HomeMy WebLinkAboutRDA RES 507RESOLUTION NO. 507
A RESOLUTION OF THE PALM DESERT
REDEVELOPMENT AGENCY APPROVING PAYMENT BY
THE AGENCY FOR THE COST OF THE INSTALLATION
AND CONSTRUCTION OF CERTAIN PUBLIC
IMPROVEMENTS, INCLUDING IMPROVEMENTS FOR
AFFORDABLE MULTI -FAMILY HOUSING, SENIOR
RENTAL HOUSING AND SINGLE FAMILY HOMES FOR
SALE
RECITALS:
A. The Palm Desert Redevelopment Agency (the "Agency') entered
into a Disposition and Development Agreement with Palm Desert Development, dated
June 14, 2001, as amended by an Amendment to Disposition and Development
Agreement, dated May 13, 2004, and as further amended by a Second Amendment to
Disposition and Development Agreement, dated 26 May 2005, (collectively, the "DDA")
for the construction of a 162-unit multi -family rental project on approximately 12.43
acres (Parcel 1) of a 40-acre site (the "Site") in the City of Palm Desert (the "City').
Pursuant to the DDA, the Agency is responsible for all costs associated with the
following improvements: (i) bringing underground utilities, including water and sewer
service, to the Site, (ii) providing street improvements on 42nd Avenue and Merle Drive,
(iii) providing traffic striping as conditioned by the Planning Department, and (iv) other
off -site improvements required by the City, Agency or other agencies.
B. The Agency entered into an Agreement with ComDyn PD, LLC for
Fee Developer Services for Agency Owned Property Located in the City, dated as of
August 26, 2005, for the development of a portion of the remainder of the Site (Parcel 2)
with an affordable senior rental housing project consisting of 27 units and 94 single-
family for -sale homes that will be available to and occupied by persons and families of
low or moderate income (together with the units described in paragraph A., above, the
"Affordable Housing Units"). Infrastructure required to serve these units on Parcel 2
consist of (i) street improvements along the border between Parcel 1 and Parcel 2
between 42nd Avenue and Merle Drive and along the north side of Merle Drive between
the westem boundary of the Site and Cook Street, including pavement, curb, gutter and
sidewalks, (ii) new sewer and water mains and (iii) gas, electrical, telephone and cable
televisions services (together with the improvements described in paragraph A., above,
the "improvements").
C. Pursuant to the provisions of the Community Redevelopment Law
(California Health and Safety Code Section 33000, et seq.) and in particular, Sections
33334.2(e)(2) and 33445 thereof, the Agency may pay for the cost of the Improvements.
D. On January 22, 2004, the Agency adopted Resolution No. 489,
which approved payment by the Agency for the cost of the Improvements and for
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Resolution No. 507
certain other improvements for the Site, and the Agency made the findings and
determinations required by the Community Redevelopment Law with respect to such
payments.
E. Resolution No. 489 approved payment for the cost of the
Improvements from any revenues of the Agency lawfully available therefor, including
funds held in the Agency's Low and Moderate Income Housing Fund (the "Housing
Fund") in a manner determined pursuant to Health and Safety Code Section 33334.2 (e)
(2) in an amount not to exceed $2,100,000.
F. The Agency has spent approximately $1,650,000 from the Housing
Fund to date for the Improvements and the Agency has determined that the cost of the
installation and construction of the Improvements requires additional funds.
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. The above recitals, and each of them, are true and correct.
Section 2. The City has no moneys available to pay for the cost of the
Improvements. The budget constraints of the City prevent the City from financing the
cost of the Improvements. 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 benefiting 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 3. The Agency hereby confirms the findings and determinations
of the Agency relating to the Improvements set forth in Sections 2 and 4 of Resolution
No. 489.
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Resolution No. 507
Section 4. The Agency hereby approves payment of an additional
amount not to exceed $3,895,000 for the cost of installation and construction of the
Improvements from any revenues of the Agency lawfully available therefor, including
funds held in the Housing Fund and the proportion of the costs of the Improvements to
be paid for out of the Housing Fund shall be determined in accordance with Health and
Safety Code Section 33334.2(e)(2).
PASSED, APPROVED and ADOPTED this 13th day of October, 2005, by
following vote to wit:
AYES:BENSON, KELLY, SPIEGEL, FERGUSON
NOES: NONE
ABSENTS: CRITES
ABSTAINS: NONE
Jim Ferg Chair
Attest:
acfielle D. Klassen, Secretary
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