HomeMy WebLinkAboutPRLIM RDA - 11/16/06PRELIMINARY MINUTES
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PALM DESERT REDEVELOPMENT AGENCY MEETING
THURSDAY, NOVEMBER 16, 2006
CIVIC CENTER COUNCIL CHAMBER
CALL TO ORDER - 3:00 P.M.
Chairman Ferguson convened the meeting at 3:01 p.m.
II. ROLL CALL
Present:
Member Jean M. Benson
Vice Chairman Richard S. Kelly
Member Robert A. Spiegel
Chairman Jim Ferguson
Also Present:
Carlos L. Ortega, City Manager/RDA Executive Director
David J. Erwin, City Attorney
Sheila R. Gilligan, ACM for Community Services
Homer Croy, ACM for Development Services
Justin McCarthy, ACM for Redevelopment
Rachelle D. Klassen, City Clerk
Phil Drell, Director of Community Development
Patrick Conlon, Director of the Office of Energy Management
Paul S. Gibson, Director of Finance/City Treasurer
Mark Greenwood, Director of Public Works
David Yrigoyen, Director of Redevelopment & Housing
Frankie Riddle, Director of Special Programs
Walt Holloway, Battalion Chief, Palm Desert Fire/Riverside Co. Fire Dept./CDF
Frank Taylor, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept.
William L. Strausz, Redevelopment Agency Counsel
Grace L. Mendoza, Deputy City Clerk
III. ORAL COMMUNICATIONS - A (CLOSED SESSION ITEMS)
None
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IV. ADJOURN TO CLOSED SESSION
Request for Closed Session:
Conference with Real Property Negotiator pursuant to Government Code
Section 54956.8:
1) Property: SWC San Pablo Avenue/Entry Drive -
College of the Desert
Negotiating Parties:
Agency: Carlos L. Ortega/Palm Desert Redevelopment Agency
Property Owner: Desert Community College District
Under Negotiation: x Price x Terms of Payment
Upon a motion by Spiegel, second by Kelly, and 4-0 vote of the Agency Board,
Chairman Ferguson adjourned the meeting to Closed Session at 3:02 p.m. He reconvened
the meeting at 4:02 p.m.
V. RECONVENE REGULAR MEETING - 4:00 P.M.
A. REPORT ON ACTION FROM CLOSED SESSION.
None
VI. PLEDGE OF ALLEGIANCE TO THE FLAG OF
THE UNITED STATES OF AMERICA - Vice Chairman Richard S. Kelly
VII. INVOCATION - Member Jean M. Benson
VIII. ORAL COMMUNICATIONS - B
MR. DANA HOBART, Mayor Pro Tem for the City of Rancho Mirage, addressed the
Agency Board/City Council to request the City of Palm Desert consider joining
Rancho Mirage in opposing the revised, amended compact between the State of
California and the Agua Caliente Tribe. He said under that compact, the Agua
Caliente Tribe would gain a third casino, which the City of Rancho Mirage would
accept. But specifically, Rancho Mirage's concern arose from the compact's
Section 10.8.8 that says the only cities with the right to require negotiations with a
tribe concerning negative offsite impacts are those where the casino is "within the
city." He noted that the City of Rancho Mirage is adjacent to the Agua Caliente
Casino, within a mile of its location; the City of Palm Desert is even closer, although
its adjacent territory is primarily undeveloped to date. As an adjacent city with
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numerous negative impacts from the casino, there is no right to compel negotiation
with the tribe. When an adjacent city submits its comments relative to a tribe's
environmental impact reports, the tribe only has to explore what is submitted and
not take any further steps. However, if the casino was located within the city, the
tribe would have to enter into negotiations; and if a mutually satisfactory conclusion
wasn't reached, the city could take the matter to arbitration. Therefore, the City of
Rancho Mirage was hoping all Coachella Valley cities would see the importance of
that compact, which will be recirculated in the State Legislature starting with the
seating of the new term in January. Rancho Mirage proposes that the compact
state that cities within or adjacent to a tribal casino should have the right to compel
negotiations with the tribe in the event an agreement can't be reached over the
negative aspects of the offsite impacts. He said Rancho Mirage has had this
experience while negotiating over the past two years concerning expansion of the
Agua Caliente Casino, with a 16-story hotel at 173 feet high and 50% expansion of
the casino. At this point, they are faced with either accepting an undervalued
monetary offer for mitigating the negative impacts on the City of Rancho Mirage or
they will have to walk away from the table. In the 1999 compact, or if the language
modification was part of the new compact, the City of Rancho Mirage would have
the right to compel negotiations over the negative impacts, up to and including
arbitration. The City of Rancho Mirage was hopeful the Governor and the Tribe
would agree to expand the definition in Section 10.8.8. He offered that perhaps it
was not critical to the City of Palm Desert, but the terms of the proposed compact
would likely become the model for the future, and the opportunity to compel
negotiations with any tribe when it decides to build or expand a casino would be
gone. It was Rancho Mirage's further hope that the City of Palm Desert would give
serious consideration to their request for support in this matter.
