding areas by providing educational and recreational facilities. such facilities are available for use by the public when not being used for school purposes. The improvements described in Section 4 hereof will provide the residents an taxpayers of the City and the Project Areas with the opportunity to increase their employment skills and will increase the recreational opportunities available to such residents and taxpayers, and particularly the youth, by providing new, modern and efficient recreational facilities, including computer facilities, to serve such residents and taxpayers. The foregoing will help reduce crime and juvenile delinquency, all for the benefit of the health, safety and welfare of the residents and taxpayers of the City and Project Areas. The improvements described in Section 4 hereof will serve a basic purpose of redevelopment; redevelopment includes the provision of structures as may be appropriate or necessary in the interest of the qeneral welfare, including recreational and other facilities, as well as the provision of public recreation areas. In addition, a fundamental purpose of redevelopment is to expand employment opporturiities and to provide an enviro�nent for the social, economic and psychological growth and well-being of all citizens. The improvements described in Section 4 hereof will assist in the elimination of conditions of blight within the Project Areas of the Agency which are caused by inadequate recreation facilities and public improvements and facilities. Section 7. The budget constraints of the City prevent the City from financing the cost of the improvements described in section 4 hereof by any means. Traditional methods of financing such as the issuance of general obligation bonds by the City are unavailable as a practical matter because of the extraordinary 3 0 RSSOLUTZON NO. 297 majority voter approval requirements. Assessment financing or special tax financing could overburden benefitting properties with assessments or special taxes which would be added to existinq taxes and assessments, and, in addition, special taxes require a two- thirds vote and assessment financing may not be expressly authorized and is subject to a majority protest in certain instances. Section 8. The Agency hereby finds and determines that based upon the foreqoing and other information presented to the Agency: (i) the improvements described in Section 4 hereof will be of benefit to the Project Areas and to the immediate neighborhood in which the projects are located, (ii) the paytnent of funds for the cost of such improvements will assist in the elimination of one or more blighting conditions inside the Project Areas by providinq increased recreational and employment opportunities and remedyinq inadequate public improvements and facilities, thereby reducinq crime and juvenile delinquency, and (iii) no other reasonable means of financing the improvements are available to the City and the District. Section 9. The Aqency hereby approves payment by the Agency for all or a part of the cast of the improvements described in section 4 hereof from any revenues of the Aqency lawfully available therefor, including the proceeds of tax allocation bonds. section 10. This Resolution shall not become effective until the Board of Education of the District adopts a resolution, in form and substance satisfactory to the Agency and City Council, making the findings required by Health and Safety Code Sect3on 33445 with respect to the proposed payment for the improvements described in Section 4 hereof. Section 11. The Agency hereby finds and declares that the Agency is adoptin� this Resolution in reliance upon the District's agreement to indemnify, defend, protect and hold harmless the City and the Agency, their council and board members, and any and all employees, agents and representatives of the City. and the Agency from and against any and all losses, actions, suits, damages, penalties, fines, Iiabilities, debts, liens, claims, costs and expenses (including all reasonable out-of-pocket litigation costs and reasonable attorney's fees) and demands of any nature whatsoever, related directly or indirectly to, or arising out of or in connection with the improvement, rehabilitation, reconstruction, use, ownership, management, occupancy, or possession of the facilities described in Section 4 hereof , any act or failure to act of the District in connection with the improvement, rehabilitation, reconstruction, use ownership, management, occupancy, or possession of such facilities (or the activities, or failure to act, of the 4 , RBSOLUTION NO. 297 District's agencts, employees, lessees, representatives, licensees, guests, invitees, contractors, subcontractors, or independent contractors) or the payment by the Agency for all or a part of the cost of the improvements described in Section 4 hereof. PASSED, APPROVED AND ADOPTED THIS 25th day of August, 1994. AYES: BENSON, CRITES, KELLY, SNYDER, WILSON NOES: NONE ABSENT: NONE ABSTAIN: NONE Attest ; . � � � / '� � .. , % ' � � �/��%�� /'�, n Sheila R. Gil�'igan, S.e'qretary � 5