HomeMy WebLinkAboutRDA RES 521RESOLUTION NO. 521
A RESOLUTION OF THE PALM DESERT
REDEVELOPMENT AGENCY DECLARING ITS INTENT
TO REIMBURSE CERTAIN EXPENDITURES BY THE
AGENCY FOR THE ACQUISITION OF LAND FOR PARK
AND RECREATIONAL PURPOSES
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. 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.
Section 2. 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 to reimburse
the original expenditure with proceeds of bonds.
Section 3. The Palm Desert Redeveiopment Agency will be making
expenditures in connection with the acquisition of 30 acres of land for park and
recreational purposes. The Agency intends to borrow a portion of the cost of such land
from the City of Palm Desert and intends that all such expenditures in connection with
the subject land acquisition be reimbursed to the Agency and to the City from the
proceeds of bonds to be issued by the Palm Desert Financing Authority. The Agency
expects that all such expenditures will be reimbursed with proceeds of the bonds.
Section 4. The maximum principal amount of bonds expected to be
issued for the purposes of reimbursing the Agency and the City for such land acquisition
is $14,000,000 (although such bonds may be part of a larger issue of bonds.)
Section 5. This official intent 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 in Section 3 hereof.
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RESOLUTION NO, 521
PASSED, APPROVED and ADOPTED this 23rd day of March, 2006 by
the following vote to wit:
AYES: s�soN, CRITES, RELLY, SPIEGEL, and FERGUSON
NOES: xorrE
ABSENTS: rror�
ABSTAINS: xorrE i�'�,[�
JIM FE�2C�11S(,�PV, CHAIRMAN
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