HomeMy WebLinkAbout6/6/2007 - STAFF REPORTS - RA.1. 4p PLngg
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Community Redevelopment Agency/City
Council Staff Report
DATE: JUNE 6, 2007 PUBLIC HEARING
SUBJECT: PUBLIC HEARING TO APPROVE A RESOLUTION OF THE CITY
COUNCIL AND THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA, MAKING CERTAIN
FINDINGS PURSUANT TO HEALTH AND SAFETY CODE SECTION
33445 RELATING TO PAYMENT OF ALL OR PART OF THE COSTS OF
THE INSTALLATION AND CONSTRUCTION OF CERTAIN BUILDINGS,
FACILITIES, STRUCTURES, AND OTHER IMPROVEMENTS WITHIN
MERGED REDEVELOPMENT PROJECTS NO. 2, BENEFITING
MERGED REDEVELOPMENT PROJECT AREA NO.1
FROM: David H. Ready, City Manager
BY: Community & Economic Development Department
SUMMARY:
In 1995, the City of Palm Springs and the Community Redevelopment Agency made
certain findings relating to the payment by the Agency of all or part of the costs of the
installation and construction of the Convention Center improvements, located within the
Tahquitz Andreas Project Area. Pursuant to Resolution 976, the Redevelopment
Agency approved the payments to the City of approximately 6.64% of the debt service
on the City's Lease Revenue Bonds, 1991 Series A (Convention Center Project).
After issuance of the 2004 Bonds for the Convention Center expansion, the City's debt
service obligation increased by approximately $2.7 million annually to an average of
$5.8 million. The City was relying on the increase in transient occupancy tax that would
result from an expansion of the Facility to pay the increased lease payments.
However, the construction was more costly than projected due to soaring construction
prices relating to steel and the estimated increase in transient occupancy taxes has not
materialized. When additional hotel rooms are built, transient occupancy taxes should
increase significantly. On the other hand, the property tax increment from the project
ITEM NO.
areas surrounding the Facility has already increased substantially as a direct and
indirect result of the expansion of the Facility.
The Agency intends to increase the amount of its payments as a result of the
expansion of the Convention Center undertaken in 2004 and expects to make
payments with tax increment funds.
Section 33679 of the California Community Redevelopment Law (CRL) states that
before a redevelopment agency commits to use the portion of tax increment revenues
to be allocated and paid to an agency pursuant to subdivision (b) of Section 33670 of
the CRL (tax increment financing) for the purpose of paying all or part of the value of
land for, and the cost of the installation and construction of, any publicly owned
building, other than parking facilities, the legislative body shall hold a public hearing.
A Summary Report describing the transaction was prepared pursuant to Sections
33445 and 33679 of the CRL.
RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, MAKING CERTAIN FINDINGS PURSUANT TO HEALTH AND
SAFETY CODE SECTION 33445 RELATING TO PAYMENT OF ALL OR PART
OF THE COSTS OF THE INSTALLATION AND CONSTRUCTION OF
CERTAIN BUILDINGS, FACILITIES, STRUCTURES, AND OTHER
IMPROVEMENTS WITHIN MERGED REDEVELOPMENT PROJECTS NO. 2,
BENEFITING MERGED REDEVELOPMENT PROJECT AREA NO.1"
2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, MAKING CERTAIN FINDINGS
PURSUANT TO HEALTH AND SAFETY CODE SECTION 33445 RELATING
TO PAYMENT OF ALL OR PART OF THE COSTS OF THE INSTALLATION
AND CONSTRUCTION OF CERTAIN BUILDINGS, FACILITIES,
STRUCTURES, AND OTHER IMPROVEMENTS WITHIN MERGED
REDEVELOPMENT PROJECTS NO. 2, BENEFITING MERGED
REDEVELOPMENT PROJECT AREA NO.1"
FISCAL IMPACT:
The Agency intends to increase its payment towards the share of debt service on the
2004 Series A Lease Revenue Bonds (Convention Center Expansion Project) from
approximately $350,000 per year paid from Merged Redevelopment Project Area No. 2
(formerly the Tahquitz Andreas Project Area) to a total of $1,740,000, to be paid from
both Merged Project Area No. 1 and Merged Area No. 2. The represents
approximately 53% of the increase in Tax Increment generated since the expansion of
the Convention Center. The Agency and the legislative body have determined that the
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increase in Tax Increment in both project areas was directly and indirectly attributable
to the expansion of the Convention Center.
