City Council

10.b SECOND AMENDED AND RESTATED DDLA, RELATED 251\nRESOLUTIONS, LOANS IN THE AMOUNT OF $1,965,539 AND\n$4,789,461 FROM THE AUTHORITY, AND ACTIONS RELATED TO\nCONVEYANCE OF THE PARCELS IDENTIFIED AS APN 694-120-028\nAND A PORTION OF 694-120-029 FOR AFFORDABLE HOUSING\nRECOMMENDATION:\n1. City Council: Adopt a Resolution entitled, “A RESOLUTION OF\nTHE CITY COUNCIL OF THE CITY OF PALM DESERT,\nCALIFORNIA, APPROVING A SECOND “AMENDED AND\nRESTATED DISPOSITION, DEVELOPMENT AND LOAN\nAGREEMENT” REGARDING “PALM VILLAS AT MILLENIUM”\nAMONG THE CITY, AS SELLER, THE PALM DESERT HOUSING\nAUTHORITY, AS LENDER, AND PALM COMMUNITIES, A\nCALIFORNIA LIMITED COMPANY, AS PURCHASER/\nBORROWER/ DEVELOPER, IN CONNECTION WITH\nAPPROXIMATELY 10.49 ACRES OF PROPERTY OWNED BY\nTHE CITY, AND TAKING RELATED ACTIONS.”\n2. Housing Authority: Adopt a Resolution entitled, “A RESOLUTION\nOF THE PALM DESERT HOUSING AUTHORITY APPROVING A\nSECOND “AMENDED AND RESTATED DISPOSITION,\nDEVELOPMENT AND LOAN AGREEMENT” REGARDING “PALM\nVILLAS AT MILLENIUM” AMONG THE AUTHORITY, AS\nLENDER, THE CITY OF PALM DESERT, AS SELLER, AND\nPALM COMMUNITIES, A CALIFORNIA LIMITED COMPANY, AS\nPURCHASER/ BORROWER/ DEVELOPER, IN CONNECTION\nWITH APPROXIMATELY 10.49 ACRES OF PROPERTY OWNED\nBY THE CITY, APPROPRIATING FUNDS IN CONNECTION\nTHEREWITH, AND TAKING RELATED ACTIONS.”\n3. Authorize the Authority to make two loans to the Developer for the\npurchase of the Property and construction of the Project\n($1,965,539 for Phase I and $4,789,461 for Phase II), to be repaid\nfrom a percentage of residual receipts (i.e., net income) from the\nProject over the term of the loans, with any accrued interest and\nunpaid principal coming due 55 years from the completion of the\nProject, with such loans being secured by a subordinate deed of\ntrust on the Project.\n4. Authorize the Director of Finance to appropriate $6,755,000 from\nUnobligated Housing Asset Fund balance to the appropriate\nbudget line item.\n5. Authorize the Director of Finance to designate the proceeds of the\nsale of the City-owned property for the purpose of future affordable\nhousing.\n6. Authorize Mayor/Chairman, staff, and legal counsel to negotiate,\nexecute and record agreements and necessary documents to\neffectuate the resolutions, including the conveyance of the\nProperty, the funding commitments, and related actions for the\nProject as set forth in the Second Amended and Restated DDLA.\nPage 6 of 8\nCity Council Meeting