The URL can be used to link to this page

Home My WebLink AboutR29440 - Reimbrsmnt Agmt for Acquisitn, Installation & Const. (PA#1) CITY OF PALM DESERT AND PALM DESERT REDEVELOPMENT AGENCY DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: APPROVE ADVANCE AND REIMBURSEMENT AGREEMENT (CONTRACT NO. R-29440 ) BETWEEN THE PALM DESERT REDEVELOPMENT AGENCY AND THE CITY OF PALM DESERT; ADOPT RESOLUTIONS OF THE CITY OF PALM DESERT AND THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PAYMENT BY THE AGENCY AND AN ADVANCE BY, AND REIMBURSEMENT OF, THE CITY FOR THE ACQUISITION OF LAND AND INSTALLATION AND CONSTRUCTION OF PUBLIC OPEN SPACE AND RECREATIONAL IMPROVEMENTS; AND APPROPRIATE FUNDS FOR ACQUISITION OF LAND. SUBMITTED BY: Lauri Aylaian, Director of Community Development Date: December 21, 2009 CONTENTS: Advance and Reimbursement Agreement No. R- 29440 Resolution No. 09-81 Resolution No. 568 Recommendation That the Palm Desert City Council: 1. Approve Advance and Reimbursement Agreement No. R-29440 ; and 2. Waive further reading and adopt Resolution No. 09-81 And that the City of Palm Desert Redevelopment Agency Board: 1. Approve Advance and Reimbursement Agreement No. R-29440 ; 2. Waive further reading and adopt Resolution No. 568 ; and 3. Appropriate $2,000,000 to Account No. 850-4495-464-4001 from unobligated Project Area #1 funds. Backqround Approval of the staff recommendation would commit the Redevelopment Agency to reimbursing the City up to $2 million for open space acquisition and improvements. The property that could be acquired and improved is in the Cahuilla Hills, west of Highway 74 and as shown on the City/Agency Reimbursement Agreement December 21, 2009 Page 2 of 2 exhibits appended to the subject resolutions and reimbursement agreement. Improvements to the property could include trails, signage, benches, and renaturalization work to accommodate hiking, mountain biking, and equestrians. The proposed acquisitions and improvements would provide an environment for the social, economic, and psychological growth and well-being of all citizens by providing open space and facilities to serve the residents and taxpayers of the City, including those of Project Area #1. It will serve the human need for fresh air and sunlight, physical exercise, recreation and social interaction and psychological release, contributing to the well-being of the community. Environmental Review This project is an administrative activity of a governmental body and is not a physical change to the environment. Therefore it is exempt from CEQA; the Director of Community Development has determined that no further environmental review is necessary. Fiscal Analvsis The budget constraints of the City prevent the City from financing the proposed acquisition and installation and construction of open space and recreational improvements by any means. No moneys of the City are available under the budget of the City, and 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. Consequently, Staff recommends approval of the proposed agreement and passage of the subject resolutions as the only practicable means for acquiring and providing improvements in open spaces in the Cahuilla Hills area. Submitted by: CI't'YCOUNCILACTIOI� APPROVF.D � DFNTEp RECEIVED OTHER Lauri Aylaian MEETING DATE '" - 0 Director of Community Development AYES: �� NOES: L— ABSENT; —„ n� ABSTAIN: Paul S. Gibson VERIFIED BY: �- Finance Director Original on File with City Clerk's Offic� Approval: �(r,�2ex� 8Y RDA �—� UQ'-�-� , ON � 01- -�-I �O�' John M. hlmut VERIFIED BY��a�� City Man er/ Executive Director Original on file with City Clerk's Offtc� g:\planning\lauri aylaian\staff reports\open space acquisition reimbursement agmt 12-21-09-final.doc Contract No. R29440 ADVANCE AND REIMBURSEMENT AGREEMENT This Advance and Reimbursement Agreement ("Agreement") is entered into as of December _, 2009, by and between the Paim Desert Redevelopment Agency, a public body, corporate and politic ("Agency") and the City of Palm Desert, a municipal corporation ("City"). RECITALS A. Pursuant to the Community Redevelopment Law (California Health and Safety Code Section 33000, et seq.) the Agency is undertaking a program for the redevelopment of blighted areas in the City and, in that regard, pursuant to Health and Safety Code Section 33445, the Agency proposes to pay for the value of various parcels of land for open space and recreational purposes (the "Property"), and the cost of the installation