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HomeMy WebLinkAboutRDA RES 458RESOLUTION NO. 458 —' A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING THE SALE OF PROPERTY BY THE AGENCY TO 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 amend that certain Disposition and Development Agreement dated as of March 22, 2001 by and among the Agency, the Richard J. Heckmann Foundation ("Heckman"), and the Regents of the University of California, on behalf of its Riverside Campus ("UCR") (the "DDA") by entering into a First Amendment to Disposition and Development Agreement (the "Amendment") with Heckmann and UCR, pursuant to which Amendment the Agency witl (a) sell approximately 8 acres of certain real property located north of Frank Sinatra Drive and east of Cook Street, Palm Desert, California ("Parcel A") to UCR for the construction of the International Center of Entrepreneurial Management (the "ICEM"). Under the continuing terms of the original DDA, upon completion of the ICEM, Agency will grant to UCR an option to purchase approximately 11 acres of real property adjacent to Parcel A("Parcel B") (Parcel A and Parcel B are herein sometimes referred to as the "Property") and the Agency will loan up to $2,000,000 to construct public improvements related to construction and completion of the ICEM (the "Public Improvements"). Section 2. On December 12, 2002, the City Council (the "City Council") of the City of Palm Desert (the "City") and the Agency held a duly noticed public hearing on the approval of the Agency's proposed transfer of the Property to UCR and the loan of $2,000,000 to UCR pursuant to the Amendment, at which time all persons desiring to comment on, or ask questions concerning, the transfer of the Property, the loan, and the Amendment were given the opportunity to do so. Prior to the public hearing, information concerning the Agency's proposed transfer of the Property and. the loan to UCR was available for public inspection in office of the City Clerk in accordance with Health and Safety Code Sections 33433 and 33679. Section 3. 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 P6402\0001\Agency Resolution - UCR.DOC - 1 - RESOLUTION NO. 1a,5,R 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, modernize 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 lack 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 and will additionally be of benefit to and assist in eliminating blighting conditions in Project Area No. 4 of the Agency. Section 4. 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. Section 5. The Agency has obtained an evaluation of the value of the Property frorn Real Estate Analysis Services Co., which has determined that the consideration of $1 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 selling and granting an option to sell the Property to UCR pursuant to the Amendment. PC402\0001\Agency Resolution - UCR.DOC RESOLUTION NO. 45A Section 6. Based upon the foregoing and other information presented to the Agency, the Agency hereby finds and determines that (i) the sale and granting of an option to UCR by the Agency pursuant to the Amendment are consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; (ii) the ICEM and the Public Improvements will be of benefit to Project Area and Project Area No. 4 and the immediate neighborhood in which the project is located, (iii) the provision of the ICEM and the Public Improvements is necessary to effectuate the purposes of the Redevelopment Plan for the Project Area, and will assist in the elimination of one or more blighting conditions inside the Project Area, and (iv) 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 sale. Section 7. The Agency hereby approves (a) the Amendment, and (b) the sale of and granting of an option on the Property to UCR and the loan of $2,000,000 to UCR for the construction of the Public Improvements by the Agency pursuant to the Amendment. The execution of the Amendment and related documents are conditioned upon the concurrent approval and execution of the Amendment by UCR. The Agency hereby authorizes its Executive Director to execute and deliver the Amendment and related documents in substantially the forms presented to the Agency at this meeting and now on file with the City Clerk, with such changes therein or such other documents or actions as may be necessary or convenient and as the Executive Director may `. approve, in his discretion, as being in the best interests of the Agency, such approval to be conclusively evidenced by the execution and delivery thereof. PASSED, APPROVED and ADOPTED this 12`h day of December, 2002, by the following vote to wit: AYES: CRITES, FERGUSON, KELLY, SPIEGEL, BENSON NOES: NONE ABSENTS: NorrE ABSTAINS: NONE /,��'1� JEl�R�P4�-$'�NSON, CHAIRMAN ATTEST: � Rachelle D. Klassen, ecretary P6402\OOOI�Agency Rcsolution - UCR.DOC