HomeMy WebLinkAbout9/15/1999 - STAFF REPORTS (4) DATE: SEPTEMBER 15, 1999
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: ACTING DIRECTOR OF MANAGEMENT&BUDGET
FINANCE DIRECTOR&TREASURER
ACCEPTANCE OF A LOAN FROM THE CITY FOR THE PURPOSE OF FUNDING THE
AGENCY'S OPA WITH SMART ALEX,LLC
RECOMMENDATION:
It is recommended that the Agency accept a loan from the City of Palm Springs in the
amount of$100,000 to fund certain public improvements made by Smart Alex,LLC via an
Owner Participation Agreement with the Community Redevelopment Agency
BACKGROUND:
The Community Redevelopment Agency approved an OwnerP&bcg)Wm Agreement(OPA)with
Smart Alex,LLC on April 7,1999 for the construction ofcertain off-site improvements in the area
of Chudcwalla Road and Indian Avenue,in the area of the Deswt Shadows Lin. In the original
staffreport,it was reported that"(t)he finds,necessary for the Agency to reimburse the developer
for this work,will be transfer•red(loaned)from the General Fund into the Project Area account and
paid out of net tax increment fi om this project,at six percent(6%)over a 7-year tern,as finds
are drawn down."
Through an oversight,the loan agreement between the City and Agency was not included in the
materials for approval when the OPAwas approved. As the project progressed,however,it was
dear that most ofthe reimbursable work would be performed by the developer aBerJuly 1, 1999,
and then fall within the current fiscal year. I was easier at that point to merely budget the project
as the line item in the North Palm Canyon project area,avoiding the need to borrow the finds&om
the City for the project.
However,the tax mcrexnent figures from the County of lkwerside,whddn the Agency received in
August,show that the taxincivinentintheNorthPalm Canyon project area had demeasedslightly
this year, which means that the finds are not available in the project area for the OPA
reimbursement. Had theprojectareaconsolidationoccurredin July,fimds could havebcenmoved
from another project area to cover this expenditure.
It is anticipated that the sale of the City-and Agency-owned parcels at Stevens Road and North
Palm Canyon Drive will occur this year,however,which would give the project area the funds to
repay the General Fund(If this loan is approved)or replenish the funds"borrowed"from another
roject arcs#the project consolidation is approved.
/an /t - L --of 64�
OHN THOMAS M. KANARR
D' o crown Director of Finance&Treasurer
Approved by
C -at—yusnagai
Attachments
1. Resolution r
2. Promissory Note
3. Budget Resolution cra — d
RESOLUTIONNO. 1083
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA,
ACCEPTING A LOAN FROM THE CITY OF PALM
SPRINGS AND APPROVING THE "FINANCING
AGREEMENT AND PROMISSORY NOW IN THE
AMOUNT OF ONE HUNDRED THOUSAND DOLLARS
($100,000)FOR SITEIlvIPROVEMENTS BY SMART ALE X,
L.L.C.
WHEREAS,the Community redevelopment agency of the City of Palm Springs,California('Agency')
is constituted under the Community Redevelopment Law(California Health and Safety code Section
33000 et. seq.)To carry out the purpose as the redevelopment agency in the City of pahn Springs
(-City-);and
WHEW-AS,on April 7, 1999,the Community Redevelopment Agency entered into an Owner
Participation Agreement with Smart Alec,L.L.C.("Project');and
WHEREAS,pursuant to California Health and Safety Code Sections 33132 and 33601,the Agency is
authorized to borrow money from other public agencies to fulfill its obligations;and
WHEREAS,the Agency has executed a"Financing Agreement and promissory Note"m the amount of
ONE HUNDRED THOUSAND DOLLARS($100,000),and
WHEREAS,the Agency has considered all the information,testimony and evidence provided during the
public hearing on April 7, 1999.
NOW,THEREFORE,BE IT RESOLVED by the Community Redevelopment Agency of the City of
Palm Springs that a loan for ONE HUNDRED THOUSAND DOLLARS($100,000)from the City of
Palm Springs to the Community Redevelopment Agency to reimburse Smart Alex,L.L.C.for some off-
site improvements is hereby accepted in the form of an"Agreement and promissory Note,"as on file in
the Office of the City Clerk,and shall accrue interest at the rate of 60/0 per annum and be repayable from
net tax increment accrued from the project.
ADOPTED this 15thday of September . 1999.
AYES: Members Barnes, Hodges, Oden, Reller-Spurgfn and Chairman KleTnafenst
NOES. None
ABSENT. None
ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Chairman
REVIEWED&APPROVED
RESOLUTION NO. 1084
OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE
BUDGET FOR THE 1999-00 FISCAL YEAR.
WHEREAS Resolution 1066 approving the budget for the fiscal year
1999-00 was adopted on June 9, 1999; and
WHEREAS the Executive Director has recommended, and the Agency
desires to approve, certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is
authorized to record inter-fund cash transfers as required in
accordance with this Resolution, and that Resolution 1066, adopting
the budget for the 1999-00 fiscal year is hereby amended as
follows:
SECTION 1. ADDITIONS
FUND Activity Account Amount
No.
803 8183 65110
Title:
North Palm Canyon North Palm Canyon Smart Alex OPA $100,000
Project Project
Purpose:
Reimbursement of Smart Alex, L.L.C. for costs of public improvements,
per OPA
SECTION 2. SOURCE Loan from GeneralFund at 6% interest
FUND Activity Account Amount
No.
001 12416 $100,000
Title:
General Fund Redev. Agency Loans
receivable
Adopted this 15th day of September . 1999.
AYES: Members Barnes, Hodges, Oden, Reller-Spurgin and Chairman Kleindienst
NOES: None
ABSENT: None
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY• OF PALM SPRINGS
By
Assistant Secretary Chairman
REVIEWED AND APPROVED AS TO FORM
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