and construction of open space and recreational improvements thereon, including but not limited to trails, signage, and benches for hiking, mountain biking, and equestrian use, as well as staining and landscaping to renaturalize previously disturbed areas of the hillsides, within the area depicted on Exhibit A hereto, for the benefit of the Project Area No. 1, as Amended ("Project Area"). B. The City intends to acquire the Property and install and construct the open space and recreational improvements (the "Open Space and Recreational Improvements") to assist in the elimination of blight in the Project Area. C. In instances where the City has included the Open Space and Recreational Improvements in its budget or capital improvements program, the City has done so with the expectation that the Agency will pay for or reimburse the City for its payment of the cost thereof. No moneys of the City were, are, or are reasonably expected to be, available on a long-term basis under the budget or capital improvements program of the City to pay for the value of the Property or the cost of the installation and construction of the Open Space and Recreational Improvements. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. Purpose of this Aareement The City and the Agency desire to enter into this Agreement to acknowledge the above recitals and to provide for the advance by the City and the payment or reimbursement by the Agency of the cost of the acquisition of the Property and the installation and construction of the Open Space and Recreational Improvements. Pursuant to this Agreement, the Agency agrees to pay to or for the benefit of the City the cost of the acquisition of the Property and the installation and construction of the Open Space and Recreational Improvements, including payment of related costs, subject to the provisions of this Agreement. By providing for the acquisition of the Contract No. R29440 ADVANCE AND REIMBURSEMENT AGREEMENT Property and the undertaking of the Open Space and Recreational Improvements, the City will advance the cost of the foregoing to the Agency. Section 2. Acauisition of Proqerty; Construction and Installation The City intends to acquire and shall undertake reasonable efforts to acquire the Property and, upon acquisition, the City shall perform all required preparatory work for any Open Space and Recreational Improvements to be installed or constructed, and shall install and construct, or cause to be installed and constructed, the Open Space and Recreational Improvements in accordance with all applicable federal, state and local laws, rules and regulations. Section 3. Agencv to Pay all Costs Subject to the provisions of this Agreement, the Agency hereby agrees to reimburse the City for the cost of the acquisition of the Property and the cost of the Open Space and Recreational Improvements, including related costs. The Agency and the City hereby agree that the cost of the acquisition of the Property and the installation and construction of the Open Space and Recreational Improvements paid for by the City constitute an advance to the Agency by the City. The Property and the Open Space and Recreational Improvements and their current budgeted costs are described on Exhibit A. Without an amendment of this Agreement, the Agency shall not pay for, or reimburse to the City, more than $ 2,000,000 (two million dollars) for the collective cost of the acquisition of the Property and the Open Space and Recreational Improvements. Section 4. Statement of Costs The City shall, following acquisition of the Property or completion of the various Open Space and Recreational Improvements, or various portions thereof, submit to the Agency a statement or statements showing the costs of the Property and the Open Space and Recreational Improvements incurred by the City due to be paid by the Agency pursuant to this Agreement. Such amounts may include progress payments. Section 5. Reimbursement by the Aqency Within a reasonable time after the submission of each statement to the Agency pursuant to Section 4 hereof, the Agency shall pay to or for the benefit of the City all amounts due thereunder from any revenues of the Agency lawfully available therefor. Amounts not paid by the Agency to the City within 30 days of the date of a statement shall bear interest at the same rate paid to the City on its funds invested in the Local Agency Investment Fund ("LAIF") from the date of such statement to the date of repayment. In the