This allocation relieves the City's General Fund and Community Promotion Fund,
which currently pay the Convention Center debt service, of that amount.
Jot S. ay o Director of Tom Wilson
C mm ity & conom' velopment Assistant Cit Manager
DAVID H. READY
Executive Director
Attachments:
1. Agency Resolution
2. City Resolution
3. Summary Report
4. Public Hearing Notice
0(DO3
RESOLUTION NO.
i A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS, CALIFORNIA, MAKING CERTAIN
FINDINGS PURSUANT TO HEALTH AND SAFETY
CODE SECTION 33445 RELATING TO PAYMENT
OF ALL OR PART OF THE COSTS OF THE
INSTALLATION AND CONSTRUCTION OF
CERTAIN BUILDINGS, FACILITIES, STRUCTURES,
AND OTHER IMPROVEMENTS WITHIN MERGED
REDEVELOPMENT PROJECTS NO. 2,
BENEFITING MERGED REDEVELOPMENT
PROJECT AREA NOA
The Community Development Agency of the City of Palm Springs finds:
A. The City Council of the City of Palm Springs adopted the Amended and
Restated Redevelopment Plans for Merged Redevelopment Project No. 1 and
Merged Redevelopment Project No. 2 (collectively, the "Project Areas") on
February 19, 2003 by Ordinance Nos_ 1623 and 1624 and amended said
Redevelopment Plans on May 5, 2004 by Ordinance Nos. 1649-1652.
B. The Community Redevelopment Agency ("Agency") has acquired and
constructed certain buildings, facilities, structures and other improvements which
constitute the Palm Springs Convention Center (collectively the "Improvements")
within Merged Project Area No. 2 described above which are publicly-owned
within the meaning of Health & Safety Code Section 33445 (the "Statute") the
project area.
C. In 1995, the City Council and the Community Redevelopment Agency of
the City of Palm Springs made certain findings relating to the payment by the
Agency of all or part of the costs of the installation and construction of certain
buildings, facilities, structures and other improvements constituting the City's
Convention Center located within the Tahquitz Andreas Project Area (Resolution
976).
D. The Members of the Agency have determined that the Improvements
within the meaning of the Statute are of benefit to Merged Redevelopment
Project No. 1 as well as Merged Redevelopment Project Area No. 2.
E. In 2004, the City issued $62,395,000 Lease Revenue Bonds, 2004 Series
A (Convention Center Expansion Project) secured by lease payments that the
General Fund is obligated to pay in full to fund the approximately 100,000 square
feet of additional meeting space, exhibit space, food service area and circulation,
increasing the City's debt service obligation by approximately $2.7 million
annually to an average of $5.8 million.
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jCommunity Redevelopment Agency
Resolution No.
June 6, 2007
Page 2
F. In July, 2006, the Agency approved the development of a "Design for
j Development" Master Plan for Downtown and the Section 14 area surrounding
the Convention Center, under Section 617 of the Merged Redevelopment Plans,
to serve as a catalyst for the development of property surrounding the Palm
Springs Convention Center, turning it into a quality destination resort, increasing
hotel rooms and Transient Occupancy Tax revenues, and fostering a linkage
between Downtown and the Convention Center to help maximize development of
both areas.
G. The construction of privately financed and owned facilities within Merged
Redevelopment Project No. 1 and Merged Redevelopment Project Area No. 2
were a direct or indirect result of the construction of the Improvements.
H. Those privately owned facilities produce property tax increment for the two
Project Areas, including an increase in gross tax increment in Merged Project No.
1 since the expansion commenced of 126%, or $4.5 million, and an increase in
gross tax increment in Merged Project No. 2 since the expansion commenced of
91%, or$2.2 million.
