HomeMy WebLinkAboutRES. No. 521CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPTION OF RESOLUTION OF THE PALM DESERT
REDEVELOPMENT AGENCY DECLARING ITS INTENT TO REIMBURSE
CERTAIN EXPENDITURES BYTHE AGENCY FOR THE ACQUISITION OF
LAND FOR PARK AND RECREATIONAL PURPOSES
SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING
DATE: MARCH 23, 2006
CONTENTS: AGENCY RESOLUTION NO. 521
Recommendation:
By Minute Motion, that the Agency Board adopt Resolution No. 521 , a resolution
of the Palm Desert Redevelopment Agency declaring its intent to reimburse certain
expenditures by the Agency for the acquisition of land for park and recreational
purposes
Executive Summary:
The adoption of this resolution will allow cash to be used for the land acquisition. The funds will be
reimbursed with Bond Proceeds from Project Area No. 2.
Discussion:
The Palm Desert Redevelopment Agency will be making expenditures in connection with the
acquisition of land for park and recreational purposes. The Agency intends to borrow a portion of
the cost of such land from the City of Palm Desert and intends that all such expenditures in
connection with the subject land acquisition be reimbursed to the Agency and to the City from the
proceeds of bonds to be issued by the Palm Desert Financing Authority. By using the City's funds
for the land acquisition it will allow the land to be used for various purposes.
Submitted by:
`""Dave Yrigo
Director edevelopment/Housing
Approval:
Carlos L. Ortega, xecutive Director
Approval:
• 1
a -I
sti McCarthy
ACM edevelopment C
aul S. Gibson, Director of Finance
G \RDAWha Scott\Word Res\Staff Repts\Land Acquisition-t.doc
RESOLUTION NO. 521
A RESOLUTION OF THE PALM DESERT
REDEVELOPMENT AGENCY DECLARING ITS INTENT
TO REIMBURSE CERTAIN EXPENDITURES BY THE
AGENCY FOR THE ACQUISITION OF LAND FOR PARK
AND RECREATIONAL PURPOSES
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. Section 1.150-2 of the Treasury Regulations governs the
allocation of expenditures of a reimbursement bond. A reimbursement bond is that
portion of an issue of bonds (or other obligations) allocated to reimburse an original
expenditure (i.e., an expenditure for a governmental purpose that is originally paid from
a source other than a reimbursement bond) that was paid before the date of issue of the
bonds. Section 1.150-2 provides rules to determine when an allocation of proceeds of
bonds to reimburse an original expenditure will be treated as an expenditure of those
proceeds.
Section 2. In order for such an allocation of those proceeds to be treated
as an expenditure, the issuer (or in certain cases, a conduit borrower) of the bonds
must, in accordance with Section 1.150-2, adopt an official intent for the original
expenditure. The official intent is a declaration of intention by the issuer to reimburse
the original expenditure with proceeds of bonds.
Section 3. The Palm Desert Redevelopment Agency will be making
expenditures in connection with the acquisition of 30 acres of land for park and
recreational purposes. The Agency intends to borrow a portion of the cost of such land
from the City of Palm Desert and intends that all such expenditures in connection with
the subject land acquisition be reimbursed to the Agency and to the City from the
proceeds of bonds to be issued by the Palm Desert Financing Authority. The Agency
expects that all such expenditures will be reimbursed with proceeds of the bonds.
Section 4. The maximum principal amount of bonds expected to be
issued for the purposes of reimbursing the Agency and the City for such land acquisition
is $14,000,000 (although such bonds may be part of a larger issue of bonds.)
Section 5. This official intent is not declared as a matter of course and is
not declared in an amount substantially in excess of the amounts expected to be
necessary to reimburse the expenditures described in Section 3 hereof.
PASSED, APPROVED and ADOPTED this 23rd day of March, 2006 by
the following vote to wit:
AYES:
NOES:
ABSENTS:
ABSTAINS:
JIM FERGUSON, CHAIRMAN
Attest:
RACHELLE D. KLASSEN, SECRETARY