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HomeMy WebLinkAbout20682 - RESOLUTIONS - 7/30/2003 RESOLUTION NO. 20682 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, , CALIFORNIA APPROVING THE AGENCY DISPOSITION OF PROPERTY IN A RESTATED AND AMENDED LEASE AGREEMENT WITH THE PARTNERSHIP FOR THE PERFORMING ARTS, L.P., INCLUDING AMENDMENTS AND SUBLEASES WITH PLAZA INVESTMENT CO., INC. AND THE WESSMAN FAMILY TRUST TO EFFECTUATE THE CONTINUED LEASE AND OPERATION OF THE FOLLIES AT THE PLAZA THEATER, IN MERGED PROJECT AREA# 1 A437C, A4410 and A467C 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. sea.)to carry out the purpose as the redevelopment in the City of Palm Springs ("the City"); and WHEREAS, the Community Redevelopment Law requires the City to approve all Agency dispositions of property including leases; and WHEREAS,the Agency acquired ownership interest in the Plaza Theater Properly from the City in 1998 and has continued in the original Lease to the Partnership for the Performing Arts L.P. ("PFPA"). WHEREAS, both parties wish to amend and restate the: Lease based on its actual operations and clarifying new developments since the original Lease; and WHEREAS,operation of the theater requires a sublease from the Agency of certain property known as the"Alley'owned by Plaza Investment Co., Inc. and as well as a sublease in the Agency's interest in the Courtyard owned by the Wessman (Family Trust; and WHEREAS, the continued operation of the theater provides a economic revitalization element to the downtown area of the City thereby carrying out a purpose of the redevelopment plan; and WHEREAS, Section 33430 of the Community Redevelopment Law allows that an agency may, "for purposes of redevelopment, sell, lease, for a period not to exceed 99 years, exchange, subdivide, transfer, assign, pledge, encumber by mortgage, deed of trust, or otherwise, or otherwise dispose of any real or personal property or any interest in property;" and WHEREAS, pursuant to Section 33433 of the Community Redevelopment Law, Notices of the Public Hearing concerning the Restated and Amended Lease Agreement and the attached Sublease Agreements were published in accordance with applicable law; and WHEREAS,the California Redevelopment Law requires certain findings before the Agency can enter into this Amendment, as follows: a) Section 33421.1 - that the City find that the provision of such assistance will effectuate the Redevelopment Plan; b) Section 33433 — the City finds that although the rent proposed herein in the Restated and Amended Lease Agreement and the Sublease of the Business Property Lease (Alley)as well and the Courtyard Sublease are slightly less than fair market value, that without Agency Assistance the proposed use of the 30aw.d Resolution 20682 Page 2 Theater would not be feasible and therefore it is necessary to provide ' Agency financial assistance to encourage the economic revitalization of the plan area. WHEREAS,the City has considered the staff report, and all the information,testimony and evidence provided during the public hearing on July 30, 2003. 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 Community Redevelopment:Agency finds that this project is exempt pursuant to California Code of Regulations Section 15301 as it concerns an existing facility. SECTION 3. The City hereby approves the Restated and Amended Theater Lease Agreement with the PFPA. SECTION 4. The City hereby approves the First Amendment to the Business Property Lease with Plaza Investment Co., Inc. and the Sublease Agreement to PFPA. SECTION 5. The City hereby approves the Restated and Amended Lease ' Agreement (Courtyard) with the Wessman Family Trust and the Sublease Agreement to PFPA. SECTION 6. The approval of the above listed agreements collectively effectuates the purposes of the Community Redevelopment Law as it is intended to eliminate blight and promote the health,safety and general welfare of the people of Palm Springs by encouraging economic activity in the redevelopment plan area. ADOPTED this 30th day of July 2003. AYES: Members Hodges, Reller-Spurgin and Mayor pro tem Oden NOES: None ABSENT: Member Mills, and Mayor Kleindienst ATTEST: CITY OF PALM SPRINGS, CALIFORNIA City Clerk City Manager REVIEWED & APPROVED AS TO FORM