HomeMy WebLinkAboutRes Nos. 2014-09 - SA-RDA 024 - Alessandro Alley Prjct CITY OF PALM DESERT/SUCCESSOR AGENCY OF THE PALM
DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROVE RESOLUTION NO?014-09 AND RESOLUTION NO.
SARDA o24 APPROVING THE EXECUTION OF AN
ALESSANDRO ALLEY PROJECT BOND PROCEEDS FUNDING
AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY AND THE CITY OF
PALM DESERT AND TAKING CERTAIN RELATED ACTIONS
SUBMITTED BY: Martin Alvarez, Director of Economic Development
DATE: February 13, 2014
CONTENTS: Resolution No. 20�4-09
Resolution No. SARDA o24
Reimbursement Agreement (C 33330 )
Recommendation
By Minute Motion that the City Council and the Successor Agency Board:
1. Waive further reading and adopt Resolution No?o�4-09 and Resolution
No. SARDA- 024 approving the execution of an Alessandro Alley
Project Bond Proceeds Funding Agreement between the Successor
Agency to the Palm Desert Redevelopment Agency and the City of Palm
Desert and taking certain related action.
2. Estimated revenue of $250,000.00 to Capital Project Fund;
3. Approve and authorize the Executive Director, Mayor and Chair to
execute the Alessandro Alley Project Funding Agreement.
Backqround
The Successor Agency to the Palm Desert Redevelopment Agency (Successor Agency)
controls nine properties along Alessandro Alley acquired by the former Redevelopment
Agency. Prior to the dissolution of the Palm Desert Redevelopment Agency, staff began the
design of the Alessandro Alley Improvement Project. The project proposes to widen and
improve Alessandro Alley, the addition of public parking spaces with landscaping and
lighting improvements from Las Palmas Avenue on the east to approximately 300 feet east
of Monterey Avenue on the west. The project would widen the alley by 27.0 feet to a total
width of 47.0 feet, and would provide public parking at a 90-degree angle on the north side
of Alessandro Alley, perpendicular to a new six foot block wall barrier adjoining residential
parcels.
Staff Report Contract No. C33330
Alessandro Alley Project Reimbursement Agreement
Page 2 of 3
February 13, 2014
Discussion
With the approval of the Successor Agency's Finding of Completion in 2013, by the State
Department of Finance, the Successor Agency can now utilize Project Area 1 Bond
Proceeds to complete the design and implement the Alessandro Alley Project
improvements. Prior to expending any funds associated with the project design, property
acquisitions and construction the attached reimbursement agreement between the
Successor Agency and the City of Palm Desert requires approval. The attached resolutions
and reimbursement agreement will allow the City to expend funds to implement the project
and if approved by the Oversight Board and DOF expenditures can be reimbursed by
Successor Agency Project Area 1 Bond Proceeds.
On August 22, 2013, the Successor Agency/City held a Study Session to discuss the
prioritization and funding availability of former Redevelopment Agency bond funded
projects. Alessandro Alley was identified as one of the projects eligible under Project Area
1 bond funds and $2,100,000 was programmed for this project. The $2,100,000 budgeted
is sufficient to implement a slightly scaled down project design.
Fiscal Analvsis
Funds are currently budgeted in Fiscal Year 2013/2014 Fund 400-4341-433-4001.
Although the General Fund would initially advance the funds for this work, it is the intention
of the Successor Agency to reimburse the City for the costs from bonds proceeds which
include the Alessandro Alley Project improvements in the bond covenant. Only in the event
there are no funding sources available from the Successor Agency would the General Fund
have to pay for the work. CITYCOUNCILA�TION
Prepared By: � APPROVED � DENIED �--
RE EIVED OTHER � �'1-���c�
j �—C�
� MEETING DA ' 3-���
AYE5:� .. _ I (7�l . �f�'� ' � ?�-�'/� � ���Il1�/�.