Chairman/Mayor Ferguson acknowledged Mr. Hobart's request and advised that the
matter would be considered by the City's Legislative Review Committee for a
recommendation to the City Council. He added that the City of Palm Desert did
supply comments on the Agua Caliente's proposed hotel but assumed its clout was
nominal.
MR. HOBART noted that with regard to the City of Rancho Mirage's specific plan
for its portion of Section 19 near tribal land, the Tribe has much more influence and
ability to oppose a such City project when the situation is reversed, up to and
including court proceedings. He offered to provide a full copy of the compactor any
additional materials to anyone interested.
In answer to Vice Chairman/Mayor Pro Tem Kelly's question about Section 19,
whether or not the City of Rancho Mirage was planning a bike path/trail along the
railroad right-of-way in its jurisdiction to connect with the one Palm Desert was
planning, Mr. Hobart said it was the first he'd heard of it. But he would raise the
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issue, and Palm Desert City staff was encouraged to work with Randy Binder of the
City of Rancho Mirage on this proposal.
MR. STAN FORD, General Manager of the Coachella Valley Recreation & Park
District, announced that the District was hosting its second "Desert Rock" concert
in the Civic Center Park tonight, the final event in the three-part series. Tonight's
group was the Grassroots, a popular `60s band; only nine bands in history have
charted more hits in the top 100 than they have. Additionally, they hold the
attendance record for a single -act concert — 600,000 attended their concert in
Washington, D.C. While it wouldn't top that number, he felt tonight's turnout would
be good. He thanked Mr. Ortega for his assistance in arranging these events and
hoped the City Council would be able to stop by tonight after this meeting.
IX. AWARDS, PRESENTATIONS, AND APPOINTMENTS
A. PRESENTATION TO RECOGNIZE CITY OF PALM DESERT/PALM
DESERT REDEVELOPMENT AGENCY EMPLOYEES FOR EXCEPTIONAL
SERVICE - OCTOBER 2006.
Chairman/Mayor Ferguson and Mr. Ortega honored the following employees
for their exemplary service with a printed certificate and a $100 gift
certificate: Rochelle Hogele and Ahmad Karimi.
X. CONSENT CALENDAR
A. MINUTES of the Regular Redevelopment Agency Meeting of October 26,
2006.
Rec: Approve as presented.
B. CLAIMS AND DEMANDS AGAINST THE AGENCY TREASURY - Warrant
Nos. 68RDA, 70RDA, 71 RDA, 74RDA,77RDA, 79RDA, 83RDA, 87RDA,
69-Housing, 70-Housing, 75-Housing, 77-Housing, 80-Housing, 84-Housing,
88-Housing, 76HA, 81 HA, 85HA, and 89HA.
Rec: Approve as presented.
C. CITY'S AND REDEVELOPMENT AGENCY'S PORTFOLIO
MASTER SUMMARY for the Months Ending June 2006, July 2006,
August 2006, and September 2006 (Joint Consideration with the Palm
Desert City Council).
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Rec: Receive and file.
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NOVEMBER 16, 2006
D. REQUEST FOR APPROVAL of the City of Palm Desert "Statement of
Investment Policy" (Joint Consideration with the Palm Desert City
Council).
Rec: By Minute Motion, approve the "Palm Desert Statement of Investment
Policy", as amended.
