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HomeMy WebLinkAboutRes 04-47 & FA-49 Revenue Bonds (Project Area No. 1, as Amended), 2004 SeriesCITY OF PALM DESERT/PALM DESERT FINANCING AUTHORITY REQUEST: SUBMITTED BY: DATE: CONTENTS: STAFF REPORT APPROVAL OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT MAKING FINDING OF SIGNIFICANT PUBLIC BENEFIT IN CONNECTION WITH THE ISSUANCE AND SALE OF TAX ALLOCATION REFUNDING REVENUE BONDS (PROJECT AREA NO. 1, AS AMENDED), 2004 SERIES A, OF THE PALM DESERT FINANCING AUTHORITY APPROVAL OF A RESOLUTION OF THE PALM DESERT FINANCING AUTHORITY ACKNOWLEDGING FINDING OF SIGNIFICANT PUBLIC BENEFIT IN CONNECTION WITH THE ISSUANCE AND SALE OF THE AUTHORITY'S TAX ALLOCATION REFUNDING REVENUE BONDS (PROJECT AREA NO. 1, AS AMENDED), 2004 SERIES A AND APPROVING THE ISSUANCE, SALE AND DELIVERY OF SUCH BONDS DENNIS M. COLEMAN, REDEVELOPMENT FINANCE MANAGER MAY 27, 2004 CITY COUNCIL RESOLUTION NO. 04- 47 PALM DESERT FINANCING AUTHORITY RESOLUTION NO. FA- 49 Recommendation: By Minute Motion: 1. Receive Public Testimony. 2. That the City Council approve Resolution No. 04- 47 , making finding of significant public benefit in connection with the issuance and sale of Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2004 Series A, of the Palm Desert Financing Authority. 3. That the Palm Desert Financing Authority approve Resolution No. FA-49 , acknowledging finding of significant public benefit in connection with the issuance and sale of the Authority's Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2004 Series A and approving the issuance, sale and delivery of such bonds. G:IRDA1Dennis Coleman\DATA\WPIREPORTS1052704 pa 1 ccpd.pdfs findingds of benefit.wpd Staff Report City of Palm Desert/Palm Desert Financing Authority Resolutions Page 2 May 27, 2004 Executive Summary The attached resolutions of the City Council and the Financing Authority are preliminary steps which will further the process to issue tax-exempt refunding bonds of the Financing Authority payable from tax increment revenues from Project Area No. 1, As Amended. Discussion: State Law requires that a member local agency of the Financing Authority within whose boundaries the financed improvements are to be located, hold a public hearing and make a finding of significant public benefit with respect to the improvements. State law also requires the City Council to hold a public hearing in connection with certain improvements financed with tax increment revenues of the Redevelopment Agency. Staff is recommending that the City Council hold the public hearing, adopt its resolution making the findings, and that the Financing Authority subsequently adopt its resolution acknowledging those findings. Submitted By: Dennis M. Coleman Redevelopment Finance Manager DMC:mh Approval: McCarthy edevelopment arios L. Ortega, Execiifive Director/ Chief Administrative Officer G:1RDA\Dennis Coleman\DATA\ WPIREPORTS1052704 pal ccpd.pdfs findingds of benefit. wpd Department Head: David Yri Direct • o edevelopment Paul S. Gibson Director of Finance/Treasurer RESOLUTION NO. 47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT MAKING A FINDING OF SIGNIFICANT PUBLIC BENEFIT IN CONNECTION WITH THE ISSUANCE AND SALE OF TAX ALLOCATION REFUNDING REVENUE BONDS (PROJECT AREA NO. 1, AS AMENDED), 2004 SERIES A, OF THE PALM DESERT FINANCING AUTHORITY RECITALS: WHEREAS, the Palm Desert Financing Authority (the "Authority") has proposed to sell and issue its Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2004 Series A (the "Bonds"); and WHEREAS, proceeds of the Bonds are to be applied for the purpose of making a loan to the Palm Desert Redevelopment Agency (the "Agency") for the object and purpose of, among other things, assisting in the refunding of the Authority's Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), Series 1995 and the financing of certain public capital improvements of benefit to Project Area No. 1, As Amended, of the Agency, including street improvements to Fred Waring Drive, to the frontage road along Highway 111 and to Allesandro Way, and the installation of a street connecting Fred Waring Drive to Hovely Lane; and WHEREAS, pursuant to Section 6586.5 of the California