I. The Agency has determined that a reasonable allocation of the property
tax Increment generated directly or indirectly by the Improvements to the
payment of the 2004 Series A Lease Revenue Bonds (Convention Center
Expansion Project) should be increased from 6.64% of lease payments to 30%,
or a total of $1,740,000 annually, an increase of approximately $1.355 million, or
53% of the overall net new increment, payable from Merged Redevelopment
Project No. 1 and Merged Redevelopment Project Area Not; and
J. Section 33679 of the CRL states that before a redevelopment agency
commits to use the portion of taxes to be allocated and paid to an agency
pursuant to subdivision (b) of Section 33670 of the CRL (tax increment financing)
for the purpose of paying all or part of the value of land for, and the cost of the
installation and construction of, any publicly owned building, other than parking
facilities, the legislative body shall hold a public hearing; and
K. The allocation of funds to the 2004 Series A Lease Revenue Bonds is
consistent with the Agency's Implementation Plan.
L. All of the findings and determinations made herein were based upon
careful consideration and analysis of all relevant evidence.
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF .PALM
SPRINGS DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Community Redevelopment Agency of the City of Palm Springs
determines, based on the recitals contained in this resolution and the findings and facts
Community Redevelopment Agency
' Resolution No.
I
June 6, 2007
Page 3
provided in this resolution, the agenda report, public testimony, and any other relevant
and supporting evidence, and in full accordance with the provisions of the Statute, all of
the following:
(1) The buildings, facilities, structures or other improvements are of benefit to the
project area or the immediate neighborhood in which the project is located,
regardless of whether the improvement is within another project area, or in
the case of a project area in which substantially all of the land is publicly
owned that the improvement is of benefit to an adjacent project area of the
Agency.
(2) No other reasonable means of financing the buildings, facilities, structures, or
other improvements, are available to the community-
(3) The payment of funds for the acquisition of land or the costs of buildings,
facilities, structures, or other improvements will assist in the elimination of
one or more blighting conditions inside the project area or provide housing for
low or moderate income persons, and is consistent with the implementation
plan adopted pursuant to the California Health and Safety Code Section
33490.
SECTION 2. To the extent that property tax increment revenues are legally available,
the Agency hereby pledges to pay to the City tax increment revenues generated from
the combined Merged Project Areas in an amount equal to 30% of the annual debt
service on the 2004 Series A Lease Revenue Bonds (Convention Center Expansion
Project), which pledge shall be subordinated to all of the existing and future bonded
indebtedness of the Agency.
SECTION 3. In furtherance of the provisions of Section 2 of this Resolution, the
Community Redevelopment Agency specifically pledges to pay to the City, payments of
tax increment funds in the amount of$385,000.00 from tax increment funds from Merged
Redevelopment Project Area No. 2, consistent with the provisions of, and for the
purposes described in, this resolution, and authorizes the Executive Director to make the
payments as provided herein.
SECTION 4. In furtherance of the provisions of Section 2 of this Resolution, the
Community Redevelopment Agency specifically pledges to the City, payments of tax
increment funds in the amount of $1,355,000.00 from tax increment funds from Merged
Redevelopment Project Area No.1 consistent with the provisions of, and for the
purposes described in, this resolution, and authorizes the Executive Director to make the
payments as provided herein.
ADOPTED this 6th day of June, 2007.
David H. Ready, Executive Director
k-���v
Community Redevelopment Agency
Resolution No.
June 6, 2007
Page 4
ATTEST:
James Thompson, Assistant Secretary
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, Assistant Secretary of the Community Redevelopment
Agency of the City of Palm Springs, hereby certify that Resolution No. is a
full, true and correct copy, and was duly adopted at a regular meeting of the
Community Redevelopment Agency of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, Assistant Secretary
Community Redevelopment Agency
of the City of Palm Springs, California
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, MAKING CERTAIN
FINDINGS PURSUANT TO HEALTH AND SAFETY CODE
SECTION 33445 RELATING TO PAYMENT OF ALL OR
PART OF THE COSTS OF THE INSTALLATION AND
CONSTRUCTION OF CERTAIN BUILDINGS, FACILITIES,
STRUCTURES, AND OTHER IMPROVEMENTS WITHIN
MERGED REDEVELOPMENT PROJECTS NO. 2,
BENEFITING MERGED REDEVELOPMENT PROJECT
AREA NO.1
The City Council of the City of Palm Springs finds:
A. The City Council of the City of Palm Springs adopted the Amended and
Restated Redevelopment Plans for Merged Redevelopment Project No. 1 and Merged
Redevelopment Project No. 2 (collectively, the "Project Areas") on February 19, 2003
by Ordinance Nos. 1623 and 1624 and amended said Redevelopment Plans on May 5,
2004 by Ordinance Nos. 1649-1652.
