HomeMy WebLinkAbout19241 - RESOLUTIONS - 5/6/1998 RESOLUTION NO. 19241
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS, STATE OF CALIFORNIA,
APPROVING THE AGREEMENT WITH THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS FOR THE PURCHASE BY THAT CERTAIN
PARKING PARCEL LOCATED IN THE CITY OF PALM
IN SPRINGS, THE CONSTRUCTION OF PARKING
-- IMPROVEMENTS THEREON, AND THE OPERATION AND
y MAINTENANCE OF THE PARKING IMPROVEMENTS
WHEREAS, on July 7, 1992, the Community Redevelopment Agency
of the City of Palm Springs ("Agency") and Wessman Development
Company ("Wessman") executed that certain Disposition and
Development Agreement as supplemented/modified by that certain
letter agreement dated June 23 , 1993 (collectively "DDA") ,
authorizing Wessman to construct a residential condominium
development ("Residential Project") above a multi-level parking
structure on the Agency's Parking Parcel ("Parking Parcel") which
is comprised of approximately 72 , 000 square feet and is located at
151 South Palm Canyon Drive within the Plaza Mercado
retail/restaurant complex ("Plaza Mercado") in the Central Business
District Redevelopment Area of the City of Palm Springs,
WHEREAS, under the DDA, the Agency, through its Housing Fund,
agreed to purchase, and did purchase, the Parking Parcel from
Wessman for $2 , 800, 000,
WHEREAS, to effectuate the development on the Parking Parcel
under the DDA, the Agency, in 1993 and 1994, through its
contractors, undertook financial feasibility and architectural
design analyses (collectively "Feasibility Studies") of the
Residential Project,
WHEREAS, the Feasibility Studies concluded that the
Residential Project was not feasible because the costs necessary to
prepare the Parking Parcel for, and construct, the Residential
Project were prohibitive,
WHEREAS, in light of the conclusions in the Feasibility
Studies, Agency and Wessman executed a First Amended Disposition
and Development Agreement ("Amended DDA") to cancel that portion of
the DDA regarding the construction of the Residential Project, and
revise the Parking Parcel size, configuration and easements, as
required by design refinements to Plaza Mercado, thereby reducing
the total square feet of the Parking Parcel to 57 , 937 square feet
to accommodate offsetting benefits to the Parking Parcel and
provide public open space along the Palm Canyon frontage of Plaza
Mercado,
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WHEREAS, on January 15, 1998 , an appraiser, R. F. Sweet and
Associates of Palm Desert, California appraised the Parking Parcel
at $25 per square foot for a total appraised value of $1,448, 350,
WHEREAS, the City is desirous of purchasing the Parking Parcel
from the Agency for the total amount of $1, 706, 060, which
represents the appraised value of $1, 448 , 350, plus the cost of
building and site demolition of $79, 500 and added setbacks and
easements of $178 , 210, which total amount is to be paid by the City '
to the Agency's Housing Fund, pursuant to the terms of the
Agreement for Purchase and Sale of Real Property executed between
the City and Agency on the same date as the date of this Resolution
("Purchase Agreement"') ,
WHEREAS, the City is desirous of authorizing Wessman to
construct a 146 space public surface parking lot on the Parking
Parcel, including landscaping and lighting to current City
standards, for a total cost not to exceed $371,, 410, to be paid from
the city's Parking Fund to Wessman, pursuant to the terms of the
Amended DDA, which amount is significantly lower than the
engineer's estimate of $404 , 517 . 58 for the value of the parking
lot, as prepared by Sanborn A/E,
WHEREAS, the current unencumbered balance in the City's
Parking Fund is approximately $2 , 576, 808, which is adequate to fund
the $1, 706, 060 payment to the Agency for 'the purchase of the
Parking Parcel,
WHEREAS, the City is desirous of assuming ongoing operations
and maintenance responsibilities for the improved public parking
facilities to be constructed pursuant to the Amended DDA on the
Parking Parcel, and
WHEREAS, Section 33433 of the Health and Safety code requires '
two thirds (2/3) vote by the City Council that the consideration
for the Parking Parcel is not less than the fair market value at
its highest and best use under the redevelopment plan, or that the
consideration not be less than the fair reuse value at the use and
with the covenants and conditions and development costs authorized
by the sale agreement, and Section 33445 provides that the Agency
can pay the construction and improvement costs if the City
determines that (1) the improvements are of benefit to the project
area, (2) no other reasonable means of financing the improvements
are available to the community, and (3) the ;payment of funds for
the acquisition of land or cost of improvements will assist in the
elimination of one or more blighting conditions inside the project
area.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Palm Springs as follows:
Section 1. Recitals. The above recitals are all true and.
correct.
