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HomeMy WebLinkAbout5/17/2000 - STAFF REPORTS (2) DATE: May 17, 2000 TO: CITY COUNCIL AND COMMUNITY REDEVELOPMENT AGENCY FROM: REDEVELOPMENT DIRECTOR APPROVAL OF MEMORANDUM OF UNDERSTANDING FOR CANYON, SECTION 14 AREAS BETWEEN AGUA CALIENTE BAND OF CAHUILLA INDIANSAND THE CITY OF PALM SPRINGSANDTHE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS RECOMMENDATION: That the City Council and Community Redevelopment Agency approve the Memorandum of Understanding between the Agua Caliente Band of Cahuilla Indians and the Agency for the development of Section 14 and the Canyon area. BACKGROUND: In July, 1999 and again in September, 1999, Agency staff proposed the consolidation of the ten (10) redevelopment project areas into a single area to facilitate budgeting, finance, and administration of the Community Redevelopment Agency. No other changes to the project areas were proposed, with the exception of time extensions allowed by statute under AB 1342. The eight project areas eligible for time extensions were extended in December, 1999. One entity protested the consolidation plan last year: the Agua Caliente Band of Cahuilla Indians. The tribe's argument was that they have significant investments in several project areas and were concerned that it was the intent of the Agency to spend funds outside the current project area boundaries in areas that currently lack funds. Specifically, their interest is in the Tahquitz-Andreas Project Area (where the Spa Hotel and Casino is located), Baristo-Farrell (the remainder of Section 14) and the Canyon Project (where they have recently purchased the Canyon Hotel). Based on the Tribe's protests, the Council urged staff to develop a process or outcome that was acceptable to both entities. Staff met on several occasions with the Tribal Planning Director and the Tribe's Special Redevelopment Counsel to develop a framework that gave the Tribe the comfort level it needed with the project area consolidation. Tribal staff's recommendation was to create two separate merged areas: one comprised of the Canyon, Tahquitz-Andreas, and Baristo-Farrell, and another area made up of the remaining areas. That became the recommendation of Agency staff. An additional outcome of that process is this Memorandum of Understanding for the Cooperative Development of the Canyon Area and Section 14, which contains language requiring the Agency to gain the Tribe's approval to spend tax increment generated in Merged Project Area # 2 (Section 14 and the Canyon) in the other project area. This agreementwas discussed in a Joint Meeting between the City Council and the Tribal Council,in December; both sides seemed more comfortable with two project areas after that meeting, and there was consensus on, though not final resolution of, most of the issues in the agreement. Both staffs continued to work together to fine tune the agreement. ^ � The final issue to be resolved was the exact language in Section 4, "Use of Tax Increment." The Tribal Council had approved an earlier draft that did not make mention of the Agency's desire to keep 20% Low/Mod Housing Setaside out of the agreement, but Agency staff felt that, given the State mandates related to housing, it was important for the Agency to preserve its flexibility to spend Housing funds as it felt appropriate — anywhere in the City —without another body reviewing those decisions. On May 9, 2000, the Tribal Council concurred and approved the language as amended. The Tribal Council has approved the attached document, and awaits Agency action. OHN . RAYM R velopment irector Approved by Executive Director ATTACHMENTS: 1. Resolution 2. Memorandum from Tom Davis, Tribal Planning Director 2. Memorandum of Understanding between Agua Caliente Band of Cahuilla Indians and the Community Redevelopment Agency Cam b • 2,. MEMORANDUM OF UNDERSTANDING FOR COOPERATIVE REDEVELOPMENT PROGRAM FOR CANYON, SECTION 14 AREAS BETWEEN AGUA CALIENTE BAND OF CAHUILLA INDIANS, THE CITY OF PALM SPRINGS, AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS THIS MEMORANDUM OF UNDERSTANDING ("MOU") is entered into this _ day of 2000, by and between the AGUA CALIENTE BAND OF CAHUILLA INDIANS acting through its Tribal Council ("Tribe"), a Federally-recognized Tribe, and the CITY OF PALM SPRINGS, CALIFORNIA, acting through its City Council ("City"), a municipal corporation and COMMUNITY REDEVELOPMENT AGENCY ("Agency'). This Agreement is made with reference to the following: RECITALS 1. The Agua Caliente Band of Cahuilla Indians ('Tribe") is a federally-recognized Indian Tribe governing itself according to a Constitution and exercising sovereign authority over the lands of the Agua Caliente Indian Reservation ('Reservation"). 2. The City of Palm Springs is a charter city, possessing full powers with respect to municipal affairs to regulate the territory under its jurisdiction and in accordance with the California Constitution, its Charter, and State law. 3. On or about July 18, 1983, the Redevelopment Agency of the City of Palm Springs ("Agency') adopted the Tahquitz Andreas Redevelopment Project Area, and on May 7, 1986, the adjacent Baristo-Farrell Project Area collectively encompassing property of approximately 483 acres near downtown Palm Springs known as Section 14, which area is also a part of the Reservation, with approximately 80 Indian Allotments having interests therein and with numerous third-party owners. 