B. The Community Redevelopment Agency ("Agency") has acquired and
constructed certain buildings, facilities, structures and other improvements which
constitute the Palm Springs Convention Center (collectively the "Improvements") within
Merged Project Area No. 2 described above which are publicly-owned within the
meaning of California Health & Safety Code Section 33445 (the "Statute") the project
area.
C. In 1995, the City Council and the Community Redevelopment Agency of the City
of Palm Springs made certain findings relating to the payment by the Agency of all or
part of the costs of the installation and construction of certain buildings, facilities,
structures and other improvements constituting the City's Convention Center located
within the Tahquitz Andreas Project Area (Resolution 976).
D. The City Council has determined that the Improvements within the meaning of
the Statute are of benefit to Merged Redevelopment Project No. 1 as well as Merged
Redevelopment Project Area No. 2.
E. In 2004, the City issued $62,395,000 tease Revenue Bonds, 2004 Series A
("Convention Center Expansion Project") secured by lease payments that the General
Fund is obligated to pay in full to fund the approximately 100,000 square feet of
additional meeting space, exhibit space, food service area and circulation, increasing
the City's debt service obligation by approximately $2.7 million annually to an average
of $5.8 million.
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F. In July, 2006, the Agency approved the development of a "Design for
Development" Master Plan for Downtown and the Section 14 area surrounding the
Convention Center, under Section 617 of the Merged Redevelopment Plans, to serve
as a catalyst for the development of property surrounding the Palm Springs Convention
Center, turning it into a quality destination resort, increasing hotel rooms and Transient
Occupancy Tax revenues, and fostering a linkage between Downtown and the
Convention Center to help maximize development of bath areas.
G. The construction of privately financed and owned facilities within Merged
Redevelopment Project No. 1 and Merged Redevelopment Project Area No. 2 were a
direct or indirect result of the construction of the Improvements.
H. Those privately owned facilities produce property tax increment for the two
Project Areas, including an increase in gross tax increment in Merged Project No. 1
since the expansion commenced of 126%, or $4.5 million, and an increase in gross tax
increment in Merged Project No. 2 since the expansion commenced of 91%, or $2.2
million.
I. The City Council has determined that a reasonable allocation of the property tax
increment generated directly or indirectly by the Improvements to the payment of the
2004 Series A Lease Revenue Bonds (Convention Center Expansion Project) should
be increased from 6.64% of lease payments to 30%, or a total of$1,740,000 annually,
an increase of approximately $1.355 million, or 53% of the overall net new increment,
payable from Merged Redevelopment Project No. 1 and Merged Redevelopment
Project Area No.2.
J. Section 33679 of the CRL states that before a redevelopment agency commits
to use the portion of taxes to be allocated and paid to an agency pursuant to
subdivision (b) of Section 33670 of the CRL (tax increment financing) for the purpose of
paying all or part of the value of land for, and the cost of the installation and
construction of, any publicly owned building, other than parking facilities, the legislative
body shall hold a public hearing; and
K. The allocation of funds to the 2004 Series A Lease Revenue Bonds is consistent
with the Agency's Implementation Plan; and
L. All of the findings and determinations made herein were based upon careful
consideration and analysis of all relevant evidence.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS RESOLVES:
SECTION 1. The City Council determines, based on the recitals contained in the
resolution and the findings and facts provided in this resolution, the agenda .report,
public testimony, and any other relevant and supporting evidence, and in full
accordance with the provisions of the Statute, all of the following:
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(1) The buildings, facilities, structures or other improvements are of benefit to
the project area or the immediate neighborhood in which the project is
located, regardless of whether the improvement is within another project
area, or in the case of a project area in which substantially all of the land is
publicly owned that the improvement is of benefit to an adjacent project area
of the Agency.
(2) No other reasonable means of financing the buildings, facilities, structures, or
other improvements, are available to the community.
(3) The payment of funds for the acquisition of land or the costs of buildings,
facilities, structures, or other improvements will assist in the elimination of
one or more blighting conditions inside the project area or provide housing
for low or moderate income persons, and is consistent with the
implementation plan adopted pursuant to California Health and Safety Code
Section 33490.