Martin Alvare NOES: 1�
Director of E on mic De elopment AI3SENT: �
Reviewed nd Co cur: ABSTAIN: ,�
VrRIFIED BY:
r����
Original on File with City erk's Office
Paul S. on, Director of Finance
rova�: - �� BY SA-RUA � —U
�1V i� ���_� ' r�/
VERI�iIEi� ���_.��J+�. �
o n M. Wohlmuth C�ri�ir�a� c�x� �-i�;v�-r::�.� ::�;����,. .a -'� ���'�i4:�
C' y Manager/Executive Director of the
uccessor Agency of the Palm Desert
edevelopment Agency
RESOLUTION NO. 20�4-09
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT APPROVING THE EXECUTION OF THE ALESSANDRO
ALLEY PROJECT BOND PROCEEDS FUNDING AGREEMENT
BETWEEN THE SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY AND THE CITY AND TAKING CERTAIN
RELATED ACTIONS
RECITALS:
A. The Palm Desert Financing Authority (the "Financing Authority") previously
issued its Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), 2006
Series A, in the principal amount of $37,780,000 (the "PA1 2006A Bonds"), pursuant to
an Indenture of Trust, dated as of July 1, 2006, by and between the Financing Authority
and Wells Fargo Bank, National Association, as trustee (the "Trustee").
B. Pursuant to the Loan Agreement, dated as of July 1, 2006 (the "Loan
Agreement"), by and among the Financing Authority, the former Palm Desert
Redevelopment Agency (the "Former RDA"), and the Trustee, proceeds of the PA1
2006A Bonds were lent to the Former RDA as a loan (the "Loan").
C. The Former RDA caused a portion of the proceeds of the PA1 2006A
Bonds received as part of the Loan to be deposited into a Project Fund (the "PA1 2006A
Project Fund"), which was established, and is held by, the Trustee pursuant to the Loan
Agreement.
D. Pursuant to the Loan Agreement, moneys in the PA1 2006A Project Fund
shall be disbursed from time to time to finance the cost of redevelopment projects in or
of benefit to the Former Agency's Project Area No. 1, As Amended (the "Project Area").
E. As documented by the Official Statement, dated June 22, 2006, and the
Certificate Regarding Compliance with Certain Tax Matters, dated as of July 6, 2006
(the "Tax Certificate"), it was intended, at the issuance of the PA1 2006A Bonds, that
the projects to be financed from moneys deposited in the PA1 2006A Project Fund
include, among others, the Alessandro Alley project, including the design, construction
and property acquisitions related to the widening of the Alessandro Alley by 27.0 feet to
a total width of 47.0 feet, public parking spaces, landscaping, lighting, and block walls
from Las Palmas Avenue on the east to approximately 300 feet east of Monterey
Avenue on the west (the "Project").
F. Pursuant to AB X1 26 (which became effective at the end of June 2011)
and the California Supreme Court's decision in California Redevelopment Association,
et al. v. Ana Matosantos, et al., 53 Cal.4th 231(2011), the Former RDA was dissolved
as of February 1, 2012, and the Successor Agency was constituted.
RESOLUTION NO. 2oi4-o9
G. AB 1484, which became effective at the end of June 2012, amended and
supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are
referred to in this Agreement as the "Dissolution Act."
H. Pursuant to Section 34175(b) of the California Health and Safety Code
("HSC"), all assets, properties, contracts, leases, books and records, buildings, and
equipment of the Former RDA, including all unspent proceeds of the PA1 2006A Bonds
remaining in the PA1 2006A Project Fund (the "PA1 2006A Bond Proceeds"),
transferred to the control of the Successor Agency by operation of law.
I. According to HSC Section 34191.4, after the receipt by the Successor
Agency of a finding of completion (the "Finding of Completion") issued by the California
State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the PA1
2006A Bond Proceeds shall be used for the purposes for which the PA1 2006A Bonds
were sold, in a manner consistent with the original bond covenants.
