HomeMy WebLinkAbout17949 - RESOLUTIONS - 9/16/1992 RESOLUTION NO. 17949
OF THE CITY COUNCIL OF THE CITY OF PALK
SPRINGS, CALIFORNIA, SUMMARIZING THE
DISPOSITION OF FEDERAL SURPLUS PROPERTY AT THE
PALM SPRINGS REGIONAL AIRPORT, RECONFIRMING THE
CITY'S ACTIONS OR USES RELATED TO !SAID
PROPERTY, AND SEEKING A FORMAL INSTRUMENT OF
RELEASE FROM THE FEDERAL GOVERNMENT FOR ALL
ACTIONS TAKEN THERETO PRIOR TO THE ADOPTION OF
THIS RESOLUTION.
WHEREAS, on December 4, 1939, in an act of Congress, the City of Palm Springs
was granted a lease of Agua Caliente Indian land for 25 years, commencing on
January 1, 1941, for the construction and maintenance of an airport; and
a
WHEREAS, on February 26, 1947, following World War II, certain airport
properties were declared surplus, and the City of Palm Springs was granted an
interim license to operate the airfield; and
WHEREAS, on August 20, 1947, the City of Palm Springs filed Resolution M2173
as its application to receive Federal surplus property, which property
included 100 acres on the airport. (Lots 1, 2, 3, 16 and 17) and a plot of
39.08 acres approximately one mile south of the airport in Section 19 for a
sewage disposal plant to serve the entire city: and
WHEREAS, on September 15, 1949, a quitclaim deed was granted to the City of
Palm Springs for approximately 140 acres, numerous sewer easements, and
numerous buildings; and
WHEREAS, on September 12, 1951, Torney General Hospital via the General
Services Administration, for the payment of Ten Dollars ($10), granted a
quitclaim deed to the City of Palm Springs for numerous sewer easements and
pipes leading to the 39.08 acres of property for the Sewer Plant granted in
1949, subject to "Grantee, its successors and assigns, will maintain and
operate the sewer line transferred hereby, together with its sewage disposal
plant, for the benefit of: the public. "; and
WHEREAS, despite the conflict between the quitclaim of 39. 08 acres in Section
19 for airport purposes and the 1951 quitclaim mandating operation of the
sewer plant on the 39.013 acres for the benefit of the public, the City,
through its consistent actions, determined that the property was not suitable
for airport use, that a sewer plant serving the entire community met the
public-benefit test, and that :free connection and sewer-processing benefits
for the airport were equivalent to airport revenues that might be generated
by leasing the property; and
WHEREAS, on April 26, 1959, an Instrument of Release on a ten-acre tract
situated in the northerly one-half off Lot 17 of the 1949 quitclaim deed was
granted for the use of airport properties :for other than aeronautical
purposes as the Administrator of Civil Aeronautics determined that said
parcel no longer served the purpose for which it was transferred to the City,
whereupon the County constructed its Administrative Building and the City of
Palm Springs constructed its Police Department, said release requiring that
any lease payments received be dedicated to the airport expansion and
operation; and
WHEREAS, on December 2, 1959, an Instrument of Release was approved from the
National Emergency Recapture Clause to enable the School District to t
construct a warehouse facility on five acres of airport property, and the
Federal Aviation Administration (FAA) approved a lease for $150, per year,
based on intangible benefits to the community and the airport; and
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Resolution No. 17949
Page Two
WHEREAS, in 1960, through its actions, the City recognized that the upcoming
termination of the 1941 lease of Indian property of a total of some 523.39
acres comprising an area that included major portions of both runways, and
the Federal Government's desire to allot all Indian lands in 20-acre and 40-
acre parcels could mean the demise of the airport; that without continued use
of the property the airport would no longer be viable; and that all previous
land transactions, including the 140 acres quitclaimed for airport purposes,
to guarantee the existence of an airport would be for naught; and