SECTION 2. To the extent that property tax increment revenues are legally available,
the Agency has pledged to pay to the City, and the City Consents to receive, tax
increment revenues generated from the combined Merged Project Areas in an amount
equal to 30% of the annual debt service on the 2004 Series A Lease Revenue Bonds
(Convention Center Expansion Project), which pledge shall be subordinated to all of
the existing and future bonded indebtedness of the Agency.
SECTION 3. The City Council consents to, and accepts the pledge of the Agency to
pay, payments of tax increment funds in the amount of$385,000,00 from tax increment
funds from Merged Redevelopment Project Area No. 2 consistent with the provisions
of, and for the purposes described in, this resolution.
SECTION 4. The City Council consents to, and accepts the pledge of the Agency to
pay, payments of tax increment funds in the amount of $1,355,000.00 from tax
increment funds from Merged Redevelopment Project Area No.1 consistent with the
provisions of, and for the purposes described in, this resolution.
SECTION 5. Nothing in this Resolution shall be construed as an amendment,
assignment, or transfer of any right or obligation of the City pursuant to the Convention
Center Expansion Project. All City obligations pursuant to the Convention Center
Expansion Project shall remain in Full force and effect.
ADOPTED this 6th day of June, 2007.
David H. Ready, City Manager
ATTEST:
James Thompson, City Clerk
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
James Thompson, City Clerk
of the City of Palm Springs, California
SUMMARY REPORT PURSUANT TO
SECTIONS 33445 AND 33679
OF THE CALIFORNIA COMMUNITY REDEVELOPMENT LAW
ON AN INCREASE IN
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS'
PAYMENTS ON CERTAIN CITY BOND PAYMENTS
INTRODUCTION
The following Summary Report (Report) has been prepared pursuant to Sections
33445 and 33679 of the California Health and Safety Code, also known as the
California Community Redevelopment Law (CRL).
LEGISLATIVE REQUIREMENTS
Section 33679 of the CRL states that before a redevelopment agency commits to
use the portion of taxes to be allocated and paid to an agency pursuant to
subdivision (b) of Section 33670 of the CRL (tax increment financing) for the
purpose of paying all or part of the value of land for, and the cost of the
installation and construction of, any publicly awned building, other than parking
facilities, the legislative body shall hold a public hearing.
Notice of the time and place of public hearing shall be published in a newspaper
of general circulation in the community for at least two successive weeks prior to
the public hearing. There shall be available for public inspection and copying, at
a cost not to exceed the cost of duplication, a summary, which includes all of the
following:
(a) Estimates of the amount of such taxes proposed to be used to pay for
such land and construction of any publicly owned building, including
interest payments.
(b) Sets forth the facts supporting the determinations required to be made
by the legislative body pursuant to Section 33445.
(c) Sets forth the redevelopment purpose for which such taxes are being
used to pay for the land and construction of such publicly owned.
The summary shall be made available to the public for inspection and copying no
later than the time of the first publication of the notice of the public hearing.
As described below, in 1995, the City of Palm Springs made certain findings
relating to the payment by the Agency of all or part of the costs of the installation
and construction of certain buildings, facilities, structures and other
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improvements constituting the City's Convention Center located within the
Tahquitz Andreas Project Area. The Agency intends to increase such payments
as a result of the expansion of the Convention Center undertaken in 2004 and
expects to make payments with tax increment funds.
CRL Section 33445 states that an agency may, with the consent of the legislative
body, pay all or a part of the value of the land for and the construction of any
building, facility or structure, or other improvement which is publicly owned either
within or without the project area, if the legislative body determines all of the
following:
(1) That the buildings, facilities, structures or other improvements are of
benefit to the project area or the immediate neighborhood in which the
project is located, regardless of whether the improvement is within
another project area, or in the case of a project area in which
substantially all of the land is publicly awned that the improvement is of
benefit to an adjacent project area of the Agency.
(2) That no other reasonable means of financing the buildings, facilities,
structures, or other improvements, are available to the community.
(3) That the payment of funds for the acquisition of land or the costs of
buildings, facilities, structures, or other improvements will assist in the
elimination of one or more blighting conditions inside the project area
or provide housing for low or moderate income persons, and is
consistent with the implementation plan adopted pursuant to CRL
Section 33490.
