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HomeMy WebLinkAbout10/4/2000 - STAFF REPORTS (2) DATE: OCTOBER 4, 2000 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: REDEVELOPMENT DIRECTOR APPROVAL OF AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH BURNETT DEVELOPMENT CORPORATION ON A 19.17 ACRE AGENCY-OWNED PARCEL AND A 22.21 CITY-OWNED PARCEL NEAR THE CORNER OF SUNRISE WAY AND SAN RAFAEL ROAD RECOMMENDATION: It is recommended that the Agency approve the Exclusive Agreement to Negotiate with Burnett Development Corporation on a 19.17 + acre Agency-owned parcel and a 22.21 acre City-owned parcel at the corner of Sunrise Way and San Rafael Road to facilitate the development of a major single-family-home development. BACKGROUND: In February, 2000 the Agency received an offer from Burnett Development Corporation (the "Developer") to purchase a 19.17 + acre Agency-owned parcel and a 22.21 acre City-owned parcel at the corner of Sunrise Way and San Rafael Road for fair market value. The Developer is in the process of assembling land to build a major single-family-home development in the area. The City sold an 11,000 s.f. parcel of land to the Developer in 1998 as part of their land assemblage. The Agency's 19.17 acre parcel was acquired from the City as half of the Sunrise Mobile Home Park acquisition in 1995. Because the 19.17 acres has not been subdivided yet from the Mobile Home Park, there is not yet a legal description of the property. Still owned by the City is the 22.21 acres north of the Agency's land. This parcel forms the northern tier of the entire 100 acre parcel once entirely owned by the City, but which now includes Sunrise Norte (single family homes on City land leases), the Mobile Home Park (on land owned now by the Agency), and Coyote Run, a 140-unit 100% affordable apartment complex built and owned by the Coachella Valley Housing Coalition. As part of the negotiation, the Agency asked staff to commission a new appraisal on the properties. Since Burnett is not proposing to construct low-income housing on the land, they would need to pay "fair market" value, as the Low/Mod Housing Fund would not be able to write down their land cost. There remains a separate proposal from a non-profit housing group to purchase and rehabilitate the mobile home park, though the status of that offer is currently uncertain. That purchase is not affected by the Burnett offer, except that the lot line that now separates the 19.17 acre parcel from the 22.21 acre parcel would have to be moved to separate the mobile home park from the 19.17 acre parcel. A map is enclosed that shows the various properties. By a separate action, the City will convey the 22.21 parcel to the Agency for inclusion in the final Disposition and Development Agreement as Agency-owned property and to effectuate the lot line adjustment. The net sale proceeds, cRA -4 however, will be shared by the City and the Agency based on the respective value of the two (2) parcels. The developer has proposed a major new home subdivision around the Palm Springs Country Club and surrounding areas, including these parcels. They already own or control most of the land necessary for the project, though the Exclusive Agreement also covers a single land-locked parcel on the east side of Sunrise (the "Swad Parcel") that the developer is currently under negotiation to acquire. After the execution of the Agree ent, staff and the Developer will immediately proce to ne iating the Disp sition and Development Agreement. J S. RAY OJD Redevelopment irector APPROVED Executive Director ATTACHMENTS: 1. Resolution 2. Exclusive Agreement to Negotiate 3. Map of Properties CI�A • � � EXCLUSIVE AGREEMENT TO NEGOTIATE BURNETT DEVELOPMENT CORPORATION THIS EXCLUSIVE AGREEMENT TO NEGOTIATE ("AGREEMENT') , is made this day of , 2000, by and between the PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY ("AGENCY"), and BURNETT DEVELOPMENT CORPORATION ("DEVELOPER'). RECITALS The parties entered into this Agreement on the basis of the following facts,understandings,and intentions: A. The Agency is a public body,corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (Health and Safety Code Sections 33000, et seq.). B. TheAgency desiresto