4. On or about July 19, 1991, the Agency adopted the Canyon Redevelopment Project area encompassing that property of approximately 746 acres in the historic Palm Canyon area, which area is also a part of the Reservation, with approximately 11 Indian Allotments having interests therein and with numerous third-party owners. NOW THEREFORE, the parties hereto enter into this Memorandum of Understanding (MOU) as follows: SECTION 1. GOAL. The Tribal Council, City and Redevelopment Agency enter this MOU to jointly prepare and implement (1) a land use plan which would maximize the economic value of the Reservation land consistent with community land use goal and (ii) a marketing plan for Reservation land which would include Agency financial assistance. The intent of the parties is to focus initially on two portions of the redevelopment project areas which are also a part of the Reservation. Those two areas are the Section 14 Area and the Canyon Area, as designated on Exhibit A. in addition, the parties agree to apply the principles identified herein in connection with other development opportunities that may arise from time to time with respect to Reservation land. The Goal is to be accomplished through a cooperative land use planning and redevelopment process as outlined in Section 2 below. This process will be overseen by a co-staff joint working group as detailed in Section 3. cc 0-_ r � SECTION 2. OUTLINE OF PROCESS. Tribal/City Pre-Project Meeting Property Profile Develop Land Use Plan Preliminary Economic Feasibility Analysis RFP/RFQ Preparation RFP/RFQ Developer Selection Exclusive Agreement to negotiate Land Assembly/ BIA Lease Preliminary Development Plans Submit Development Permits Applications Prepare CEQA/NEPA Documents OPA/DDA/DA Discussions OPA/DDA/DA Financial Evaluation Draft OPA/DDA/DA Public Hearings on Development Permits and OPA/DDA/DA Project & Agreements approved by Governing Bodies Construction Plans/Technical Check/Building Permits Project Construction/Completion SECTION 3. JOINT WORKING GROUP. At a staff level, a joint working group will be formed consisting of the chief operating officer, planning director, and redevelopment director of each entity, or the designee of any such official, and, as liaison official, a member of the governing body of each entity, and the chief legal officer of each entity as ex officio members. In addition, each entity may invite whatever additional personnel may be necessary for any topic discussed such as the finance officer, building official or similar officer. The joint working group shall review and make recommendations to the approving bodies concerning master land use plans; solicitation and evaluation of developer qualifications; solicitation and evaluation of development proposals; evaluation of development proformas; proposals for financial assistance; waiver or imposition of fees, taxes and assessments; evaluation of infrastructure needs and financing; site plan review; other similar matters. �� ' I The joint working group shall work within the phases outlined in Section 2. The joint working group will report periodically to the governing bodies concerning the progress of the project. SECTION 4. USE OF TAX INCREMENT. The Agency intends to merge the current ten (10) redevelopment project areas into two project areas, Project Area No. 1 and Project Area No. 2, as such shall consist of the Tahquitz-Andreas, Baristo-Farrell and Canyon project areas. The City and Agency agree that the tax increment generated by property which, as of the date hereof, are located within the proposed Project Area No. 2 will not be loaned or otherwise used outside of such Project Area No. 2 without the prior approval of the Tribe, except this shall not apply to 20% set aside housing funds spent outside the Project Area under Section 33334.6 of the Community Redevelopment Law, provided such projects are approved at a public hearing. SECTION S. GENERAL TERMS AND CONDITIONS. 5.1 Governinq Law. Unless inconsistent with Federal law which shall be supreme, the laws of the State of California shall govern the interpretation and enforcement of this MOU. 5.2 Modifications. Any alteration, change or modification of or to this MOU, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each party hereto 5.3 Approval. This MOU shall be approved by Resolutions of the Tribal Council and the City Council. 5.4 Termination. Either party may terminate this agreement, without prejudice to any legal position thereafter asserted, upon thirty (30) days written notice to the other party. IN WITNESS WHEREOF the City, the Agency and Tribe have executed this MOU as of the date first written above. "CITY" and "AGENCY" CITY OF PALM SPRINGS, CALIFORNIA, a municipal corporation, and COMMUNITY REDEVELOPMENT AGENCY, a public body, corporate and politic Mayor and Chairman Attest: City Clerk c to,6 "" Approved as to Form: City Attorney "TRIBE" TRIBAL COUNCIL OF THE AGUA CALIENTE AND OF CAHUILLA INDIANS, a Federally-recognized tribe Richard Milanovich, Chairman Approved as to Form: Tribal Attorney [End of Signatures] RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A MEMORANDUM OF UNDERSTANDING FOR CANYON, SECTION 14 AREAS BETWEEN AGUA CALIENTE BAND OF CAHUILLA INDIANS AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY of the City of Palm Springs, that the Memorandum of Understanding for Canyon, Section 14 Areas between Agua Caliente Band of Cahuilla Indians and the Community Redevelopment Agency of the City of Palm Springs, is hereby approved. ADOPTED this day of 2000. AYES: NOES: ABSENT: ABSTAIN: ATTEST: COMMUNITY REDEVELOPMENTAGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Executive Director REVIEWED & APPROVED AS TO FORM C1ra40�0 _ MINUTE ORDER NO. OF THE CITY OF PALM SPRINGS, APPROVING A MEMORANDUM OF UNDERSTANDING FOR CANYON, SECTION 14 AREAS BETWEEN AGUA CALIENTE BAND OF CAHUILLA INDIANS AND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS I HEREBY CERTIFY that this Minute Order of the City of Palm Springs, approving an Agreement with the Agua Caliente Band of Cahuilla Indians and the Community Redevelopment Agency for the joint development of Section 14 and the Canyon area, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 171" day of May, 2000. PATRICIA A. SANDERS City Clerk C