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PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROVE TWENTY-FOUR (24) MONTH DEFFERAL OF THE
PROPOSED PROJECT AREA NO. 4 UTILITY UNDERGROUNDING
DISTRICT
SUBMITTED BY: Catherine Walker, Senior Management Analyst
DATE: March 24, 2011
Recommendation
Defer the Proposed Project Area No. 4 Utility Undergrounding Project
("Project") for a period of 24 months, as per the recommendation of the Project
Area No. 4 Citizen's Advisory Committee. After the deferral period staff will
bring the project forward for further consideration by the Agency Board.
Backaround
On May 10, 2010, the Draft Engineer's Report was presented to the Project Area No. 4
Committee. The Draft Engineer's Report outlines the potential cost of the Utility
Undergrounding Project, explains potential assessments to homeowners, and establishes
the boundaries of the assessment district. During this meeting the Project Area No. 4
Committee requested that staff perform educational community outreach regarding the
proposed Undergrounding Project for residents affected by the Project.
In response, Palm Desert Redevelopment Agency staff has held a series of three
informational meetings for the residents, two at City Hall, and the third at the Palm Desert
Country Club Homeowners' Association. The purpose of these informational sessions was
to educate the residents regarding the undergrounding process, provide an estimated costs
for each assessee, and address any questions or concerns the community might have. All
three events were well attended; however, the response regarding whether or not to move
forward with the Project was mixed. In order to gain a better understanding of the
communities' sentiment as whether or not the Project should proceed at this time, staff
conducted an informal written poll at the February 2, 2011, community outreach forum. The
poll gave each resident the option to vote to move the Project forward, postpone the
Project, or cancel the Project. Over two-thirds of the polled residents voted to postpone or
cancel the Project.
From the resident forums and the comments/information provided by the community, staff
understands that there are several economic and community factors that have moved them
toward delaying or canceling this Project. First, from 2006 to 2010 the average home sales
price in the Palm Desert Country Club has dropped from $347,089 to $163,923. This is a 53
percent decrease in sale price in just four years.
Staff Report
Deferral of the Project Area No. 4 Undergrounding Project
March 24, 2011
Page 2 of 2
Second, according to the Riverside County Census Data approximately 40 percent of the
households in the Palm Desert Country Club earn below $40,000 in annual income, where
as households making less than $40,000 represent only 30 percent of the overall
composition of the City of Palm Desert. The provided Census Data also demonstrates that
the median household income in the Palm Desert Country Club is 20 percent less than the
City of Palm Desert as a whole.
The third factor is the uncertain future of the Palm Desert Country Club Golf Course.
Though the property is currently being marketed for sale, it is not possible for residents' to
fully understand what the future of the Palm Desert Country Club Golf Course means to
their community.
Staff, in conjunction with the Project Area No. 4 Citizen's Advisory Committee, recommends
deferral of the proposed Palm Desert Country Club Utility Undergrounding Project for a
period of 24 months.
Fiscal Analysis
The impact of the deferral of the Palm Desert Country Club Undergrounding Project cannot yet
be accurately determined, and is contingent upon future interest rates and construction costs.
Funding for the project is available should the project proceed in two years.
Submitted By:
Catherine Walker, Sr. Management Analyst
Department Head:
in McCarthy, ACM 7idevelopment
Paul S. Gibson, Finance Director
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Wohlmuth, Executive Director
Martin Alvarez, Redevelopment Manager
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