effectuate the Redevelopment Plan forthe Palm Springs Merged Redevelopment Project Area No. 2 (formerly, Project Area#9C) by providing for the development of no fewer than 400 single family homes in the area east and west of Sunrise Way north of San Rafael Road ("the Site"). C. The Developer desires to construct market rate, single-family housing at the Site. The term"Developer'as used herein includes the principals,partners,andjoint venturers of Developerand all obligations of Developer herein shall be thejoint and several obligations of such principals,partners, and joint venturers. D. The Agency and Developer desire,forthe period setforth herein,to negotiate diligently and in good faith to prepare an agreement whereby the Developer would develop such single family home development on the site. NOW,THEREFORE,and in consideration of the mutual covenants hereinafter contained, it is mutually agreed upon by the parties as follows: SECTION 1. NATURE OF NEGOTIATIONS. A. Good Faith. The Agency and the Developer agree that for the period set forth in Section 2 herein they will negotiate diligently and in good faith to prepare and enter into an agreement (the"DDA")consistentwith the provisions of thisAgreement forthe developmentof single family homes on the Site specified herein. The development will be subject to all rules, regulations, standards, and criteria set forth in the Redevelopment Plan, the City's General Plan, applicable specific plans and zoning regulations, and with this Agreement. B. Site. The Project shall be located upon the following real property,as shown in the"Site Map,"attached hereto as Exhibit"A" and incorporated herein by this reference. C. Construction and Ownership Concept. The Developers interest shall be fee. The design shall be consistent with the Agency's and the City's design guidelines. Developers architect shall work with the City's design guidelines to create a harmonious and attractive single family home UAor43 development with a distinct identity. The Developer is responsible for financing and constructing all improvements upon the Site. The single family home development shall consist of at least 400 homes. The Site will be subject to a declaration of covenants, conditions, and restrictions to govern the development and ownership of the development. D. Financial Provisions. The Developer is responsible for acquisition of the site and financing and constructing all improvements upon the Site. Developer shall pay for all necessary public improvements and pay all City's fees for processing the Project,without assistance from the Agency. E. Schedule. The Developer's goal is to develop the single family homes by December 31, 2003. The DDA shall contain a Schedule of Performance. Due to the need to possibly acquire at least one small parcel through condemnation, such parcel may be delivered in a later phase. F. Use and Transfer Restrictions. The DDA will generally be subject to restrictions on use and transfer during construction and for a specified period thereafter through recorded restrictions(i) to assure that the use will be consistent with and promote the single family home development, (ii)to prevent speculation, (iii)to assure that any transferee has the resources, capability and experience to successfully complete construction of the development, (iv)to assure long-term maintenance of the homes in a productive and attractive condition, and (iv)to provide an adequate financial return to the Agency. G. Property Acquisition. The Developer has proposed acquiring a 22.21 acre City-owned parcel, as well as a 19.17 acre Agency-owned parcel. The Agency completed an MAI appraisal in June, 2000,which offers a per-square-foot value on the two parcels. Negotiations between the City, Agency,and Developerwill proceed based on those appraisals.The parcels would be conveyed to the Developer through a Disposition and Development Agreement between the Agency and the Developer. Most of the rest of the project site is owned in fee by the Developer; however, the assembly of the entire site may also involve an involuntary acquisition of property. To the extent provided by law, the DDA will contain provisions that the Agency will consider the use of its power of eminent