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HomeMy WebLinkAboutRes 04-40 and 491 - Fred Waring Drive ImprovementsCITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF CITY COUNCIL RESOLUTION NO. 04-40 AND REDEVELOPMENT AGENCY RESOLUTION NO. 491 APPROVING PAYMENT FOR ALL OR A PART OF THE VALUE OF THE LAND FOR AND THE COST OF THE INSTALLATION AND CONSTRUCTION OF CERTAIN IMPROVEMENTS TO FRED WARING DRIVE SUBMITTED BY: DENNIS M. COLEMAN, REDEVELOPMENT FINANCE MANAGER DATE: MAY 13, 2004 CONTENTS: CITY COUNCIL RESOLUTION NO. 04-40 PALM DESERT REDEVELOPMENT AGENCY RESOLUTION NO. 491 Recommendation: By Minute Motion: 1. That the City Council approves Resolution No.04-40 approving payment by the Palm Desert Redevelopment Agency for all or a part of the value of the land for and the cost of the installation and construction of certain improvements to Fred Waring Drive. 2 That the Redevelopment Agency approves Resolution No. 491 authorizing payment by the Palm Desert Redevelopment Agency for all or a part of the value of the land for and the cost of the installation and construction of certain improvements to Fred Waring Drive. Discussion: The City has completed the first few phases of the Fred Waring Drive Widening Project. The remaining phases of the project include the widening of Fred Waring. Drive from Deep Canyon to Washington Street. This encompasses parts of Project Area No. 1 and Project Area No. 4. The City will commence work on the Deep Canyon segment, in Project Area No. 1, in June of 2004. The City will commence the segment to Washington Street, in Project Area No. 4, in June of 2005. The City does not have the funding necessary to acquire the land, design and construct the necessary improvements to widen Fred Waring Drive. It is, therefore, necessary to have the Agency pay for all or part of these costs. Section 33445 of the California Health and Safety Code dictates that, in order to spend Agency funds for construction and improvements to public facilities, it is necessary to make a finding that there is no other funding source available. Staff has included an amount of funding in the resolutions inclusive of amounts estimated for the construction of the remaining phases of this project for both Project Area No. 1 and Project Area No. 4. G:IRDAIDennis Coleman\DATA1WPIREPORTS1051304 Fred Waring Drive PA No. 1 and No.4.wpd Staff Report Approval of City Council and Redevelopment Agency Resolutions Approving Payments for Improvements to Fed Waring Drive May 13, 2004 Page 2 Staff is recommending that the City Council and the Redevelopment Agency approve their respective resolutions. Dennis M. Coleman Redevelopment Finance Manager DMC:mh Approval: Carlos . Ortega City ManagelExec ive Director Department Head: avid Yrigen Director • " Redevelopment Paul S. Gibson Director of Finance/Treasurer G:IRDAIDennis Coleman\DATA\ WPIREPORTS\051304 Fred Waring Drive PA No. 1 and No.4.wpd RESOLUTION NO. 04-40 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY OF ALL OR A PART OF THE VALUE OF THE LAND FOR AND THE COST OF THE INSTALLATION AND CONSTRUCTION OF IMPROVEMENTS TO FRED WARING DRIVE THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.), and in particular Section 33445 thereof, the Palm Desert Redevelopment Agency (the "Agency") proposes to pay for all or a part of the value of the land for and the cost of the installation and construction of improvements to Fred Waring Drive. The proposed improvements to Fred Waring Drive include the widening of Fred Waring Drive generally between Deep Canyon to the West and the eastern boundary of the City of Palm Desert and Project Area No. 1 of the Agency("Project Area No. 1") to the East and between El Dorado Drive to the West to Washington Street to the East from four lanes to six lanes, and the installation and construction of bike lanes, golf cart paths, sidewalks and landscaped medians (the "Improvements"). A needs analysis performed by the City of Palm Desert Public Works Department in 1999 found that portions of Fred Waring Drive were operating at a Level of Service ("LOS") "D" or lower. The analysis also found that other portions of Fred Waring Drive that were operating at LOS "C" would likely decline to LOS "E" by the year 2003. The City has established LOS "C" as its standard, meaning that current traffic on parts of Fred Waring Drive exceeds the City's standards for a four lane road. The proposed Improvements located generally between Deep Canyon and the eastern boundary of the City and Project Area No. 1 are in Project Area No. 1. The proposed Improvements located generally between El Dorado Drive and Washington Street are in Project Area No. 4 of the Agency ("Project Area No. 4" and, together with Project Area No. 1, the "Project Areas"). The City Council has previously determined that the Project Areas are areas 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 areas 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 Areas contain vacant and underutilized properties, properties which suffer from depreciated or stagnant property