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HomeMy WebLinkAboutRDA RES 510RESOLUTION NO. 510 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT -" AGENCY APPROVING THE ADVANCE OF MONIES TO THE FOUNDATION FOR CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO FOR COSTS OF CERTAIN PUBLIC IMPROVEMENTS TO BE CONSTRUCTED IN PROJECT AREA NO. 2 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 enter into that certain Funding Agreement (the "Funding AgreemenY') with the Foundation for California State University, San Bemardino (the "Foundation"), and California State University, San Bernardino ("CSUSB") pursuant to which the Agency will advance to the Foundation $4,500,000 to finance in part the cost of construction of a college facility to be owned and operated by CSUSB for public educational purposes (the "Public Improvements"), and located on property presently owned by the CSUSB within Project Area No. 2(the "Property"). The Property constitutes a portion of the University Campus to be developed by CSUSB pursuant to that certain Disposition and Development Agreement dated as of October 14, 1999 by and befinreen the Agency and the Board of Trustees of CSUSB, as amended by a First Amendment to Disposition and Development Agreement dated as of March 22, 2001. Section 2. On October 27, 2005, 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 advance of $4,500,000 to the Foundation pursuant to the Funding Agreement, at which time all persons desiring to comment on, or ask questions concerning, the advance of such monies and the Funding Agreement were given the opportunity to do so. Prior to the public hearing, information concerning the Agency's proposed advance of monies and the Funding Agreement was available for public inspection in the o�ce of the City Clerk in accordance with Health and Safety Code Sections 33445 and 33679. The Foundation and CSUSB have each previously held the public hearings required by Health and Safety Code Sections 33445 and 33679 with respect to the monies to be advanced by the Agency pursuant to the terms of the Funding Agreement. Section 3. The proposed Public Improvements are located in and will benefit the Project Area. The development of the Public Improvements 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 P6402\0001\Agcncy Resolution - CSUSB RESOLUTION NO. 510 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 Public Improvements and related uses on the Property will provide needed educational facilities and will redevelop a vacant, underutilized parcel. Overall, the construction of the 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 the Project Area. 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. Based upon the foregoing and other information presented to the Agency, the Agency hereby finds and determines that: (i) the advance by the Agency of up to $4,500,000 to the Foundation 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 advance by the Agency for the cost of the Public Improvements will assist in the elimination of one or more blighting conditions inside the Project Area. Section 6. The Agency hereby approves (a) the Funding Agreement, and (b) the advance of up to $4,500,000 to the Foundation for the construction of the Public Improvements. The execution of the Funding Agreement by the Agency is conditioned upon the prior or concurrent approval and execution of the Funding Agreement by the Foundation and CSUSB. The Agency hereby authorizes its Executive Director to execute and deliver the Funding Agreement in substantially the P6402�000 l�Agency Resolution - CSUSB 2 RESOLUTION NO. 510 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 wit: AYES:BENSON, FERGUSON, KELLY, SPIEGEL, CRITES NOES: NONE ABSENTS: NONE ABSTAINS: rroNE �� ATTEST: Ra helle U. K assen, ecretary P6402'`OOO I�Agency Kesolution - CSUSB 3