domain for site assemblage should voluntary negotiations be unsuccessful but Agency shall have no liability whatsoever to Developer if Agency should decide not to undertake condemnation. Nothing herein shall be deemed to obligate Agency to undertake such acquisition by condemnation. If the Agency shall undertake such acquisition, Developer shall be solely liable for the cost thereof, including the legal costs, attorney fees, the amount of just compensation, irrespective of the amount, or the award of attorney fees to the defendant, if awarded. H. Exclusivity. The Agency agrees for the period set forth in Section 2 that it will not negotiate with or enter into any agreement with any other entity for development of the Site, and the Developer agrees not to negotiate with any otherperson orentity regarding the developmentof a single family home development within the territorial jurisdiction of Palm Springs without approval of Agency. SECTION 2. PERIOD OF NEGOTIATIONS. The period of negotiation shall be two hundred seventy (270) days from the date this Agreement is signed by the Agency, and this Agreement shall terminate after the expiration of such period unless extended as follows: A. For sixty(60) days if an agreement has been prepared by the Agency and executed by the Developer,and has been submitted to the Agency but has notyet been approved by the Agency Board; or B. For thirty(30)days if the major business terms have been agreed to and the Executive Director determines that further negotiations are likely to result in a written agreement; or C. By mutual agreement of the parties. Developer understands and acknowledges that if negotiations culminate in an agreement,such agreement shall be effective only afterand if the agreement has been considered and approved by the Agency Board after public hearing thereon as required by law. SECTION 3. DEVELOPER'S RESPONSIBILITIES. During the period of negotiation, Developerwill prepare such studies, reports, and analysis as shall be necessary to permit Developerto determine the feasibility of its participation in the single family home development. The Developer shall fully cooperate in the development of the Project design and financing plan. During the period of negotiation and as requested by the Agency,the Developer shall submit to the Agency the following: A. Full disclosure of Developer's principals, partners, joint venturers, negotiators, consultants, professional employees, or other associates of the Developer who are participants or principals of the Project, and all other relevant information concerning the above. B. Statementof financial condition in sufficient detail to demonstrate Developers financial capabilities,those of its principals, partners,joint venturers, and those of its prospective Developers to satisfy the commitments necessitated by the Project. To the extent Developer wants such financial statements to remain confidential,they shall be supplied to the Agency only if the confidentiality of the statements can be maintained. C. All information necessary for the design of the Project to meet the Developers reasonable requirements. In addition,Developer shall take all actions necessary to obtain construction and permanent financing. The Developershall negotiate exclusivelywith the Agency's negotiating team and with no other persons unless expressly authorized to do so by the Agency's negotiating team. During the period of negotiations, no statements will be made by the Developer to the media without the approval of the Agency's negotiating team. No prepared statements shall be released to the media without the mutual consent of the respective negotiating teams. SECTION 4. AGENCY'S RESPONSIBILITIES. A. Preparation of Agreement. If agreement is reached on the business terms for inclusion in the agreement, the Agency shall prepare such agreement for consideration by the Developer. Agency's expenses shall be chargeable against the Good Faith Deposit. B. Zoning. The Agency will undertake all acts necessary to rezone such portions of the property as may be necessary to permit the single family homes on the Site. �" SECTION 5. GOOD FAITH DEPOSIT. Concurrentlywith the execution of thisAgreement,Developershall submit to