HomeMy WebLinkAbout3/11/1986 - MINUTES r
MINUTES OF
CITY OF PALM SPRINGS
CITY COUNCIL
AND
COMMUNITY REDEVELOPMENT AGENCY
MARCH 11 , 1986
An Adjourned Regular Meeting of the City Council and of the Community
Redevelopment Agency of the City of Palm Springs, was called to order
by Mayor/Chairman Bogert, in the Large Conference Room, City Hall ,
3200 Tahquitz-McCallum Way, on Tuesday, March 11 , 1986, at 3 p.m.
ROLL CALL: Present: Council/Agency Members Birer, Foster, Maryanov,
and Mayor/Chairman Bogert
Absent: Council/Agency Member Smith (Mr. Smith entered
the meeting shortly after the roll call )
(Note: The meeting was conducted in joint session in order to facili-
tate companion actions required of both bodies)
PUBLIC COMMENTS - None
LEGISLATIVE ACTION:
1 . AUTO SALES CENTER - PA4Bll
Recommendation: That the Council and the Agency, adopt certain
actions relative to the Auto Center:
Economic Development & Housing Coordinator reported that the
two parcels (8+ and 5+ acres) are shown as Lots 1 and 2 on
PM 18787, and the proposed actions do not relate to the back
acreage ; that the land write down is $2.40 per square foot,
with each dealer paying $2.40 per square foot for acquisition;
that the proposed loan from the Sewer Fund would be repaid,
at an interest rate of 8%, over a period of five years through
tax increment and new sales tax the City will receive based
on existing dealer sales levels, according to sales tax
projections of these two dealers only, without any projection
for increased profits for two years.
City Manager stated that public hearings were held February,
1986; that the Council/Agency has been governed by the idea
that this is a key investment, that the loan payoff will be
in 5-6 years, that there will be a net taxable income to the
City of about $500,000 annually, that the project would not
be in Palm Springs without the land write down, that the deal
is extremely fair to the City and to the dealer, and that
it is not unusual to make a short-term loan from reserve
surpluses. He stated that he could not recommend such a loan
from the General Fund at this time.
Economic Development & Housing Coordinator stated that the
project is not eligible for tax exempt bond financing.
The following resolutions were presented:
Agency:
a) Res 399 approving proposed acquisition and sale of land for an auto center.
b) Res 400 approving dedication of tax increment for said
auto center.
c) Res 401 approving a loan from the City to provide funding
for the auto center.
Council & CRA Minutes �)zip
3-11-86, Page 2
1 . AUTO SALES CENTER (Continued)
d) Res 402 amending the budget.
e) Res 403 approving DDA with Epsteen (Agr #146)
f) Res 404 approving DDA with Frink (Agr #147)
It was moved by Smith, seconded by Qirer, and unanimously
carried, Foster and Maryanov abstaining, than Resolutions
399 through 404 be adopted.
Council :
a) Res 15803 approving proposed acquisition and sale of land
for an auto center.
b) Res 15804 approving dedication of tax increment for said
auto center.
c) Res 15805 approving a loan from the City to provide funding
for the auto center
d) Res 15806 amending the budget.
e) Res 15807 approving DDA with Epsteen.
f) Res 15808 approving DDA with Frink.
It was moved by Smith, seconded by 8irer, and unanimously
carried, Foster and Maryanov abstaining, that Resolutions
15803 through 15808 be adopted.
2. CONVENTION CENTER CONSTRUCTION CONTRACT
Recommendation: That the Council approve contract with McDevitt
and Street Company for the construction of the Convention
Center; and that the Agency concur therein.
Economic Development & Housing Director reported that the
master developer has requested that the Council/Agency approve
a formal contract for the construction of the Convention Center,
which will be submitted to satisy USF&G condition and permit
the release of construction funds.
(139)
As a result of question by the Council as to why the company
had signed agreement with the hotel at a fee of 4%, and was
submitting agreement for the Convention Center at a fee of
41,%, verbal negotiation occurred between the Council/Agency
and Tom Stocksdale of McDevitt & Street, and a brief recess
was held to prepare appropriate language, the proposed agreement
was amended to Articles 5 and 6, as follows:
Article 5. "5.2 Upon final completion of all work. . . . . . .all
savings realized. . . . . . split as follows: 50% to Owner and
50% to Contractor. In no event shall the Contractor's share
of savings exceed $100,000. " and
Article 6. "6. 1 In consideration of the performance. . . . . .a
Contrator' s fee as follows: Four percent (4%) . . . . "
Council & CRA Minutes
3- I1-86, Page 3
2. CONVENTION CENTER (Continued)
Resolutions 15809 and 405 were presented :, after which, it
was moved by Maryanov, seconded by Birer, and unanimously
carried, that Resolutions 15809 and 405 be adopted.
ADJOURNMENT '
there being no further business, Mayor/Chairman declared the
meeting adjourned.
JUDITH SUMICH
City Clerk &
Asst. Secretary