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HomeMy WebLinkAboutRDA RES 509RESOLUTION NO. 509 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT ._ AGENCY APPROVING A PUBLIC IMPROVEMENTS FUNDING AGREEMENT IN CONNECTION WITH TRAFFIC SIGNAL 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 P{an") for Project Area No. 2(the "Project Area"), the Palm Desert Redevelopment Agency (the "Agency") proposes to enter into a Public Improvements Funding Agreement (the "Funding AgreemenY') with SKB-PDM Investment, LLC, an Oregon limited liability company ("SKB") and the City of Palm Desert (the "City") pursuant to which the Agency will finance a portion of the cost of construction of traffic signal improvements to be owned and operated by the City for public purposes (the "Public Improvements") and located on property presently owned by the City (the "Property"). Section 2. The proposed Public Improvements will not be located in the Project Area but will be located adjacent to the Project Area on the Property which is at the intersection of Country Club and Via ScenalShopping Center Driveway and wilf benefit the Project Area. The development of the Public Improvements will assist in the elimination of blight in the Project Area. 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 uti{ities, which cannot be remedied by private or governmental action without redevelopment. The construction of the Public Improvements wilf improve vehicular and pedestrian access to the surrounding area and improve traffic circulation in the Project Area and mitigate safety hazards. Overall, the construction of the Public Improvements will help remedy the lack of adequate public improvements, thereby eliminating a factor which substaniially hinders the economically viable use of property and buildings within the Project Area. Section 3. Pursuant to the Funding Agreement, the City will contribute $187,500 through the Merano Assessment District Fund for the cost of the Public Improvements and SKB will contribute at least $125,000 for the cost of the Public Improvements. The budget constraints of the City prevent the City from financing the total cost of 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 Y6402\OOO1Wgency Resolution - Approving thc Advance of Monics.DOC RESOLDTION NO. 509 special taxes and, in addition, special taxes require a two-thirds vote and assessments are subject to a majority protest. Section 4. Based upon the foregoing and other information presented to the Agency, the Agency hereby finds and determines that: (i) the payment by the Agency of a portion of the cost of the Public Improvements pursuant to the Funding Agreement is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; (ii) no other reasonable means of financing the Public Improvements are available to the City; (iii) the Public Improvements will be of benefit to Project Area and the immediate neighborhood in which the Public Improvements are located; and (iv) the payment by the Agency of a portion of the cost of the Public Improvements pursuant to the Funding Agreement will assist in the elimination of one or more blighting conditions inside the Project Area. Section 5. The Agency hereby approves (a) the Funding Agreement, and (b) the payment of a portion of the cost of the Public Improvements pursuant to the Funding Agreement. The execution of the Funding Agreement by the Agency is conditioned upon the prio� or concurrent approval and execution of the Funding Agreement by SKB. The Agency hereby authorizes its Executive Director to execute and deliver the Funding Agreement in substantially the form 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 27th day of October, 2005, by the following vote to wi: AYES: BENSON, FERGUSON, KELLY, SPIEGEL, CRITES NOES: NONE ABSENTS:NONE ABSTAINS: NONE . � �.• �►'��i i�—t��'. � . � - � - � P640210001 Wgency Resolution - Approving the Advance of Monies.DOC 2