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HomeMy WebLinkAbout7/21/1987 - MINUTES ,3 HINUTES of THE CITY COUNCIL AND COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS JULY 21, 1987 An Adjourned Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Boger;,. ;n the Council Chamber, 3200 Tahquitz-McCallum l!ay on Tuesday, Jul;; 21, 1987, a 3 p.m. ROLL CALL: Present: Council Agency Members B-ire- ; Foster, Smith and Mayor Bogert Absent: Council/Agency Member Apfelbaum REPORT OF POSTING OF AGENDA: Report of City Clerk: Agenda posted in accordance with Council policy on July 17, 1987 PUBLIC COMMENTS (3--minute limit per person) to either Council or Agency - None I. JOINT PUBLIC HEARING: PAIB2 - SALE OF TEXACO SITE, On July 15, Council and the Agency conducted the public hearing required prior to the sale of any property acquired by the Agency through tax increment funds. The site is the former Texaco Service Station site, 395 North Palm Canyon, acquired by g,he Agency in 1982, and proposed to be sold to Center Belardo Co. The matter was continued to this date. Redevelopment Director reported that following the last meeting, he met with Mr. Silberman to discuss alternates to a lease of the property; that Silberman proposed to purchase the property for $300,000, with $30,000 at the close of escrovr, with a ten Year repayment on the balance and a subordinate note for a con- struction loan, and any balance upon completion to be in the form of a deed of trust. He stated that the City has about $348,000 in the property, that Silberman owns the property in the back and desires to combine the properties for a retail-restaurant complex, for which he has potential tenants. Robert Silberman, 9255 kh Third, Beverly Hills, !;fated that he is ready to proceed with the project; that leasing of the property relates to `rinand ng for the project; that the lease proposal was intended to be onerous enough that it would ;-Puc be inviting to continue leasing after -five years, but rather to exercise the option to purchase; that once the building is erecter_, and permanent financing in place, it would make sense to buy the property, which he estimates to be in two years; that five years allows flexibility in the event something unforeseen happens, and the books generally think that long term leasing is akin to owning the property, and allows the bank time in which to re-market the property in event something happens, and it must be taken back; and that he has firm and semi--firm commitments from potential r,=staurants. He also provided a general description of the project and its relationship to the General Telephone Company parking lot. Agency Member Smith stated that the Agency wants to get its money out of the property, so it can be put to use elset,here in the Redevelopment Project Area. /) 1 CRA/Council Minutes 7-21-87 Page 2 1. TEXACO SITE (Continued) Mr. Silberman stated that he is not opposed to more onerous condi- tions which would require purchase after the 5th year, and would agree to rent increases of 15%; that he believes the City will recover its money quickly through sales and property 6.ax increases; and that banks do not require a subordination clause 'if long term leasing is in place, and his ownership of the rear property is a good security. Agency Member Birer stated that he originally objected to the lease aspect, but would not be adverse to it if the terms were onerous enough to preclude continuing without firsa, buying the property; and lease would be based on $351,000. fie stated that he would like to take another look at the detaiIs of the documentation, as well as preliminary plans for the project. Mr. Silberman also stated that he will be receiving a firm price on the demolition of the former Youth Center building, and would be willing to offer• it for firefighter training, provided it is completed by August 31. Consensus: Proceed with lease/purchase at $351 ,000, with stiffer terms beyond five years to make buyout more attractive at that point. LEGISLATIVE ACTION: (None Ready) ADJOURNMENT There being no further business, Mayor/Chairman declared the meeting adjourned to Tuesday, July 28, 1987, at 3 p.m. , in the Large Conference Room, City Hall . — JUDITH SUMICH City Clerk & Assistant Secretary