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HomeMy WebLinkAbout1994 - MINUTES - 7/27/1994 fi➢ 7C) CITY OF PALM SPRINGS CITY COUNCIL MINUTES July 27, 1994 An Adjourned Regular Meeting of the City Council of the City of Palm Springs, California, was called to order by Mayor Maryanov, in the Large Conference Room, City Hall, 3200'ralnquitz Canyon Way, on Wednesday, July 27, 1994, at 6:30 p.m., at which time, the City Attorney announced items to be discussed in Closed Session, and at 7:30 p.m., the meeting was convened in open session. ROLL CALL: Present: Couucilmembers Hodges, Kleindienst, Lyons, Reller-Spurgin, and Mayor Maryanov Absent: None REPORT OF POSTING OF AGENDA: City Clerk reported that the agenda was posted in accordance with Council procedures on July 22, 1994. REPORT OF CITY ATTORNEY ON MATTERS DISCUSSED IN CLOSED SESSION(All Entities)- See items on Page 2 of agenda this dale. COMMUNITY REDEVELOPMENT AGENCY: Mayor declared the meeting adjourned for the purpose of convening a Special meeting of the Community Redevelopment Agency; after which, members reconvened as the City Council. PUBLIC COMMENTS: a) The following persons spoke concerning Item 1: Jerry London, Gaming Task Force, stated that its last meeting, the Board of Realtors position is fear of losing Caesar's, and lie questioned how that can be feared, since Caesar's is not yet here; that the task force has not seen any guarantee or performance bond that it will construct the casino, whether slot machines are allowed; and that the task force reaffirms placing before the voters an ordinance that would allow gaming in the LSR only, and that no permits be issued until January 1, 1996, ' which would give Caesar's 17 months in which to build and get its casino operational; and if it is not on the ballot,he questioned what the deadline would be for submitting an initiative petition. Steve Grasha suggested that if gaining is approved, the Council should consider a campaign expenditure limit for locally elected officials. Ziva Hillinger thanked the Council for the opportunity to serve on the task force, and commended its work; that the City has not qualified for bond insurance, and faces big (pg 3_ problems; that the suggested lead time, and limiting a permit to a Large Scale Resort, may make the Tribe more comfortable; and that everything must be done to encourage money coming into Palm Springs, without having to borrow it. Mark Bragg, Shadowrock, commented that potential financiers were interested in his project when they thought gaming was a possibility; that he tried working with the Council; that if the process did not work, it would take eight months to submit a proposal for the ballot; that a lot of people are not informed concerning the Isenberg bill (AB2803), in that it has been amended fifty times, and is still not settled; that it would initially give options that are not now available; that Shadowrock does not pose any threat to the 'tribe; that he estimated Shadowrock would produce $2.5 million each year, without counting any new businesses; that he has contacted the Tribal Council, and offered a proposal for a site-specific ordinance for Shadowrock only for which he will pay a portion to the Tribe, and if the Tribal Council agrees, he will ask that the Council place the measure on the ballot. John Wessman stated that the Council should not be blackmailed; that there is no guarantee that Caesar's is committed to a casino, other than verbally, or a letter that contains a lot of escape, i.e., if Class III or pull tab is not permitted; that if it warned to build, it would be one-half completed by now; that there is the opportunity for the citizens to vote, and the Council should retain the ability to annend the ordinance; that free standing is probably not needed, and it makes sense to give the Tribe time to get its casino going. Council Minutes 7-27-94, Page 2 Dick Sroda stated that the issue is confusing, and there is no position to pay the city any additional cost for service; that the task force said it was urgent to act now, and the Tribal Council's position suggests that the people should have a voice at the ballot box; that the Tribe has to make tremendous amounts before the City receives anything; and the matter should be voted on. ' Valerie Milot, Gaming Task Force, stated that its recommendation did not look at Indian Gaming, rather focused on a variety aspects, e.g., her area was to look at health care; that as a result of a survey, the task force recommended any licensee be required to provide employees with decent wages, and full benefits;that the task force looked at trying to find ways to accrue more money to the City than it would received from the Tribal Council;that its interest was to protect the image of Palm Springs and the term "card room" was not recommended; that the focus was on upscale facilities, with amenities; that there is a question if there is a guarantee the Indian casino will be built, and if there is an agreement the City will not compete with the Tribe; and if the Tribal Council locates its facility elsewhere, what the impact will be on its Spa Hotel. Darrell Meeks slated that it only takes 15% of the registered voters to mandate a special election, which the Council may call at any time, and the people should vole on this issue. Phil Bennett, Gaming Task Force, stated that Indian gaming will not generate the money that a private gaming facility will generate; that the Taxpayer will want to know why the Council would give a monopoly to the Tribal Council and thereby reduce revenue and benefit that the city could receive had it been given the opportunity to vote; and that he believed the citizens would like to have the opportunity to vote, based on a poll in the newspaper. b) The following persons spoke on matters not related to an agenda item: ' Ralph Raya, Peabody's Coffee Shop, and Annette Rider, Assistant Manager of Marketing for the Desert Fashion Plaza, each spoke in support of a proposal for a joint venture concerning a spring event to replace what was referred to as The Harvest Festival. Mayor declared a five-minute recess, and upon reconvening, business resumed as follows. LEGISLATIVE ACTION: I. DISCUSSION OF PROPOSED GAMING REGULATORY ORDINANCE City Manager reported that he and Councilmembers Lyons & Reller-Spurgin met with the Tribal Council, and the Tribal Council felt that the history was such that the Tribal and City Councils were partners, but AB2803 had become a driving force that found the City in a competitive mode, and that Caesar's could open after spending$25 million,while a card romp could open with spending perhaps 1/25 of that amount, which it felt was a separation of the partnership; and that the Council agreed not to say anything until it came back to the full Council at this time. Councilmember Lyons reported that the Tribal Council did not take a "never" position,rather that gaming would be detrimental right now, and the ordinance could be revisited in the future, (083- if the Casino did not occur, or other consequences warranted it. City Attorney stated that it was never reported that if AB2803 passes, that the City could not have gaining, rather that after January 1, there will be an extensive and pervasive system of regulation, of which many are reasonable and others are questionable as to the possibility of getting a license under State law; that there will be a start-up time for the State commission, and it was felt important to proceed with a local ordinance because in other instances, it has been found that the course of action is not predictable, and in those cases where a "grandfathering" has been included, those who were grandfattered were in a better position, because future changes are "pre" or "post" grandfathered dates; that the Gaming Task Force independently reached a similar conclusion; that the Tribal Council perceives the action as a threat to its gaming; that a downtown stand-alone card club was not a part of the task forte's original recommendation; that the Tribal Council concern is more than just downtown issues, but how strongly it and Caesar's hold the position,is a judgement call; that it would be a good i F)Ctouncil Minutes 7-27-94, Page 3 idea to have the ordinance in place, and there are still a few weeks left to place it on the ballot; and that it would be a serious matter if the Tribal Council responded by severing its relationship with the City. Councilmember Reller-Spurgin stated that the concern was beyond the possibility of moving the Indian casino, rather it was related to land use, permits, planning, fees, and other matters; that Canyon Hotel project alone could man $3-$5 million in fees to the city, which would go ' to the Tribe if it severed its contract with the City; that the financial impact on the City is tremendous, and potentially devastating. Mayor stated that the Legislative Analyst for the Attorney General stated that if an application for a card room was not in by September 1, under AB2803, it would fall under the new legislation; that if that is accurate, an ordinance adopted in November would still result in applications being subject to A132803, and the only time lag would be about 6 months in which the State commission would be setup. City Attorney stated that the concern is future legislation, that there is some question how quickly Palm Springs could set up and process an application, and ultimately AB2803 would apply because the City would not have been able to grant a license. He responded to question by Council, and stated that the State currently