City Council
MEETING DATE: 6/13/2018
TITLE:
Title
New Fire Station 411 Funding & CEQA Exemption
End
FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council authorize the City Manager to execute all documents necessary to provide a secured loan from the City of Cathedral City to City Urban Revitalization Corporation in the principal amount of $2.5 million to fully fund development of replacement Fire Station 411.
Staff recommends that the City Council APPROVE an exemption to the California Environmental Quality Act (CEQA) pursuant to Section No. 15303, Class No. 3 (New Construction or Conversion of Small Structures). The Fire Station is approximately 9,080 square feet in floor area, is in an area that is not environmentally sensitive, is served by public utilities, and the Fire Station will not involve the use of significant amounts of hazardous material.
Body
BACKGROUND:
The City Urban Revitalization Corporation, a California public benefit non-profit corporation whose mission is to reduce the burdens of local government ("CURC"), has committed funds to provide assistance in the development of a replacement fire station for Fire Station 411, currently located at 36913 Date Palm. The replacement fire station will be constructed through CURC on City owned land located northerly of Buddy Rogers at the terminus of Allen Avenue (APN's: 687-180-009 and 687-180-011), commonly referred to as the Second Street Park.
DISCUSSION:
As presented in the January 23, 2018 presentation of the proposed Fire Station design, the estimated cost of this replacement fire station is $8.5 million. CURC is providing $6.0 million in funds derived from the sale proceeds of former CURC owned real estate and, if approved by the City Council, will borrow the remaining $2.5 million from the City, to be secured by additional CURC owned real estate consisting of approximately 11 acres of land encompassing three assessor parcels (APN's 687-500-018, 687-500-001 and 687-500-003) located southerly of East Palm Canyon, westerly of Date Palm Drive, northerly of the East Cathedral Canyon Flood Control Channel and D Street, and easterly of Van Fleet Avenue. The loan will be for 5 years, to accrue simple interest at the rate of 4.5% per year, all to be due and payable at loan maturity, with no prepayment penalty. Sale or lease proceeds for all or any portion of the collaterized real estate would be used to pay down or retire this CURC debt.
FISCAL IMPACT:
$2.5 million dollars from General Fund reserves secured by real estate.
ATTACHMENTS:
Loan Agreement
Promissory Note
Deed of Trust, Assignment of Rents, Security Agreement & Fixture Filing