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HomeMy WebLinkAboutRDA RES 331RESOLUTION NO. 331 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY - APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF CERTAIN SPECIAL EDUCATION RELATED PUBLIC IMPROVEMENTS THE PALM DESERT REDVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: �ection 1. The Riverside County Office of Education (the "Office of Education") 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 (collectively, the "Project Areas") of the Palm Desert Redevelopment Agency ("the Agency"). Section 2. Pursuant to former Health and Safety Code Section 33401, the City of Palm Desert (the "City"), the Agency and the Office of Education entered into certain agreements (collectively, the "Agreements") to alleviate any financial burden or detriment to the Office of Education caused by the redevelopment of the Project Areas. Section 3. Pursuant to the Agreements, the Agency pays into a special trust account for the exclusive benefit of the Office of Education a portion of the tax increment revenues allocated to the Agency from the applicable Project A-rea. The moneys in the special trust account must be used by the Office of Education for the construction, alteration, reconstruction, repair, maintenance, acquisition or operation of facilities of the Office of Education. Section 4. Pursuant to the provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seQ.), and in particular Section 33445 thereof, the Agency proposes to pay for all or part of the cost of the installation and construction of special education classrooms at Palm Desert High School and Carter Elementary School(collectively, the "Improvements"). 961014 P6401-00001 alr 0321335 0 Resolution 331 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 Office of Education, 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 prepayment of the Agency's obligation to annually deposit tax increment revenues into such special trust account pursuant to the Agreements. The amount of any such payment by the Agency, together with an in�erest 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 such special trust account. The Agency may retain that portion of the tax increment revenues otherwise required to be deposited into such special trust account 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 factor 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. 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 governmental 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 961014 P6401-00001 alr 0321335 0 2 Resolution No. 331 City that cannot reasonably be expected to be reversed or alleviated by private enterprise acting alone. The Office of Education serves the residents of the --" City and surrounding areas by providing special educational facilities. The Improvements will provide the residents and taxpayers of the City and the Project Areas, and their school-age children, with additional educational opportunities to enhance their education and increase their employment skills by providing new, modern and efficient 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 the Project Areas. The Improvements will serve a basic purpose of redevelopment; redevelopment includes the provision of structures as may be appropriate or necessary in the interest of the general welfare. In addition, a fundamental purpose of redevelopment is to expand employment opportunities and to provide an environment for the social, economic and psychological growth and well-being of all citizens. The Improvements will assist in the elimination of conditions of blight within the Project Areas which are caused by inadequate public improvements and facilities. Section 7. The budget constraints of the City and Office of Education prevent each of them from financing the cost of the Improvements by any means. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majority voter approval requirements. Assessment financing or special tax financing could overburden benefitting properties with assessments or special taxes which would be added to existing 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 foregoing and other information presented to the City Council: (i) the Improvements will be of benefit to the Project Areas and to the immediate neighborhood in which the projects are located, (ii) the payment of funds for the cost of such Improvements will assist in the elimination of one or more 961014 P6401-00001 a1z 0321335 0 3 Resolution No. 331 blighting conditions inside the Project Areas by providing increased special educational and employment opportunities and remedying inadequate public improvements and facilities, thereby reducing crime and juvenile delinquenc�r, and (iii) no other reasonable means of financing the improvements are available to the City and the Office of Education. Section 9. The Agency hereby approves payment by the Agency for all or a part of the cost of the Improvements from any revenues of the Agency lawfully available therefor, including the proceeds of tax allocation bonds. Section 10. This Resolution shall not become effective until the Office of Education adopts a resolution, in form and substance satisfactory to the Agency and City Council, making the findings required by Health and Safety Code Section 33445 with respect to the proposed payment for the Improvements. Section 11. The Agency hereby finds and declares that the Agency is adopting this Resolution in reliance upon the agreement by the Office of Education 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, liabilities, 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 Improvements, any act or failure to act of the Office of Education in connection with the improvement, rehabilitation, reconstruction, use, ownership, management, occupancy or possession of such Improvements (or the activities, or failure to act, of the District's agents, employees, lessees, representatives, licensees, guests, invitees, contractors, 961014 P6401-00001 alr 0321335 0 4 Resolution No. 331 subcontractors, or independent contractors) or the payment by the Agency for all or a part of the cost of the Improvements. PASSED, APPROVED AND ADOPTED this 24 day of October 19 9 6 . AYE S: BENSON, CRITES, KELLY, SPIEGEL, SNYDER NOES : NONE AB S ENT : NONE ABSTAIN : NONE Chairman ATTEST: �� ' �. i ;� t� s1 e '�' ��;�; ' .� ecretary �' 961014 P6401-00001 alr 0321335 0 - 5-