event there is a change in the LAIF interest rate during the applicable period, the highest interest rate during that period shall apply. In any event, all amounts 2 P6402-0001\1193121 v2.doc Contract No. R29440 ADVANCE AND REIMBURSEMENT AGREEMENT due pursuant to a statement, together with interest thereon, shall be repaid by the Agency to the City by the following June 30. The obligations of the Agency under this Agreement shall constitute an indebtedness of the Agency within the meaning of Health and Safety Code Section 33670, et seq. Section 6. Oblipation to Pav Subordinate to Other Obligations The obligation of the Agency to make payments to or for the benefit of the City under this Agreement shall, without necessity of further action by the Agency or the City, be junior and subordinate to all other obligations of indebtedness heretofore or hereafter voluntarily incurred by the Agency. Section 7. Effect and Duration of Covenants The covenants established in this Agreement shall, without regard to technical classification and designation, be binding on the parties hereto and their successors in interest. Section 8. Nonliability of Officials and Employees No Agency Board member, Councilmember, official, agent, or employee of the Agency or the City shall be personally liable to the other parties, or any successor in interest, in the event of any default or breach by the Agency or the City, or for any amount which may become due to the City or Agency, or successor, or on any obligations under the terms of this Agreement. Section 9. Obliqation to Refrain from Discrimination The City covenants and agrees for itself, its successors and assigns that there shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the open space and recreational improvements, nor shall the City, or any person claiming under or through the City, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the open space and recreational improvements. Notwithstanding the immediately preceding paragraph, with respect to familial status, said paragraph shall not be construed to apply to housing for older persons, as 3 P6402-0001\1193 l 21 v2.doc Contract No. R29440 ADVANCE AND REIMBURSEMENT AGREEMENT defined in Section 12955.9 of the California Government Code. With respect to familial status, nothing in said paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the California Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the California Civil Code and subdivisions (n), (o) and (p) of Section 12955 of the Catifornia Government Code shall apply to said paragraph. All deeds, leases or contracts entered into with respect to the sale, lease, sublease or other transfer of the Property or open space and recreational improvements shall contain or be subject to substantially the following nondiscrimination/ nonsegregation clauses: In deeds: "The Grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises herein conveyed, nor shall the Grantee himself or herself, or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees or vendees in the premises herein conveyed. The foregoing covenants shall run with the land. Notwithstanding the immediately preceding paragraph, with respect to familial status, said paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the California Government Code. With respect to familial status, nothing in said paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the California Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the California Civil Code and subdivisions (n), (o) and (p) of Section 12955 of the California Government Code shall apply to said paragraph." In leases: "The lessee herein covenants by and for himself or herself, his or her heirs, executors, administrators and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: That there shall be no discrimination against or segregation 4 P6402-0001\1193121v2.doc Contract No. R29440 ADVANCE AND REIMBURSEMENT AGREEMENT of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California Government Code, in the leasing, subleasing, transferring, use or occupancy, tenure or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, sublessees, subtenants or vendees in the premises herein leased. Notwithstanding the immediately preceding paragraph, with respect to familial status, said paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the California Government Code. With respect to familial status, nothing in said paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the California Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the California Civil Code and subdivisions (n), (o) and (p) of Section 12955 of the California Government Code shall apply to said paragraph." I n contracts: "The contracting party or parties hereby covenant by and for himself or herself and their respective successors and assigns, that there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the California Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the California Government Code, in the sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the premises, nor shall the contracting party or parties, any subcontracting party or parties, or their respective assigns or transferees, establish or permit any such practice or practices of discrimination or segregation. Notwithstanding the immediately preceding paragraph, with respect to familial status, said paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the California Government Code. With respect to familial status, nothing in said paragraph shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11, and 799.5 of the California Civil Code, relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the California Civil Code and subdivisions (n), (o) and (p) of Section 12955 of the California Government Code shall apply to said paragraph." 5 P6402-0001\1193121v2.doc Contract No. R29440 ADVANCE AND REIMBURSEMENT AGREEMENT Section 10. Future Cooperation The parties hereto agree to take all appropriate steps and execute any documents which may reasonably be necessary or convenient to implement the intent of this Agreement. Section 11. Records Each party shall maintain books and records regarding its duties pursuant to this Agreement. Such books and records shall be available for inspection by the officers and agents of the other party and by the public at all reasonable times. Section 12. Law Governinq This Agreement is made in the State of California under the constitution and laws of the State of California, and is to be so construed. Section 13. Amendments This Agreement may be amended at any time, and from time to time, by an agreement executed by both parties to this Agreement. PALM DESERT REDEVELOPMENT AGENCY By: CINDY FINERTY, Chairperson ATTEST: RACHELLE D. KLASSEN, Secretary CITY OF PALM DESERT By: CINDY FINERTY, Mayor ATTEST: RACHELLE D. KLASSEN, City Clerk 6 P6402-0001\1193121v2.doc RESOLUTION NO. o9-sl A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR THE VALUE O F THE LAND FOR AND THE COST OF THE INSTALLATION AND CONSTRUCTION OF PUBLIC OPEN SPACE AND RECREATIONAL IMPROVEMENTS AND APPROVING AN ADVANCE AND REIMBURSEMENT AGREEMENT WITH THE AGENCY 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 se�c.), and in particular Section 33445 thereof, the Palm Desert Redevelopment Agency (the "Agency") proposes to pay for the value of the land for and the cost of the installation and construction of open space and recreational improvements thereon. Section 2. Such land consists of up to approximately twenty acres in various parcels, and is located within the area depicted in Exhibit A, attached hereto and incorporated herein (the "Property"). The open space and recreational improvements include, but are not limited to, trails, signage, and benches for hiking, mountain biking, and equestrian use, as well as staining and landscaping to renaturalize previously disturbed areas of the hillsides_(the "Open Space and Recreational Improvements"). Such Open Space and Recreational Improvements will serve the residents and taxpayers of Project Area No. 1, As Amended (the "Project Area"), as well as the residents and taxpayers of the Agency's other project areas. The City Council (the "City Council") of the City of Palm Desert (the "City") 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. The Project Area is characterized by buildings and structures, used or intended to be used for living, commercial, industrial, or other purposes, which are unfit or unsafe to occupy for such purposes and are conducive to juvenile delinquency and crime because of, among other things, inadequate provision for recreational facilities. In addition, the Project Area contains vacant and underutilized properties and properties that suffer from economic dislocation, deterioration or disuse, including depreciated or stagnant property values and impaired investments, and deteriorated, aged and obsolete buildings. The Project Area is characterized by the existence of inadequate public