HomeMy WebLinkAbout10/25/1982 - MINUTES 1 ,�M
CITY 0[" PALM SPRINGS
CITY COUNCIL MINUTES
OCTOBFR 25, 1982
An Adjourned Regular Meeting of the City Council was called to
order by Mayor Bogert, in the Large Conference Room, City Hall ,
3200 Tahquitz-McCallum Way, on Monday, October 25, 1982, at 9 a.m.
ROLL CALL: Present: Councilmembers Doyle, Foster, Maryanov
and Mayor Bogert
Absent: Councilwoman Ortner (entered later)
LEGISLATIVE ACTION:
1 . CULTURAL-CONVENTION CENTER - TOUCHE-ROSS AGREEMENT
Recommendation: That the Council approve agreement for r
feasibility analysis of a cultural-convention center.
Economic Development and Housing Director stated that
an agreement format was available at the time contract
was awarded to Touche-Ross on September 29, 1982; that ,
the company found the general agreement form unacceptable,
and a revised agreement was developed; that the revised (139 )
agreement was provided to Council for review, and two
changes have been indicated as desirable; that the company
is agreeable to one, but did not agree with the wording
of the second, i .e. , language added to Scope of Services,
Activity 1 , to include statement that the company would
preliminarily determine what facilities are needed, what
is the cost, and how it can be paid for, on the basis
of redundancy.
Councilman Maryanov stated that the company' s response
to letter from Finance Director sets forth that this will
be done; that although the letter is referred to in the
agreement, it should be specifically spelled out; that
he recognized it would be a preliminary study and relate
to preliminary recommendations.
ED&H Director stated that Mr. Ashbok of Touche-Ross indicated
to him that the wording may exceed what T-R envisioned
in Phase I of the contract, and suggested that if it is
a major area of concern, that the language be worked out
and returned to the Council , and that the language suggested
would be appropriate if it were doing both phases of the
proposal . y
Councilman Foster expressed concern as to moving ahead
in a rapid manner, and that if there were going to be
continued delays, perhaps theCouncil should look to the
other consulting firm.
City Manager stated that the consultant has been working
in the community, and met with staff and others within
10 days of awarding the contract; and that he shared the
concern that perhaps the issue may not be clearly tied-down.
Councilwoman Ortner stated that she felt the issue was
covered in the reference to the letter to the Finance
Director, and questioned staff possibility of telephone
contact with the consultant during the remainder of the
meeting, with report back prior to adjournment.
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' Council Minutes
10-25-82 Page 2
1 . CULTURAL-CONVENTION CENTER (Continued)
Councilman Maryanov stated that his concern relates to
clear communication with the consultant, and desire to
have it agree to that which it said in its letter to the
Finance Director that it would do, and that if it is re-
dundant, so be it; that if it not clear now, there
will be problems later; that it is not valid to leave CONT'D
it out only the basis of redundancy, and if it is for (139 )
some other reason, then that should be known and he could
understand why it would not want it included; that he
questioned the purpose of Phase I if it is not to do exactly
that issue, or how the process could proceed without first
; = answering those questions, at least preliminarily; that
the matter could be continued to October 26, at which
time the Council will have a study session, but as it
stood, he would be opposed ; and that he favors a valid
study, not pursuing litigation on enforcement of the agree-
ment.
City Attorney stated that the agreement, together with
its references, is binding, and since objections were
raised, he would want to make certain that those issues
were included ; and a reason other than redundancy should
be shown.
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Assistant City Manager suggested that the language be
changed to indicate, '{ reliminary recommendations"regarding
the three areas, as opposed to $reliminarily determine;"
after which, discussion was continued in order to permit
telephone discussion with the consultant. *
Assistant City Manager reported that the consultant agreed
to the revised language, i .e. , additional paragraph to be
added to Activity 4, following sub-paragraph c) , to read
as follows:
It is further understood that the Consultants will
provide the City with preliminary recommendations rela-
tive to what facility is needed, what it will cost, how
it could be paid for and possible financing methods.
It was moved by Doyle, seconded by Ortner,- and unanimously
carried, that Minute Order 3160, approving agreement as
revised, be adopted; Bogert absent.
* Mayor excused before discussion resumed.
2. CULTURAL-CONVENTION CENTER STEERING COMMITTEE
r Mayor announced names of the appointees to the Steering
Committee, and following discussion, it was moved by
Doyle, seconded by Ortner, and unanimously carried, that the
following appointments be approved: (139 )
John Doyle, Councilmember Peter Koetting
Eli Birer Caryl Williamson
Ralph Watt Charlene Betkijian
Jim Kenna
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Council Minutes
10-25-82 Page 3
3. McCALLUM CIVIC BUILDING - NEDERLANDER PROPOSAL
(The following relates to the current
discussion between the Redevelopment Director and Mr.
Deeb regarding disposition of the McCallum Building
site to the Nederlander organization for purposes of
developing a 1000 seat legitimate theatre. )
Mr. Maryanov stated his concerns relate to the price
of the property, reduction in number of months of pro-
duction will change the concept relating to amount
generated by the $1 per ticket override; resale pro-
visions ; relationship of library and other property r
to the sale, request is to acquire more for the price
originally asked for just the museum; including a 12%
interest factor; provide that specific amount to be paid
before the $1 per ticket override ceases to apply; and
establishing amount City is to receive prior to resale of the
property.