values, and deteriorated, aged and obsolete buildings. In addition, the Project Areas are characterized by the existence of inadequate public improvements and public facilities, including inadequate circulation improvements which cannot be remedied by private or governmental action without redevelopment. Fred Waring Drive is a major east - west arterial in the City, which runs parallel to Highway 111. The proposed Improvements will improve traffic circulation within the Project Areas and thereby mitigate congestion and safety hazards, all for the benefit of the health, safety and welfare of the residents and taxpayers of the Project Areas. The widening of Fred Waring Drive will improve traffic circulation on Fred Waring Drive and also provide an alternative to Highway 111 (which is located in the Project Areas), thereby diverting traffic from Highway 111 onto Fred Waring Drive and relieving traffic congestion on Highway 111. The proposed Improvements will thereby assist in the elimination of conditions of blight within the Project Areas which are caused by inadequate public improvements. This in turn will assist in eliminating a factor which prevents or substantially hinders the economically viable use or capacity of buildings or lots and will encourage private -sector investment in the Project Areas, thereby facilitating the redevelopment of the Project Areas. Section 2. The budget constraints of the City prevent the City from financing the Improvements by any means. No moneys of the City are available to pay for the cost of the P640210001\773402.1 RESOLUTION NO. 04- 40 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 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 3. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City Council: (i) the Improvements are of benefit to the Project Areas and the immediate neighborhoods in which the project is located; (ii) the payment of funds for the acquisition of land and the cost of the Improvements will assist in the elimination of one or more blighting conditions inside the Project Areas; (iii) the payment of funds for the acquisition of land and the cost of the Improvements is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; and (iv) no other reasonable means of financing the Improvements is available to the City. Section 4. The City Council hereby approves payment by the Agency for all or a part of the value of the land for and the cost of the installation and construction of the Improvements including, but not limited to, the costs of installation and construction, environmental studies, design services, the acquisition of necessary rights -of -way, and relocation payments and replacement housing costs from any revenues of the Agency lawfully available therefor, including tax increment revenue. derived from Project Area No. 1 with respect to the Improvements located generally between Deep Canyon and the eastern boundary of the City and Project Area No. 1 (the "Deep Canyon Segment")and tax increment derived from Project Area No. 4 with respect to the Improvements located generally between El Dorado Drive and Washington Street (the "El Dorado Segment"), in an amount not to exceed $800,000 with respect to the Deep Canyon Segment and an amount not to exceed $2,600,000 with respect to the El Dorado Segment. Any moneys paid initially by the City for the value of the land for and the cost of the Improvements will constitute loans of such moneys by the City to the Agency, and the Agency will repay such loans to the City, from time to time, upon demand of the City. At the City's option, the City may, from time to time, demand payment from the Agency to pay any invoice or invoices directly. PASSED, APPROVED and ADOPTED this 13th day of May, 2004, by the following vote to wit: AYES: NOES: ABSENTS: ABSTAINS: Attest: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, MAYOR P640210001\773402.1 -2- RESOLUTION NO. 491 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PAYMENT BY THE AGENCY OF ALL OR A PART OF THE VALUE OF THE LAND FOR AND THE COST OF THE INSTALLATION AND CONSTRUCTION OF IMPROVEMENTS TO FRED WARING DRIVE THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. Pursuant to provisions of the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.), and in particular Section 33445 thereof, the Palm Desert Redevelopment Agency (the "Agency") proposes to pay for all or a part of the value of the land for and the cost of the installation and construction of improvements to Fred Waring Drive. The proposed improvements to Fred Waring Drive include the widening of Fred Waring Drive generally between Deep Canyon to the West and the eastern boundary of the City of Palm Desert and Project Area No. 1 of the Agency("Project Area No. 1") to the East and between El Dorado Drive to the West to Washington Street to the East from four lanes to six lanes, and the installation and construction of bike lanes, golf cart paths, sidewalks and landscaped medians (the "Improvements"). A needs analysis performed by the City of Palm Desert Public Works Department in 1999 