E. REQUEST FOR DETERMINATION of Planning and Administrative Costs
Necessary for the Low and Moderate Income Housing Program for Fiscal
Year 2005/06.
Rec: By Minute Motion, determine that planning and administrative
expenses incurred for FY 2005/06 were necessary for the production,
improvement, or preservation of low and moderate income housing.
F. REQUEST FOR RATIFICATION of Contracts with Time Warner Cable, the
Gas Company, and Southern California Edison for Dry Utility Systems
Provided for the Falcon Crest/La Rocca Villa Developments (Contract
Nos. R25950A-C).
Rec: By Minute Motion: 1) Ratify the subject contract with Time Warner
Cable Television Service Agreement for Tract No. 30795; 2) ratify the
subject contract with The Gas Company for Line Extension for Lots
1-94 and 109, and for Lots 95-108 (The Gas Co. Contract Nos. 96408
and 10342, respectively); 3) ratify the subject Work Orders with
Southern California Edison Grant of Easement for SCE: Work Order
6979-18627518237 6479-1854761804; 6479-1857761807; 6979-
1862751823; 6479-1855,61805. Residential Electric Line Extension
Agreement and Contract for Extension of Electric Distribution Line -
6979-1862,51823 (SeniorVillas and Phase III) and 6479-1854,61804
(Phase 1) 6479-1855-61805 (Phase 11) 6479-18577 61807 (Merle
Drive).
G. REQUEST FOR RATIFICATION of Professional Services Agreement to
Appraise a Portion of APN 653-740-001, Palm Desert, California (Contract
No. R25960).
Rec: By Minute Motion, ratify the subject agreement with Capital Realty
Analysts, Palm Desert, in an amount not to exceed $3,500 for
performing an appraisal of a portion of APN 653-740-001 —funds are
available in Account No. 851-4195-466-3092.
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H. REQUEST FOR APPROVAL of Amendment No. 1 to Contract No. R25410A
for Redevelopment Consulting Services.
Rec: By Minute Motion: 1) Authorize Amendment No. 1 with Keyser
Marston Associates, Inc., Los Angeles, California, in an amount not
to exceed $30,000 to the subject contract; 2) authorize the Chairman
to execute the Amendment.
This item was continued to the meeting of December 14, 2006.
CONSIDERATION of the Request for Subcontractors Withdrawal and
Substitutions for the Construction of Palm Village Apartments (Contract
No. R21780).
Rec: By Minute Motion:
1) Approve withdrawal of subcontractor Ultra -Built Kitchen, Inc.,
Los Angeles, California and the substitution of Hill's Cabinet
Installation LLC, Indio, California, for construction work related
to the subject contract with Taylor Frager, Inc., Temecula,
California.
2) Approve withdrawal of subcontractor Desoto Construction,
Moreno Valley, California, and the substitution of Tidwell
Concrete Construction, Inc., Indio, California, for construction
work related to the subject contract with Taylor Frager, Inc.,
Temecula, California.
3) Approve withdrawal of subcontractor Wanke, Industrial,
Commercial, Residential, Inc., (WICR), San Diego, California,
and the substitution of United Contractors, San Bernardino,
California, for construction work related to the subject contract
with Taylor Frager, Inc., Temecula, California.
Mr. McCarthy asked that Item H be continued to the next meeting.
Upon motion by Spiegel, second by Kelly, and 4-0 vote of the Agency Board, the
consent Calendar was approved as presented, with Item H continued to the meeting of
December 14, 2006.
XI. CONSENT ITEMS HELD OVER
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XII. RESOLUTIONS
XIII. NEW BUSINESS
A. REQUEST FOR AUTHORIZATION TO ACQUIRE PROPERTY LOCATED
AT 75-347 KELSEY CIRCLE SOUTH (APN 634-241-007) - DESERT ROSE -
PALM DESERT.