improvements, public facilities and open spaces that cannot be remedied by private or governmental action without redevelopment. P6402-0001\1193396v l.doc RESOLUTION NO. 09-81 Open space and recreational facilities serve a basic purpose of redevelopment; redevelopment includes the provision of structures and spaces as may be appropriate or necessary in the interest of the general welfare, including recreational and other facilities, as well as the provision of public recreation areas. In addition, a fundamental purpose of redevelopment is to expand employment opportunities and to provide an environment for the social, economic and psychological growth and well-being of all citizens. The Property and the Open Space and Recreational Improvements will provide open space and new, modern and efficient open space and recreational facilities to serve the residents and taxpayers of the City, including the residents and taxpayers of the Project Area, and will serve the human need for fresh air, sunlight, physical exercise, recreation and social interaction and psychological release, contributing to the well-being of the community. The Property and the proposed Open Space and Recreational Improvements will help reduce crime and juvenile delinquency, remedy the lack of adequate public improvements and open space, assist in the revitalization of the Project Area, encourage private sector investment and create job opportunities, all for the health, safety and welfare of the residents and taxpayers of the City and the Project Area. Section 3. Pursuant to budget considerations of the City, the cost of the proposed acquisition of the Property and the installation and construction of the proposed Open Space and Recreational Improvements has been allocated to the Agency. The budget constraints of the City prevent the City from financing the proposed acquisition of the Property and the installation and construction of the Open Space and Recreational Improvements by any means. No moneys of the City are available under the budget of the City to pay for the acquisition of the Property or the cost of the installation and construction of the proposed Open Space and Recreational 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 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 4. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City Council: (i) the proposed Open Space and Recreational Improvements are of benefit to the Project Area and to the immediate neighborhood in which the projects are located; (ii) the payment of funds for the acquisition of the Property and the insfallation and construction of the Open Space and Recreational Improvements will assist in the elimination of one or more blighting conditions inside the Project Area; (iii) the payment of funds for the acquisition of the Property and the installation and construction of the Open Space and Recreational 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 Open Space and Recreational Improvements is available to the City. 2 P6402-0001\1193396v l.doc RESOLUTION NO. -s1 Section 5. The City Council hereby approves payment by the Agency for value of the Property and the cost of the installation and construction of the proposed Open Space and Recreational Improvements from any revenues of the Agency lawfully available therefor in an amount not to exceed $ 2,000,000 (two million dollars). Any moneys paid initially by the City for the acquisition of the Property or the cost of the installation and construction of the Open Space and Recreational Improvements will constitute an advance to the Agency by the City. The City Council hereby approves the Advance and Reimbursement Agreement by and between the City and the Agency, presented to the City Council at this meeting and on file in the office of the City Clerk (the "Agreement"). The City Council hereby authorizes and directs the Mayor to execute and deliver the Agreement for and on behalf of the City, in substantially the form presented to the City at this meeting, with such changes therein as may be necessary and as the Mayor may approve as being in the best interests of the City, such approval to be conclusively evidenced by the Mayor's execution and delivery thereof. PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, this day of December, 2009. AYES: NOES: ABSENT: ABSTAIN: CINDY FINERTY, Mayor Attest: RACHELLE D. KLASSEN, City Clerk City of Palm Desert, California 3 P6402-0001\1193396v l.doc RESOLUTION NO. 568 