J. By DOF's letter, dated May 15, 2013, the DOF informed the Successor
Agency that the DOF has issued a Finding of Completion to the Successor Agency.
K. There remains a balance of PA1 2006A Bond Proceeds in the PA1 2006A
Project Fund (in the amount of$15,630,738 as of December 31, 2013).
L. The Successor Agency desires to use a portion of the PA1 2006A Bond
Proceeds for completion of work with respect to the Project.
M. Because of the limited staffing of the Successor Agency and the traditional
role and the established procedures of the City of Palm Desert (the "City") with respect
to the awarding of public works contracts, the Successor Agency and the City desire to
enter into the Alessandro Alley Project Bond Proceeds Funding Agreement, pursuant to
which the City will agree to perform or cause to be performed all work required to
complete the Project, with payment therefor to be made from the PA1 2006A Bond
Proceeds.
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. Alessandro Alfey Bond Proceeds Fundinq Aqreement. The
Alessandro Alley Project Bond Proceeds Funding Agreement, in the form attached
hereto as Exhibit A, is hereby approved. Each of the Mayor (or in the Mayor's
absence, the Mayor Pro Tem) and the City Manager (each, an Authorized Officer"),
individually, is hereby authorized to execute and deliver, for and in the name of the
City, the Alessandro Alley Project Bond Proceeds Funding Agreement, in substantially
such form, with changes therein as the Authorized Officer executing the same may
approve (such approval to be conclusively evidenced by the execution and delivery
thereo�.
RESOLUTION NO. 2014-09
Section 3. Other Acts. The Authorized Officers and all other officers of the
City are hereby authorized, jointly and severally, to execute and deliver any and all
necessary documents and instruments and to do all things which they may deem
necessary or proper to effectuate the purposes of this Resolution and the Alessandro
Alley Project Bond Proceeds Funding Agreement. Any actions previously taken by
officers of the City consistent with the purposes of this Resolution, the Alessandro Alley
Project Bond Proceeds Funding Agreement are hereby ratified and confirmed
Section 4. Effective Date. This Resolution shall take effect immediately upon
adoption.
APPROVED and ADOPTED this day of , 2014.
AYES:
NOES:
ABSENT:
ABSTAIN:
VAN G. TANNER, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
RESOLUTION NO. sA-xnA o24
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT
AGENCY APPROVING THE EXECUTION OF AN ALESSANDRO ALLEY
PROJECT BOND PROCEEDS FUNDING AGREEMENT BETWEEN THE
SUCCESSOR AGENCY AND THE CITY OF PALM DESERT AND
TAKING CERTAIN RELATED ACTIONS
RECITALS:
A. The Palm Desert Financing Authority (the "Financing Authority") previously
issued its Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), 2006
Series A, in the principal amount of $37,780,000 (the "PA 1 2006A Bonds"), pursuant to
an Indenture of Trust, dated as of July 1, 2006, by and between the Financing Authority
and Wells Fargo Bank, National Association, as trustee (the "Trustee").
B. Pursuant to the Loan Agreement, dated as of July 1, 2006 (the "Loan
Agreement"), by and among the Financing Authority, the former Palm Desert
Redevelopment Agency (the "Former RDA"), and the Trustee, proceeds of the PA1
2006A Bonds were lent to the Former RDA as a loan (the "Loan").
C. The Former RDA caused a portion of the proceeds of the PA1 2006A
Bonds received as part of the Loan to be deposited into a Project Fund (the "PA1 2006A
Project Fund"), which was established, and is held, by the Trustee pursuant to the Loan
Agreement.
D. Pursuant to the Loan Agreement, moneys in the PA1 2006A Project Fund
shall be disbursed from time to time to finance the cost of redevelopment projects in or
of benefit to the Former Agency's Project Area No. 1, As Amended (the "Project Area").
