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HomeMy WebLinkAbout20172 - RESOLUTIONS - 9/19/2001 ' RESOLUTION NO. 20172 OF THE COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, CONCURRING WITH COMMUNITY REDEVELOPMENT AGENCY APPROVAL OF THETHIRD AMENDMENT TO A DISPOSITION AND DEVELOPMENT AGREEMENT WITH JOHN WESSMAN, DBA WESSMAN DEVELOPMENT COMPANY, SETTLING A LIQUIDATED DAMAGES CLAIM ARISING FROM THE CONSTRUCTION OF THE PLAZA MERCADO SHOPPING CENTER, 155 SOUTH PALM CANYON DRIVE, AND PROVIDING FOR THE CONSTRUCTION OF A SONNY BONO MEMORIAL FOUNTAIN AT THE SITE, MERGED PROJECT AREA #1 (CBD) ------------------- WHEREAS, the Community Redevelopment Agency of the City of Palm Springs, California("Agency") is constituted under the Community Redevelopment Law(California Health and Safety Code Section 33000 et. se to carry out the purpose as the redevelopment in the City of Palm Springs ("the City"); and WHEREAS, the Agency and Developer entered into that certain Disposition and Development Agreement dated July 7, 1992, which was approved by the Agency Board pursuant to Resolution No. 866 on June 23, 1992, as supplemented/modified by that certain letter agreement dated January 21, 1993 (collectively the "Original DDA"), with respect to the acquisition and development of certain real property located in the City of Palm Springs and more particularly described in the Original DDA; and WHEREAS, the Original DDA was amended by that certain First Amendment to Disposition and Development Agreement ("Bullock's Property") dated for reference purposes as of July 23, 1997 (First Amendment"); and WHEREAS, The Original DDA, as amended by the First Amendment, was further amended bythatcertain Second Amendmentto Disposition and Development Agreement dated for reference purposes as of September 22, 1997 ("Second Amendment"). The Original DDA, as amended by the First Amendment and Second Amendment, is referred to herein as the DDA. Capitalized terms used and not defined in this Third Amendment shall have the meanings ascribed as such terms in the DDA; and WHEREAS, as the date of this Third Amendment, the Developer has substantially completed the improvements to be completed by the Developer pursuant to the DDA ("Developer's Improvements"). During the course of completing Developer's Improvements, the Developer performed and completed certain work and improvements for the Agency ("Agency's Improvements"). The Agency's Improvements consisted primarily of work performed in connection with a parking lot located adjacent to Developer's Improvements, and a portion of Heritage Trail located adjacent to said parking lot; and ' WHEREAS, as a result of and pursuant to the work performed by Developer in connection with completing the Agency's Improvements, Developer has submitted billing statements to the Agency, in the total sum of Four Hundred Twenty-One Thousand Five Hundred Eighty-Four and 20/100 Dollars ($421,584.20) ("Developer's Claim"),the amount of which is not in dispute by the City, and of which the City has paid Developer Two Hundred Ninety-Three Thousand Five Hundred Eighty-Four and 20/100 Dollars n Res. No. 20172 Page 2 ($293,584.20). In addition, as a result of the liquidated damages provisions in the Second Amendment of the DDA, and the Agency's position with respect to Developer's completion ' of Phase I of Developer's Improvements, the Agency has submitted a request that Developer pay the sum of One Hundred Twenty-Eight Thousand and no/100 Dollars ($128,000.00) ("Agency's Liquidated Damages Claim"), the amount of which Developer disputes. (The Developer's Claim against the Agency and the Agency's Liquidated Damages Claim against the Developer are hereinafter sometimes referred to collectively as the "Dispute"); and WHEREAS, the Agency and Developer now desire to enter into this Third Amendment to the DDA for purposes of settling the Dispute and to avoid the costs, disruption, inconvenience and uncertainty of litigation to enforce the terms of the DDA, and releasing their respective claims relating to the Dispute; and WHEREAS, the City considered the staff report, and all the information, testimony and evidence provided at its regularly scheduled meeting of September 19, 2001. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Springs as follows: SECTION 1. The above recitals are true and correct and incorporated herein. SECTION 2. Pursuant to the California Environmental Quality Act (CEQA), the City Council and the Community 1 Redevelopment Agency find as follows: a) In connection with the approval of the DDA, the project is Categorically Exempt because all the work is to occur on existing facilities and there are no changes in the effects of the proposed project or the circumstances in which it is being carried out which require any modification of the Categorical Exemption. b) The Council and Agency find that the Planning Commission adequately discussed the potential significant environmental effects of the proposed project (land use, traffic/circulation, parking, air quality, noise, aesthetics, geology/soils, water quality, drainage, public utilities, public safety, archaeological/historic resources and light and glare). The Community Redevelopment Agency further finds that the Categorical Exemption reflects its independentjudgment. SECTION 3. The City Council concurs with the Agency proposal that, through this Third Amendment to the Disposition and Development Agreement, the Agency reimburse Developer in progress payments up to the Agency Liquidated Damages Claim Amount ($128,000) for the construction of a fountain and sculpture in memory of Sonny Bono, constructed on the Developer's Improvements at 155 South Palm Canyon Res. No. 20172 Page 3 Drive, under terms set forth in the Third Amendment. ' SECTION 4. The proposed project is consistent with the Implementation Plan for this area, insofar as this project will beautify the downtown and decrease blight. It will also add another tourist attraction in a commercial area heavily dependent on tourism. SECTION 7. Based on foregoing reasons, the City Council concurs with the Agency's approval of the Third Amendment to the Disposition and Development Agreement. SECTION 8. The City Manager is authorized to execute all necessary documents, in a form approved by the City Attorney.' ADOPTED this 19th day of September, 2001. AYES: Members Hodges, Jones, Oden, Reller-Spurgin and Mayor Kleindienst NOES: None ABSENT: None ATTEST: CITY OF PALM SPRINGS LIFORNIA /yam City Clerk City Manager REVIEWED &APPROVED