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Home My WebLink About12/6/2006 - STAFF REPORTS - RA.3. PALM SA OF 4� � u m I V o.POR gea TTT• COMMUNITY REDEVELOPMENT AGENCY STAFF REPORT DATE: December 6, 2006 New Business SUBJECT: APPROVAL OF A LEASE WITH JOHN WESSMAN D/B/A/ WESSMAN DEVELOPMENT COMPANY FOR A 20,000 SQUARE FOOT BUILDING LOCATED AT 101 NORTH PALM CANYON DRIVE FOR THE PURPOSE OF ESTABLISHING A TEMPORARY "PALM SPRINGS VISION CENTER" IN THE BUILDING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL AGREEMENTS RELATED TO THE LEASE FROM: David H. Ready, Executive Director BY: Community & Economic Development SUMMARY The Agency proposes to lease the former Bank of America building at 101 North Palm Canyon Drive for the purpose of establishing a Palm Springs Vision Center in the building prior to the redevelopment of the property. Using only the ground floor, which has been gutted, the Vision Center would have three elements: (1) highly sophisticated displays of major development projects proposed and approved in the city, including the two Convention Center hotels, the two downtown gateway projects, and even the Desert Fashion Plaza itself as its plans are developed, and other significant residential and commercial projects proposed in Palm Springs; (2) a community design section, with smaller displays and renderings of other architecturally noteworthy projects in the coty, such as the BMW dealership expansion; and (3) a community design and amenity section with displays provided by such architecturally themed community groups as the Palm Springs Art Museum's Architecture and Design Council, Palm Springs Modern Committee, and the Palm Springs Preservation Foundation. In addition, other cultural, arts, and entertainment groups such as the Agua Caliente Cultural Museum, the Pavilion Theatre, the Fabulous Palm Springs Follies, the Palm Canyon Theatre, the Palm Springs Art Museum (and Annenberg Theater), and the Palm Springs International Film Festival) would be able to participate in the Center. Additionally, if the City is selected as the site of the College of the ❑esert's West Valley Educational Center, it provides a public space for the City to update the community on that project and its concept. ITEM NO. � Community Redevelopment Agency Staff Report (December 6, 2006) -- Page 2 (Lease for Palm Springs Vision Center) Given the recent moratorium on office uses in the downtown core, the only way for the development community to have a presence was to elevate the center into a community-wide, museum quality attraction. RECOMMENDATION: 1. APPROVE A LEASE WITH JOHN WESSMAN D/B/A/ WESSMAN DEVELOPMENT COMPANY FOR A 20,000 SQUARE FOOT BUILDING LOCATED AT 101 NORTH PALM CANYON DRIVE FOR THE PURPOSE OF ESTABLISHING A TEMPORARY "PALM SPRINGS VISION CENTER" IN THE BUILDING; AND 2. AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE ALL AGREEMENTS RELATED TO THE LEASE STAFF ANALYSIS: Several of the major development firms have expressed a desire to be downtown in order to raise the profile their projects within the community, but single development "sales offices" are the sort of activity that was limited by the recently-adopted moratorium on office uses in the downtown core. Given the moratorium, the only way for the development community to have a presence in the downtown was to elevate the center into a community-wide, museum quality attraction. The Agency proposes to lease the former Bank of America building at 101 North Palm Canyon Drive for the purpose of establishing a "Palm Springs Vision Center" in the building prior to the redevelopment of the property. This action coincides with the Agency's issuance of a Master Developer Request for Qualifications under its Design for Development project for downtown and Section 14. Using only the ground floor, which has been gutted, the Vision Center would contain three broad elements: (1) highly sophisticated displays of major development projects piroposed and approved in the city, including the two Convention Center hotels, the two downtown gateway projects, and even the Desert Fashion Plaza itself as its plans are developed, plus other significant residential and commercial projects proposed in Palm Springs; (2) a "community design" section, with smaller displays and renderings of other architecturally noteworthy projects in the city, such as the BMW dealership expansion; and (3) a community design and amenity section with displays provided by such architecturally themed community groups as the Palm Springs Art Museum's