the Agency a good faith deposit in the sum of Fifteen Thousand Dollars ($15,000.00) in the form of a cash deposit, cashiers'check,irrevocable letter of credit,or other form of security acceptable to the Agency to insure that the Developer will proceed diligently and in good faith to negotiate and perform all of the Developer's obligations under this Agreement. If the deposit is in cash or a certified cashiers' check, it shall be deposited in an interest-bearing account of the City. Interest, if any, shall be added to the deposit and held as additional security for the Developers obligations hereunder. Upon termination of this Agreement the balance, less charges deducted from the deposit pursuant to section 4(A), shall be returned to the Developer provided that the Developer has negotiated diligently and in good faith and carried out its obligations hereunder. If Developer has failed to do so, in as much as the actual damages which would result from a breach by Developer of its obligations under this Agreement are uncertain and would be impractical or extremely difficult to determine,Agency shall be entitled to retain the entire amount of said deposit, as liquidated and agreed damages. It is further understood that the DDA will require an increase in the good faith upon execution of the DDA. The aggregate good faith deposit then required shall be at least Twenty Five Thousand Dollars ($25,000.00). SECTION 6. MISCELLANEOUS. A. No commissions. The Agency shall not be liable for any real estate commission or any broker's fees which may arise herefrom. The Agency represents that it has engaged no broker,agent, or finder in connection with this transaction, and the Developer agrees to hold the Agency harmless from any claim by any broker, agent, or finder retained by the Developer. B. Appraisal of Properties. Upon successful negotiation of a Disposition and Development Agreement between Agency and Developer,the property shall be conveyed atfair market value based on an MAI appraisal submitted to the City Engineer and the Agency on June 15, 2000. If the DDA is not negotiated during the term of this Agreement, the appraisal shall be updated to determine new values for the property;Agency shall commission the update,which shall be paid from the Good Faith Deposit described in Section 5. C. Ownership of Documents. If the negotiations contemplated by this Agreement do not result in the execution of an agreement, Developer shall transfer to Agency copies of any reports, studies,analysis, site plan layouts,development cost estimates,engineering studies,memorandums, or similar documents regarding the proposed development and prepared during the period of negotiations,which copies shall become the property of Agency. Such transfer shall be made without any representation or warranty by the Developer as to the accuracy or sufficiency of the contents of such documents and shall be made subject to the rights of the preparers of such documents including, without limitation, the copyright(if any) associated with such documents. D. Purpose of Contract. It is expressly understood and agreed by the parties hereto that this is an Agreement regarding the conduct of contract negotiations only and does not convey any interest in the property whatsoever. it is further agreed and understood that this Agreement does not imply any obligation on the part of the Agency to enter into any agreement that may result in negotiations contemplated herein. CRC •A � E. Amendment. This Agreement may only be amended by a document in writing signed by the parties hereto. F. Time forAcceptance. This Agreement,when executed by the Developer and delivered to the Agency,shall constitute a binding offerwhich cannot be withdrawn phorto September 30,2000, so that the Agreement may be presented to the Agency Board. Notwithstanding any other provision herein to the contrary, Agency shall not be obligated hereunder unless and until the Agency Board authorizes the Chairman to execute this Agreement. G. Corporate Authority. The persons executing this Agreement on behalf of the parties hereto warrant that(i)such party is duly organized and existing,(ii)they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is formally bound to the