regulates gaming, but that there is a much quicker process through the Attorney General's office, where A132803 sets up a coinnnission process acid more extensive regulatory power. Councilmember Lyons stated that a limitation to the LSR may have been acceptable, and lie would like to see a site-specific approval, one case at a time; that lie would like to try to work with the Tribal Council concerning Shadowrock, but he did not favor Class 1I and did not want to create a "Gardena" or anything like it. Councilmember Kleindienst stated his concern relates to the process of getting front the task force to collection of revenue, i.e., six months for the report, followed by an election, followed by a 4-6 month application period, followed by a conditioned use permit process, and ' plan check, and that it could be two years before a ground breaking„; that a stand-alone could be in 4-6 months, with a 35,000 square foot site and improvements; that Shadowrock could take years and still have to build a golf course; and that overall it could 3 1/2 to 4 years before the process could start again; that he did not think the Council was moving quickly,rather was putting a tool at its disposal; and that there will not be any competi¢ion for three years. Councilmember Lyons stated that the issue of time limit was raised, but the Tribal Council was not open to it at the meeting; that the Council has strived for harmony with the Tribal Council; that the Tribe is the largest single=land holder in the City; and he feels they must be considered, and the relationship must be considered; and the Council cannot just state it is going to do what it wants. Councilmember Kleindienst stated that he favored a cooperative effort, and questioned what the time line is, considering that Council's challenge for a large scalle development, and since investors have added incentive with gaming, and what the catalyst well be if it cannot meet the time qualifications. He emphasized that the Shadowrock project would be a high-quality style facility. Mayor stated that the only reason for the rush at this time was because of AB2803 and what might happen; that there is no indication that anything is going to happen, and this issue is not whether there should be gaming, rather if there should be an ordinance on the ballot because of A132803; that the task force talked about working with the Tribal Council; that he has received numerous calls from people who oppose non-Indian gaming, and has not received any who favor it, noting that some people spoke to it at the Public Continents; that the task force was charged with looking at the impact of gaming, and because of AB2803, moved to getting ' it on the ballot; that it is clear there is no such rush to meet the August 12 deadline for calling an election; that the Council should see what develops with Shadowrock and the Tribal Council, and that part of the future process is to see if the people want gaming, and it is his feeling they do not want it. Councilmember Hodges stated that she has only received two calls opposing placing the matter on the ballot, and a considerable number wants opportunity to vote on it; that the Council has an MOU with the Tribal Council, which is a public document and pertains to Caesars, and she read portions of it, noting the formula, and stating that Caesars would have to receive $100 million in Casino win for the City to receive$500,000,adding that by definition, "casino win" Council Minutes 7-27-94, Page 4 is actually a net amount; that it, too, will be a card room under current law; that the Council has a responsibility to look to the future, and it should let the people decide. Councilmember Kleindienst questioned if it is the intent to continue a dialogue, and if so, under what time line and what modifications; and that he did not favor abandoning the discussion. ' Councilmember Lyons stated that the Tribal Council position was that there should be no ordinance at this time; that he did not construe that to mean there would not be any more dialogue, rather that it would be detrimental at this point in terms of Caesars; that the Tribal Council was concerned about Caesar's moving ahead with dispatch, recognizing that there would be discussion if it does not proceed; and that he favored talking with the Tribal Council about a site specific. Councilmember Reller-Spurgin added that the City Manager mentioned several times about the possibility of additional future discussion, and that there was no negative response to the suggestion. City Manager stated that the nature of the Tribal Council's position was that it had been betrayed, represented by the ordinance, and that the ordinance needed to be abandoned, mid then there could be discussion. Councilmember Lyons stated he was interested in "Las