BACKGROUND
In 1991, the City of Palm Springs refinanced debt incurred to construct the City's
Convention Center (Facility) and financed an expansion of the Facility. In 1995,
pursuant to Resolution No. 18061, the City Council determined that construction
of the Convention Center and expansion thereof directly and indirectly resulted in
construction of privately financed and owned improvement in the Tahquitz
Andreas Project Area and that those private facilities generated tax increment for
the Tahquitz Andreas Project Area. The City Council also determined that
absent the advance of certain sums by the City to construction of the Convention
Center, no other reasonable means of financing the facility was available to the
community. The City Council determined that a reasonable allocation of the
property tax increment generated directly or indirectly by the Facility was
$247,756 per year, or 6.64% of the current year's debt service on the City's
Lease Revenue Bonds, 1991 Series A (Convention Center Project).
Pursuant to Resolution 976, the Redevelopment Agency approved the payments
to the City pursuant to a Loan Agreement.
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In 2002, the City began planning for an expansion of the Facility. In 2004, the
i City determined that absent the advance of certain additional sums by the City
toward lease payments to secure lease revenue bonds to finance the Facility
expansion, the expansion could not occur. The City issued $62,395,000 Lease
Revenue Bonds, 2004 Series A (Convention Center Expansion Project) to fund
the approximately 100,000 square feet of additional meeting space, exhibit
space, food service are and circulation, increasing the size of the Facility by 60%.
The 2004 Bonds are secured by lease payments that the General Fund is
obligated to pay in full. After issuance of the 2004 Bonds, the City's debt service
obligation increased by approximately $2.7 million annually to an average of$5.8
million. The City was relying on the increase in transient occupancy tax that
would result from an expansion of the Facility to pay the increased lease
payments. However, the construction was more costly than projected due to
soaring construction prices relating to steel and increased transient occupancy
taxes did not materialize in the amounts estimated. On the other hand, the tax
increment from the project areas surrounding the Facility has increased
substantially as a direct and indirect result of the expansion of the Facility.
The Agency has two separate redevelopment project areas, created by merging
several underlying projects. The Facility is located in the Tahquitz Andreas
component project area of the Agency's Merged Project No. 2. However, the
Agency's Merged Project No. 1 is generally contiguous with Merged Project No.
2 and adjacent to the Facility. The gross tax increment generated in Merged
Project No. 1 and Merged Project No. 2 has increased since the expansion was
undertaken as shown in the following charts:
Merged Project No. 1
Historical Tax Increment Revenues
Project Area 2001/02 2002103 2003/04 2004/05 2005106 2006/07
Central Business $1,584,393 $1,346,538 $1,320,086 $1,298,482 $1,376,351 $1,526,000
Oasis 74,401 75,601 94,440 97,392 155,167 264,000
North Palm Canyon 346,254 373,777 399,220 556,545 680,502 907,000
Highland Gateway 122,318 134,820 152,771 184,539 251,854 398,000
Ramon/Bogie 216,360 296,486 312,411 344,538 456,267 881,000
South Palm Canyon 271,734 325,315 322,701 461,676 517,190 669,000
Project No. 9 553,369 778,993 986,492 1,350,929 2,462,169 3A72.000
$3,168,829 $3,331,530 $3,588,121 S4,303,101 $5,899,500 $8,117,000
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Merged Project No. 2
Historical Tax Increment Revenues
I
Project Area 2001/02 2002103 2003104 2004105 2005/06 2006107
Baristo-Farrell $830,399 $1,105,447 $1,269,077 $1,694,314 $2,018,463 $2,524,000
Tahquitz-Andreas 1,285,796 767,725 754,572 859,745 975,662 1,012,000
Canyon 281429 355,569 379,858 447,573 794.678 1,054,000
$2.397,624 $2,228,741 $2,403,507 $3,001,632 $3,788,803 $4,590,000
ESTIMATE OF TAX INCREMENT FINANCING
At this time, the City cannot fund the entire lease payments for the convention
center financing (original and expansion) from the increased transient occupancy
taxes without impairing other essential City services. The total debt service
remaining on all debt financing for the Facility is $170 million, of which $110
million is related to the 2004 expansion.
For several years prior to the expansion of the Facility, tax increment growth in
both Merged Project No. 1 and Merged Project No. 2 had been stagnant. The
growth in gross tax increment in Merged Project No. 1 since the expansion
commenced has been 126%, or $4.5 million. This provides a net increase to the
Agency of $1.95 million after tax sharing and housing set aside deductions.
