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HomeMy WebLinkAboutRDA RES 440RESOLUTION NO. 440 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PAYMENT BY THE AGENCY FOR THE — C�ST OF THE ACQUISITION OF A PUBLIC PARKING EASEMENT TO FINANCE THE COST OF THE INSTALLATION AND CONSTRUCTION OF PARKING STRUCTURES AND DECLARING THE INTENT OF THE AGENCY TO REIMBURSE THE COST THEREOF FROM THE PROCEEDS OF BONDS THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The City of Palm Desert and Westfield Corporation, Inc. entered into that certain Agreement, dated as of December 9, 1999. Among other things, the Agreement p�ovides for payment by the City to Westfield of the cost of the acquisition of a public parking easement in two parking structures and certain other parking spaces, all of which will serve the Palm Desert Town Center. The Agreement contemplates that the acquisition price will approximately equal the cost of construction of the subject parking structures. Section 2. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seg.), and in particular Section 33445 thereof, the Palm Desert Redevelopment Agency intends to pay for the cost of the installation and construction of the subject parking structures. The Town Center and the subject parking structures are located in Project Area No. 1, As Amended. 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 it causes a reduction of, or lack of, proper utilization of the area to such an e�ent that it constitutes a serious physical, social and economic burden on the community which cannot reasonably be expected to be reversed or affeviated 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 deteriorated, aged and obsolete buildings. In addition, the Project Area is characterized by the existence of inadequate public improvements and public facilities, including inadequate circulation and public parking improvements, which cannot be remedied by private or governmental action without redevelopment. The lack of adequate public improvements hinders economic development opportunities and contributes to the existence of depreciated and stagnant property values and impaired investments in the Project Area. The Town Center is a major component of the Core Commercial area of the City and the Project Area. The subject parking structures will improve ingress and egress to and from the Town Center and the Core Commercial area of the Project Area. Traffic circulation within the Project Area and the Core Commercial area of the City will also be improved, which will in tum mitigate congestion and safety hazards, all for the benefit of the health, safety and welfare of the residents and taxpayers of the Project Area. The subject parking structures will thereby assist in the elimination of conditions of blight within the Project Area which are caused by inadequate pubfic improvements. This in turn will assist in eliminating a factorwhich prevents or substantially hinders the economically viable use or capacity of buildings or lots and will encourage private-sector investment in the Project Area, thereby facilitating the redevelopment of the Project Area. The installation and construction of the subject parking st�uctures will promote the economic viability of Project Area businesses, attract new businesses, encourage business expansion and encourage private sector investment in the Project Area. P6402\0001 \6892313 RESOLUTION NO. 440 Section 3. The budget constraints of the City prevent the City from financing the cost of the subject parking structures by any means. Moneys set aside by the City pursuant to the Agreement to pay for such cost will be appropriated for other purposes, including street and traffic circulation improvements, drainage improvements and park and recreational improvements. No moneys of the City are available to pay for the cost of the subject parking structures. Traditional methods of financing such as the issuance of general obligation bonds are unavailable as a practical matter because of the extraordinary majorityvoterapprovalrequirementsoftwo-thirdsoftheelectorate. Assessmentfinancing 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. Section 4. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City Council: (i) the subject parking structures are of benefit to the Project Area and the immediate neighborhood in which the project is located; (ii) the payment of funds for the acquisition of the public parking easement which will finance the cost of installation and construction of the parking structures wil� assist in the elimination of one or more blighting conditions inside the Project Area; (iii) the payment of the acquisition cost of the public parking easement which will finance the cost of the parking structures is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; and (iv) no other reasonable means of financing the parking structures is available to the City. Section 5. The Agency hereby approves payment by the Agency for the cost of acquisition of a public parking easement for the subject parking structures from any revenues of the Agency lawfully available therefor, including tax increment revenues derived from the Project Area. Section 6. The Agency expects to use tax increment revenues currently on hand to pay for the cost of the acquisition of the public parlcing easement to finance installation and construction of the subject parking structures. The Agency intends that such payment be reimbursed from the proceeds of bonds or other obligations to be issued by the Agency, by the Palm Desert Financing Authority, or by a related public entity. The Agency expects that all expenditures related to the parking structures will be reimbursed with proceeds of such bonds. Section 7. Section 1.150-2 of the Treasury Regulations governs the allocation of expenditures of a reimbursement bond. A reimbursement bond is that portion of an issue of bonds (or other obligations) allocated to reimburse an original expenditure (i.e., an expenditure for a governmental purpose that is originally paid from a source other than a reimbursement bond) that was paid before the date of issue of the bonds. Section 1.150-2 provides rules to determine when an allocation of proceeds of bonds to reimburse an original expenditure will be treated as an expenditure of those proceeds. Section 8. In order for such an allocation of those proceeds to be treated as an expenditure, the issuer (or in certain cases, a conduit borrower) of the bonds must, in accordance with Section 1.150-2, adopt an official intent for the original expenditure. The official intent is a declaration of intention by the issuerto reimburse the original expenditure with proceeds of bonds. Such official intent is declared in Section 6 hereof. Section 9. The maximum principal amount of bonds or other obligations expected to be issued to pay for acquisition of the public parking easement to finance installation and construction of the subject parking structures is $12,000,000. P6402\0001\689231.3 - 2 - RESOLUTION NO. 440 Section 10. This official intent is not declared as a matter of course and is not declared in an amount substantially in excess of the amounts expected to be necessary to reimburse the expenditures described in Section 2 hereof. PASSED, APPROVED and ADOPTED this 11th day of April, 2002. AYES: BENSON, FERGUSON, SPIEGEL, KELLY NOES: NorrE ABSENTS: cxzTEs ABSTAINS: NONE Ri hard S. Kelly, Chairm P6402\0001 \689231.3 - 3 -