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR THE VALUE O F THE LAND FOR AND THE COST OF THE INSTALLATION AND CONSTRUCTION OF PUBLIC OPEN SPACE AND RECREATIONAL IMPROVEMENTS AND APPROVING AN ADVANCE AND REIMBURSEMENT AGREEMENT WITH THE CITY 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 se�c'.), and in particular Section 33445 thereof, the Palm Desert Redevelopment Agency (the "Agency") proposes to pay for the value of the land for and the cost of the installation and construction of open space and recreational improvements thereon. Section 2. Such land consists of up to approximately twenty acres in various parcels, and is located within the area depicted in Exhibit A, attached hereto and incorporated herein (the "Property"). The open space and recreational improvements include, but are not limited to, trails, signage, and benches for hiking, mountain biking, and equestrian use, as well as staining and landscaping to renaturalize previously disturbed areas of the hillsides_(the "Open Space and Recreational Improvements"). Such Open Space and Recreational Improvements will serve the residents and taxpayers of Project Area No. 1, As Amended (the "Project Area"), as well as the residents and taxpayers of the Agency's other project areas. The City Council (the "City Council") of the City of Palm Desert (the "City") 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. The Project Area is characterized by buildings and structures, used or intended to be used for living, commercial, industrial, or other purposes, which are unfit or unsafe to occupy for such purposes and are conducive to juvenile delinquency and crime because of, among other things, inadequate provision for recreational facilities. In addition, the Project Area contains vacant and underutilized properties and properties that suffer from economic dislocation, deterioration or disuse, including depreciated or stagnant property values and impaired investments, and deteriorated, aged and obsolete buildings. The Project Area is characterized by the existence of inadequate public improvements, public facilities and open spaces that cannot be remedied by private or governmental action without redevelopment. Open space and recreational facilities serve a basic purpose of redevelopment; redevelopment includes the provision of structures and spaces as may be appropriate P6402-0001\1193338v1.doc RESOLUTION NO. 568 or necessary in the interest of the general welfare, including recreational and other facilities, as well as the provision of public recreation areas. In addition, a fundamental purpose of redevelopment is to expand employment opportunities and to provide an environment for the social, economic and psychological growth and well-being of all citizens. The Property and the Open Space and Recreational Improvements will provide open space and new, modern and efficient open space and recreational facilities to serve the residents and taxpayers of the City, including the residents and taxpayers of the Project Area, and will serve the human need for fresh air, sunlight, physical exercise, recreation and social interaction and psychological release, contributing to the well-being of the community. The Property and the proposed Open Space and Recreational Improvements will help reduce crime and juvenile delinquency, remedy the lack of adequate public improvements and open space, assist in the revitalization of the Project Area, encourage private sector investment and create job opportunities, all for the health, safety and welfare of the residents and taxpayers of the City and the Project Area. Section 3. Pursuant to budget considerations of the City, the cost of the proposed acquisition of the Property and the installation and construction of the proposed Open Space and Recreational Improvements has been allocated to the Agency. The budget constraints of the City prevent the City from financing the proposed acquisition of the Property and the installation and construction of the Open Space and Recreational Improvements by any means. No moneys of the City are available under the budget of the.City to pay for the acquisition of the Property or the cost of the installation and construction of the proposed Open Space and Recreational 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 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 4. The Agency hereby finds and determines that based upon the foregoing and other information presented to the Agency: (i) the proposed