HomeMy WebLinkAboutResolution 580 With Respect to the Repayment of City Loans and AdvancesRESOLUTION NO. 580
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY
AMENDING RESOLUTION NOS. 275, 288, 305, 340, 376, 384, 424,
AND 448 WITH RESPECT TO THE REPAYMENT OF CITY LOANS AND
ADVANCES
RECITALS
A. The Community Redevelopment Law (Health and Safety Code Section
33000, et. seq.) provides for the establishment of a special fund to be kept in the
treasury of the City of Palm Desert known as the Redevelopment Revolving Fund.
B. On June 6, 1993, the City Council of the City of Palm Desert (the "City
Council") adopted its Resolution No. 93-54 establishing a Redevelopment Revolving
Fund.
C. On June 6, 1993, the Palm Desert Redevelopment Agency (the "Agency")
adopted its Resolution No. 275 agreeing to the terms and conditions with respect to the
establishment of the Redevelopment Revolving Fund as set forth in the Agency's
Resolution No. 275 and the City Council's Resolution No. 93-54.
D. Whereas appropriations have been made to the Redevelopment Revolving
Fund as set forth in the City Council's Resolution Nos. 93-54, 93-92, 95-15, 97-23,
99-70, 99-114 and 01-94. The terms and conditions of which were agreed to as set
forth in the Agency's Resolution Nos. 275, 288, 305, 340, 376, 384, 424 and 448.
E. Pursuant to the above -described resolutions, from time to time, the City
has paid moneys in the Redevelopment Revolving Fund to, or on behalf of, the Agency
in the total sum of $22,655,000, which sum constitutes a loan from the City to the
Agency, the entire principal balance of which loan remains outstanding.
F. Whereas the economic conditions have deteriorated since 2008 and
continues presently, the City of Palm Desert desires to immediately call all advances
and loans from the Palm Desert Redevelopment Agency with respect to the
Redevelopment Revolving Fund.
G. Notwithstanding the provisions of the above -described resolutions, the
City and the Agency desire to modify the terms and conditions governing the repayment
by the Agency to the City of moneys paid to or on behalf of the Agency from the
Redevelopment Revolving Fund, including the sum of $22,655,000.
NOW THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY
HEREBY FINDS, DETERMINES, RESOLVES AND AMENDS AS FOLLOWS:
C\DOCUMENTS AND SETTINGS\NORTEGA\MY DOCUMENTS\RES - REPYMNT OF CITY LOANS AND ADVANCES 011411.DOCX
RESOLUTION NO. 580
Section 1. Notwithstanding the provisions of the resolutions being amended,
the loan described in the Recitals hereof previously made by the City to the Agency
from moneys in the Redevelopment Revolving Fund in the principal amount of
$22,655,000 shall be repaid to the City by the Agency together with simple interest on
the unpaid principal balance thereof computed at a rate per annum equal to the
average monthly rate earned by the City from its investments in the Local Agency
Investment Fund.
Section 2. The Finance Director is authorized and directed to transfer all
advances and loans relative to the repayment to the City of Palm Desert by the Palm
Desert Redevelopment Agency with respect to the Redevelopment Revolving Fund.
Section 3. The Secretary is hereby authorized and directed to cause a copy of
this Resolution to be transmitted to the City.
Section 4. The members of the Agency and the officers, employees and
counsel of the Agency are hereby authorized to do all acts and things which may be
required of them by this Resolution. All such acts and things heretofore done are
hereby approved, ratified and confirmed.
PASSED, APPROVED AND ADOPTED this day of
2011, with the following vote to wit:
CITY COUNCIL TION
AYES: APPROVED .._DENIED
RFgEIVED OTHER
NOES: . l - / -7- vlC
MF,ETI,�IG DAT
ABSENT: 11
AYEs:i-1 fz �`
NOES: M °
4IISENT: KETT
ABSTAIN: BSTAIN: _ , �
V1=:RIFIED BY:
Original on File with City crk's Office
Jean M. Benson, Chairperson
ATTEST:
Rachelle D. Klassen, Secretary
C'\DOCUMENTS AND SETTINGS\NORTEGA\MY DOCUMENTS\RES - REPYMNT OFiITY LOANS AND ADVANCES 011411 DOCX