WHEREAS the Federal Government responded to the City's concern by suggesting
that the City purchase the property, and worked with the Bureau of Indian
Affairs to reach an appraised value for all the property; and
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WHEREAS the City's airport activity had no funds to secure this property and
the Federal Government stated that once the Cityowned the property, some
funds might be reimbursed; and
WHEREAS, to protect the public interest in its airport, following a vote of
the people, the City sold $2, 979,000 of General Obligation Bonds to purchase
520 acres in Section ►18, 74.54 acres in Section i12, and pay severance
damages for several avigation easements, the purchase price based upon an
appraised value of $4,800, per acre, the same value as the surplus property
being utilized for Civic Center purposes; and
WHEREAS the bond issue cited above was retired in 1991, with the City having
paid $1, 140,000 in principal and $1,049,000 in interest through 1971 at which
time the repayment was assumed by the airport including rebating $600,000 to
the City for previous payments, leaving the City with some $1,589,000 for
which it was not reimbursed, which equates to some 331 acres of land using
the 1961 appraisal value of land; and
WHEREAS, on May 25, 1962, an Instrument of Release was granted from the
National Emergency Recapture Clause for the construction of the State of
California's Department of Motor Vehicles on approximately 1.5 acres of Lot
17; and
WHEREAS, on August 26, 1962, the City requested release of Lots 1, 2, 3, 16
and 17 for Civic-Center purposes, citing intangible benefits to accrue to the
airport; and
WHEREAS, on December 28, 1962, Lots 1, 2, 3 and 16, except for the southerly
710 feet, were released from the National Emergency Recapture Clause, and Lot
17 and the southerly 710 feet of Lot 16 were released from all conditions for
the purpose of leasing a portion or portions for further development of a
Civic Center; and
WHEREAS, on January 30, 1963, an FAA official named K. K. Kellner transmitted
a letter with the Instrument of Release concerning Lots 1, 2, 3, 16 and 17
which stated "pursuant to your initial request of 8/28/621 which was
interpreted by the City as accepting the intangible benefits cited therein,
coupled with a letter stating that net proceeds from any leases of the
property were to go to the Airport and that there was no need for a fixed
amount to be paid by the City, the City was led to believe the Federal
Government approved developing a Civic Center on this Federal surplus
property without any payments to the airport since no net proceeds could be
generated by the City's leasing property to itself; and
Resolution No. 17949
Page Three
WHEREAS, in response to the City's inquiry in using airport property for the
City's Corporation Yard, the City received correspondence from T. A. Wendland
of the FAA dated July 17, 1967, stating that "such property may be used by a
local agency for public purposes even for nominal consideration if the public
purpose is entirely compatible with the development and operation of the
airport. 'Compatible with' connotes a non-interfering use and a use '
beneficial to the airport. " The facility which was constructed is utilized
to maintain all airport vehicles and provides facilities for some airport
maintenance personnel; and
WHEREAS, on September B, 1975, the! City received an Instrument of Release for
Parcel 17 which fully released the property, even for sale, in exchange for "
$14,000 paid to the airport fund; and .
WHEREAS, FAA Order 5190.6, Change 2, Paragraph 122.f(1) and (2) addresses
"lease, sale or disposal" of surplus property considering intangible benefits
"In determining whether fair market value is to be received from a proposed
non-aviation use of surplus airport property, the consideration need not be
monetary" and 0. . .conveyance. . . may be consistent with the intent of the law
if the resulting. . . . .directly benefits the airport or enhances its efficiency "
or utility to a degree commensurate with the value of property involved.
