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Home My WebLink About9/6/2006 - STAFF REPORTS - RA.2. Of QAIM Spy iy u ,n 9�lFORC��P. Community Redevelopment Agency Staff Report DATE: SEPTEMBER 6, 2006 CONSENT CALENDAR SUBJECT: APPROVAL OF AMENDMENT NO. 3 TO AN OWNER PARTICIPATION AGREEMENT WITH PACIFIC HOSPITALITY GROUP ESTABLISHING ' THE TERMINATION DATE OF DECEMBER 31, 2006 FROM: David H. Ready, Executive Director BY: Community & Economic Development Department SUMMARY: The Agency currently has an Owner Participation Agreement with the Pacific Hospitality Group.dating to the early 1990's. In 1996, the Agreement was extended to 2008 if the Owner constructed the Mountain Falls Golf Preserve, but would expire in June 2005 if with they failed to do so. The owner proceeded with the entitlement of the course, which was approved by the City Council in March, 2000. The EIR for the project, however, was subsequently invalidated by the courts. In June 2005, the Owner asserted that the failure to construct the course due to the court action should not have invalidated the 2008 term. Since that time staff has been working on a resolution of the issue with the Owner. This OPA Amendment settles the issue by extending the expiration of the OPA by eighteen months, until December 2006. This is important to the Owner because there is a rebate payment that was due in July 2006. This amendment allows the payment of that rebate, and a half-payment in early 2007, A Budget Resolution in the amount of $180,000 is also included for approval. ITEM NO.ORAZ RECOMMENDATION: 1. Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 3 TO A TO AN OWNER PARTICIPATION AGREEMENT WITH PACIFIC HOSPITALITY GROUP ESTABLISHING THE TERMINATION DATE OF DECEMBER 31, 2006" 2. Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE CRA BUDGET IN THE AMOUNT OF $180,0001, FISCAL IMPACT; This action would allow a payment to the owner of approximately $120,000 as part of the July reba , as well as a payment of about half that amount in early 2007. Z &--2�/ J hn S Ray o d, Director of Tom Wilson to unity conomic Development Assistant City Manager David H. Ready, Execu iireclor Attachments: 1. CRA Resolution 2. Amendment No. 3 to the Owner Participation Agreement 3. Budget Resolution RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT ' NO. 3 TO A TO AN OWNER PARTICIPATION AGREEMENT WITH PACIFIC HOSPITALITY GROUP ESTABLISHING THE TERMINATION DATE OF DECEMBER 31, 2006 NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows.- SECTION 1. This Amendment No. 3 to the Owner Participation Agreement with the Pacific Hospitality Group, is hereby approved. SECTION 3. The Executive Director, or his designee, is hereby authorized to execute on behalf of the Agency the Amendment, in a form approved by Agency Counsel. ADOPTED this day of , 2006. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED & APPROVED AS TO FORM THIRD AMENDMENT TO OWNER PARTICIPATION AGREEMENT THIS THIRD AMENDMENT TO OWNER PARTICIPATION AGREEMENT dated as of 12006 (`Third Amendment") is made and entered into by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic ("Agency") and PACIFIC HOSPITALITY GROUP (`Participant"). RECITALS A. Agency and Participant entered into that certain Owner Participation Agreement, dated January 7, 1991, a First Amendment to Owner Participation Agreement, dated February 5, 1992, and a Second Amendment to Owner Participation Agreement, dated October 4, 1996 (collectively the "OPA"). B. A dispute has arisen between the Agency and the Participant regarding the termination date of the OPA. C. Agency and Participant have reached agreement regarding a full settlement and discharge of all claims between the parties and memorialize a final, agreement upon termination date of the OPA in the form of this Third Amendment to Owner Participation Agreement. NOW, THEREFORE, for and in consideration of the mutual agreements contained herein, Agency and Participant agree as follows: 1. Term. Article IV.C.1 of the OPA is hereby deleted in its entirety and the following is substituted in its place and stead: �1� IS "1. Term. The Advance shall be repaid to Participant within a term (the 'Term') commencing on the date that Agency's obligation to repay the Advance is perfected in accordance with Section IV.B, above, and terminating December 31, 2007." 2. Amendment to Recorded Memorandum. Concurrent with the execution of this Third Amendment, the parties shall execute, acknowledge and deliver to the City Clerk, for recordation, a modification of the Memorandum of Owner Participation Agreement in the form attached hereto as Exhibit "A". 3. Counter Parts. This Agreement may be signed in counter parts. 4. No Other Changes. Except as herein otherwise specifically provided, the OPAS shall remain unchanged and continued in full force and effect until December 31, 2006. 5. Release. In consideration of the establishment of a revised Term as provided above, Participant fully and forever completely releases, acquits, and discharges the Agency, its agents, officers, employees, consultants, and representatives from any and all claims, costs, demands, damages, attorneys' fees, and rights which arise from, or are directly or indirectly related to, or are connected with, the Agency's performance of its obligations or its failure to perform any obligation under the OPA at any time prior to the date of this Third Amendment. 6. Preservation of Development Rights. Participant retains the right to apply for or otherwise pursue additional amendments to the OPA or a new ti7�CID41 - 2 - OPA that involve new or modified development opportunities or concepts that include all or a portion of the Subject Property. i IN WITNESS WHEREOF, the parties have entered into this Third Amendment as of this day of , 2006. "AGENCY" COMMUNFTY REDEVELOPMENTAGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA,apublic body, corporate and politic. Executive Director ATTEST: APPROVED AS TO FORM: By: Secretary Douglas Holland, Agency Counsel "PARTICIPANT" PACIFIC HOSPITALITY GROUP, a Sole proprietorship William H. McWethy, Owner - 3 - L)F� � RESOLUTION NO, 1301 A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE FISCAL YEAR 2006-07. WHEREAS Resolution 1301 approving the budget for the fiscal year 2006-07 was adopted on June 7, 2006; and WHEREAS, the Executive Director has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 21611, adopting the budget for the 2006-07 fiscal year is hereby amended as follows: SECTION 1. PURPOSE: To meet obligations under extension of OPA with Pacific Hospitality Group. SECTION 2. ADDITIONS, Fund Activity Account Amount 851 8203 65014 $180,000 SECTION 3. SOURCE. Fund Activity Account Amount 851 Fund Balance $180,00 ADOPTED this 6th day of September, 2006, David H. Ready, Executive Director ATTEST: James Thompson, City Clerk Resolution No. Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California