E. As documented by the Official Statement, dated June 22, 2006, and the
Certificate Regarding Compliance with Certain Tax Matters, dated as of July 6, 2006
(the "Tax Certificate"), it was intended, at the issuance of the PA1 2006A Bonds, tF�at
the projects to be financed from moneys deposited in the PA1 2006A Project Fund
include, among others, the Alessandro Alley project, including the design, construction
and property acquisitions related to the widening of the Alessandro Alley by 27.0 feet to
a total width of 47.0 feet, public parking spaces, landscaping, lighting, and block walls
from Las Palmas Avenue on the east to approximately 300 feet east of Monterey
Avenue on the west (the "Project").
F. Pursuant to AB X1 26 (which became effective at the end of June 2011)
and the California Supreme Court's decision in California Redevelopment Association,
et al. v. Ana Matosantos, et al., 53 Cal.4th 231(2011), the Former RDA was dissolved
as of February 1, 2012, and the Successor Agency was constituted.
G'vdaVrtartin Alvarcz�2014\SA\SA rew re Projcct Area No I Bond Procccds Funding Agmt doc
RESOLUTION NO. sa-xnA o24
G. AB 1484, which became effective at the end of June 2012, amended and
supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are
referred to in this Agreement as the "Dissolution Act."
H. Pursuant to Section 34175(b) of the California Health and Safety Code
("HSC"), all assets, properties, contracts, leases, books and records, buildings, and
equipment of the Former RDA, including all unspent proceeds of the PA1 2006A Bonds
remaining in the PA1 2006A Project Fund (the "PA1 2006A Bond Proceeds"),
transferred to the control of the Successor Agency by operation of law.
I. According to HSC Section 34191.4, after the receipt by the Successor
Agency of a finding of completion (the "Finding of Completion") issued by the California
State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the PA1
2006A Bond Proceeds shall be used for the purposes for which the PA1 2006A Bonds
were sold, in a manner consistent with the original bond covenants.
J. By DOF's letter, dated May 15, 2013, the DOF informed the Successor
Agency that the DOF has issued a Finding of Completion to the Successor Agency.
K. There remains a balance of PA1 2006A Bond Proceeds in the PA1 2006A
Project Fund (in the amount of $15,630,738 as of December 31, 2013).
L. The Successor Agency desires to use a portion of the PA1 2006A Bond
Proceeds for completion of work with respect to the Project.
M. Because of the limited staffing of the Successor Agency and the traditional
role and the established procedures of the City of Palm Desert (the "City") with respect
to the awarding of public works contracts, the Successor Agency and the City desire to
enter into the Alessandro Alley Project Bond Proceeds Funding Agreement, pursuant to
which the City will agree to perform or cause to be performed all work required to
complete the Project, with payment therefor to be made from the PA1 2006A Bond
Proceeds.
P. Pursuant to HSC Sections 34178(a) and 34180(h), with the approval of
the Oversight Board of the Successor Agency (the "Oversight Board"), the Successor
Agency may enter into agreements with the City.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR
AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY DOES HEREBY
RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Recitals. The above recitals, and each of them, are true and
correct.
Section 2. Alessandro Allev Bond Proceeds Fundinq Agreement. The
Alessandro Alley Project Bond Proceeds Funding Agreement, in the form attached
G-trda��lanin Alvarez�2014\SA\SA reso re Project Area No I Rond Procccds Funding Agmt doc
RESOLUTION NO. SA-RDA o24
hereto as Exhibit A, is hereby approved. Each of the Chair of this Board, the Vice
Chair of this Board and the Executive Director of the Successor Agency (each, an
Authorized Officer"), individually, is hereby authorized to execute and deliver, for and in
the name of the Successor Agency, the Alessandro Alley Project Bond Proceeds
Funding Agreement, in substantially such form, with changes therein as the Authorized
Officer executing the same may approve (such approval to be conclusively evidenced
by the execution and delivery thereofl.
Section 3. Reguest for Oversiqht Board Approval. The Oversight Board is
hereby requested to approve the Successor Agency's execution and delivery of the
Alessandro Alley Project Bond Proceeds Funding Agreement. The Secretary of the
Successor Agency is hereby directed to transmit this Resolution to the Oversight Board
for consideration at the earliest possible date.