Member Spiegel moved to, by Minute Motion: 1) Authorize acquisition of the subject
property for the purpose of retaining affordability covenants and resale, if necessary, in
anticipation of the expiration of the 60-day Right of Refusal period; 2) approve a Silent
Second Trust Deed in an amount necessary to secure an affordable housing cost pursuant
to Redevelopment Law for either a direct sale or Agency sale; 3) authorize the Executive
Director to execute any documents necessary to facilitate this transaction -- funds are
available in the Housing Set -Aside Fund. Motion was seconded by Kelly and carried by
a 4-0 vote.
B. REQUEST FOR AWARD OF CONTRACT TO ENTER INTO A
PROFESSIONAL SERVICES AGREEMENT TO OBTAIN ACQUISITION,
RELOCATION, AND COORDINATION SERVICES FOR THE PROPOSED
ALESSANDRO ALLEY IMPROVEMENTS. (CONTRACT NO. R24310A).
Member Spiegel asked if all the property owners agreed to the project.
Redevelopment Manager Lauri Aylaian responded that a formal request had
not been made for property owners to agree, but that a public meeting was
held with some property owners expressing interest and others not. Upon
further question, Ms. Aylaian stated no offers were made yet, but if they
didn't agree, the likelihood would be to redesign the borders of the parking
area so that the City wouldn't need their property.
Member Spiegel commented the plan would have to be redone, but the City
would not take the property from them. Ms. Aylaian agreed.
Member Spiegel moved to, by Minute Motion: 1) Authorize award of the subject
professional services contract with Overland, Pacific & Cutler, Inc., Palm Desert,
California, in an amount not to exceed $82,400; 2) authorize the Director of Finance to set
aside an additional amount of $8,240 as 10% contingency (use of contingency requires
additional action); 3) authorize the Chairman to execute said contract - funds are available
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in Account No. 850-4341-433-4001. Motion was seconded by Kelly and carried by a 4-0
vote.
C. REQUEST FOR AUTHORIZATION OF AMENDMENT NO. 1 TO
CONTRACT NO. R21780A FOR CONSTRUCTION MANAGEMENT
SERVICES AT THE PALM VILLAGE APARTMENTS PROJECT.
Councilman Spiegel stated it was his understanding the quality of the work
provided by the original contractor had deteriorated, and the City needed to
hire someone to inspect the project. Ms. Aylaian agreed.
Councilman Spiegel asked if the original contractor was paying for the
additional expenses.
Ms. Aylaian replied the Agency was paying for the additional inspection
services. She said the company was going out of business because the
owner had passed away. Therefore, the City was left with few alternatives,
and to some extent, was helping them get through the project.
Member Spiegel moved to, by Minute Motion, authorize Amendment No. 1 in the
amount of $78,300 to subject contract with Harris & Associates, Palm Desert, California,
for performing expanded professional construction management services for the Palm
Village Apartments project. Funds are available in Account No. 870-4349-433-4001.
Motion was seconded by Kelly and carried by a 4-0 vote.
D. REQUEST FOR APPROVAL OF THIRD AMENDMENT TO THE OWNER
PARTICIPATION AGREEMENT WITH AMERICAN INVESTMENT PALMS
TO PINES EAST LLC (CONTRACT NO. R19820A).
Councilman Spiegel stated this approval would delay the remodeling of
Guillermo's and the adjacent restaurant until next summer to avoid
interrupting their business during the season. Ms. Aylaian agreed.
Member Spiegel moved to, by Minute Motion: 1) Approve the subject Third
Amendment for improvements to the property pursuant to the Owner Participation
Agreement between the Redevelopment Agency and American Investment Palms to Pines
East LLC; 2) authorize the Chairman to execute the Agreement incorporating the changes.
Motion was seconded by Kelly and carried by a 4-0 vote.
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E. REQUEST FOR APPROVAL OF FUNDING AN ADDITIONAL BALL FIELD,
SHADE STRUCTURES, AND WATER DISTRICT FEES AT FREEDOM
PARK (JOINT CONSIDERATION WITH THE PALM DESERT CITY
COUNCIL).
Member/CounciImember Benson moved to, by Minute Motion: 1) Authorize the
installation of an additional ball field at Freedom Park in the amount of $712,206.40; 2)
allocate funds for the additional ball field at Freedom Park in the amount of $712,206.40
from the unobligated Park Fund 233; 3) authorize the addition of shade structures at the
ball field dugouts and bleacher areas in Freedom Park in the amount of $98,670.00 from
contingency funds and authorize transfer of said amount from contingency to base; 4)
allocate additional funds in the amount of $360,686.30 for water and sewer installation at
Freedom Park from unobligated Park Fund 233. Motion was seconded by Spiegel and
carried by a 4-0 vote.
