HomeMy WebLinkAbout10/25/2006 - STAFF REPORTS - RA.2..�
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Community Redevelopment Auencv Staff
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DATE: OCTOBER 25, 2006 AGENCY CONSENT
SUBJECT: APPROVAL OF AGREEMENT FOR PURCHASE AND SALE OF REAL
PROPERTY AND ESCROW INSTRUCTIONS WITH ESTHER LEVY OF
PALM DESERT, CA FOR A PROPERTY AT 342 NORTH PALM
CANYON DRIVE (CORK `N BOTTLE), MERGED AREA #1, FOR THE
PURPOSE OF PRESERVING THE STRUCTURE AND ASSEMBLING
THE PROPERTY FOR DOWNTOWN REDEVELOPMENT, IN THE
AMOUNT OF $585,000 PLUS COSTS AND FEES
FROM: David H. Ready, Executive Director
BY: Community & Economic Development Department
SUMMARY:
This Agreement facilitates the purchase by the Agency of a 2,000 + s.f. building
parcel at 342 North Palm Canyon Drive (Cork `n Bottle) in the amount of
$585,000 plus costs and fees for the purpose of preserving the structure and
assembling the property for future downtown development. The Agency is
discussing the assembly of the surrounding property with several developers for
the purposes of redevelopment and would offer the building for sale to the
developer that is successful with the assembly and that proposes a significant
redevelopment proposal. Currently there are several developers seeking to
acquire the properties around the Cork n Bottle for redevelopment purposes.
RECOMMENDATION:
Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING AN AGREEMENT FOR PURCHASE AND SALE OF
REAL PROPERTY AND ESCROW INSTRUCTIONS WITH ESTHER LEVY OF
PALM DESERT, CA FOR A PROPERTY AT 342 NORTH PALM CANYON
DRIVE (CORK `N BOTTLE), MERGED AREA #1, FOR THE PURPOSE OF
PRESERVING THE STRUCTURE AND ASSEMBLING THE PROPERTY FOR
DOWNTOWN REDEVELOPMENT, IN THE AMOUNT OF $585,000 PLUS
BROKER COMMISSION AND CLOSING COSTS"; and
ITEM NO. R A2
2. AUTHORIZE THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO EXECUTE
ALL DOCUMENTS RELATED TO THE AGREEMENT
STAFF ANALYSIS:
The Agency has an interest in improving the northern downtown end of the Palm
Canyon Drive and Indian Canyon Drive corridor, and has been working with the
property owner that acquired the Greyhound Station and El Morocco Hotel to
seek a developer to assemble the El Morocco and the vacant empty lot into a
boutique hotel or other quality redevelopment. Recently the Agency appraised
the Cork `n Bottle property, which is the keystone property that sits between the
El Morocco and lot, to determine its value. The appraisal concluded that the
underlying land and building had a combined value of $585,000_ The owner has
asked for 10% above the appraised value, based on their assertion of a prior
offering price for the property. In this agreement, the Agency would pay the
broker's commission of 5% ($29,250), plus closing costs. The funds for the
purchase would come from Unscheduled Capital Projects in Merged Area #1.
FISCAL IMPACT: (Finance Director Review:
The purchase would impact the Agency fund balance by approximately $620,000 for the
period of time the Agency is holding the property. All or most of the Agency's costs
would be recouped through the disposition of the property to an adjacent developer.
W� G
OHN . RAY ND THOMAS I W ON
or of Co unity & Assistant Ci# anager -
Economic Development Development Services
DAVID H. READY
Executive Director
Attachments:
1. CRA Resolution
2. Purchase and Sale Agreement
RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS, CALIFORNIA, APPROVING AN AGREEMENT
FOR PURCHASE AND SALE OF REAL PROPERTY AND
ESCROW INSTRUCTIONS WITH ESTHER LEVY OF PALM
DESERT, CA FOR A PROPERTY AT 342 NORTH PALM
CANYON DRIVE (CORK 'N BOTTLE), MERGED AREA #1,
FOR THE PURPOSE OF PRESERVING THE STRUCTURE
AND ASSEMBLING THE PROPERTY FOR DOWNTOWN
REDEVELOPMENT, IN THE AMOUNT OF $585,000 PLUS
BROKER COMMISSION AND CLOSING COSTS
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. seq.) to carry out the purpose as
the redevelopment in the City of Palm Springs ("the City"); 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, Section 33432 of the Community Redevelopment Law requires that any
such lease shall be conditioned on the redevelopment and use of the property in
conformity with the redevelopment plan; and
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The Agreement for Purchase and Sale of Real Property and
Escrow Instructions with Esther Levy of Palm Desert, CA for a
property at 342 North Palm Canyon Drive (Cork 'n Bottle), Merged
Area #1, for the purpose of preserving the structure and assembling
the property for downtown redevelopment, in the amount of
$585,000 plus broker commission and closing costs, is hereby
approved and incorporated herein by this reference.
SECTION 2. The Executive Director, and/or his designee, is authorized to
execute all necessary documents, in a form approved by the
Agency Counsel.
ADOPTED THIS 18th day of October, 2006.
ATTEST:
James Thompson, City Clerk
David H. Ready, City Manager
4:411aI4Y.1%Ire] 011
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: