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Home My WebLink About2/18/2009 - STAFF REPORTS - 2.O. ;Of gpLM SA4 iy c+ V N CITY COUNCIUCOMMUNITY C'gL7FO RN,P REDEVELOPMENT AGENCY STAFF REPORT DATE: February 18, 2009 Consent Calendar SUBJECT: APPROVAL OF THE REPAYMENT OF A PORTION OF THE PRINCIPAL BALANCE ON NOTES TO THE CITY OF PALM SPRINGS FOR THE. VILLAGE GREEN AND FRANCES STEVENS PARK; AND, APPROVING A BUDGET RESOLUTION APPROPRIATING $855,000 AND RESERVING FUNDS FOR FUTURE PAYMENT OF $1,265,000 FROM THE FUND BALANCE OF MERGED AREA #1 FOR THE REPAYMENT OF THE PRINCIPAL FROM: David H. Ready, City Manager/Executive Director BY: Department of Finance and Treasury SUMMARY These actions approve the use of $855,000 in 2007 Merged Area #1 Tax Allocation Bond proceeds for the purpose of repaying a portion of the principal balance on a note to the City of Palm Springs for the Village Green, and the use of $1,265,000 in 2007 Merged Area #1 Tax Allocation Bond proceeds for the purpose of repaying a portion of the principal balance on a note to the City for Frances Stevens Park. The Agency acquired the Village Green in February 2008 and Frances Stevens Park in December 2007 from the City of Palm Springs, and made a note to the City for the acquisition amount. The Promissory Notes made by the Agency for the properties allows the City to make a call on any principal payment, at the City's sole discretion. The City is exercising its right under the note and the principal will be credited against the Village Green and Frances Stevens Park notes. Neither the purchases nor the repayments of principal affect any leases, use agreement, or licenses in effect at the site. The resolutions also authorize and direct the City Manager/Executive Director to complete and execute on behalf of the City and Agency all such documents related to this transaction. RECOMMENDATION: CITY COUNCIL RECOMMENDATION: 1. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CALLING AND ACCEPTING THE REPAYMENT OF $855,000 IN PRINCIPAL BY THE COMMUNITY ITEM NO. Z• `� City Council Staff Report February 18, 2009 -- Page 2 Village Green and Frances Stevens Park Repayments REDEVELOPMENT AGENCY UNDER A PROMISSORY NOTE FOR THE VILLAGE GREEN"; 2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CALLING AND ACCEPTING THE REPAYMENT OF $1,265,000 IN PRINCIPAL BY THE COMMUNITY REDEVELOPMENT AGENCY UNDER A PROMISSORY NOTE FOR FRANCES STEVENS PARK"; 3. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2008-09"; 4. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESERVING FUNDS FOR FUTURE PAYMENTS FROM FRANCES STEVENS PARK FOR FISCAL YEAR 2009-10"; COMMUNITY REDEVELOPMENT AGENCY RECOMMENDATION: 5. Adopt Resolution No. , "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2008-09"; 6. Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESERVING FUNDS FOR FUTURE PAYMENTS FROM FRANCES STEVENS PARK FOR FISCAL YEAR 2009-10"; 7. Authorize the City Manager/Executive Director to execute all the documents related to the repayment of principal by the Agency. FISCAL IMPACT: The Community Redevelopment Agency has bond funds available to reduce debt owed to the City through the amortization of promissory notes on the Village Green and Frances Stevens Park. The City will utilize these funds to complete the acquisition of the Marriott International Reservation System for the Marriott Renaissance Hotel and Convention Center. The final two payments owed on the purchase of the reservation system totaling $1,265,000 will be paid in the 2009-2010 fiscal year. r,� City Council Staff Report February 18, 2009 -- Page 3 Village Green and Frances Stevens Park Repayments Geoffrey S. Kiehl Thomas J. Wil on Director of Finance and Treasurer Assistant City Manager, Development Services David H. Ready, Esg D. City Manager/Executive Director Attachments: 1. City Resolution 2. City Budget Resolution 3. CRA Resolution A. CRA Budget Resolution RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CALLING AND ACCEPTING THE REPAYMENT OF $855,000 IN PRINCIPAL BY THE COMMUNITY REDEVELOPMENT AGENCY UNDER A PROMISSORY NOTE FOR THE VILLAGE GREEN THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Council of the City of Palm Springs, pursuant to authority provided under Health and Safety Code Section 33220, approved the sale on February 6, 2008 of a parcel of land and improvements to the Community Redevelopment Agency of the City of Palm Springs, commonly referred to as the Village Green, 211 South Palm Canyon Drive, located within Merged Project Area No. 1. The City Council found the sale of this parcel of land to the Community Redevelopment Agency of the City of Palm Springs will aid in the planning, undertaking, construction, and operation of redevelopment within Merged Project Area #1. SECTION 2. Pursuant to the Promissory Note executed by the Community Redevelopment Agency for the above-mentioned property, the City Council hereby calls for a principal payment of $855,000 and authorizes and directs the City Manager to execute all documents related to the repayment of principal, to accept payment, and to execute such other documents as may be reasonably necessary or prudent to complete this transaction as provided in this Resolution. ADOPTED this 18th day of February, 2009. Steve Pougnet, Mayor ATTEST: James Thompson, City Clerk Resolution No. Page 2 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 City of Palm Springs, California RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CALLING AND ACCEPTING THE REPAYMENT OF $1,265,000 IN PRINCIPAL BY THE COMMUNITY REDEVELOPMENT AGENCY UNDER A PROMISSORY NOTE FOR FRANCES STEVENS PARK IN FISCAL YEAR 2009-10 THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Council of the City of Palm Springs, pursuant to authority provided under Health and Safety Code Section 33220, approved the sale on December 12, 2007 of a parcel of land and improvements to the Community Redevelopment Agency of the City of Palm Springs, commonly referred to as Frances Stevens Park, located within Merged Project Area No. 1. The City Council found the sale of this parcel