The URL can be used to link to this page

Home My WebLink About9/6/2006 - STAFF REPORTS - RA.3. �O pALM SA9 iy G+ � N hf M1 nT r �RoYAYee♦ ��JFp RNtiP» _Community Redevelopment Agency Staff Reliort DATE: SEPTEMBER 6, 2006 CONSENT CALENDAR SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH NEXUS DEVELOPMENT CORPORATION- CENTRAL DIVISION FOR A 5.7 ACRE AGENCY-OWNED PARCEL AT THE SOUTHEAST CORNER OF ANDREAS ROAD AND CALLE EL SEGUNDO FOR THE PURPOSE OF DEVELOPING A HARD ROCK HOTEL AT THE SOUTHEAST CORNER OF CALLE EL SEGUNDO AND ANDREAS ROAD, MERGED REDEVELOPMENT PROJECT AREA #2, EXTENDING THE TERM TO DECEMBER 31, 2007 FROM: David H. Ready, Executive Director BY: Community & Economic Development Department SUMMARY: The Agency currently has an Exclusive Agreement to Negotiate with Nexus Development Corporation-Central Division, a California Corporation, for the 5.7 acre parcel at Calle EI Segundo and Andreas Road for the purpose of developing a Hard Rock Hotel. The Agency awarded the ENA at the October 5, 2005 meeting. Since that time the Developer has proceeded with the design and development of the project, as well as negotiating with the owners of the two adjacent parcels to try to assemble a site as large as 10 acres. In June 2005, the Executive Director of the Agency, per the terms of the ENA, granted the Developer additional time to meet certain milestones, but did not extend the overall terms. The Developer has now asked to have the overall term of the ENA, which would have expired an December 15, 2006, to be extended for an additional twelve months due to the complexity of the land assembly and other site issues. ITEM NO. " "� RECOMMENDATION: COMMUNITY REDEVELOPMENT AGENCY RECOMMENDATION: 1. Adopt Resolution No- , "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH NEXUS DEVELOPMENT CORPORATION-CENTRAL DIVISION FOR A 5.7+ ACRE AGENCY OWNED PARCEL FOR THE DEVELOPMENT OF A HARD ROCK HOTEL AT THE SOUTHEAST CORNER OF CALLE EL SEGUNDO AND ANDREAS ROAD, MERGED PROJECT AREA #2, EXTENDING THE TERM TO DECEMBER 31, 2007" 2. AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE THE AMENDMENT IN A FORM ACCEPTABLE TO THE AGENCY 71 ohn . Rai ond, Director of David H. Ready, Execu - hector munity Economic Development Attachments: 1. CRA Resolution 2. Amendment No. 1 to the Exclusive Agreement to Negotiate RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH NEXUS DEVELOPMENT CORPORATION-CENTRAL DIVISION FOR A 5.7+ ACRE AGENCY OWNED PARCEL FOR THE DEVELOPMENT OF A HARD ROCK HOTEL AT THE SOUTHEAST CORNER OF CALLE EL SEGUNDO AND ANDREAS ROAD, MERGED PROJECT AREA #2, EXTENDING THE TERM TO DECEMBER 31, 2007 NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, as follows: SECTION 1. This Amendment No. 1 to the Exclusive Agreement to Negotiate with Nexus Development Corporation-Central Division, a California Corporation, 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: P40ES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED & APPROVED AS TO FORM AMENDMENT NO. 1 TO EXCLUSIVE AGREEMENT TO NEGOTIATE Nexus Development Corporation THIS AMENDMENT NO. 1 TO EXCLUSIVE AGREEMENT TO NEGOTIATE ("Amendment") is made and entered into this 6th day of September, 2006 by and between the Community Redevelopment Agency of the City of Palm Springs, a public agency ("Agency"), and Nexus Development Corporation — Central Division, a California corporation ("Developer'). RECITALS A. On December 8, 2005, The Agency and the Developer entered into an Exclusive Agreement to Negotiate ("ENA"), for the purposes of negotiating a disposition and development agreement for the sale of Agency property generally described as the Prairie Schooner parcel and the development of a Resort and condominium development on the Prairie Schooner parcel. 13. Developer has proceeded in good faith in the planning of the project and the acquisition of adjoining properties for inclusion in the project. C. Developer has requested additional time to complete the required milestones identified in the Schedule of Performance and an extension of the period of negotiation in which to complete all tasks identified in the ENA and the Schedule of Performance. D. The ENA provides for extensions by the mutual agreement of the parties (Section 2.A.3). D. Agency agrees that an extension of time is warranted and in the best interests of the Agency for the orderly completion of the required milestones and the negotiation of a disposition and development agreement_ NOW, THEREFORE, in consideration of the foregoing Recitals, Agency and Developer agree as follows: AGREEMENT 1. The foregoing Recitals are true and correct. 2. Exhibit B to the ENA is amended to read as provided in the document labeled "Exhibit B" to this First Amendment and milestones provided therein shall be deemed the milestones for the ENA. Page 1 of 2 516p99 1 3. The first sentence of Section 2.A of the ENA is amended to read: "The term of this Agreement shall be for the period of time from December 8, 2005 to December 31, 2007 (the 'Period of Negotiation') and it is the intent of the Parties to negotiate and prepare definitive documentation reflecting the transaction for execution and delivery within such Period of Negotiation." 4, All other terms and conditions of the original ENA shall remain unchanged and in full force and effect. 5. The persons executing this Amendment on behalf of the parties warrant that they are duly authorized to execute this Agreement on behalf of said parties and that by so executing this Amendment the parties hereto are formally bound to the provisions of this Amendment. Agency Community Redevelopment Agency of the City of Palm Springs, a public agency By David Ready, Executive Director Attest: Approved as to Form: Agency Director Agency Counsel Contractor Nexus Development - Central Division a California Corporation By: By: Print Name: Print Name: Print Title: Print Title: (Please Attach Corporate Acknowledgements) Page 2 of 2 514099.1 EXHIBIT "B" ENA Milestones/Schedule ENA Terms Negotiated and Executed 1 1/30/05 Commence appraisal of property 12/15/05 Appraisal completed and value accepted by Parties 03/15/06 Enter into contract with consulting firm to undertake 12/15/06 Environmental assessment and perform planning services Submittal of Site Plan, Project Description, Feasibility 12/31/06 Analysis, Letter of Commitment, and Evidence of Acquired Property Commence CEQA review process 01/15/07 Submittal of Entitlement Applications with City 08/01/07 Commence Negotiation of Term Sheet 09/01/07 Complete Negotiation of Term Sheet 10/01/07 Complete Negotiation ofDDA 11/01/07 Complete CEQA Process 11/01/07 Complete City Entitlement Process and Abency 12/15/07 approves DDA