HomeMy WebLinkAbout1/19/2000 - STAFF REPORTS (2) DATE: JANUARY 19, 2000
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: DIRECTOR OF MANAGEMENT&BUDGET
APPROVAL OF AMENDMENT NO. 1 TO EXCLUSIVE AGREEMENT TO NEGOTIATE
WITH ANTHONY-STEPHEN'S & ASSOCIATES, INC. ON FOUR PARCELS AT THE
SOUTHWEST CORNER OF NORTH PALM CANYON DRIVE AND STEVENS ROAD
RECOMMENDATION:
It is recommended that the Agency approve an amendment to the Exclusive Agreement to
Negotiate with Anthony-Stephen's&Associates, Inc., extending the term of the
agreement by ninety(90) days, on a property consisting of four parcels totaling 2.75+
acres at the southwest corner of North Palm Canyon Drive and Stevens Road, in the
North Palm Canyon Project Area(#6), for a resort hotel and spa.
BACKGROUND:
On July 21, 1999 the Agency approved an Exclusive Agreement to Negotiate with
Anthony-Stephen's & Associates of Tempe, Arizona on the City- and Agency-owned
parcels at Stevens Road and North Palm Canyon Drive (the Casa del Camino and
Reservoir Parcels). The developer wants to build a high-end, approximately 120-
room hotel and spa on the site. They also need the adjacent 33,000 s.f. parcel and
adjacent 15,000 + s.f. parcel to the south to assemble enough land for a hotel that
size, and to have enough room for parking and access required by code.
Staff had originally requested the agreement be for a term of nine months because of
the complexity of the project. The Agency chose to reduce the term to six months
because of concern that the property would be tied up too long in this hot real estate
market, if the project did not move forward.
In August the developer produced a very preliminary site plan and building elevation
for the hotel project. Based on these preliminary plans, the project appeared to be
over-density for the site. The City's Planning Department also had concerns about
the indicated setbacks along the west property line, among other issues. The Agency
directed CRA staff to have the developer present the project to the Las Palmas
Neighborhood Alliance, as well as the Uptown group. The Las Palmas meeting was
held in October and the Uptown meeting held in November. All the community
meetings generated positive feedback toward the project.
Notwithstanding the community support, the project would still need to be approved
by the Planning Commission and would need to meet at least the minimum
development standards, in addition to being a high-amenity resort with quality
materials and construction. Planning staff still had concerns about the project design.
A series of meetings were held this month with Planning, the City Attorney, and CRA
staff, the result of those meetings was that the developer has concluded that he needs
to redesign to project to build fewer rooms (about 104) to increase setbacks and open
space, as well as reduce some of the building massing. However, the Agreement
expires January 21, 2000, so he is requesting three additional months to at least
complete the redesign to determine if the project"fits" on the site.
Therefore, staff is recommending that the Exclusive Agreement be amended to make
it for a period of nine months from the date of the original Agency approval, during
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which the developer will submit plans to Planning and staff will negotiate a
Disposition and Development Agreement with the developers.
The process of moving this project forward has been challenging, but the project
could still be an excellent addition to the North Palm Canyon Drive neighborhood in
the Uptown area, as well as to the City's inventory of desirable and exclusive hotel
and spa properties.
O RAYMO (`. ".,
Direct ofManagei ent&Budget :
APPROVED
Executive Director
ATTACHMENTS:
1. Resolution &L CW o V C D
2. Amendment No. 1 to Exclusive Agreement to Negotiate
RESOLUTION NO. 1092
OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING AMENDMENT NO. 1
TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE
WITH ANTHONY-STEPHEN'S & ASSOCIATES,
INC. OF TEMPE, ARIZONA FOR THE DEVELOPMENT
OF A RESORT HOTEL AND SPA IN THE NORTH
PALM CANYON REDEVELOPMENT PROJECT AREA
(AREA#6)
WHEREAS the Community Redevelopment Agency is responsible for eliminating blight
within the North Palm Canyon Redevelopment Project Area; and
WHEREAS in the project area are four blighted vacant parcels, one acquired by the
Community Redevelopment Agency in a nuisance abatement action of a dilapidated hotel, and
another a former irrigation reservoir; and
WHEREAS Anthony-Stephen's & Associates, Inc. of Tempe, Arizona has requested the
Agency to enter into an Exclusive Agreement to Negotiate on the parcels while they
negotiate a Disposition&Development Agreement with the Agency to acquire the Agency-
owned parcels, and work to assemble the two adjacent parcels; and
WHEREAS, the Agency approved the Agreement on July 21, 1999 for a term of six months,
but the developer finds he needs an additional three months to have time to complete a
redesign of the project.
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the
City of Palm Springs, that Amendment No. 1 to the Exclusive Agreement to Negotiate
between the Agency and Anthony-Stephen's& Associates, Inc. in a form approved by the
Agency Counsel, is hereby approved.
ADOPTED this 19th day of January , 2000.
AYES: Members Jones, Oden, Reller-Spurgin and Chairman Kleindienst
NOES: Member Hodges
ABSENT: None
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Executive
� Director
REVIEWED & APPROVED AS TO FORM. _--
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