Likewise, the growth in gross tax increment in Merged Project No. 2 since the
expansion commenced has been 91%, or $2.2 million. This provides a net
increase to the Agency of $600,000 after tax sharing and housing set aside
deductions. The Agency estimates that the majority of the net new increment is
directly or indirectly related to the expansion.
Therefore, the Agency's contribution to the lease payments payable by the City
for the expansion should be increased from 6.64% of lease payments to 30%, or
a total of $1,740,000 annually. This represents an increase of approximately
$1.355 million, or 53% of the overall net new increment.
BENEFIT TO PROJECT AREA; BLIGHT ELIMINATION
The use of Agency funds to offset a portion of the City's lease payments used to
facilitate the expansion of the Facility will allow a greater portion of transient
occupancy taxes to be used for community promotion, thereby increasing the
City's hotel occupancy rates and convention center bookings. This increase in
Convention Center activity will benefit the project areas by drawing additional
hotel and service related development in and around the Facility. It will assist in
eliminating blighting conditions caused by inadequate parking in and around the
Facility and the increased convention and tourism activity will provide additional
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opportunities to redevelop underperforming commercial development in the
northern gateway to the City.
i CONFORMANCE WITH THE AB 1290 IMPLEMENTATION PLAN
The assistance towards the City's lease payments relating to Convention Center
financings is in conformance with the Agency's five year Implementation Plan, as
amended.
Unis
PROOF OF PUBLICATION Iht,is space lot County Curk's Filing Stamp
(2015.5.C.C.P)
STATE OF CALIFORNIA
County of Riverside
I am a citizen of the United States and a resident of Proof of Publication of
the County aforesaid;I am over the age of eighteen --- --------•---��---
years,and not a party to or intercAcil in the
above-entitled matter.I am the principal 0uk of a
printer of the,DESERT SUN PUBLISHING
COMPANY a newspaper of general circulation, Ne. 7845
printed and published in the city of Palm Springs, NOTICE OF PISLIC HEARING
County of Riverside,and which newspaper has been OIMMUNrry REDEVELOPMENT AGENCY
adjudged a newspaper of general circulation by the CITY OF PALM SPRINGS
Superior Court of the County of Riverside,State of ONI CCRTh8N CIN ENT
California under the date of March 24, 19$$-Case REµ7E0 TO THE CONVENTIONS
oN CENTER
Number 012364 that the notice,of which the Negev a Is eat Agency
of That.the Commune
p copy
( type
pan
s,ap ifor Agency of the Chy of Palm
,annexed is a tinted co set in t e not smaller SPAT 6 allTornla,will held a Wic hearing at ae
than non pariel,has been published in each regular Muni Renevela 6'2007,Tnb Palm Springs coin.l
6.cc pment Agency mevlin beglne at
and entire issue of said newspaper:md not in any P m.. 1n the Council Gnamder,�Ci
supplement thereof on the followings dates,to wit: 320o E.7ahqu)iz Canyon Way, Palm SpnngsHall, I
Tshe Purpeee of the public hearing is To consider s
May Z4hr 29"' 2007
I muniution that aulnoN s an increase in the Cern-
pon
N RedevelDpmpre Agency„pgyment on cor-
ale C ty d payments relate4 to the ca.^.t of
r conryruclion anO expansion of Mo Convention
REld6Yu OF PROJECT INFORMATION;The staff
_--........ and other supp a n decumenC;regarprng II the miner are avaiVap(a(9 puhon rnvlew:q!CIPv I
A11 111 the year Z(1a7 "He0 h6tweon the h58Y5 aTE:00'3:m ii w'IE ;it,
pOpp m. Of thOncey throeppn Fridae iyy. Please contact yThe
Wpttuld IfRO tO son,Cy1 Please
rovlew
I certify(or declare)under penalty of perjury that the throe gOOuments.
foregoing is true and correct. COMMENT'ON THIS APPLICATION[ Response
h earin is na,d/ may be matl0 Wrbslly al the Public
Dated at Palm Springs,California this----29`h,--day ton oommenrsrin writing before the head ' Wo. rit_
may e6 made to the Palm„pang,
Community d,ii,ry) to., Agency by fetter(tor
mail or hand dvllvery) to:
of----- May -- ^=,--------- 2007 Jame^TIIOmPP;on,Assrtsnt 5ecretary,
( s200 E. Tahquia Can on Way
.^ 41 Palm 5pnn9s, CA 226a-
;,� 7 J Any clTollenge of the proposed pro sot In court
7- i/ may be Ilmned to r21sln Orlytha;:e
11 public hearin d6u $sues raised
—+" a c q crlbpd m rhis node,, ar
m In Written tl atp ,,,tiviiveredpp to The Assl,-
^ (G6vernmeM1try gye SeGYlon to 'he bJ(2))p hearing.
