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HomeMy WebLinkAboutRes 05-35 and 501 - Payment of the Portola Avenue BridgeCITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVAL OF CITY COUNCIL RESOLUTION NO. 05-35 AND REDEVELOPMENT AGENCY RESOLUTION NO.5,01_ APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY FOR ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF THE PORTOLA AVENUE BRIDGE SUBMITTED BY: DENNIS M. COLEMAN, REDEVELOPMENT/HOUSING FINANCE MANAGER DATE: MAY 26, 2005 CONTENTS: CITY COUNCIL RESOLUTION NO. 05-35 PALM DESERT REDEVELOPMENT AGENCY RESOLUTION NO. 501 Recommendation: That the City Council approves Resolution No.05-35 approving payment by the Palm Desert Redevelopment Agency for all or part of the cost of the installation and construction of the Portola Avenue Bridge. 2. That the Redevelopment Agency approves Resolution No.501 approving payment by the Palm Desert Redevelopment Agency for all or part of the cost of the installation and construction of the Portola Avenue Bridge. Executive Summarv: Approval of the resolutions allow the Agency to pay for the construction of the Portola Avenue Bridge. Discussion: The City has identified the Portola Avenue Bridge to be a vital improvement for safety and other concerns. It has been identified as a project to receive funding through the Measure A Program with the Coachella Valley Association of Governments (CVAG). The City needs to pay for 50% of the design and construction of the bridge. The General Fund does not have funds available for this project. The Agency is planning on issuing a bond next March which will make available funds for this project. The Agency has sufficient reserves for the initial payments and will reimburse itself from the future bond funds. Section 33445 of the California Health and Safety Code dictates that, in order to spend Agency funds for installation and construction of the Portola Avenue Bridge, that the City and the Agency G IRDAiDenms COtemamDATAMPIREPORTS133445 Reso Portola Bridge wpd Staff Report Approval of City Council and Redevelopment Agency Resolutions Approving Payment for the installation and construction of the Portola Avenue Bridge May 26, 2005 Page 2 must make a finding that there is no other funding source available. In addition, findings also must be made that the project is of benefit to the neighborhood and project area; removes a form of identified blight; and that it is consistent with the Agency's Five Year Implementation Plan. Staff has attached the resolutions which make these findings. Staff is recommending that the City Council and the Redevelopment Agency approve their respective resolutions. Submitted by: Dennis M. Coleman Redevelopment Finance Manager DMC:mh Approval: Carlos L. Ortega v City Manage/Executive Director G IRDAlDenn,s ColemaniDATA1WPIREPORTS133445 Reso Poriola Bodge wpd Department Head: c F� avid Yrig6yAofr Director o edevelopment 2S.Gibson Director of Finance/Treasurer RESOLUTION NO. 05-35 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING PAYMENT BY THE PALM DESERT REDEVELOPMENT AGENCY OF ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF THE PORTOLA AVENUE BRIDGE IN THE CITY OF PALM DESERT, CALIFORNIA 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 sea.), and in particular Section 33445 thereof, the Palm Desert Redevelopment Agency (the "Agency") proposes to pay for all or a part of the cost of the installation and construction of the Portola Bridge in the Whitewater River Wash between Magnesia Falls and Hovley Lane East. The proposed improvements include raising the grade at the entrance of the Portola Country Club in order to facilitate the bridge. The Portola Avenue Bridge is located in Project Area No. 1 (the "Project Area") in the City of Palm Desert, California. The City Council has previously determined that Project Area is an area in which the combination of conditions of blight are 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. Among other things, the Project Area contains vacant and underutilized properties, properties which suffer from depreciated or stagnant property values, and deteriorated, aged and obsolete buildings. In addition, the Project Area is characterized by the existence of inadequate public improvements and public facilities, including inadequate circulation improvements, which cannot be remedied by private or governmental action without redevelopment. The lack of adequate public improvements hinders economic development opportunities and contributes to the existence of depreciated and stagnant property values and impaired investments in the Project Area. The Portola Avenue Bridge will improve traffic circulation within the Project Area and mitigate congestion and safety hazards, all for the benefit of the health, safety and welfare of the residents and taxpayers of the Project Area. The Portola Avenue Bridge will secure safe crossing during bad weather for vehicles, as well as, pedestrians. There currently is no pedestrian crossing on Portola Avenue in the vicinity of the proposed Portola Avenue Bridge. A pedestrian crossing is vital considering there are three schools located in the immediate area (Lincoln Elementary, James Carter Elementary and Palm Desert Middle School.) The Portola Avenue Bridge will assist in the elimination of conditions of blight within the Project Area which are caused by inadequate public improvements. This in turn will assist in eliminating a factor which prevents or substantially hinders the economically viable use or capacity of buildings or lots and will encourage private -sector investment in the Project Area, thereby facilitating the redevelopment of the Project Area. The installation and construction of the Portola Avenue Bridge will promote the economic viability of the Project Area businesses, attract new businesses, encourage business expansion and encourage private sector investment in the Project Area. P6402\0001 \800296.2 RESOLUTION NO. 05- 35 Section 2. The budget constraints of the City prevent the City from financing the Portola Avenue Bridge by any means. No moneys of the City are available to pay for the cost of the Portola Avenue Bridge. 