Loading...
HomeMy WebLinkAboutRDA RES 421RESOLUTION NO. 421 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE LEASE OF PROPERTY BY THE AGENCY FROM AND TO FRIENDS OF THE CULTURAL CENTER, INC. FOR OPERATION AND MAINTENANCE OF A PERFORMING ARTS CENTER PURSUANT TO THE REDEVELOPMENT PLAN FOR PROJECT AREA NO. 1 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 P1an") for Project Area No. 1(the "Project Area"), the Palm Desert Redevelopment Agency (the "Agency") proposes to enter into a Disposition and Development Agreement (the "DDA") with the Friends of the Cultural Center, Inc., a California non-profit public benefit corporation ("FCD"), the McCallum Theatre Foundation, Inc., a California non-profit public benefit corporation ("Foundation"), and the Desert Community College District ("College") , pursuant to which DDA the Agency will (a) lease certain building improvements from FCD (the "Improvements") under a Lease; (b) lease certain real property, on which the Improvements are located, from the College (the "Property") under an Assignment of Ground Lease; and (c) sublease the Improvements and Property to FCD under a Sublease for the operation and maintenance of a cultural and performing arts center ("the "Project"). The Property and Improvements are located at 43500 Monterey Avenue and 73000 Fred Waring Drive, Palm Desert, California. Under the DDA, upon satisfaction of certain conditions and execution of the Lease, Assignment of Ground Lease, and Sublease, the Agency will make a prepaid rent payment in the amount of Five Million Dollars ($5,000,000.00) to be held in escrow for the term of the Lease and otherwise paid in accordance with the terms and conditions of the DDA (the "Rent Payment"). Section 2. On June 28, 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 lmprovements and Property to FCD pursuant to the DDA, at which time all persons desiring to comment on, or ask questions conceming, the DDA were given the opportunity to do so. Prior to the public hearing, information concerning the Agency's proposed lease of the Improvements and Property to the FCD was available for public inspection in office of the City Clerk in accordance with Health and Safety Code Section 33433. Section 3. The Property and Improvements are located in the Project Area. The lease of the Improvements and Property and the development of the Project 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 P6402\0462\658245.1 -1- RESOLUTION NO. 421 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 govemmental 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 Project and related uses on the Property will provide needed community facilities and will redevelop an underutilized parcel. Overall, the continued operation and maintenance of the Project will help remedy the lack of adequate community facilities, thereby eliminating factors which substantially hinder the economically viable use of property and buildings within the Project Area, and the continued operation and maintenance of a cultural and performing arts center 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 4. The Agency has obtained an evaluation of the value of the Improvements and Property from Real Estate Analysis Services Co., which has determined that the consideration of $1 per year for the term of the Lease 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 Improvements and Property to FCD pursuant to the DDA. Section 5. Based upon the foregoing and other information presented, the Agency hereby finds and determines that (i) the Lease; Assignment of Ground Lease; Sublease, and payment of the Rent Payment, by the Agency pursuant to the DDA, are all consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; (ii) the Project will be of benefit to the Project Area and the immediate neighborhood in which the Project is located, (iii) the provision of the Project is necessary to effectuate the purposes of the Redevelopment Plan for the Project Area, (iv) the Lease, Assignment of Ground Lease, Sublease, and payment of the Rent Payment by the Agency pursuant to the DDA will assist in the elimination of one or more blighting conditions inside the Project Area, and (v) the consideration for the Improvements and Property is not less than the fair reuse value at the use and with the covenants and conditions and development costs authorized by the Sublease. P6402\0462\658245.1 - 2 - RESOLUTION NO. 421 Section6. The Agency hereby approves the Lease, Assignment of Ground Lease, and Sublease of the Improvements and Property by Agency to FCD --- pursuant to the DDA. The Rent Payment may be made from any revenues of the Agency lawfully available for such purposes. The Agency hereby authorizes its Executive Director to execute and deliver the DDA and exhibits in substantially the forms presented to the Agency at this meeting and now on file with the City Clerk, with such changes 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 28th day of June, 2001. AYES: NOES: ABSENT: ABSTAIN: A T T: �� Sheila R. BENSON, CRITES, SPIEGEL, KELLY NONE FERGUSON NONE � R HARD S. K LLY, VICE HAIRMAN P6402\0462\658245.1 - 3 -