HomeMy WebLinkAbout8/21/1984 - MINUTES d .
CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
AUGUST 21 , 1984
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 Tuesday, August 21 , 1984 , at 2:00 p.m.
ROLL CALL: Present: Councilmembers Birer, Foster, Maryanov, Smith &
and
Mayor Bogert
Absent: None
1 . AIRPORT LEASE - CORWIN D. DENNEY
Recommendation: That Council approve a forty--year lease
agreement with Corwin D. Denney for 2.616 acres of Airport
land for the purpose of constructing a large aircraft storage
hangar, at rental rate of $2.25 per sq. ft.
(51)
Director of Transportation reviewed his report, dated August
21 , 1984, noting that the recommendation was a culmination
of negotiations over several months; that the development
is consistent with the land use specified in the Airport Master
Plan; and that the Airport Commission established a lease
capitalization rate of 9% per year and a reduced valuation
of $2.25 per sq. ft. on the subject site (from an appraisal
valuation of $2.50 per sq. ft. ), in order to make the project
economically viable for the developer.
Airport Commissioners Gary Olsen and Robert Brock supported
the Airport Commission ' s recommendation. Harry Harris,
Combs-Gates Aviation, representing Corwin D. Denney, requested
that the Council consider reducing the land rental rate below
$2.25 per sq. ft.
Hal Williamson, representing Jimsair Aviation, stated that
recommended land rental rate was not in parity with other
airport leases; that it would be unfair to just use a small
parcel of land to build a large hangar; and that -the Council
should consider raising the land rental rate higher than the
$2.50 per sq. ft. appraisal value.
Following discussion, it was moved by Smith, seconded by
Maryanov, and unanimously carried that Resolution 15212,
approving agreement as recommended, be adopted.
2. SUMMER EMPLOYMENT
Recommendation: That the City Council amend 1984-85 budget
to allocate $4,500 to allow the Summer Employment Program
to continue until August 31 , 1984.
Economic Development Coordinator reported that the program (73)
has been extremely successful and provided employment to the
unemployed; that approximately three-fourths of the vacant
lots in the Desert Highland community have been cleared of
debris; and that it is anticipated that all vacant lots will
be cleared by August 31 , if the requested funds are approved.
Resolution 15213, amending the budget as recommended, was
presented; after which, it was moved by Birer, seconded by
Maryanov and unanimously carried, that Resolution 15213 be
adopted.
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Council Minutes
8-21--84 Page 2
Staff was directed to review the possibility of extending the term (73)
of the program beyond August 31, 1984.
3. CONVENTION CENTER - MEMORANDUM OF UNDERSTANDING
Recommendation: That City Council approve a Memorandum of
Understanding between the City and SENCA, outlining the major deal
points for• the Convention Center/Headquarters Hotel project, to
form the basis for a final development agreement between the City
and SENCA.
The City Manager gave an overview stating that the Convention
Center project, absent passage of Proposition 36 on November 1984
ballot., would be an extremely viable economic project for the City.
He stated that if Proposition 36 passes and given assumption that
Laventhol and Horwath projections were reduced by 10%, the project (139
would still be viable and the debt service could be covered if:
a) Equity reserves from the sale of the Convention Center to
private owners were allocated earlier than originally proposed; or
b) Palm Springs voters approved the 2% room tax increase, thereby
increasing funds available for general City purposes. In response
to City Manager question, SENCA representatives and City staff
responded that it was the intent of Point No. 8 of the Memorandum
of Understanding that SENCA and the City will negotiate a formula
for the divisions of any released equity reserve funds prior to
the completion of the final redevelopment agreement.
Resolution 15214, adopting a Memorandum of Understanding between
the City and SENCA, et al , which will form the basis for a final
agreement defining the development of the Convention Center and
Headquarters Hotel , was presented; after which, it was moved by
Foster, seconded by Birer and unanimously carried, Maryanov and
Smith abstaining, that Resolution 15214 be adopted.
COMMUNITY REDEVELOPMENT AGENCY:
Mayor declared the meeting adjourned for the purpose of convening
as the Community Redevelopment Agency; and upon reconvening,
business resumed.
ADJOURNMENT
There being no further business, Mayor declared the meeting
adjourned.
R;10—UMD1TV1I,IMICH
City Clerk