HomeMy WebLinkAboutRDA RES 441RESOLUTfON NO. 441
A RESOLUTfON OF THE PALM DESERT
REDEVELOPMENT AGENCY DECLARING ITS INTENT
TO REIMBURSE EXPENDITURES IN CONNECTION WITH
THE WIDENING OF FRED WARING DRIVE FROM THE
PROCEEDS OF BONDS
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The Palm Desert Redevelopment Agency intends to spend
redevelopment funds to reimburse the City of Palm Desert for land acquisition and other
capital costs associated with the widening of Fred Waring Drive.
Section 2. The Agency intends that the foregoing described expenditures be
reimbursed to the Agency 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 such expenditures will be reimbursed with the proceeds of such
bonds.
Section 3. Section 1.150-2 of the Treasury Regulations governs the
aliocation 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 b�nds. 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 4. 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 issuer to reimburse the original expenditure
with proceeds of bonds. Such official intent is declared in Section 2 hereof.
Section 5. The maximum principal amount of bonds or obligations expected
to be issued for the above-described costs associated with the widening of Fred Waring
Drive is $7,000,000.
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RESOLUTION NO. 441
Section 6. 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 3 hereof.
PASSED, APPROVED and ADOPTED this 11`h day of April, 2002.
AYES:
NOES:
ABSENTS:
ABSTAINS:
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Sheila
BENSON, FERGUSON, SPIEGEL, KELLY
NONE
CRITES
NONE
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Richard S. Kelly, Chairman
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