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 benefitting 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 3. The City Council hereby finds and determines that based upon the foregoing and other information presented to the City Council: (i) the installation and construction of the Portola Avenue Bridge is of benefit to the Project Area and the immediate neighborhood in which the project is located; (ii) the payment of funds and the cost of the Portola Avenue Bridge will assist in the elimination of one or more blighting conditions inside the Project Area; (iii) the payment of funds for and the cost of the Portola Avenue Bridge 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 Portola Avenue Bridge is available to the City. Section 4. The City Council hereby approves payment by the Agency for all or a part of the cost of the Portola Avenue Bridge including, but not limited to, the costs of installation and construction, environmental studies and design services, from any revenues of the Agency lawfully available therefor, including tax increment revenues derived from the Project Area. Any moneys paid initially by the City for the cost of the Portola Avenue Bridge will constitute loans of such moneys by the City to the Agency, and the Agency will repay such loans to the City, from time to time, upon demand of the City. At the City's option, the City may, from time to time, demand payment from the Agency to pay any invoice or invoices directly. PASSED, APPROVED and ADOPTED this 26th day of May, 2005, by the following vote to wit: AYES: NOES: ABSENTS: ABSTAINS: Buford A. Crites, Mayor Attest: Rachelle D. Klassen, City Clerk City of Palm Desert, California P6402\0001 \800296.2 - 2 - RESOLUTION NO.501 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PAYMENT BY THE AGENCY OF ALL OR PART OF THE COST OF THE INSTALLATION AND CONSTRUCTION OF THE PORTOLA AVENUE BRIDGE IN THE CITY OF PALM DESERT, CALIFORNIA 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 seg.), and in particular Section 33445 thereof, the Palm Desert Redevelopment Agency (the "Agency") proposes to pay for all or a part of the cost of the installation and construction of the Portola Bridge in the Whitewater River Wash between Magnesia Falls and Hovley Lane East. The proposed improvements include raising the grade at the entrance of the Portola Country Club in order to facilitate the bridge. The Portola Avenue Bridge is located in Project Area No. 1 (the "Project Area") in the City of Palm Desert, California. The City Council has previously determined that Project Area is an area in which the combination of conditions of blight are 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. Among other things, the Project Area contains vacant and underutilized properties, properties which suffer from depreciated or stagnant property values, and deteriorated, aged and obsolete buildings. In addition, the Project Area is characterized by the existence of inadequate public improvements and public facilities, including inadequate circulation improvements, which cannot be remedied by private or governmental action without redevelopment. The lack of adequate public improvements hinders economic development opportunities and contributes to the existence of depreciated and stagnant property values and impaired investments in the Project Area. The Portola Avenue Bridge will improve traffic circulation within the Project Area and mitigate congestion and safety hazards, all for the benefit of the health, safety and welfare of the residents and taxpayers of the Project Area. The Portola Avenue Bridge will secure safe crossing during bad weather for vehicles, as well as, pedestrians. There currently is no pedestrian crossing on Portola Avenue in the vicinity of the proposed Portola Avenue Bridge. A pedestrian crossing is vital considering there are three schools located in the immediate area (Lincoln Elementary, James Carter Elementary and Palm Desert Middle School.) The Portola Avenue Bridge will assist in the elimination of conditions of blight within the Project Area which are caused by inadequate public improvements. This in turn will assist in eliminating a factor which prevents or substantially hinders the economically viable use or capacity of buildings or lots and will encourage private -sector investment in the Project Area, thereby facilitating the redevelopment of the Project Area. The installation and construction of the Portola Avenue Bridge will promote the economic viability of the Project Area businesses, attract new businesses, encourage business expansion and encourage private sector investment in the Project Area. Section 2. The budget constraints of the City prevent the City from financing the Portola Avenue Bridge by any means. No moneys of the City are available to pay for the cost of the Portola Avenue Bridge. Traditional methods of financing such as the P6402\0001\820903.1 RESOLUTION NO. 501 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 benefitting 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 3. The Agency hereby finds and determines that based upon the foregoing and other information presented to the City Council: (i) the installation and construction of the Portola Avenue Bridge is of benefit to the Project Area and the immediate neighborhood in which the project is located; (ii) the payment of funds and the cost of the Portola Avenue Bridge will assist in the elimination of one or more blighting conditions inside the Project Area; (iii) the payment of funds for and the cost of the Portola Avenue Bridge 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 Portola Avenue Bridge is available to the City. Section 4. The Agency hereby approves payment by the Agency for all or a part of the cost of the Portola Avenue Bridge including, but not limited to, the costs of installation and construction, environmental studies and design services, from any revenues of the Agency lawfully available therefor, including tax increment revenues derived from the Project Area. Any moneys paid initially by the City for the cost of the Portola Avenue Bridge will constitute loans of such moneys by the City to the Agency, and the Agency will repay such loans to the City, from time to time, upon demand of the City. At the City's option, the City may, from time to time, demand payment from the Agency to pay any invoice or invoices directly. PASSED, APPROVED and ADOPTED this 26"' day of May, 2005, by the following vote to wit: AYES: NOES: ABSENTS: ABSTAINS: Buford A. Crites, Chairman Attest: Rachelle D. Klassen, Secretary Palm Desert Redevelopment Agency P6402\0001\820903.1 - 2 -