XIV. CONTINUED BUSINESS
A. REQUEST FOR RECISSION OF CHANGE ORDER REQUEST NO. 1 TO
CONTRACT NO. R21780 - CONSTRUCTION OF PALM VILLAGE
APARTMENTS (Continued from the meeting of October 26, 2006).
Mayor Ferguson asked if this item required action in order to have it
withdrawn from the Agenda.
Ms. Klassen replied yes, because it was specifically continued to this date.
Mr. Erwin agreed.
Vice Chairman Kelly moved to, by Minute Motion, authorize this item be withdrawn
from the agenda. Motion was seconded by Benson and carried by a 4-0 vote.
XV. OLD BUSINESS
A. REQUEST FOR AWARD OF CONTRACT FOR CONSTRUCTION OF THE
LA SPIGA (PHASE II) CIVIL IMPROVEMENTS AT ENTRADA DEL PASEO
(CONTRACT NO. R25590).
In response to Member Spiegel's question, Ms. Aylaian replied the Agency
was required to provide the infrastructure and building pad for La Spiga.
Member Spiegel moved to, by Minute Motion: 1) Authorize the Chairman to enter
into the subject contract with Jacobsson Engineering Construction, Inc., Palm Desert,
California, in an amount not to exceed $695,584.80; 2) authorize the Finance Director to
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set aside the amount of $69,560 as 10% contingency (use of contingency requires
additional action). Motion was seconded by Kelly and carried by a 4-0 vote.
XVI. PUBLIC HEARINGS
A. REQUEST FOR APPROVAL OF ACTIONS RELATED TO THE ISSUANCE
AND SALE OF TAX ALLOCATION REVENUE BONDS BY THE PALM
DESERT FINANCING AUTHORITY FOR PROJECT AREA NO. 1, AS
AMENDED, 2007 SERIES A (JOINT CONSIDERATION WITH THE PALM
DESERT FINANCING AUTHORITY AND THE PALM DESERT CITY
COUNCIL).
Mr. Ortega noted the memorandums indicated a refinancing of Project Area
No. 1, in which a savings was to be achieved. He offered that the
consultants and staff were available to answer questions.
Chairman/President/Mayor Ferguson noted for the record, that the following
documents were received: 1) Indenture of Trust; 2) Project Area No. 1, As
Amended, Loan Agreement; 3) Escrow Agreement; 4) Preliminary Official
Statement; 5) Bond Purchase Agreement; and 6) Continuing Disclosure
Agreement.
Chairman/President/Mayor Ferguson declared the public hearing open and invited
testimony in FAVOR of or in OPPOSITION to this matter. With no public testimony
offered, he declared the public hearing closed.
Chairman/President/Mayor Ferguson moved to, waive further reading and adopt the
following resolutions relating to Project Area No. 1 Bonds, As Amended, 2007 Series A:
1) City Council Resolution No. 06-144, making a finding of significant public benefit in
connection with the issuance and sale of the Palm Desert Financing Authority Tax
Allocation Refunding Bonds (Project Area No. 1, As Amended), 2007 Series A; 2)
Financing Authority Resolution No. FA-59, acknowledging finding of significant public
benefit and approving as to form and authorizing the execution and delivery of certain
documents in connection with the issuance, sale and delivery of the Authority's Tax
Allocation Refunding Revenue Bonds (Project Area No. 1, As Amended), 2007 Series A,
and authorizing certain other matters relating thereto; 3) Redevelopment Agency
Resolution No. 534, approving as to form and authorizing the execution and delivery of
certain documents in connection with the sale and issuance by the Palm Desert Financing
Authority of the Authority's Tax Allocation Refunding Revenue Bonds (Project Area No. 1,
As Amended), 2007 Series A, and authorizing certain other matters relating thereto.
Motion was seconded by Spiegel and carried by a 4-0 vote.