Redevelopment Director stated that Mr. Deeb has spent
time with Mr. Battcher as to the community's use of
the theatre, and compressing the production time in
order to permit the community to use it during some
of the season ; that there is potential for a mutually
satisfying arrangement in this regard, i .e. , Fundraiser
that might be done by Nederlander; that significant
shift from RFP is that Nederlander price will include
the library land with the library having air rights, (117)
its interest being revenue generation from the library
property; that consideration may be given to partial
acquistion of the Willard property; and that there is
some hesitancy regarding use of room tax funds to offset
some operating costs, and perhaps it would be better
to omit the library, and use room tax funds to help
in the offset and to serve as a continued negotiating
tool in terms of community' s continued use of the facility.
Councilman Foster expressed uncertainty as to the legitimacy
of the offer, stating that Harry Nederlander -is not
the Nederlander Theatres and Jimmy Nederlander who runs
the theatres knows nothing about the project; that Mr.
Deeb shows a three year loss, and he did not think it
would ever show a profit and it would only be a matter
of time before it closed permanently; that there are
high-cost and no parking problems; that closing of the
theatre will result in a blighted condition ; that there
has been no discussion between Mr. Deeb and the Desert
Inn Fashion Plaza regarding use of its parking for evening
use by the theatre; that it would be ridiculous to think
the hotels will providelimosine service to the theatre;
and that it appeared to him to be a "fishing trip" to
buy a piece of property from the City.
City Manager stated that the issue is to protect the
City from the kind of issues being raised, which demand
that such protection be written into any agreement;
and that the City needs to work with those who represent
themselves and make sure the City is protected.
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Council Minutes
10-25-82 Page 4
3. McCALLUM CIVIC BUILDING (Continued)
Councilwoman Ortner stated that the need for the theatre
has been established; that she did not believe the subject
site was the place for it; that she did not think it
would work; that people in the profession have indicated
that it cannot work based on $16 per ticket; that she
did not think it would show a prof.itafter three years;
that she understood the need for support through commercial
venture, but felt it could purchase commercial property
and achieve the same end; that there is nothing in writing
concerning sharing of parking, nor did she think it
would work in any such event; that there is a need to
compete with down-valley activity; that she did not
agree that a 2500 seat theatre was necessarily needed,
but felt a 1000 seat would be no better than the High
School auditorium.
Redevelopment Director stated that another location
would not make the operation more successful, and the CONT'D
operator believes the opposite, that the subject site (117)
has a greater potential for success ; that the parking
problem serves as a stimulus to resolving it; that the
Nederlander brothers represent different aspects of
` the industry, i .e. , Jimmy Nederlander is connected with
production, while Harry Nederlander is connected with
theatre development; that once a package is developed,
invitation is extended to the brothers for a piece of
the total product.
City Manager stated that Touche-Ross was doing some
} background review; that if the concept is deemed worthwhile
and there is a desire to make it work, then the issue
relates to the provisions that the Council wants to
insure be included in any agreement, once the parking
issue is resolved and the parties involved are validated.
Councilman Maryanov stated that he shared concerns of
Councilman Foster and recognized Councilwoman Ortner' s
opposition to the site, however, it is an offer to build
on that site and none other, and there is no one else
offering to build at another location; that request
is not being made for the Council to approve agreement
at this time, and if such were the case, he would be
opposed, although he favors the project; that the Chairman
of the Board is credible evidence as to the legitimacy
of who is represented, although he would want to see
financial capacity of Deeb, Nederlander or anyone else
involved.
Councilman Foster stated that he would like to see the
project work; that he has concerns about the $750,000
as a price for all of the property suggested.
.� Councilwoman Ortner suggested that consideration be
given to construction of the facility by the City with
a lease to Nederlander, which she felt would be more
successful and less of a risk.
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Council Minutes
10-25-82 Page 5
3. McCALLUM CIVIC BUILDING (Continued)
Councilman Maryanov stated that he would not favor having
the theatre "dark" without a substantial minimum rent: during
such a period.
Councilman Doyle stated that he subscribed to Councilman
Maryanov' s comments, and that the use could be a viable
alternative; that the Council has rejected other commercial
operations on the site, and other proposals ; that it
may not be appropriate location for a theatre, but effort CONT'D
should be made to work through and see if the issues (117)
can be resolved.
It was the consensus of discussion that contact: be made
with James Schlecht as a possible real estate negotiator
in this project.
4. COMMENDATION - MIKE McCRARY
It was moved by Ortner, seconded by Poster, and unanimously
carried, that Resolution 14409, commending former Police
Lt. Mike McCrary for• his service to the City and extending
best wishes for success as the new Police Chief of Signal
Hill be adopted.
ADJOURNMENT
There being no further business at 10:20 a.m. , Mayor pro '
tem declared the meeting adjourned.
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JUDITH SUMICH
City Clerk