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HomeMy WebLinkAbout23747 RESOLUTION NO. 23747 A RESOLUTION OF CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE GUIDELINES FOR THE "SPECIAL ECONOMIC DEVELOPMENT FOCUS INCENTIVE PROGRAM AREAS". WHEREAS, the City Council has determined the general welfare and material well being of the residents of the city of Palm Springs depend in large measure upon the growth and expansion of the commercial corridors in the city; and WHEREAS, the City Council has determined that the operation, maintenance, and expansion of the inventory of quality commercial development, including hotels and first class hotels, restaurants, clubs, markets, and other retail activity in the city of Palm Springs will create desirable visitor serving facilities that will contribute to the growth and expansion of tourism and travel opportunities in the city, provide employment opportunities for the residents of the city, and promote and enhance the economy of the city; and WHEREAS, it is in the best interest of the city of Palm Springs to induce and encourage the operation, and maintenance of hotel and other commercial facilities that would not otherwise exist, thereby creating new sources of tax revenues for the city's general fund which supports the public services that the city provides its residents; and WHEREAS, the authority granted and the purposes to be accomplished by this Resolution are properly local governmental and public purposes for which public funds can be expended and that the operation, maintenance, and expansion of the inventory of quality and first class hotels and catalytic projects is of paramount importance to the city of Palm Springs, its residents, and businesses. WHEREAS, the City Council has determined that the focus area has a higher rate of stalled development projects, undeveloped vacant lots, significant and large vacancies, and generally a need for fagade improvement and interior remodeling; and WHEREAS, on July 3, 2013, the City Council determined that with the general economic health of the city, combined with renewed interest in these study areas, means that any incentive program the City would develop would have a reasonable chance of having a catalytic effect on nearby development, as well as the assisted project, and have a good chance of "paying for itself' over time, and adopted the "Special Economic Development Focus Incentive Program Areas"; and WHEREAS, based on the success of the core program and recent program data, the City Council desires to amend the program guidelines in two ways: calculating the eligibility for the "Major Need-Based Assistance for Renovating Major Vacancies as Resolution No. 23747 Page 2 Catalyst Projects" portion of the program, and amending the boundaries of the Fagade Improvement Program Citywide. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, DOES RESOLVE AS FOLLOWS: SECTION 1. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. The guidelines to the Special Economic Development Focus Incentive Program Areas ("Program Areas'), as described in Exhibit "A" to this resolution, are hereby amended as described. SECTION 3. The City Manager or designee is authorized to take all actions necessary to implement this Resolution, including without limitation, the development of program guidelines, evaluation criteria, performance metrics, application forms, covenants and agreements; and any action approved by this Resolution. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL ON THE 7T" DAY OF JANUARY, 2015 David H. Ready, Ci Hager ATTEST: ;;a'mensThompson, City Clerk Resolution No. 23747 Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, James Thompson, City Clerk of the City of Palm Springs, California, hereby certify that Resolution No. 23747 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 the 7th day of January, 2015, by the following vote: AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Mills, Mayor Pro Tern Lewin, and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. ames Thompson, City Clerk City of Palm Springs, Californiad t f T M Jae 15 Resolution No. 23747 Page 4 Exhibit "A" The amendments to the Program are: Maior Project Eligibility The paragraph in the "Major Need-Based Assistance for Renovating Major Vacancies as Catalyst Projects" application, shown as follows: "The threshold for investment in a project that would qualify for this assistance would be $1,000,000, excluding the cost of purchasing the land or building, or leasing the property. Additionally, the Applicant must show that the project has a feasibility "gap", or the difference between the proposed investment necessary to make the project "work" and the amount of investment that could be reasonably be supported by an equity investment at a standard return on investment." Shall be amended to: The threshold for investment in a project that would qualify for this assistance would be $500,000, excluding the cost of purchasing the land or building, or leasing the property. The grant has a $250,000 maximum for projects with a total expenditure above $1,000,000 and all projects in this category retain the leverage requirement; remodels from $500,000 to $1,000,000 shall be eligible under this section on a "sliding scale" basis, maintaining the 3:1 private-to-public leverage. Additionally, the Applicant must show that the project has a feasibility "gap", or the difference between the proposed investment necessary to make the project "work" and the amount of investment that could be reasonably be supported by an equity investment at a standard return on investment." Facade Improvement Program Boundaries The geographic eligibility for the Facade Improvement Program shall be in any legally permitted commercial area in the City.