HomeMy WebLinkAboutRDA RES 538RESOLUTION NO. 538
— A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF
PALM DESERT APPROVING PAYMENT BY THE AGENCY FOR THE COST
OF THE ACQUISITION AND DEVELOPMENT OF PROPERTY AT 75433
ORANGE BLOSSOM LANE FOR A CHILDCARE CENTER, AND
AUTHORIZING EXECUTION OF A CONVEYANCE AGREEMENT AND
ASSIGNMENT AND ASSUMPTION OF LEASES WITH THE CITY OF PALM
DESERT RELATED TO SAID PROPERTY.
THE REDEVELOPMENT AGENCY OF THE CITY OF PALM DESERT HEREBY
FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS:
Section 1. The Redevelopment Agency of the City of Palm Desert (the "Agency") has
previously paid the costs of the acquisition and development of certain property located at 75433
Orange Blossom Lane, Palm Desert, CA (the "Property") for use as a childcare facility (the
"Facility"). The Agency wishes to convey the Facility to the City of Palm Desert (the "City"),
after which the City will own the Facility. Due to the transfer of ownership of the Facility to the
City, the Agency is complying with California Health and Safety Code Sections 33445 and
33679 of the Community Redevelopment Law.
The subject property is located in the City of Palm Desert and within Redevelopment
Project Area No. 1 (the "Project Area"). The City Council has previously determined that the
Project Area is an area in which the combination of conditions of blight is so prevalent and so
— substantial that it causes 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 deteriorated, aged, and obsolete buildings. In addition, the Project Area is
characterized by the existence of inadequate public improvements and public facilities, including
inadequate social service facilities which cannot be remedied by private or governmental action
without redevelopment.
The Property previously was a vacant, underutilized site. The acquisition and
development of the Property thereby assists in the elimination of conditions of blight within the
Project Area that are caused by underutilized property, which in turn assists in eliminating a
factor that prevents or substantially hinders the economically viable use of land and encourages
private -sector investment in the Project Area. In addition, the Facility helps residents of the
Project Area with children who need to work, encourages business expansion and aids the effort
to revitalize the Project Area, as well as providing safe childcare and early childhood educational
opportunities for children in the Project Area. As a result, the Facility contributes to an
improved business climate by assuring local employers that they will have employees available,
and thus assists in eliminating conditions of economic blight within the Project Area.
Section 2. The acquisition and development of the Facility are not within the City's
budget. No moneys of the City are available to pay for the cost of such acquisition and
RESOLUTION NO. 538
development. 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 has published and made available the summary report required
by Section 33670 on the Facility, a copy of which is attached hereto as Exhibit A, and held a
duly noticed public hearing on the use of tax increment funds for the Facility on January 11,
2007.
Section 4. The Agency hereby finds and determines that based upon the foregoing and
other information presented to the Agency: (i) the Facility is of benefit to the Project Area and
the immediate neighborhood in which the Faculty is located; (ii) no other reasonable means of
financing the Facility is available to the community; and (iii) the payment of funds for the cost of
such acquisition will assist in the elimination of one or more blighting conditions inside the
Project Area and is consistent with the Agency's implementation plan and the goals and
objectives of such plan adopted pursuant to Health and Safety Code Section 33490.
Section 5. The Agency hereby approves of the use of Agency funds for the cost of the
acquisition and development of the Facility.
Section 6. The Agency hereby approves that certain Conveyance Agreement between the
Agency and the City related to the transfer of the Faculty (the "Conveyance Agreement") and
that certain Assignment and Assumption of Leases between the Agency and the City (the
"Assignment"), and authorizes the Executive Director of the Agency to execute the Conveyance
Agreement and Assignment on behalf of the Agency and to take any and all other steps
necessary to implement the Conveyance Agreement and Assignment.
PASSED, APPROVED and ADOPTED this 11th day of January 2007 by following vote,
to wit:
AYES: BENSON, FERGUSON, FINERTY, SPIEGEL and BELLY
NOES: NONE
ABSENTS: NONE
ABSTAINS: NONE
Attest:
Rachelle D. I assen, Secretary
Richard S. Kelly, Chairmarj/
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