provisions of this Agreement, and(iv)the entering into this Agreement does not violate any provision of any other Agreement to which said party is bound. IN WITNESS WHEREOF,the parties have executed this Agreement as of the day first above written. "AGENCY" COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic Chairman ATTEST: Agency Secretary APPROVED AS TO FORM: Agency Counsel [SIGNATURES CONTINUED ON NEXT PAGE] GM17 -A I "DEVELOPER" BURNETT DEVELOPMENT CORPORATION (Check One: _individual, _partnership, _corporation) [NOTARIZED] Signature Print Name: Print Title: [NOTARIZED] Signature Print Name: Print Title: Mailing Address: (Corporations require two signatures; one from each of the following: (A) Chairman of Board, President,any Vice President;AND(B)Secretary,Assistant Secretary,Treasurer,AssistantTreasurer, or Chief Financial Officer.) [END OF SIGNATURES I NOTARY JURAT(S) FOLLOW] OCR* up* $ STATE OF CALIFORNIA ) ) ss. COUNTY OF ) ON before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s)is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies),and that by his/her/theirsignature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. [SEAL] Signature STATE OF CALIFORNIA ) ) ss. COUNTY OF ) ON before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/theirauthorized capacity(ies),and that by his/her/theirsignature(s)on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. [SEAL] Signature C" I EXHIBIT"A" TO EXCLUSIVE AGREEMENT TO NEGOTIATE LEGAL DESCRIPTION OF THE PROPERTY PARCELO THAT PORTION OF THE SOUTHWEST QUARTER OF SECTION 36, TOWNSHIP 3 SOUTH, RANGE 4 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE SOUTH LINE OF SAID SECTION 36,THAT BEARS SOUTH 89` 55' EAST, A DISTANCE OF 544 FEET FROM THE SOUTHWEST CORNER THEREOF; THENCE NORTH 00"6' 05"EAST,AND PARALLEL TO THE WEST LINE OF SAID SECTION 36, A DISTANCE OF 160 FEET; THENCE NORTH 89' 55'WEST AND PARALLEL TO SAID SOUTH LINE, 120 FEET,TO THE TRUE POINT OF BEGINNING; THENCE NORTH 00'OS EAST 50 FEET; THENCE ALONG A CU RVE TO'THE LEFT HAVING A CENTRAL ANGLE OF 47°33'AN D A RADIUS OF 50 FEET AND ARC LENGTH OF 41.50 FEET; THENCE 42°22' EAST, 24.35 FEET; THENCE NORTH 890 55'WEST AND PARALLEL TO SAID SOUTH LINE 434 FEET MORE OR LESS TO THE WEST LINE OF SAID SECTION;THENCE SOUTH 00'6'05"WEST,ALONG SAID WEST LINE 105 FEET; THENCE SOUTH 890 55' EAST AND PARALLEL TO SAID LINE 434 FEET TO THE TRUE POINT OF BEGINNING; EXCEPTING THEREFROM THE WEST 40 FEET AS CONVEYED TO THE CITY OF PALM SPRINGS,CALIFORNIA MUNICIPALCORPORATION,BY DOCUMENT RECORDED OCTOBER 10, 1968 AS INSTRUMENT NO. 97820 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL Q LOTS 9 AND C,OF TRACT NO. 17642-1.AS SHOWN BY MAP ON FILE IN BOOK 122 PAGE(S)88, 89 AND 90 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; EXCEPTING THEREFROM THAT PORTION THEREOF LYING WITHIN TRACT NO. 26943-1, AS SHOWN BY MAP ON FILE IN BOOK 235 PAGE(S)84 AND 85 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; ALSO EXCEPTING THEREFROM THE EASTERLY 920 FEET OF LOT C; ALSO EXCEPTING FROM LOT C THAT PORTION THEREOF CONVEYED TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,CALIFORNIA,A PUBLIC BODY, CORPORATEAND POLITIC,BY DEED RECORDEDAPRIL25,1996AS INSTRUMENT NO. 148930 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL R LOT 1,OF TRACT NO. 17642-1,AS SHOWN BY MAP ON FILE IN BOOK 122 PAGES)88, 89 AND 90 OF MAPS. RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. 19#4 al TOGETHER WITH THAT PORTION OF LOT C OF TRACT NO. 17642-1, AS SHOWN BY MAP ON FILE IN BOOK 122 PAGES) 88, 89 AND 90 OF MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF LOT C; THENCE NORTHERLY ALONG THE WEST LINE OF SAID LOT C NORTH 000 15' 14" EAST 1,467.00 FEET ; THENCE SOUTH 89° 46' 28" EAST 50 FEET TO THE NORTHWEST CORNER OF LOT 1 OF SAID TRACT NO. 17642-1; THENCE SOUTHERLY ALONG THE LINE BETWEEN SAID LOT C AND LOT 1 OF TRACT NO. 17642-1; SOUTH 00° 15' 14"WEST 1467.00 FEET TO THE SOUTHWEST CORNER OF SAID LOT 1, SAID CORNER BEING ALSO THE SOUTHEAST CORNER OF SAID LOT C; THENCE WESTERLY ALONG THE SOUTH LINE OF SAID LOT C NORTH 89°46'28" WEST 50 FEET TO THE POINT OF BEGINNING. CieA - A it EXHIBIT"B" TO EXCLUSIVE AGREEMENT TO NEGOTIATE MAPS OF THE PROPERTY 1 PARCEL A MN 1149N70.007 10 \ - .