HomeMy WebLinkAbout10/10/1989 - MINUTES 417 CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
OCTOBER 10, 1989
An Adjourned Regular Meeting of the City Council was called to order
by Mayor Bono in the Large Conference Room, City Hall , 3200
Tahquitz-McCallum Way, on Tuesday, October 10, 1989 at 2 p.m.
ROLL CALL: Present: Councilmembers Apfelbaum, Broich, Foster,
Neel and Mayor Bono
Absent: None
REPORT OF POSTING AGENDA:
City Clerk reported that the agenda was posted in accordance
with Council procedures on October 6, 1989.
PUBLIC COMMENTS: None
REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the
purpose of convening as the Community Redevelopment Agency; after
which, members reconvened as the City Council .
LEGISLATIVE ACTION:
1. MARIE CALLENDERS RESTAURANT
Recommendation: That the Council approve CDBG Economic
Development Loan of $450,000 to McGrath/Brown, A2778; and
award contract for purchase of restaurant equipment to Coastline
Design Inc. , for $450,000, A2779. Item continued from 10-4-89.
Housing Specialist reported that the project qualifies for
a CDBG Economic Development loan, in that it will generate
new jobs, i .e. , ninety, of which one-half will be low and
moderate income level employees; that the City would be in
a second trust deed position, after the bank, in addition
to a personal guarantee of McGrath/Brown; that the loan would
be full amortized over fifteen years, at 5% interest - the
proceeds from which would be returned to the CDBG Fund for
future use; that the project contains approximately 9,700
square feet including a mezzanine theater, and will cost about
$2 million; that DeBartolo will cover the cost of tenant
improvements as part of the lease; and that McGrath/Brown
have received loans of $1 million from a bank, and $550,000
from SBA, and $250,000 cash for start-up above the capital
equipment. She stated that the favorable interest rate helps
to make the cash flow work; that the developer has retained
the general manager of the Marie Callenders facility on Wilshire
Blvd. ; and that the purpose of the CDBG loan program is to
assist in cases where the developer has exhausted all other
means of financing.
Mayor stated that the developer is in a tough situation with
so much of the financing leveraged, and once the restaurant
is started, it will take a sharp operator to stretch the
resources to cover the lean off-season months.
MO 4454 and 4455, as recommended, were presented; after which,
it was moved by Foster, seconded by Neel , and unanimously
carried, that MO 4454 and 4455 be adopted.
Council Minutes 4 1 A
10-10-89 Page 2
2. MISS CALIFORNIA PAGEANT - FUTURE EVENTS
Recommendation: That the Council approve a 3-year contract
with the Miss California-USA Pageant, for annual pageants
at the Convention Center, at a cash cost to the City of $30,000
for 1990.
Director of Community Services & Promotions stated that the
the funding would be covered by the following departmental
participation: Convention Center, $15,000, plus staffing;
Airport, $5,000; and Community Services & Promotions $10,000
(Special Events and Tourism divisions each paying $5,000) ;
and that the City Attorney' s office was not satisfied with
the agreement in terms of lack of specifics as to what the
City will commit to in terms of "help," and she suggested
that there could be give and take by each party to make the
events work.
Councilmember Apfelbaum stated that the event has resulted
in media coverage worth a lot of money, and is an event
occurring during the first week in August.
Assistant City Attorney stated that his concern was that there
is not enough definition in terms of what the word, "help,"
means, and though that the agreement could be modified to
make it clear that there was no other financial assistance,
than as stated by the Director.
Director of Community Services & Promotions stated that the
contract would also be specific to make certain the City has
control over the fifteen minute segment that is on State-wide
television.
Resolution 16923 was presented; after which, it was moved
by Apfelbaum, seconded by Neel , and unanimously carried, that
R16923 be adopted, subject to modification of the agreement
to define the extent of assistance, and control over the
televised segment.
ADJOURNMENT
There being no further business, Mayor declared the meeting
adjourned.
�— JUDITH SUMICH
City Clerk