HomeMy WebLinkAboutRes 2013-15 - Economic Dvlpmnt PrjctsCITY OF PALM DESERT
STAFF REPORT
FINANCE DEPARTMENT
REQUEST: Adoption of Resolution No. 2013- 15 establishing a fund for purposes
of facilitating Economic Development projects in the City of Palm Desert
SUBMITTED BY: Paul S. Gibson, Finance Director
DATE: April 25, 2013
CONTENTS: Resolution No. 2013- 15
Recommendation
Waive further reading and adopt.
Background
Facade enhancement projects have been performed in Palm Desert utilizing redevelopment
funds, and as a result businesses in Palm Desert as a whole have greatly benefitted from the
improved aesthetics and updated facades. With the elimination of redevelopment agencies
throughout the state, these projects are no longer possible using such funds, yet there is still a
great need to attract and enhance businesses in the city. This is particularly evident along
Highway 111, the city's main thoroughfare.
Staff has determined the most beneficial and necessary projects are those such as hotel facade
and attraction enhancement, retention of a consultant for potential hotel recruitment for locations
such as Desert Willow, and Highway 111 facade enhancement for Palm Desert businesses.
Establishment of a fund with a committed fund balance would provide an avenue which would
allow the City to continue to perform such projects for the betterment of the city while providing
restrictions to ensure funds were expended appropriately.
The term "committed fund balance" is described on Page 17 of the publication "The New Fund
Balance" as "the portion of the fund balance that represents resources whose use is constrained
by limitations that the government imposes upon itself at its highest level of decision making
(normally the governing body) and that remain binding unless removed in the same manner". To
this end, staff recommends creating Fund 425, Capital Projects — Economic Development for
the specific purpose as outlined above. Upon establishment, staff recommends that the funds
received from the sale of the Visitor Center and Joni Corporation Yard be placed in this fund for
economic development projects to be considered at a future date.
It is anticipated that the sale of these two properties will yield approximately $700,000. These
funds can be earmarked for economic development projects or programs with the following
distribution:
• $400,000 for Highway 111 Facade Enhancement
• $250,000 for Hotel Facade Enhancement and attractions
• $50,000 for retention of hotel consultant
Staff Report
Adoption of Resolution 2013- 15
April 25, 2013
Page 20f2
- Establish fund for Economic Development projects
Once the establishment of the fund is approved, and once the two properties are paid for,
Economic Development staff will develop the policies and qualifications of the programs and
return to City Council for consideration. Staff recommends adoption of the resolution to establish
Fund 425.
Fiscal Analysis
There is no fiscal impact as a result of this action.
Submitted By:
aul S. Gibson, Finance Director
A • • royal:
n M. Wohlmuth, City Manager
Main Alvarez, Redevelopment Manager
CITY COUNCILA1PION
APPROVED ✓✓ DENTED
RECEIVED OTHER
MEETING DATE v 41— 2 — 3-0,
AYES; '�7Sr1I�,�S�O> Ql, �, F f�l r ✓�ik
NOES• Ni°rie
ABSENT: 1\2 OP•e-
ABSTAIN: _ -641,n
VERIFIED BY. kOkirriL •�
Original on File with City erk's Office
G:\Finance\Niamh Ortega\Staff Reports\SR - adopt res for new fund for econ dev 042513.docx
RESOLUTION NO. 2013-15
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, TO ESTABLISH A FUND FOR PURPOSES OF ECONOMIC
DEVELOPMENT PROJECTS IN THE CITY OF PALM DESERT
WHEREAS, City staff historically conducted facade enhancement projects along the
Highway 111 corridor in the City of Palm Desert using Redevelopment funds; and
WHEREAS, the Palm Desert Redevelopment Agency has been eliminated as a result of
actions by the State of California and can no longer facilitate such projects; and
WHEREAS, the City desires to continue to attract new businesses and enhance
businesses already established along the Highway 111 corridor within Palm Desert boundaries;
and
WHEREAS, the City desires to establish and designate a fund for the specific purpose of
said Economic Development activity.
NOW, THEREFORE, BE IT RESOLVED, that:
1. The Finance Director will establish Fund 425, Capital Projects — Economic
Development for the purpose described herein; and
2. Funds from the sale of the old Visitor Center and Corporation Yard will be
allocated to said Fund for the specific purpose of economic development projects such as hotel
facade enhancement, hotel amenities enhancement, retention of a hotel recruitment consultant,
and Highway 111 business facade enhancement.
3. The fund created will be restricted to committed funds, representing resources
whose use is constrained by limitations such as specific purpose as defined above and imposed
by action herein, and remain binding unless removed in the same manner.
PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert,
California, at its regular meeting held on the 25th of April, 2013, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JAN C. HARNIK, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA