HomeMy WebLinkAboutRDA RES 460RESOLUTION NO. 460
A RESOLUTION OF THE PALM DESERT
REDEVELOPMENT AGENCY APPROVING
REIMBURSEMENT BY THE AGENCY TO THE CITY FOR
THE COST OF CERTAIN OPEN SPACE RECREATIONAL
FACILITIES AND DECLARING ITS INTENT TO REIMBURSE
WITH THE PROCEEDS OF THE BONDS
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. On November 22, 2002, the City of Palm Desert, together with the
Coachella Valley Mountains Conservancy and the Bureau of Land Management, acquired
approximately 100 acres of open space (the "Fox Property") in Project Area No. 1, As
Amended, of the Palm Desert Redevelopment Agency. The purpose of the acquisition is
to provide additional public recreational facilities in Project Area No. 1, As Amended.
Pursuant to provisions of the Community Redevelopment Law (California Health and
Safety Code Section 33000, et seq.), and in particular Section 33445 thereof, the Agency
proposes to reimburse the City for the cost of the Fox Property. Such open space will
provide needed recreational opportunities to serve the residents and taxpayers of the City
and particularly of Project Area No. 1, As Amended. The bulk of the residents and
taxpayers of the City reside in Project Area No. 1, As Amended, and it is expected that they
will be the principal users and beneficiaries of the recreational opportunities provided by
such open space. The foregoing will help correct the situation of inadequate open space
for recreational use in Project Area No. 1, As Amended, promote the sound development
and redevelopment of the Agency's project areas, reduce crime and juvenile delinquency,
all for the benefit of the health, safety and welfare of the residents and taxpayers of the
City, Project Area No. 1, As Amended, and the other project areas of the Agency.
Section 2. The City used moneys on hand in the general fund to pay for the
acquisition of the Fox Property, and did so with the understanding that such moneys would
be reimbursed to the City by the Agency. The Agency intends that such reimbursement
be made 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 City and the Agency
expect that such reimbursement will be made with proceeds of such bonds. The budget
constraints of the City and the extraordinary voter approval requirements applicable to
traditional methods of financing (such as general obligation bonds and community facilities
district bonds) as a practical matter prevent the City from financing the acquisition of such
open space by any other means. The open space will have more general rather than
special benefits to property owners, and therefore special assessment financing would not
be an appropriate method of financing.
Section 3. 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. 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,
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RESOLUTION NO. 460
RESOLUTION APPROVAL
January 9, 2003
Page 2
adopt an official intent for the original expenditure. The official intent is a declaration of
intention by the issuer (or conduit borrower) to reimburse the original expenditure with
proceeds of bonds. Such official intent is declared in this Resolution.
Section 4. The estimated maximum principal amount of bonds or other
obligations expected to be issued to reimburse for the acquisition of the Fox Property is
$2,700,000.
Section 5. The official intent described in this Resolution 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 herein.
Section 6. The City Council hereby finds and determines that based upon
the foregoing and other information presented to the City Council: (i) the recreational
facilities described in Section 1, above, will be of benefit to, and will primarily benefit,
Project Area No. 1, As Amended; (ii) no other reasonable means of financing such
acquisition is available to the City; (iii) the reimbursement will assist in the elimination of
one or more blighting conditions inside Project Area No. 1, As Amended; and (iv) the
reimbursement is consistent with the Implementation Plan for Project Area No. 1, As
Amended.
Section 7. The City Council hereby approves the reimbursement by the
Agency to the City for the cost of the acquisition of such open space from any revenues
of the Agency lawfully available therefor, including the proceeds of bonds or other
obligations.
PASSED, APPROVED and ADOPTED this 9th day of January, 2003.
AYES: CRITES, FERGUSON, BELLY, SPIEGEL, BENSON
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
Attest:
ac e e assen` ecretair
. Benson, Chairman
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