Architecture and Design Council, Palm Springs Modern Committee, and the Palm Springs Preservation Foundation. The center would also be available to the participants and the community for events. Community Redevelopment Agency Staff Report (December 6, 2006) -- Page 3 (Lease for Palm Springs Vision Center) Palm Springs maintains rigorous and sophisticated design standards for development projects, and has earned the right to be proud of its architectural heritage as well as the high quality of new projects being proposed and approved. The Vision Center is an opportunity for the City to collect the old and new under one roof and tell a fascinating story about the history and future of the city. In addition, other cultural, arts, and entertainment groups such as the Agua Caliente Cultural Museum, the Pavilion Theatre, the Fabulous Palm Springs Follies, the Palm Canyon Theatre, the Palm Springs Art Museum (and Annenberg Theater), and the Palm Springs International Film Festival) would be able to participate in the Center. The proposal is for the Agency to lease the building from Wessman for $1.00 per year, then create subleases or licenses with the major users. The initial term of the lease would be eighteen months, with month to month occupancy thereafter until the building is redeveloped as part of the Desert Fashion Plaza Project. Under Redevelopment Law, the Agency would need to lease the property in order to spend money on it, even if all or a part of it were to be reimbursed from private parties. Still to be defined is the threshold for a "lease" occupancy (major projects) vs. just hanging a project photo/display (community design section), and whether the subleases be based on square footage or on a flat rate. The action on this Agenda would authorize the Executive Director to enter the lease with Wessman but not the subleases nor authorize any construction contracts. All subleases and contracts will come to the Agency for approval. With the approval of the Lease, staff will immediately work with the participating developers on the display concept, i.e. how "finished" should it be — it will have a gallery feel, and the raw space is similar to an industrial loft look. The Agency and participants will develop the display concept in December, including the unifying graphics, displays, TV screens, space planning/layout. Tasks and timeline: The goal is to be open and operating in February, 2006. This project represents a very compressed push to get in and get a high value, functional space that will serve the community for the next two or so years. The tasks include: Lease execution Space Planning Sign up participants Develop graphic standards Inspect the building —develop the site plan Contract for work Order interior graphics and furnishings Order, approve signage Community Redevelopment Agency Staff Report (December 6, 2006) -- Page 4 (Lease for Palm Springs Vision Center) FISCAL IMPACT: Finance Director Review: This action only approves the Lease for the space at a cost of $1.00 per year. All other cost and revenue items (subleas s) will return to the Agency for approval. J hr 8. ay �o d, Director of Tom Wilson mom nity & conomic Development Assistant City Manager � 1 David H. Ready, J.D., Ph.D.` Executive Director Attachments: 1. Resolution 2. Lease Agreement Community Redevelopment Agency Staff Report (December 6, 2006) -- Page 5 (Lease for Palm Springs Vision Center) Resolution No, OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA APPROVING A LEASE WITH JOHN WESSMAN D/B/A/ WESSMAN DEVELOPMENT COMPANY FOR A 20,000 SQUARE FOOT BUILDING LOCATED AT 101 NORTH PALM CANYON DRIVE FOR THE PURPOSE OF ESTABLISHING A TEMPORARY "PALM SPRINGS VISION CENTER" IN THE BUILDING AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE ALL AGREEMENTS RELATED TO THE LEASE NOW, THEREFORE, BE IT RESOLVED, by the Community Development Agency of the City of Palm Springs, as follows: SECTION 1. The lease with John Wessman d/b/a Wessman Development Company for a 20,000 square foot building located at 101 North Palm Canyon Drive, in the amount of $1.00 per year for a term of eighteen months, is hereby approved; and SECTION 2_ The Executive Director or his designee is hereby authorized to execute all document related to the lease ADOPTED THIS 6th day of December, 2006. David H. Ready, Executive Director ATTEST: James Thompson, Assistant Secretary Community Redevelopment Agency Staff Report (December 6, 2006) -- Page 6 (Lease for Palm Springs Vision Center) 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