of land to the Community Redevelopment Agency of the City of Palm Springs will aid in the planning, undertaking, construction, and operation of redevelopment within Merged Project Area #1. SECTION 2. Pursuant to the Promissory Note executed by the Community Redevelopment Agency for the above-mentioned property, the City Council hereby calls for fiscal year 2009-10 principal payments of $855,000 and $410,000, and authorizes and directs the City Manager to execute all documents related to the repayment of principal, to accept payment, and to execute such other documents as may be reasonably necessary or prudent to complete this transaction as provided in this Resolution. ADOPTED this 18th day of February, 2009. Steve Pougnet, Mayor ATTEST: James Thompson, City Clerk Resolution No. _ Page 2 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 City of Palm Springs, California RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2008-09 FISCAL YEAR. WHEREAS, Resolution No. 22265 approving the budgetforthe Fiscal Year2008-09 was adopted on June 18, 2008; and WHEREAS, the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE, that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution No. 22265, adopting the Fiscal Year 2008-09 budget is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount 261 Capital Project 1395 City Facility 63574 Marriott $855,000 Improvement Reservation System Purpose: Establish funding for partial advance call on Land Purchase note for Village Green. SECTION 2. SOURCE: Transfer of$855,000 from General Fund to Capital Project Fund. The City made a partial advance call on a note receivable from the CRA to cover this transfer. Fund --Activity Account Amount 001 General Fund 29301 $855,000 Fund Balance ADOPTED this 18th day of February, 2009. David H. Ready, City Manager ATTEST: James Thompson, City Clerk Resolution No. Page 2 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 City of Palm Springs, California RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESERVING FUNDS FOR FUTURE PAYMENTS OF $1,265,000 IN PRINCIPAL UNDER A PROMISSORY NOTE FOR FRANCES STEVENS PARK IN FISCAL YEAR 2009-10 THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Council of the City of Palm Springs, pursuant to authority provided under Health and Safety Code Section 33220, approved the sale on December 12, 2007 of a parcel of land and improvements to the Community Redevelopment Agency of the City of Palm Springs, commonly referred to as Frances Stevens Park, located within Merged Project Area No. 1. The City Council found the sale of this parcel of land to the Community Redevelopment Agency of the City of Palm Springs will aid in the planning, undertaking, construction, and operation of redevelopment within Merged Project Area #1. SECTION 2. Pursuant to the Promissory Note executed by the Community Redevelopment Agency for the above-mentioned property, the City Council of the City of Palm Springs hereby reserves funds for principal payments of $855,000 and $410,000 for fiscal year 2009-10, and authorizes and directs the City Manager to execute all documents related to the repayment of principal, to accept payment, and to execute such other documents as may be reasonably necessary or prudent to complete this transaction as provided in this Resolution. ADOPTED this 18th day of February, 2009. Steve Pougnet, Mayor ATTEST: James Thompson, City Clerk Resolution No. Page 2 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 City of Palm Springs, California RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2008-09. WHEREAS, Resolution No. 1365 approving the budget for the Fiscal Year 2008-09 was adopted on June 18, 2008; and WHEREAS, the Executive Director has recommended, and the Agency Board 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 1365, adopting the Fiscal Year 2008-09 Budget is hereby amended as follows.- SECTION 1. ADDITIONS Fund Activity Account Amount 851 8201 49626 $855,000 Merged Area #1 Central Business City Loan Principal District Purpose: To provide funding for partial advance call on Land Purchase note for Village Green. SECTION 2. SOURCE Fund Activity Account Amount 811 29301 $855,000 Merged Area #1 Fund Balance ADOPTED this 18th day of February, 2009. David H. Ready, Executive Director ATTEST: James Thompson, Assistant Secretary Resolution No. Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) 1, 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 an adjourned 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 City of Palm Springs, California 4 RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, RESERVING FUNDS FOR FUTURE PAYMENTS OF $1,265,000 IN PRINCIPAL UNDER A PROMISSORY NOTE FOR FRANCES STEVENS PARK IN FISCAL YEAR 2009- 10 THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Council of the City of Palm Springs, pursuant to authority provided under Health and Safety Code Section 33220, approved the sale on December 12, 2007 of a parcel of land and improvements to the Community Redevelopment Agency of the City of Palm Springs, commonly referred to as Frances Stevens Park, located within Merged Project Area No. 1. The City Council found the sale of this parcel of land to the Community Redevelopment Agency of the City of Palm Springs will aid in the planning, undertaking, construction, and operation of redevelopment within Merged Project Area #1. SECTION 2. Pursuant to the Promissory Note executed by the Community Redevelopment Agency for the above-mentioned property, the Community Redevelopment Agency hereby reserves funds for principal payments of $855,000 and $410,000 for fiscal year 2009-10, and authorizes and directs the City Manager to execute all documents related to the repayment of principal, to accept payment, and to execute such other documents as may be reasonably necessary or prudent to complete this transaction as provided in this Resolution. ADOPTED this 18th day of February, 2009. Steve Pougnet, Mayor ATTEST: James Thompson, City Clerk d � Resolution No._ Page 2 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 City of Palm Springs, California � c