Therefore, the value of these intangible benefits may be used as an offset
against fair market value. . . . "; and
WHEREAS the FAA and its predecessor agencies have reviewed the books and
records of the Palm Springs Regional Airport, annually, and never have
objected to the foregoing arrangements since the initial granting of the
lease in 1939; and
WHEREAS the Department of Transportation has performed an audit, recently, of
the FAA's oversite of the Palm Springs Regional. Airport and has concluded,
preliminarily, that the City should pay on the order of $1. 2 million dollars,
annually, to the Palm Springs Regional Airport as fair market lease for the +
following parcels: City Hall, Corporation Yard, and Sewer Plant; and
WHEREAS, when the Palm Springs Civic Center vas developed on the above-
referenced property, the City had other usable sites upon which to locate its
Civic Center, including closer to the City's commercial core, and, bad the
City been aware that the compensation it had already paid for the airport
parcels was inadequate and that continuing fair market rental was required,
the City would have acted differently with regard to location of the Civic
Center including City Hall, the Corporation Yard, the Police Department, and
the Cogeneration Plant; and
WHEREAS the City performed a critical role in stepping forward and financing y
acquisition of the airport, whereas the City has contributed significant
consideration toward acquisition of the airport property and facilities,
whereas non-monetary consideration is included as rent, whereas the Federal
Government was aware of the City's public-purpose use of airport property
and, through correspondence cited above, informed the City that a lease for
nominal consideration for a public purpose was acceptable, whereas the
Federal Government has performed periodic reviews since 1962 and never
objected to the City's arrangement with the airport, whereas the City has
relied, detrimentally, upon the Federal Government's representations in
locating its Civic Center on airport property, and whereas to now alter the
City's arrangement with the airport would create great economic hardship for
the City of Palm Springs and its residents.
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Resolution No. 17949
Page Four
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NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs
as follows:
Section 1. The City of Palm Springs reaffirms its commitment to take all
actions necessary to ensure the continued viability of the
Palm Springs Regional Airport as it has always done witnessed
by the General Obligation Bond Issue of 1961 which prevented
the untimely demise of the airport.
Section 2. The City of Palm Springs reaffirms its commitment to operate
the 39.08 acres in Section 19 as a Sewage Disposal Plant for
the benefit of the public and will continue its practice of
providing the intangible benefits to the airport of free
^ sewage disposal processing, free line maintenance on the
airport, and free connections.
Section 3. The City of Palm Springs reconfirms its leasing of five acres
on Lots 1 and 2 of the original quitclaim deed of surplus
property for a school district facility for the nominal amount
of $150, per year, as approved by the FAA, running through the
year 2012, at which time any reuse for other than airport
purposes will be at full-market value with payments to the
airport.
Section 4. The City of Palm Springs reaffirms its previous position, as
' demonstrated by all previous actions, that all properties
utilized for Civic Center Facilities, being separate from the
airport by streets or other barriers, cannot serve an aviation
need; that only public facilities meeting vital public need
will he placed on the property; and that Federal surplus
property was released for the purpose of the Civic Center as
long as net proceeds go to the airport which occur if the
property is leased to other than the owner of the property,
the City of Palm Springs.
Section 5. The City of Palm Springs reaffirms its use of 12 acres an a
portion of Lot 3 of the original grant of surplus property for
Corporation Yard/Maintenance Facilities, 11. 149 acres on the
southerly 710 feet of Lot 16 of the original grant of surplus
property for Civic Center development, and 39.08 acres in
Section #t19 of the original grant of surplus property for a
Sewage Plant, for a total of 62.229 acres with compensation to
the airport being offset by the actions taken by the City
Council to purchase land of similar value under the 1961
General Obligation Bond Issue, thus assuring the airport's
• long-term existence.
Section 6. The City of Palm Springs declares that any future uses of
airport property for other than airport purposes subsequent to
the adoption of this Resolution except for the Civic Center
+� Facilities and the operation of the Sewer Plant will be at
fair-market value with payment to the airport even though it
recognizes that the airport is a City of Palm Springs'
facility.
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Resolution No. 17949 1
Page Five
Section 7. The City of Palm Springs requests a formal Instrument of
Release from the FAA or via Congressional act that recognizes
all former actions taken by the City prior 'to the date of this
Resolution to develop a Civic Center and operate a Sewer Plant
on surplus property were taken in the best interests of the
airport, and that such uses may continue, in perpetuity,
establishing that all necessary compensation to the airport
occurred in 1961 when the City took the action to sell General
Obligation bonds to purchase land vital to the operation of
the airport and on which runways were in existence.
ADOPTED this 16th _ day of _September 1992
AYES: Councilmembers Hodges, Lyons, Reller, Schlendorf and Mayor Maryanov
NOES: None
ABSENT: None
AT'f,E's CITY M SPRING L '�ORNIA
City Clerk ity Manag
REVIEWED & APPROVED
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128.RES
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FEDERAL SURPLUS PROPERTY - QUITCLAIMED 1949
Res. No. 17949 100 ACRES
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