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B. REQUEST FOR APPROVAL OF ACTIONS RELATED TO THE SALE OF
NINETY-THREE (93) SINGLE-FAMILY HOMES LOCATED IN THE FALCON
CREST DEVELOPMENT (TRACT NO. 30795) IN THE CITY OF PALM
DESERT (JOINT CONSIDERATION WITH THE PALM DESERT CITY
COUNCIL).
Mr. Ortega stated that Redevelopment Agency law required that a public
hearing be held for the sale of property.
Chairman/Mayor Ferguson declared the public hearing open and invited testimony
in FAVOR of or in OPPOSITION to this matter. With no public testimony offered,
he declared the public hearing closed.
Vice Chairman/Mayor Pro Tem Kelly moved to: 1) Waive further reading and adopt
City Resolution No. 06-145 and Agency Resolution No. 535, making findings in
accordance with the Summary 33433 Report prepared pursuant to California Health and
Safety Code Section 33433 for the sale of property located at the Falcon Crest
development: 2) By Minute Motion, that the City Council: a) Approve the City's BEGIN
Loan Program and Guidelines, and BEGIN Monitoring Agreement, substantially as to form;
b) approve the documents related to the sale of properties at Falcon Crest, the Agency
loans and the City loans, including the Purchase and Sale Agreement, Seller's Disclosure,
Deeds of Trust, for both the Agency and City loans, Promissory Notes for both the Agency
and City's BEGIN loans, the CaIHFA Subordination Agreement and the Affordable Housing
Restriction and Lien Agreement ("Lien Agreement"), all substantially as to form and
authorize the City Manager to execute the same; c) authorize "City BEGIN Loans" for
qualifying Falcon Crest homebuyers with deferred payments from BEGIN Program monies
in varying amounts up to $30,000 to assist qualifying buyers with down payment and
closing cost assistance and authorize the City Manager to execute same; d) authorize the
Finance Director to facilitate the draw of BEGIN program monies for the purpose outlined
herein and appropriate said funds accordingly; e) authorize the City Manager to execute
any documents necessary to effectuate the actions taken by the City Council herewith; 3)
By Minute Motion, that the Agency Board: a) Authorize the establishment of the sales
prices of the Falcon Crest homes so that the total of the sales price, mortgage payments
and other components of the purchaser's housing cost result in the home being available
to a person or family of low or moderate income at an affordable housing cost; b) approve
the documents related to the Agency loans, the City loans and the sale of homes at Falcon
Crest including the Purchase and Sales Agreement, Seller's Disclosure, Deeds of Trust
for
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both the City and Agency loans, Promissory Notes for both the City and Agency loans, the
Lien Agreement, the CaIHFA subordination agreement, substantially as to form, and
authorize the Executive Director to execute the same; c) authorize Agency loans for
qualifying Falcon Crest homebuyers with deferred payments from 20% Set -Aside monies
in varying amounts up to $50,000 to assist qualifying buyers with down payment and
closing cost assistance and authorize the Executive Directorto execute same; d) authorize
the Director of Finance to appropriate funds necessary for the purpose outlined herein; e)
authorize the Executive Director to execute any documents necessary to effectuate the
actions taken by the Agency Board herewith. Motion was seconded by Benson.
Member/Councilman Spiegel noted that staff did an outstanding job of
putting the package together; it was much better than what is normally
received from developers. He felt it was going to be a great project and
probably just as good as Desert Rose. He shared for the audience's benefit
that Desert Rose is an affordable housing community.
Motion carried by a 4-0 vote.
Member/CounciImember Benson added that this project was presented with
the BEGIN loan program; it was the first time a developer went out and
sought supplemental funding to help Palm Desert residents.
XVII. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION
A. EXECUTIVE DIRECTOR
None
B. AGENCY COUNSEL
None
C. CHAIRMAN AND MEMBERS OF THE AGENCY
None
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XVIII. ADJOURNMENT
With Agency Board concurrence, Chairman Ferguson adjourned the meeting at
6.07 p.m.
ATTEST
JIM FERGUSON, CHAIRMAN
RACHELLE D. KLASSEN, SECRETARY
PALM DESERT REDEVELOPMENT AGENCY
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