found that portions of Fred Waring Drive were operating at a Level of Service ("LOS") "D" or lower. The analysis also found that other portions of Fred Waring Drive that were operating at LOS "C" would likely decline to LOS "E" by the year 2003. The City has established LOS "C" as its standard, meaning that current traffic on parts of Fred Waring Drive exceeds the City's standards for a four lane road. The proposed Improvements located generally between Deep Canyon and the eastern boundary of the City and Project Area No. 1 are in Project Area No. 1. The proposed Improvements located generally between El Dorado Drive and Washington Street are in Project Area No. 4 of the Agency ("Project Area No. 4" and, together with Project Area No. 1, the "Project Areas"). The City Council has previously determined that the Project Areas are areas 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 areas 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 Areas contain vacant and underutilized properties, properties which suffer from depreciated or stagnant property values, and deteriorated, aged and obsolete buildings. In addition, the Project Areas are characterized by the existence of inadequate public improvements and public facilities, including inadequate circulation improvements which cannot be remedied by private or governmental action without redevelopment. Fred Waring Drive is a major east - west arterial in the City, which runs parallel to Highway 111. The proposed Improvements will improve traffic circulation within the Project Areas and thereby mitigate congestion and safety hazards, all for the benefit of the health, safety and welfare of the residents and taxpayers of the Project Areas. The widening of Fred Waring Drive will improve traffic circulation on Fred Waring Drive and also provide an alternative to Highway 111 (which is located in the Project Areas), thereby diverting traffic from Highway 111 onto Fred Waring Drive and relieving traffic congestion on Highway 111. The proposed Improvements will thereby assist in the elimination of conditions of blight within the Project Areas which are caused by inadequate public improvements. This in turn will assist in eliminating a factor which prevents or substantially hinders the economically viable use or capacity of buildings or lots and will encourage private -sector investment in the Project Areas, thereby facilitating the redevelopment of the Project Areas. Section 2. The budget constraints of the City prevent the City from financing the Improvements by any means. No moneys of the City are available to pay for 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 P6402\0001\772721.1 Resolution No. 491 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 3. The Agency hereby finds and determines that based upon the foregoing and other information presented to the Agency: (i) the Improvements are of benefit to the Project Areas and the immediate neighborhoods in which the project is located; (ii) the payment of funds for the acquisition of land and the cost of the Improvements will assist in the elimination of one or more blighting conditions inside the Project Areas; (iii) the payment of funds for the acquisition of land and the cost of the Improvements is consistent with the Agency's implementation plan adopted pursuant to Health and Safety Code Section 33490; and (iv) no other reasonable means of financing the Improvements is available to the City. Section 4. The Agency hereby approves payment by the Agency for all or a part of the value of the land for and the cost of the installation and construction of the Improvements including, but not limited to, the costs of installation and construction, environmental studies, design services, the acquisition of necessary rights -of -way, and relocation payments and replacement housing costs from any revenues of the Agency lawfully available therefor, including tax increment revenue derived from Project Area No. 1 with respect to the Improvements located generally between Deep Canyon and the eastern boundary of the City and Project Area No. 1 (the "Deep Canyon Segment")and tax increment derived from Project Area No. 4 with respect to the Improvements located generally between El Dorado Drive and Washington Street (the "El Dorado Segment"), in an amount not to exceed $800,000 with respect to the Deep Canyon Segment and an amount not to exceed $2,600,000 with respect to the El Dorado Segment. Any moneys paid initially by the City for the value of the land for and the cost of the Improvements will constitute loans of such moneys by the City to the Agency, and the Agency will repay such loans to the City, from time to time, upon demand of the City. At the City's option, the City may, from time to time, demand payment from the Agency to pay any invoice or invoices directly. PASSED, APPROVED and ADOPTED this 13th day of May, 2004, by the following vote to wit: Attest: AYES: NOES: ABSENTS: ABSTAINS: RACHELLE D. KLASSEN, SECRETARY CITY OF PALM DESERT, CALIFORNIA ROBERT A. SPIEGEL, CHAIRMAN P6402\0001 \772721.1 -2-