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HomeMy WebLinkAbout10/10/1984 - MINUTES 218 MINUTES OF CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY AND THE CITY COUNCIL OCTOBER 10, 1984 An Adjourned Regular Meeting of the City Council of the City of Palm Springs, and of the Community Redevelopment Agency of the City of Palm Springs, were called to order by Mayor/Chairman Bogert, in the Large Conference Room, City Hall , 3200 Tahquitz-McCallum Way, on Wednesday, October 10, 1984 at 4:00 p.m. ROLL CALL: Present: Council/Agency Members Birer, Foster, Smith, Maryanov, Mayor/Chairman Bogert Absent: None PUBLIC HEARINGS: 1. TEFRA HEARINGS RELATIVE TO ISSUANCE OF TAX EXEMPT BONDS FOR THE CONVENTION CENTER AND HEADQUARTERS HOTEL Recommendation: That the Council and the Community Redevelopment Agency conduct TEFRA hearings relative to the above. Agency Bond Counsel , Marty Frankel and Legal Counsel, Graham Ritchie, representatives of firms holding agreements with the Agency were also in attendance. Economic Development and Housing Specialist stated that there are technically eleven hearings being conducted and the purpose is to notify the public of action of the Agency and Council relative to the Headquarters Hotel and the Convention Center project; that up to $10 million of tax exempt bonds could be (139) issued to each of the partnerships and that these bonds will be tax exempt for the construction of the hotel project. She stated that notices for the hearings were published in accordance with law. (124 PA2 Economic Development and Housing Director stated that these B6) actions are ministerial and there is no obligation on the part of the Agency or the Council to proceed with the bond issues and the actions set a time line and milestone for proceeding. Mayor declared the hearings open regarding the issuance of the $10 million in tax exempt certificates of participation to finance Headquarters Hotel for each or the following partnerships: Hotel and Convention Center Partners I, Limited Hotel and Convention Center Partners II, Limited Hotel and Convention Center Partners III, Limited Hotel and Convention Center Partners IV, Limited Hotel and Convention Center Partners V, Limited Hotel and Convention Center Partners VI, Limited Hotel and Convention Center Partners VII, Limited Hotel and Convention Center Partners VIII, Limited Hotel and Convention Center Partners IX, Limited Hotel and Convention Center Partners X, Limited Hotel and Convention Center Partners XI, Limited, all California Limited Partnerships. There were no appearances and the hearings were closed. No action required. Mayor opened the hearings regarding the issuance of up to $50 million in tax exempt certificates of participation to finance convention and conference center facilities for the eleven partnerships referred to above. ?�y CRA MINUTES 10-10-84 Page 2 1. TEFRA HEARINGS (Continued) There were no appearances and the hearings were closed. No action required. Chairman declared the meeting recessed for the Agency and the Council remained in session. 2. PLEDGE OF TAX INCREMENT BY THE CRA TO DEFRAY PORTION OF COST OF CONSTRUCTION OF THE CONVENTION CENTER Recommendation: That the Council approve pledge of tax increment by the Redevelopment Agency for the purpose of defraying a portion of the cost of the installation and (139) construction of the proposed Convention Center facility. Economic Development and Housing Specialist reported that four primary sources of revenue have been identified as the means to repay the debt incurred for installation and construction of the Convention Center, i .e. , new Room Tax from the Doubletree Hotel , increased Room Tax as a result of the 2% increase in the tax rate, new sales tax generated by delegates coming to the Convention Center and the tax increment created by the Convention Center and Headquarters Hotel project. She stated that the first of these sources are City revenues and the fourth is a revenue to the Redevelopment Agency, but before the Agency can pledge those funds, public hearing must be held to provide input with opportunity to comment on the tax increment pledge. She stated that the estimated amount of the pledge is approxi- mately $10,529,708 over the 30 year amortization period of the project debt. She also stated that the report required, pursuant to Health and Safety Code Section 33679 relative to facts which support the findings that such a pledge is appro- priate, has been filed with the City Clerk. Mayor declared the hearing open; there being no appearances, the hearing was closed. Resolution 15288, approving the proposed tax increment pledge by the Community Redevelopment Agency, and finding that no other reasonable method of financing is available to the community for the proposed project, was presented; after which, it was moved by Foster, seconded by Birer, and unanimously carried, Maryanov and Smith abstaining, that Resolution 15288 be adopted. Mayor declared the Council meeting recessed and reconvened the Community Redevelopment Agency. 3. PROPOSED SALE OF PROPOSED HEADQUARTERS HOTEL (PA2B6) Recommendation: That the Agency approve the proposed sale of the property referred to as the Headquarters Hotel proposed to be constructed in conjunction with the Convention Center. (124) Economic Development and Housing Specialist stated that tax exempt certificates of participation for the purpose of financing the construction of the Headquarters Hotel will be issued as a part of the Convention Center and Headquarters Hotel project by the Agency and, in order to secure the funds and pay the debt incurred by the issuance of those certificates, the Agency must sell the hotel property to private investors; in particular, eleven partnerships, each of which owning 1/11 of the project under a condominium plan; and that Redevelopment law requires that hearing be held to secure public comment on the proposed sale of the property. She said the hearing has been noticed according to law. 2?u 4 CRA MINUTES 10-10-84 Page 3 3. PROPOSED SALE OF PROPOSED HEADQUARTERS HOTEL (Continued) Mayor declared the hearing open; there being no appearances, the hearing was closed. Resolution 259 approving the proposed sale, as recommended, was presented; after which, it was moved by Foster, seconded by Birer, and unanimously carried, Mar•yanov and Smith abstaining, that Resolution 259 be adopted. In answer to question by Legal Counsel , Franko stated that the Council and Agency have complied with requirements of the 1982 TEFRA Legislation. Mr. Ritchie noted that the Agency will have title to the property for a very short time and will promptly resell it, and that relative to the action taken by the Council to approve the Agency pledging funds, it simply requires that the Council satisfy itself that there is no other means of financing and this will be a benefit to the community, which is also referred to in the Redevelopment Plan. Mayor reconvened the City Council . ADJOURNMENT Mayor/Chairman declared the Council and Agency adjourned to a closed session and thereafter declared the meeting adjourned. JUDITH SUMICH City Clerk and Assistant Secretary