1
_-- '•�J _ An opportunity will be green at said hearing for all
a J intothlsecaseremes to he htard.Quest, rogerd-
g yy be dlreined to Olroctor o1 rd
.. . ^>' nanco at(1E0)323-822e,
SI neeaalta a ude Can Bata carra ponsvor Ilame
a
la Ciudad do Pslm Sprirlpps yy puada hablar wn
Nsdine Flegor telefono (760) 32a-6246 _
r-_ � VVV James omp;on, siatant Socretery
Published;612A,5/20MOa7
OF ?ALM S°
� JN City ®f Palm Springs
` (Office of the City Clerk
;200 P.TahLjUi.c Cm,yw, Wxy ^ Pain Springs, CalifornJa 92262
Cq4/P0 Rr1�P iel: (760) 323-820'1 • Pax. (760) 22-8332 • Web www palmsprm Gs-ca gnv
AFFIDAVIT
OF
MAILING NOTICES
I, the undersigned Assistant Secretary of the Community Redevelopment Agency of
the City of Palm Springs, California, do hereby certify that a copy of the Notice of
Public Hearing, to consider a resolution that authorizes an increase in the
Community Redevelopment Agency's payment on certain City bond payments
related to the cost of construction and expansion of the Convention Center, was
mailed to each and every person set forth on the attached list on the 22"6 day of
May, 2007, in a sealed envelope, with postage prepaid, and depositing same in the
U.S. Mail at Palm Springs, California. (16 notices mailed)
I declare under penalty of perjury that the foregoing is true and correct.
Dated at Palm Springs, California, this 22nd day of May, 2007.
J MES THOMPSON
Assistant Secretary
1kdh
Affidavit-CRP,-Conv Ctr Bonds.doc
(0 '1 7
Post Office Box 2743 • PalM Sprinbs, California 92263-2743
NOTICE OF PUBLIC HEARING
COMMUNITY REDEVELOPMENT AGENCY
CITY OF PALM SPRINGS
INCREASE PAYMENT ON CERTAIN CITY BONDS
RELATED TO THE CONVENTION CENTER
NOTICE IS HEREBY GIVEN that the Community Redevelopment Agency of the City of
Palm Springs, California, will hold a public hearing at its meeting of June 6, 2007. The
Palm Springs Community Redevelopment Agency meeting begins at 6:00 p.m., in the
Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs.
The purpose of the public hearing is to consider a resolution that authorizes an increase
in the Community Redevelopment Agency's payment on certain City bond payments
related to the cost of construction and expansion of the Convention Center.
REVIEW OF PROJECT INFORMATION: The staff report and other supporting
documents regarding this matter are available for public review at City Hall between the
hours of 8:00 a.m. and 5:00 p.m., Monday through Friday. Please contact the Office of
the City Clerk at (760) 323-8204 if you would like to schedule an appointment to review
these documents.
COMMENT ON THIS APPLICATION: Response to this notice may be made verbally
at the Public Hearing and/or in writing before the hearing. Written comments may be
made to the Palm Springs Community Redevelopment Agency by letter (for mail or
hand delivery) to:
James Thompson, Assistant Secretary
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
Any challenge of the proposed project in court may be limited to raising only those
issues raised at the public hearing described in this notice, or in written correspondence
delivered to the Assistant Secretary, at or prior, to the public hearing. (Government
Code Section 65009(b)(2)).
An opportunity will be given at said hearing for all interested persons to be heard.
Questions regarding this case may be directed to Director of Finance at (760) 323-8229.
Si necesita ayuda con esta carta, porfavor [lame a la Ciudad de Palm Springs y puede
hablar con Nadine Fieger telefono (760) 323-8245.
?es22Th�omp , Assistant Secretary