Vegas style" gaming coming to Pahn Springs, and where and how that is most likely to happen, must be appraised; that he felt there was only a minimal chance of Class III, and the Tribal Council has the best chance of getting it here as fast as possible. Councilmember Hodges stated that such a statement has been made many limes in the past six months, and she felt under the current circumstances, the City has an equal chance, mid that if one attains it, the other will have it as well; it will be devastating if it does become available ' and that Council is not prepared; and that she did not think either party is likely to get it in the near future. She stated that the State legislation is still in place, and has been changed many limes, and there is nothing to say that it will not be changed again, and the proposed ordinance would only mean putting an insurance policy in place, so if something happens at the State level, the City has the right to do what it wants, and not what the State wants. Mayor stated that the Council cannot work based on speculation, aid he feels that the legislation has gone away for now; that the gaming issue evokes the best and worst emotions in people, and he believed the Council must take the time to clear the air and to have dialogue before placing it on the ballot; that it should explore the site-specific idea; aid that he did not see any reason to rush for a generic ordinance, which he felt would be defeated by the voters. City Attorney stated that regarding Shadowrock, if something does not happen in the near term, some issues are open as to the long-term viability of the project; that the draft ordinance could be applied to a site-specific, and possibly test the reaction of the voters; that it is hard to see how that location is competitive with the Indian casino; and that one option would be to proceed to revise the ordinance to site specific, with additional interim discussion with the Tribal Council, and subsequent action at the next regular meeting. He stated that the Council stop its discussion on the city-wide ordinance, and direct that a site specific ordinance be prepared, along with appropriate election resolutions. Mr. Bragg stated that there is a provision in AB2803 that stops new individual applications after September 1, 1994, however, the City is grandfathered if the ordinance is adopted in November, if AB2803 becomes effective January 1, 1995; that time is of the essence and he urged giving the City Attorney direction to pursue the ordinance, adding that he will indemnify the City cost of the City Attorney's time to do so. Councilmember Kleindienst stated that lie was not in favor of abandoning the city-wide ordinance until there is a full and complete dialogue, and only after a last ditch effort should it be abandoned, but not when there is potentially two weeks remaining in which dialogue could occur. Council Minutes 7-27-94, Page 5 It was moved by Lyons, seconded by Reller-Spurgm, and carried by the following vote, that there be no further discussion regarding citywide gaming: AYES: Lyons, Reller-Spurgin &Maryanov NOES: Hodges & Kleindienst ABSENT: None It was moved by Lyons, seconded by Reller-Spurgin, and unanimously carried, that the , dialogue with the Tribal Council be opened concerning a possible site-specific ordinance applicable to Shadowrock, and that the City Attorney prepare a site-specific ordinance, i.e., for Shadowrock, together with appropriate actions for a November ballot. 2. GOLF COURSE Recommendation: That the Council award contract to Williams-Hedely, joint venture, for construction of four accessory buildings for the golf course expansion, for$160,734 (includes a half-way house, a comfort station, and two pump houses), A3410„ CP93-37. (092- 010) City Manager reviewed the memorandum of Director of Public Warts in detail. Minute Order 5408 as recommended was presented; after which, it was moved by Reller- Spurgin, seconded by Hodges, and unanimously carried, that M05408 be adopted. 3. REFUNDING 1991 SERIES B TAX ALLOCATION BONDS (See CRA Minutes of this date for details) Resolution 18445 consenting to, and concurring in, cross-benefit finding that the Convention Center, located in the Talhquitz Andreas Project area is of benefit to the Ramon/Bogie and Baristo/Farrell Project Areas, was presented; after which, it was moved by Lyons, seconded (155- by Reller-Spurgin, and carried by [lie following vote, that R18445 'be adopted: 004:1 AYES: Kleindienst, Lyons, Reller-Spurgin& Matyanov ' NOES: Hodges ABSENT: None ADJOURNMENT There being no farther business, Mayor declared the meeting adjourned to Wednesday, August, 3, 1994, at 5:30 p.m., for Closed Session, followed by Adjourned Session at 6:30 p.m., and next regular meeting at 7:30 p.m. J JUDITH SUMICH City Clerk