HomeMy WebLinkAbout3/2/2005 - STAFF REPORTS (6) T
DATE: MARCH 2, 2005
TO: COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL
FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
APPROVAL OF A TEMPORARY LOAN FROM THE CITY OF PLAM SPRINGS TO
MERGED PROJECT AREA#1 FOR THE PURPOSE OF FACILITATING VIP MOTORS
LAND SWAP
RECOMMENDATION:
It is recommended that the City Council and Agency approve a loan from the City's
General Fund to Merged Project Area#1 (Fund 811) of$370,000 to facilitate the VIP
Motors land swap.
SUMMARY:
This loan is necessary to cover the temporary shortfall between the $2,300,000 in
Redevelopment Bond proceeds available in Merged Area #1 and the $2,575,000 in
funds the Agency paid to acquire the exchange parcel at the northwest corner of
Sunrise Way and Tahquitz Canyon Way and additional costs to be incurred on the
sale. Because the exchange parcel is in Merged Area#2,funds were drawn from the
Bond Trustee into Fund 812 to close on the sale; however, the ultimate benefit of the
project shall accrue to Merged Area#1,which is what the identified project area in the
bond issue was. Therefore, the cost needs to be journalized into Fund 811 but there
is an insufficient balance in that account, in part because of the purchase of the Desert
Hotel property. In addition,the projects that were identified as part of the Merged Area
#2 proceeds from the bond issue, the flood control and bridge improvements in the
Canyon Area,cannot move forward until the funds are"replaced"into Merged Area#2.
This loan would be repaid to the City from Fund 811 when the DDA with VIP Motors,
selling the dealership the resulting parcel, is finalized and the Agency receives most of
its funds back.
j. RAY ND THOMAS M. KANARR
of Co unity& Economic Development Director of Finance &Treasurer
APPROVED
Executive Direca8t �
ATTACHMENTS:
1. Resolutions
0001
RESOLUTION NO, 1277
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING
THE BUDGET FOR THE 2004-05 fiscal year.
WHEREAS Resolution 1255 approving the budget for the fiscal year 2004-05 was adopted
on June 9, 2004; and
WHEREAS the Executive Director has recommended, and the Agency desires to approve,
certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record
inter-fund cash transfers as required in accordance with this Resolution, and that Resolution
1255, adopting the budget for the 2004-05 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
No. 001 12416 $370,000
General Fund Redevelopment
Agency Loans
Receivable
Purpose: New loan (at 6%, effective 2/16/05) to Merged Area#1 to cover VIP Motors
land swap. Loan will be repaid when land swap is completed.
SECTION 2. SOURCE
Fund Activity Account Amount
No. 811 29301 $370,000
Merged Area#1 Fund Balance
Capital &Admin
Adopted this 2nd day of March 2005.
AYES: Members McCulloch; Pougnet and Chairman Oden
NOES: None
ABSENT: None
ABSTAIN: Members Foat and Mills
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
By _
Assistant Secretary Chairman
REVIEWED AND APPROVED
AS TO FORM