Government Code and after notice duly published in accordance with law, this City Council held a public hearing on this date with respect to the proposed financing and received evidence concerning the public benefits therefrom; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Approval of Financing. The City Council hereby finds that the financing of public capital improvements described above through the issuance by the Authority of the Bonds will result in significant public benefits to the constituents of the Agency and the City of Palm Desert, including demonstrable savings in effective interest rate and more efficient delivery of Agency and City services to residential and commercial development. The City Council hereby approves the issuance of the Bonds by the Authority. Section 3. Other Acts. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to effectuate P6402-1051\729190v4.doc RESOLUTION NO. 47 the purposes of this Resolution and any are hereby ratified and confirmed. Section 4. Effective Date. upon adoption. vote to wit: such actions previously taken by such officers This Resolution shall take effect immediately APPROVED and ADOPTED this 27th day of May, 2004, by the following AYES: NOES: ABSENTS: ABSTAINS: ROBERT A. SPIEGEL, MAYOR ATTEST: RACHELLE D. KLASSEN, CITY CLERK P6402-1051\729190v4.doc RESOLUTION NO. FA- 49 A RESOLUTION OF THE PALM DESERT FINANCING AUTHORITY ACKNOWLEDGING A FINDING OF SIGNIFICANT PUBLIC BENEFIT IN CONNECTION WITH THE ISSUANCE AND SALE OF THE AUTHORITY'S TAX ALLOCATION REFUNDING REVENUE BONDS (PROJECT AREA NO. 1, AS AMENDED), 2004 SERIES A AND APPROVING THE ISSUANCE, SALE AND DELIVERY OF SUCH BONDS RECITALS: WHEREAS, the Palm Desert Financing Authority (the "Authority") is a joint powers authority duly organized and existing under and pursuant to Articles 1 through 4 (commencing with Section 6500), Chapter 5, Division 7, Title 1 of the California Government Code (the "Act") and that certain Joint Exercise of Powers Agreement, dated as of January 26, 1989, by and between the City of Palm Desert and the Palm Desert Redevelopment Agency (the "Agency"), and is authorized pursuant to Article 4 of the Act to issue bonds for the purpose of making loans to the Agency to provide financing for public capital improvements; and WHEREAS, the Authority desires to issue and sell bonds to be designated as its "Tax Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2004 Series A" (the "Bonds"); and WHEREAS, proceeds of the Bonds are to be applied for the purpose of making a loan to the Agency for the object and purpose of, among other things, refunding the Authority's Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), Series 1995 and assisting in the financing of certain public capital improvements of benefit to Project Area No. 1, As Amended, of the Agency, including street improvements to Fred Waring Drive, to the frontage road along Highway 111 and to Allesandro Way, and the installation of a street connecting Fred Waring Drive to Hovely Lane; and WHEREAS, the City Council has made a finding, after a duly noticed public hearing pursuant to Section 6586.5 of the California Government Code, that the issuance of the Bonds will result in significant public benefit; NOW, THEREFORE, THE PALM DESERT FINANCING AUTHORITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. RESOLUTION NO. FA- 49 Section 2. Acknowledgement of Agency Findings. The Authority hereby acknowledges and concurs with the City Council's finding of significant public benefit and hereby approves and authorizes the issuance and sale of the Bonds. Section 3. Other Acts. The officers of the Authority are hereby authorized and directed, jointly and severally, to do any and all things, to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds, or otherwise to effectuate the purposes of this Resolution, and any such actions previously taken by such officers are hereby ratified and confirmed. Section 4. Effective Date. This Resolution shall take effect immediately upon adoption. APPROVED AND ADOPTED this 27th day of May, 2004, by the following vote to wit. AYES: NOES: ABSENT: ABSTAIN: Robert A. Spiegel, President ATTEST: Rachelle D. Klassen, Secretary P6402-1051\729219v3.doc