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Section 2 . Purchase of Parking Parcel. The City Council
finds that the purchase of that certain property located at 151
South Palm Canyon Drive within the Central Business District
Redevelopment Area of the City of Palm Springs, and referred to
herein as the "Parking Parcel" , is in the public interest and
necessity to facilitate the provision of sufficient parking within
the Central Business District Redevelopment Area of the City of
Palm Springs.
-- Section 3 . Purchase Price. The City Council authorizes
... the payment of $1, 706, 060, to be paid from the City's Parking Fund
to the Agency's Housing Fund, pursuant to the terms of the Amended
DDA, for the City's purchase of the Parking Parcel.
Section 4 . Construction of Parking Parcel Improvements.
Pursuant to Section 33445 of the Health and Safety Code, the City
Council authorizes the payment of the total cost not to exceed
$371, 410, to be paid from the City's Parking Fund to Wessman,
pursuant to the terms of the Amended DDA, for Wessman Development
Company to construct a 146 space public surface parking lot on the
Parking Parcel, including landscaping and lighting to current City
standards. Wessman Development is authorized to construct the
parking improvements pursuant to the amended DDA provided that
Wessman Development completes the parking improvements consistent
with the schedule in the amended DDA and subject to the delay
penalties contained therein.
Section 5. Operation of the Parking Facilities. The City
Council hereby agrees to assume ongoing operations and maintenance
responsibilities for the improved public parking facilities to be
constructed pursuant to the Amended DDA on the Parking Parcel.
Section 6. Findings. The City finds that:
a. Its proposed purchase price for the Parking Parcel equals
its fair market value of $1, 448, 350, as assessed by R.F.
Sweet and Associates on January 15, 1998 , plus $79 , 500
for the costs of building and site demotion and one third
for the costs of the added setbacks and easements for the
Parking Parcel acquired in conjunction with the
Residential Project,
b. The purchase of the Parking Parcel to facilitate the
construction of a public parking facility will benefit
not only in the Plaza Mercado complex, but also the
Central Business District Redevelopment Area in that it
will relieve the significant shortfall of parking
facilities in the area to meet the needs of persons
visiting or operating businesses therein,
C. The City has available in its Parking Fund sufficient
funds to finance the improvements to the Parking Parcel
and there are no reasonable alternative means of
financing same,
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d. The payment of the funds for the acquisition of the
Parking Parcel and costs of improving same to construct
a well designed, lighted, landscaped and engineered
public parking facility will assist in the elimination of
blight in the Central Business District Redevelopment
Area of the City of Palm Springs by serving the needs of
the retail,, restaurant and office developments in the
entire Central Business District Development Area, as
well as provide access for fire protection, trash removal '
and other service vehicles to the area.
Section 7 . pigency Payments. The Agency will, execute a
t promissory noe payable to the Housing Fund $546, 970, representing
$79 , 500 for one third (1/3) of the total building and site
demolition costs, $181, 575 for one half (1/2) of the acquisition of
housing/air rights, $107 , 685 for one half (1/2) of the
housing/structural upgrade costs, and $178 , 210 for one third (1/3)
of the acquisition of added setbacks/easements for the Residential
Project.
Section 8 . Housing Fund's Contribution. The Housing Fund
will write off the balance of its investment: in the Residential.
Project, after the payment by the City of the Purchase Price of
$1,706, 060, representing $1, 448 , 350 for the Revised Parking
Parcel's appraised value, plus $79 , 500 for one third (1/3) of the
total building and site demolition costs, and $178, 210 for one
third (1/3) of the acquisition of added setbacks/easements for the
Residential Project.
Section 9 . Required Vote. Based upon Section 33433 of the
Health and Safety Code, the City Council hereby adopts this
Resolution by a two thirds (2/3) vote.
ADOPTED this 6th day of May , 1998 . ,
AYES: Members Barnes, Reller-Spurgin and Mayor Kleindienst
NOES: None
ABSENT: Member Oden
ABSTAIN: Member Hodges
ATTEST:
City--Clerk City Manager
REVIEWED AND APPROVED AS TO FORM:
City Attorney
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