Open Space and Recreational Improvements are of benefit to the Project Area and to the immediate neighborhood in which the projects are located; (ii) the payment of funds for the acquisition of the Property and the installation and construction of the Open Space and Recreational Improvements will assist in the elimination of one or more blighting conditions inside the Project Area; (iii) the payment of funds for the acquisition of the Property and the installation and construction of the Open Space and Recreational 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 Open Space and Recreational Improvements is available to the City. Section 5. The Agency hereby approves payment by the Agency for value of the Property and the cost of the installation and construction of the proposed Open 2 P6402-0001\1193338v 1.doc RESOLUTION NO. 568 Space and Recreational Improvements from any revenues of the Agency lawfully available therefor in an amount not to exceed $ 2,000,000 (two million dollars). Any moneys paid initially by the City for the acquisition of the Property or the cost of the installation and construction of the Open Space and Recreational Improvements will constitute an advance to the Agency by the City. The Agency hereby approves the Advance and Reimbursement Agreement by and between the City and the Agency, presented to the Agency at this meeting and on file in the office of the City Clerk (the "Agreement"). The Agency hereby authorizes and directs the Chairperson to execute and deliver the Agreement for and on behalf of the Agency, in substantially the form presented to the Agency at this meeting, with such changes therein as may be necessary and as the Chairperson may approve as being in the best interests of the Agency, such approval to be conclusively evidenced by the Chairperson's execution and delivery thereof. PASSED, APPROVED and ADOPTED this day of December, 2009. AYES: NOES: ABSENT: ABSTAIN: CINDY FINERTY, Chairperson Attest: RACHELLE D. KLASSEN, Secretary 3 P6402-0001\I 193338v 1.doc Contract No. R29440 EXHIBIT A _�......): q L11�� I��f ; V� '��(1' I ��CC� �T Q ({�r} T � � `� � ° ��°g� � �� ? GRAPEVINE ST� �� ' 1 � �„""""`� wru.owsr � 4NtLOWSTi �( �?ALLEY y�ay�j� �, �i EIURSERAWAY -.w�i - Q'y�'��, .�. SU JECT REA �¢ _ h.,r'�± ;�ra�e^Rrsresz _ � � � � � � : �� ;� _ , , , � � - �, � � �'AAQBROSlA�ST ` AMBER ST — ¢ � DEER GRASS DR � I �i � CALLIAMORAST_ w HAYSTACK Rb—HAYSTACKRD" ❑ �'Q�T1Tii , iii i � iii ir � iP� �, �t�W�rSOM1EERR"RDT�� v'. :FQ SKYWARDWAY �� ..�O�7BELAIRRD�r�� jI, I I I I I d ` .NOblESTEA�RD�._ MfRA0ER0 CT �`y � _ '��C 7 � Op, � m^' �� D. �� , e��i �' v a�A"'�c o ^Y.�/�� .'� y r, m o� -mi v ...: � � .W �,p� p Ay z �� . ,, S'rtmFt.tN -� �-�--�ryr�� ` •`w� �' . V'rMlESA�VfEWDR... MESAV� �I� .., � CANY m '�'�� sF �i+r,r,°��m7T�R �SPYGLASSLN� l g-0�..� EXHIBIT A PfiMl2-0001 A I I 93 I 21 v2doc RESOLUTION NO. o9-ai EXHIBIT A _� �� i�l_� , --�� , 4�cca'��L v ° ��7'�v � y ` `-�V \ N 6. ` ��"O ' � �_j� r�`J�] r ; �'""' c' �taaevrr;e sr `'`� � ! , �I�T � � �T� ,yr�=RRwq�i� uJ_i_LI � ' � � � ' ' '� � ��tMLLOWST� IMLLOWST �...� '4 '.fALLEY � � wi �,� ��BURSERAWAY SU JECT REA II a :�``�''� i TA '�e"RrsKsr _ �Q I C��;�'V'1 � I I wl : g ��'AMBROSW�Si AMBER 5T � (I DEER GRASS DR I �I � 7 CALUANORA�S7= ow ;��Q.�-�NAYSTACKRD�HAYnSTAC. KRDn '�� rSOMERA�R��T�� ?; `�Q SKYWAROWRY �J1J_L_LZ �� C .a�� BELAlRRD � �1 k��TfT7 � � TTITfI HOMESTEADR�U. o MIRADEROCi _- . 1J-� � � '�T� I-�a _ � n � - — -,>�•,, o � m z�� a ��p �' o n�A��'� � � ��9� ��b A �A�m o h r m O n '� c � � W A A�T�f]�Z�I�L� -%CANYONLN� Q �n �� SO�! � � ". UrMESA Vf�� MESA VIEW DR m, � � �RSf ��m1 T�R �SPYGLASS LM 4 P640b0001 A I 193396v1.doc RESOWTION NO. 56a EXHIBIT A U!, `,. " L11 1 I. ��-/{y�-j ' "r1! � � ' �. '4G .��f��" � � � tT' YUC�AC7 ' � t v fiu ` 9 l � � a V6 to. ^ a ,� _�j-� �,'�.'y`.`T r� . ..ckAnev�NesT L�� I PqANi�• �icowsr ��cowsr ;�•acc�r J��, J j�� - � �� BURSERA WAY � SU JECT REA I Q : �,�`� �ra"maaaKsr _ L II�w�N� � �I � C �4 i;AA4BROSIA-S7 AMBERST 7 o� � OEER�GRASSDR� I �� ' �CRLLlANDRA-ST= ow -C��.Hnv57nCK RD�HAYSTACKRD" 6 �'� :_��TSOMERARDT�-�� J Q� ,a t51LL i i i �TTT� � `� .,�e sxrwaRowar �� -I] �O-��BELAIRiRD��-� � 5 �RADERO C7 �HOh1ES7EA�RD — �' � _'�� Q; .� mm��n � �... ��vu, ��0� A�A��C 3 .: � . h s <A T O CANYO �� r, T O n '� O . �-�-�{ � I � •�� N LN� r ...G�W1-1 RTTTI� �1�LT�f7~�2�l� _ . i s,o�a�� : �MESA�VfEWOR '� MESA VIEW DR � � �N '� �'SET.,. H-��-1 _,. ��e7 ';��'' gpyGLASSLAf . 4 P64(12-0OU TA I 193338v I.doc