Section 4. Other Acts. The Authorized Officers and all other o�cers of the
Successor Agency are hereby authorized, jointly and severally, to execute and deliver
any and all necessary documents and instruments and to do all things which they may
deem necessary or proper to effectuate the purposes of this Resolution and the
Alessandro Alley Project Bond Proceeds Funding Agreement.
Section 5. Effective Date. This Resolution shall take effect immediately upon
adoption.
APPROVED and ADOPTED this day of , 2014.
AYES:
NOES:
ABSENT:
ABSTAIN:
VAN TANNER, CHAIR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
G UdaVvlanin Alvarez�2014\SA�SA reso re Project Area No I Bond Proceeds Funding Agmt doc
Contract No. C33330
ALESSANDRO ALLEY PROJECT BOND PROCEEDS FUNDING AGREEMENT
This ALESSANDRO ALLEY POJECT BOND PROCEEDS FUNDING AGREEMENT
(this "Agreement"), dated as of , 2014, is entered into by and between the City of
Palm Desert(the"City") and the Successor Agency to the Palm Desert Redevelopment Agency
(the "Successor Agency,"and together with the City, the "Parties").
RECITALS:
A. The Palm Desert Financing Authority (the "Financing Authority") previously
issued its Tax Allocation Revenue Bonds (Project Area No. 1, As Amended), 2006 Series A (the
"PA1 2006 Bonds") for the purpose of financing redevelopment projects of benefit to Project
Area No. 1, As Amended (the"Project Area")of the former Palm Desert Redevelopment
Agency (the "Former RDA").
B. The PA1 2006 Bonds were issued pursuant to the Indenture of Trust, dated as of
July l, 2006, by and between the Financing Authority and Wells Fargo Bank, National
Association, as trustee (the "Trustee").
C. Pursuant to the Project Area No. 1, As Amended, Loan Agreement, dated as of
July 1, 2006 (the "Loan Agreement"), by and among the Financing Authority, the Former RDA,
and the Trustee, proceeds of the PA 1 2006 Bonds were loaned to the Former RDA (the "Loan").
D. The Former RDA caused a portion of the proceeds of the PA 1 2006 Bonds
received as part of the Loan to be deposited into a Project Fund (the "PA1 2006 Project Fund"),
which was established, and is held, by the Trustee pursuant to the Loan Agreement.
E. Pursuant to the Loan Agreement, moneys in the PA1 2006 Project Fund shall be
disbursed from time to time to finance the cost of redevelopment projects in or of benefit to the
Former Agency's Project Area No. 1, As Amended (the "Project Area").
F. As documented by the Official Statement, dated June 22, 2006, and the Certificate
Regarding Compliance with Certain Tax Matters, dated as of July 6, 2006 (the "Tax
Certificate"), it was intended, at the issuance of the PA 1 2006 Bonds, that the projects to be
financed from moneys deposited in the PAl 2006 Project Fund include, among others, the
Alessandro Alley Project, including the design, construction and property acquisitions related to
the widening of the Alessandro Alley by 27.0 feet to a total width of 47.0 feet, public parking
spaces, landscaping, lighting, and block walls from Las Palmas Avenue on the east to
approximately 300 feet east of Monterey Avenue on the west (the "Project").
G. Pursuant to AB X 1 26 (which became effective at the end of June 2011) and the
California Supreme Court's decision in California RedevelopmentAssociation, et al. v. Ana
Matosantos, et al., 53 Cal.4th 231(2011), the Former RDA was dissolved as of February 1, 2012,
and the Successor Agency was constituted.
-1-
I 2812-0001\1685493.2
H. AB 1484, which became effective at the end of June 2012, amended and
supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to in
this Agreement as the "Dissolution Act."
