HomeMy WebLinkAbout12/31/1984 - MINUTES 28'A
MINUTES OF
CITY OF PALM SPRINGS
CITY COUNCIL AND
COMMUNITY REDEVELOPMENT AGENCY
DECEMBER 31 , 1984
An Adjourned Regular Meeting of the City Council 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 Monday, December 31 , 1984,
at 9 a.m.
ROLL CALL: Present: Council/Agency Members Birer, Foster, Maryanov
and Mayor/Chairman Bogert
Absent: Council/Agency Member Smith
PUBLIC COMMENTS: Mayor inquired if anyone wished to be heard; after
which, Jeremy Crocker stated that the Council should not proceed
in haste, and the Convention Center will provide the same amount
of space that is found in existing hotels, which provide room tax.
There were no other appearances.
1 . CONVENTION CENTER - LOANS
Recommendation: That the Council approve a $2,003,750 loan
to the Redevelopment Agency, to fund acquisition of leasehold
interests over the Convention Center and Headquarters Hotel
site; and amend the budget to appropriate necessary funds.
Economic Development & Housing Director stated that the loan
would enable existing leasehold interests to be extinguished.
Resolutions 15379, approving the loan, and 15380, amending
the budget, as recommended, were presented; after which,
it was moved by Birer, seconded by Foster, and unanimously
carried, Maryanov abstaining and Smith absent, that Resolutions
15379 and 15380 be adopted.
Recommendation: That the Council approve a loan of $671 ,350 (61
to the Redevelopment Agency to fund lease payment and other 124
related expenditures for one year for the Convention Center
and Headquarters Hotel site; amend the budget to appropriate
the necessary funds ; and approve amendment to Development
Agreement with SENCA, to provide a $3,221 ,350 loan to SENCA,
at 12% per annum interest rate. He stated that the loan
to SENCA is to be used to cover the existing leasehold
interests, above noted, payment of the first annual leasehold
payment on the site, and related administrative fees payable
to the BIA, relative to exercise of the option to lease;
and other details including Agency entitlement to a percentage
of any net profits. He stated that the loan requires evidence
of a promissory note executed by SENCA and drawn in favor
of the Agency, and presented the single copy of the note.
City Manager stated that funds are accruing from the 2% TOT
override, and the loan has a one-year maximum time frame,
however, it is anticipated that it will be repaid before
then; and that not all funds will be expended at one time.
Resolutions 15381 , 15382 and 15383, approving the loan, amend-
ing the budget, and approving Amendment No. 1 to the Develop-
ment Agreement, were presented; after which, it was moved
by Birer, seconded by Foster, and unanimously carried, Maryanov
abstaining and Smith absent, that Resolutions 15381 through
15383 be adopted.
3
Council & CRA Minutes
12-31-84, Page 2
COMMUNITY REDEVELOPMENT AGENCY:
1 . CONVENTION CENTER - LOANS
Recommendation: That the Agency accept loan of $2,003,750
from the City to provide funding for acquisition of leasehold
interests and other related expenditures for the project;
and approve settlements for acquisition of leasehold interests
and authorize actions by Agency officers to execute necessary
documents; accept the loan from the City, in amount of $671 ,350
for first annual lease payment on the project site; approve
a "loan agreement" with SENCA for funds advanced for one
year lease payments and leasehold purchase of the site; and
approve Amendment No. 1 to Development Agreement with SENCA
to provide loan of $3,221 ,350, as described in above Council
action.
(124)
Redevelopment Director reviewed recommendation, noting settle-
ment, as follows:
Ken Foster, PSL 311 , Blks 107-110, $600,000
One Hundred Eleven Assoc, PSL 259, Blks 112-114, except 115,
$1 ,140 million
Lindley Enterprises, Inc. , PSL 222, Blk 232, $763,750
Downtown Properties, Inc. , PSL 226, Blks 217-218, $100,000.
Resolutions 297 through 301 were presented; after which,
it was moved by Foster, seconded by Birer, and unanimously
carried, Maryanov abstaining and Smith absent, that Resolutions
297 through 301 be adopted. (Note: Res. 300 and 301 approve
the same loan agreement. )
JOINT CITY COUNCIL AND CRA ACTIONS:
1 . CONVENTION CENTER - CERTIFICATES OF PARTICIPATION
Recommendation: That the Council approve form or an amended
and restated Trust Agreement, dated as of November 1 , 1984,
between First Interstate Bank, the City, and SENCA, and amend-
ing Section 5, of Resolution 15303, adopted November 51 1984; (124)
and concur in previously adopted actions of the Agency; and
that the Agency adopt a resolution for each of the eleven
partnerships, relative to the Certificates of Participation,
approving various actions related thereto, including, for
each: First and Second Installment Agreements, Agency Agree-
ment, First and Second Assignment Agreement, Trust Agreement,
Certificate Purchase Agreement, and Remarketing Agreement.
Economic Development & Housing Specialist stated that the
hotel will be built with certificates of participation in
excess of $68 million; that bond counsel has requested that
the Council and the Agency approve the documents to enable
the financing to proceed; that escrow account will be provided,
until a number of events happen, which are detailed in the
various documents ; and that the City is the issuer of the
Convention Center bonds, and the Agency the issuer of the
hotel project bonds. He stated that the certificates for
the Convention Center were sold on November 5, 1984, and
pursuant to action at that time, the Mayor and other city
officials executed various documents, to be ratified at this
time.
Resolution 15384, approving amended and restated Trust Agree-
ment, and Resolution 15385, concurring in CRA Resolutions
277 through this date, were presented; after which, it was
moved by Birer, seconded by Foster, and unanimously carried,
Maryanov abstaining and Smith absent, that Resolutions 15384
and 15385 be adopted.
City Council &
CRA Minutes
12-31-84, Page 3
1 . CONVENTION CENTER CERTIFICATES (Continued)
Resolutions 302 through 312, authorizing sales of Certificates
of Participation, and related actions, as recommended, for (124)
Projects I through XI, were presented; after which, it was
moved by Foster, seconded by Birer, and unanimously carried,
Maryanov abstaining and Smith absent, that Resolutions 302
through 312 be adopted.
2. BOND UNDERWRITER SERVICES
Economic Development & Housing Director :stated that because
of conflicts which arose during the preparation of Convention
Center documentation, it was recommended that the Agency (124)
establish a policy of dealing exclusively with one underwriter
or the other, at the discretion of the Executive Director;
after which, it was moved by Foster, seconded by Birer, and
unanimously carried, Maryanov abstaning and Smith absent,
that the Executive Director is authorized to utilize his
discretion in using approved bond underwriter services.
ADJOURNMENT
There being no further business, Mayor/Chairman declared
the meeting adjourned.
JUDITH SUMICH
City Clerk &
CRA Asst. Secretary