__..:. N 3733'27'E RCFC MOLD:\ REMW1 N 1e'S9'41'E'- =�N 11'45'52'L\ &.355814� 0.53 FD 1 I�084 BENT 0.31 ' 1.115}5 FD 1 1/4-I.P. LS 23M -,a" fll,l S.P. LS 23" - N 1750'38'E 0.52 �.p - - -_'- N 1 1/4'LS 2344 (t�59� 0 OS 1,• 502.98 !UMiW 1W 4 ® 5 \\ 'I N11� 1 3 1, FD 3/41.P. RCFC\WCD s. PARCEL E \ \\ RCFC M0� N e941': ` s RCE B ycF \\ OC, sb 1 PARCEL D eery MN 00N70.OA -� FD '11W/B�iQ\EN TOP RCFC MON. Nr. I 00• FO 2X2^WIbICK'-., - qq •: FD 1 3/41.P\kCE �A?1 - I 1/21.P. RCE 8821 NOT A PART I EXIST. GOLF COURSE 7 \ \ FD 1 3�4, WE BB 4 PAIRCEI ''bfAB BY PRORATE , �1 AML 00F I P s4 AM 449-400-09eVACANT �..qqyy FD 11.P. LS 2344 FD 11.P. LS 23" � ' (())I 11 •.•II" r � PARCEL D di I N PART r AM 11119-4190-077 .b 0/'b/•C Gli Jam" I � F.L 85.00 <.77 ,I FD 11.P. LS 2344 PAR w..,.' N OT59'11'E 100.H 1 PAW. - A,,_, N 89'52357 1504.59 w: r P 511 i 5 N PA►ZCIRL UQ ^ SWAN EXIST. GOLF COURSE 'PAR PAR. '� ��ZCbL NOT A PART APN w►N60Y L J PAR --/ ,•- - N ww0007 -- _K N 1 TOWNSNP 1 -L-__-�I .. ._ - 5 3.94 O o N 8Wi 2,35Y!!2 i p TOy P Q � �'Ii �' �%� IN'MON.WELL 'LS 3561 SINGLE FAMILY RESIDENTIAL. e A 1 co, d I 77 EXHIBIT"IT' TO EXCLUSIVE AGREEMENT TO NEGOTIATE MAPS OF THE PROPERTY I f ° MII NPfiO.ON FD. 3/4• I.P. OPEN h VACANT �`;, N 89'52'351Y 2082.00 EXIST. DWA WELL SRES $ m 395 " N 89'52'3511' 1112.00 N 0.00 LOTIN N 89'52'3519 MOO LOT 9. 4 0 ' o9'o7E PARCEL C9DO �' cOPORTION LOT 9 © QTR AM NN0601f 7642-1 e MB.'22/88-90 Y PARCEL C �F n u' P49CFLQ -CITY VACANT -- — N 89-52'3514 1182.99 1 i COYOTE SPRINGS 11,• ,•� � APARTMENTS - PARCEL R NOT A PART FD. NNL ¢ TIN NORTH HALF VACANT DIRE l ROADS/�;' j �'. TRAILS (TYP) LOT 1 1' r- TR. 26943-1 1 I I �, MB. 235/84-85 - =1 $ (U I 1 AM 969-800-M d {II ZONE c nJOR7H ao�rrA�7 0f i '( `3 'H pysnicy owNE� SN�� r 8' i 1CJ — z 6 �n ::p �f I W 11 a $ IXISf. MOBILE IHOME FMK r II RS 65/73 g I • 1 ° z g 1 PARCEL R z I I 70 � beti I I LOT I I Q NI I I 9.'122/88 90 I I I I I I 14' 1 I N OO'O9'07•E 9 I 147.00 N 89'52'35W 1 1152 CI .00 35 5 . N 89'52'35'W 2150.93 vN ur N. NAIL 6: RN 2 cut A - A /Q RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH BURNETT DEVELOPMENT CORPORATION OF NEWPORT BEACH, CALIFORNIA FOR THE PURCHASE AND DEVELOPMENT OF AN AGENCY-OWNED AND CITY-OWNED PARCEL TO FACILITATE THE DEVELOPMENT OF A SINGLE-FAMILY HOME DEVELOPMENT IN MERGED PROJECT AREA #1 (FORMERLY PROJECT AREA#9-C) WHEREAS the Community Redevelopment Agency does own a parcel of land of approximately 40 acres in Merged Project Area #1, formerly known as the Project Area #9-C, which is divided between a mobile home park and a 19.17+ acre vacant parcel, which it acquired from the City of Palm Springs in 1995; and WHEREAS the City of Palm Springs does own a 22.21 acre parcel adjacent to the Agency-owned parcel and which was acquired for the development of affordable housing in the City; and WHEREAS a number of developments have been constructed on the entire 100 acre City-owned parcel which have restrictive covenants on them to preserve affordability, including the mobile home park, Coyote Run, and Sunrise Norte; and WHEREAS the City of Palm Springs shall convey its 22.21 acre parcel to the Agency to facilitate the development of the combined 39.38+ acre parcel with market rate housing to ensure a demographic balance in the area; and WHEREAS the Agency desires to sell the parcel to a Burnett Development Company so that it can return the land to productive use and facilitate additional development in the area around the site, including the generation of tax increment and low- and moderate- income housing setaside; and WHEREAS Burnett Development Company may ask for Agency assistance in acquiring a single land-locked parcel in the middle of their project; and WHEREAS Burnett Development Company has requested the Agency to enter into an Exclusive Agreement to Negotiate for a period of six months on the parcels while they determine begin the process of site planning and project approvals. NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, that the Exclusive Agreement to Negotiate between the Agency and Burnett Development Company is hereby approved. ADOPTED this day of 12000. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Executive Director REVIEWED & APPROVED AS TO FORM eL CO,