HomeMy WebLinkAboutRDA RES 462RESOLUTION NO. 462
A RESOLUTION OF THE PALM DESERT
REDEVELOPMENT AGENCY DECLARING ITS INTENT TO
� REIMBURSE AN EXPENDITURE FOR THE ACGIUISITION
OF LAND WITH THE PROCEEDS OF THE BONDS
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. On December 6, 2002, the Palm Desert Redevelopment Agency
acquired from American Realty Trust approximately 170 acres of real property (the "ART
Property") in Project Area No. 2 of the Agency in exchange for a down payment and a
promissory note. The purpose of such acquisition is to provide additional public golf course
recreational facilities in Project Area No. 2. 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 such down payment,
and to pay for the balance of the cost of the ART Property, from the proceeds of bonds.
Such public golf course facilities will provide needed recreational opportunities to serve the
residents and taxpayers of the City and particularly of Project Area No. 2. The foregoing
will help correct the situation of inadequate public golf course facilities for recreational use
in Project Area No. 2, promote the sound development and redevelopment of the Agency's
project areas, reduce crime and juvenile de{inquency, all for the benefit of ihe health, safety
and welfare of the residents and taxpayers of the City, Project Area No. 2, and the other
project areas of the Agency.
` Section 2. The Agency used moneys on hand in its general fund to pay the
down payment in connection with the acquisition of the ART Property, and did so with the
understanding that such moneys would be reimbursed to the Agency from the proceeds
of bonds. 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 Agency expects that such reimbursement will
be made with proceeds of such bonds. The Agency may pay the balance of the purchase
price for the ART Property from surplus tax increment revenues or other funds of the
Agency, in which case the Agency also intends to reimburse itself for any such further
payment from the proceeds of bonds.
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 originaHy 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 rutes 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,
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.
P6402\0001 \717506.1
RESOLUTION NO. 4�2
Section 4. The estimated maximum principal amount of bonds or other
obligations expected to be issued to reimburse Agency for the down payment and pay the
balance for the acquisition of the ART Property is $13,500,000.
PASSED, APPROVED and ADOPTED this 9'h day of January, 2003, by the
following vote to wit:.
AYES: CRITES, FERGUSON, RE1.LY, SPIEGEL, BENSON
NOES: Nox�
ABSENT: NorrE
ABSTAIN: xor� )
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enson, c;nairman
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P6402\0001 \7 l 7506.1 ?