I. Pursuant to Section 34175(b) of the California Health and Safety Code("HSC"),
all assets, properties, contracts, leases, books and records, buildings, and equipment of the
Former RDA, including all unspent proceeds of the PA 1 2006 Bonds remaining in the PA 1 2006
Project Fund (the "PA1 2006 Bond Proceeds"),transferred to the control of the 5uccessor
Agency by operation of law.
J. According to HSC Section 34191.4, after the receipt by the Successor Agency of
a finding of completion (the "Finding of Completion") issued by the California State Department
of Finance (the "DOF") pursuant to HSC Section 34179.7, the PA 1 2006 Bond Proceeds shall be
used for the purposes for which the PA1 2006 Bonds were sold, in a manner consistent with the
original bond covenants.
K. By DOF's letter, dated May 15, 2013, the DOF informed the Successor Agency
that the DOF has issued a Finding of Completion to the Successor Agency.
L. There remains a balance of PA1 2006 Bond Proceeds in the PA1 2006 Project
Fund (in the amount of$15,630,738 as of December 31, 2013).
M. The Successor Agency desires to use a portion of the PA1 2006 Bond Proceeds
for completion of work with respect to the Project.
N. Pursuant to HSC Section 34177(1), the Successor Agency must prepare a
Recognized Obligation Payment Schedule ("ROPS") for each six-month fiscal period ("ROPS
Period"). The ROPS must be submitted to the Oversight Board of the Successor Agency (the
"Oversight Board") and the DOF for approval.
O. Pursuant to HSC Section 34191.4(c)(2), the expenditure of PA1 2006 Bond
Proceeds for an obligation must be listed on a ROPS.
P. The Successor Agency previously prepared a ROPS ("ROPS 13-14B") covering
the period from January 1, 2014 through June 30, 3014 ("ROPS 13-14B Period").
Q. Listed as Item No. 46 on the ROPS 13-14B is the anticipated use of the PA1 2006
Bond Proceeds for the Project.
R. The Oversight Board adopted Resolution No. OB-050, on September 10, 2013,
approving ROPS 13-14B. The Oversight Board-approved ROPS 13-14B was submitted to the
DOF for review.
S. DOF issued its letter dated December 17, 2013, confirming the DOF's approval of
Item No. 46 of ROPS 13-14B, subject to the modification that the ROPS 13-14B Period funding
amount for the Project (the "ROPS 13-14B Project Estimate") be changed pursuant to a revised
schedule submitted by the Successor Agency during the DOF review process (the "Revised
Schedule"). Per the Revised Schedule, the ROPS 13-14B Project Estimate is $500,000.
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12812-0001\1685493.2
T. Because of the limited staffing of the Successor Agency and the traditional role
and the established procedures of the City of Palm Desert (the "City") with respect to the
awarding of public works contracts, the Successor Agency and the City desire to enter into this
Agreement, for the City to perform or cause to be performed all work required to complete the
Project, with payment therefor to be made from the PA1 2006 Bond Proceeds.
U. Pursuant to HSC Sections 34178(a) and 34180(h), with the approval of the
Oversight Board, the Successor Agency may enter into agreements with the City.
V. Resolution No. adopted by the Oversight Board on , 2014
approving the Successor Agency's execution and delivery of this Agreement was approved
[deemed approved] by the DOF pursuant to HSC Section 34179(h) on , 2014.
NOW,THEREFORE,THE PARTIES DO HEREBY AGREE AS FOLLOWS:
Section 1. Subject to the provisions of this Agreement and with the funding provided
pursuant to this Agreement, the City agrees to perform or cause to be performed all work
required for the completion of the Project, including but not limited to the preparation of designs,
plans and specifications and all acquisitions, demolitions, construction and installations. The
City shall perform such work in accordance with all applicable federal, state and local laws, rules
and regulations. Subject to the covenants set forth herein, the City shall have the sole discretion
with respect to the design,planning, specification and the timing with respect to all components
of the Project.
