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HomeMy WebLinkAboutRDA RES 413RESOLUTION NO. 413 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROViNG THE LEASE AND SALE OF PROPERTY BY THE -- AGENCY TO THE RICHARD J. HECKMANN FOUNDATION AND THE UNIVERSITY OF CALIFORNIA, RIVERSIDE FOR DEVELOPMENT PURSUANT TO THE REDEVELOPMENT PLAN FOR PROJECT AREA NO. 2, AND LOAN BY THE AGENCY FOR COSTS OF CERTAIN PUBLIC IMPROVEMENTS THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. In order to effectuate the provisions of the Redevelopment Plan (the "Redevelopment Plan"} for Project Area No. 2(the "Project Area"), the Palm Desert Redevelopment Agency (the "Agency") proposes to enter into a Disposition and Development Agreement (the "DDA") with the Richard J. Heckmann Foundation ("Heckmann°) and the University of Califomia, Riverside ("UCR"), pursuant to which DDA the Agency will lease to Heckmann approximately 8.5 acres of certain real property located north of Frank Sinatra Drive and east of Cook Street, Palm Desert, California (the "Parcef A Property") for the construction of the Intemational Center of Entrepreneurial Management (the °ICEM"). Upon completion of the ICEM, Agency will convey title to the Parcel A Property to UCR and will grant to UCR a� option to purchase approximately 11.5 acres of real property adjacent to the Parcel A Property ___ (the "Parcel B Property"). The Parcel A Property and the Parcel B Property are referred to collectively as the "Property." In addition, the Agency will loan to Heckmann up to $2,000,000 to construct public improvements related to construction and completion of the ICEM, including such items as road and utility improvements. Section 2. The Property is currently part of certain real property that the Agency has reserved for use pursuant to a Disposition and Development Agreement between the Agency and the Trustees of the Califomia State University (the "CSU DDA"). The Agency proposes to enter into an amendment to the CSU DDA whereby CSU releases its i�terest in the Property in order to allow for the proposed transfer of the Property by the Agency to UCR (the "CSU Amendment"). Further, the CSU Amendment provides for a reconfiguration of a Planning Committee composed of representatives of the City, CSU and UCR to oversee improvements on the Property. The DDA shall not take effect until the CSU Amendment to the DDA is approved and executed by CSU. Section 3. On March 22, 2001, the City Council of the City of Palm Desert (the "City Council") and the Agency held a duly noticed public hearing on the approval of the Agency's proposed lease of the Parcel A Property to the Heckmann and sale of the Parcel A Property and grant of option on the Parcel B Property to UCR pursuant to P6402\046�41646484.3 -1- RESOLUTION NO. 413 the DDA, at which time all persons desiring to comment on, or ask questions concerning, the DDA were given the opportunity to do so. Prior to the public hearing, information concerning the Agency's proposed lease and saie of the Property to the Heckmann and UCR was available for public inspection in office of the City Clerk in accordance with Health and Safety Code Section 33433. Section 4. The Property and the proposed public improvements are located in the Project Area. The Property is currently completely unimproved and the development of the ICEM and related public improvements will assist in the elimination of blight. The City Council has previously determined that the Project Area is an area in which the combination of conditions of blight are so prevalent and so substantial that there is a reduction of, or lack of, proper utilization of the area to such an extent that it constitutes a serious physical, social and economic burden on the community which cannot reasonably be expected to be reversed or alleviated by private enterprise or governmental action, or both, without redevelopment. Among other things, the Project Area contains vacant and underutilized properties, properties which suffer from depreciated or stagnant property values and impaired investments, and deteriorated, aged and obsolete buildings. Such conditions tend to further deterioration and disuse because of the lack of incentive to landowners and their inability to improve, modemize or rehabilitate their property while the condition of the neighboring property remains unchanged. In addition, the Project Area is characterized by the existence of inadequate public improvements and utilities, which cannot be remedied by private or governmental action without redevelopment. The development of the ICEM and related uses on the Property will provide needed educational facilities and will redevelop a vacant, underutilized parcel. Overall, the construction of the ICEM and related public improvements will help remedy the tack of adequate public improvements, thereby eliminating a factor which substantially hinders the economically viable use of property and buildings within the Project Area, and the construction of an educational facility on a previously vacant, underutilized parcel will assist in the revitalization of the Project Area and create employment opportunities for residents of the Project Area. All of the foregoing will assist in encouraging private sector investment in the Project Area and will assist in eliminating blighting conditions in the Project Area. Section 5. The budget constraints of the City prevent the City from financing the installation and construction of the public 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 of two-thirds of the electorate. Assessment financing or special tax financing could overburden benefitting properties with assessments or special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. P6402\0464\646484.3 - 2 - RESOLUTION NO. 413 Section 6. The Agency has obtained an evaluation of the value of the Property from Real Estate Analysis Services Co., which has determined that the consideration of $0 is not less than the fair reuse value at the use and with the covenants and conditions and development costs at which the Agency is leasing the Parcel A Property to Heckmann and selling the Parcel A Property to UCR and granting an option to sel! the Parcel B Property to UCR pursuant to the DDA. Section 7. Based upon the foregoing and other information presented to the Agency, the Agency hereby fiinds and detennines that (i) the lease of the Parce{ A Property to Heckmann, the sale of the Parcei A Property and grant of an option on the Parcel B Property to UCR, the loan for $2,000,000 to Heckmann for the cost of the installation and construction of certain public improvements by the Agency pursuant to the DDA, and the CSU Amendment are all consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; (ii) the ICEM and public improvements will be of benefit to the Project Area and the immediate neighborhood in which the project is located, (iii) the provision of the ICEM and related public improvements is necessary to effectuate the purposes of the Redevelopment Plan for the Project Area, (iv) the lease of the Parcel A Property to Heckmann, the saie of the Parcel A Property and grant of an option on the Parcel B Property to UCR, and the loan of $2,000,000 by the Agency to Heckmann for the cost of the installation and construction of certain pubfic improvements pursuant to the DDA, and the CSU Amendment will assist in the elimination of one or more blighting conditions inside the Project A�ea, (v) no other reasonable means of financing the installation and � construction of the public improvements is available to the City and (vi) the consideration for the Property is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the lease and sale. Section 8. The Agency hereby approves (a) the CSU Amendment, and (b) the lease of the Parcel A Property to Heckmann, the sale of the Parce4 A Property and grant of an option on the Parcel B Property to UCR, and the loan by the Agency of $2,000,000 to Heckmann for the cost of the installation and construction of certain public improvements pursuant to the DDA. The execution of the DDA and related documents are conditioned upon the approval and execution of the CSU Amendment by CSU. The loan of funds may be made from any revenues of the Agency IawfuNy available therefor. The Agency hereby authorizes its Executive Director to execute and deliver the CSU Amendment and the DDA and in substantially the forms presented to the Agency at this meeting and now on file with the City Clerk, with such changes - P6402\04641646484.3 - 3 - RESOLUTION NO. 413 therein or such other documents or actions as may be necessary or convenient and as the Executive Director may approve, in his discretion, as being in the best interests of the Agency, such approval to be conclusively evidenced by the execution and delivery thereof. PASSED, APPROVED and ADOPTED this 22nd day of March, 2001. AYES: BENSON, CRITES, KELLY, FERGUSON NOES: NONE � ABSENT: sPIEGEL ABSTAIN: NONE EST: Sheila R: Gilii�an, P6402\0464\646484.3 � -4-