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HomeMy WebLinkAbout21900 - RESOLUTIONS - 6/6/2007 RESOLUTION NO. 21900 ' 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 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 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. ' 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 Resolution No. 21900 Page 2 ' 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 52.2 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: (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 Resolution No. 21900 ' Page 3 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, Cit1ager ATTEST: 1 ,d'� es Thompson, City Clerk Resolution No, 21900 Page 4 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. 21900 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 June 6, 2007, by the following vote: AYES: Councilmember Foat, Councilmember McCulloch, Mayor Pro Tern Pougnet, and Mayor Oden. NOES: None. ABSENT: Councilmember Mills. ABSTAIN: None. 5itJmes Thompson, CityClerk y of Palm Springs, California