Section 2. As soon as practical upon the Parties' execution of this Agreement, the
Successor Agency shall transfer to the City an amount equal to the ROPS 13-14B Project
Estimate from the PA 1 2006 Bond Proceeds on deposit in the PA 1 2006 Project Fund.
Section 3. (a) The Parties acknowledge and agree that the PA 1 2006 Bond
Proceeds shall be the sole source of the Successor Agency's payment for the completion of the
Project pursuant to this Agreement. The Parties also agree that the City's obligation with respect
to the work for the Project under this Agreement shall be limited to the extent that funding
therefor is available from the PA1 2006 Bond Proceeds.
(b) At any time, if the City determines that the amount previously transferred
by the Successor Agency pursuant to this Agreement is insufficient for the completion of the
Project, the City's Finance Director shall notify the Successor Agency, specifying the estimated
dollar amount necessary for the completion of the Project (the "Additional Funding Amount").
To the extent that sufficient unspent PA 1 2006 Bond Proceeds remain available, the Successor
Agency shall list the Additional Funding Amount on the ROPS for the next available ROPS
Period. Upon obtaining the Oversight Board's and the DOF's approval for such ROPS item(s),
the Successor Agency shall transfer or caused to be transferred to the City the Additional
Funding Amount from the PA 1 2006 Bond Proceeds as soon as practicable upon the
commencement of the applicable ROPS Period.
(c) Before the transfer of any Additional Funding Amount pursuant to Section
3(b) above, the City may, but is not obligated to, advance funds from sources available to City
for the work necessary for the Project (each such advance being a "City Advance"). Any
-3-
I 2812-0001\I 685493.2
Additional Funding Amount transferred by the Successor Agency pursuant to Section 4(b) shall
first be used to reimburse the City for outstanding City Advances, and then to pay for other
expenditures of the Project.
Section 4. To the extent the City still holds unspent PA1 2006 Bond Proceeds
transferred pursuant to this Agreement after the completion of the Project (as determined by the
legislative body of the City), the City shall return such unspent PA 1 2006 Bond Proceeds to the
Successor Agency within a reasonable time after such determination.
Section 5. The City covenants that it shall use the PA1 2006 Bond Proceeds in a
manner consistent with the covenants in the Loan Agreement and the Tax Certificate, including,
but not limited to, any covenants regarding the tax-exempt status of interest on the PA1 2006
Bonds under the Internal Revenue Code of 1986, as amended, and any regulations promulgated
thereunder.
Section 6. 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 at all reasonable times.
Section 7. The Parties 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 8. This Agreement may be amended from time to time by written instrument
executed by both Parties.
Section 9. No official, agent, or employee of the Successor Agency or the City, or
members of the City Council, or members of the Successor Agency Board of Directors or
Oversight Board shall be individually or personally liable for any payment hereunder in the event
of any default or breach by the Successor Agency or the City, or for any amount which may
otherwise become due to the City or Successor Agency, or successor thereto, or on any
obligations under the terms of this Agreement.
Section 10. 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.
jREMA1NDER OF PAGE INTENTIONALLY LEFT BLANK;
SIGNATURES TO FOLLOW]
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128 I 2-OOO l\1685493.2
IN WITNESS WHEREOF,the Parties have caused this Agreement to be executed by
their duly authorized officers.
SUCCESSOR AGENCY TO THE PALM
DESERT REDEVELOPMENT AGENCY
By
JOHN WOHLMUTH,
EXECUTIVE DIRECTOR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
TO THE SUCCESSOR AGENCY OF THE
PALM DESERT REDEVELOPMENT AGENCY
CITY OF PALM DESERT
By
VAN G. TANNER, MAYOR
ATTEST:
R.ACHELLE D. KLASSEN, CITY CLERK
APPROVED:
OVERSIGHT BOARD OF THE
SUCCESSOR AGENCY TO THE PALM
DESERT REDEVELOPMENT AGENCY
By
BOB A. SPIEGEL, CHAIR Date:
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I 2812-0001\1685493 2