HomeMy WebLinkAbout6/6/2001 - STAFF REPORTS (3) d
DATE: JUNE6, 2001
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: DIRECTOR OF REDEVELOPMENT
APPROVAL OF AMENDMENT NO. 1 TO EXCLUSIVE AGREEMENT TO NEGOTIATE WITH
BURNETT DEVELOPMENT CORPORATION OF NEWPORT BEACH, CALIFORNIA, ON A
19.17 ACRE AGENCY-OWN ED PARCELANDA22.21 ACRECITY-OWNED PARCEL NEAR
THE CORNER OF SUNRISE WAY AND SAN RAFAEL ROAD
RECOMMENDATION:
It is recommended that the Agency approve Amendment No. 1 to an Exclusive
Agreement to Negotiate with Burnett Development Corporation on a 19.17 + acre
Agency-owned parcel and a 22.21 acre City-owned parcel at the corner of Sunrise
Way and San Rafael Road to facilitate the development of a major single-family-
home development.
SUMMARY:
This Agreement adds four months to the Exclusive Agreement to Negotiate (EAN)
with Burnett Development Corporation on the 19.17 acre Agency-owned parcel and
22.21 City-owned parcel near Sunrise Way and San Rafael Road. The Developer
has proceeded in good faith and is nearing completion of the entitlement process.
The DDA, however, is not complete and the original EAN has now expired.
BACKGROUND:
In November, 2000 the Agency approved an Exclusive Agreement to Negotiate
with Burnett Development Corporation (the "Developer") to purchase a 19.17 +
acre Agency-owned parcel and a 22.21 acre City-owned parcel at the corner of
Sunrise Way and San Rafael Road for fair market value. The Developer is in the
process of assembling land to build a major single-family-home development in the
area. The City sold an 11,000 s.f. parcel of land to the Developer in 1998 as part
of the Developer's land assemblage.
The Developer has proceeded diligently on the planning of the site and expects
that the subdivision will be approved by the Planning Commission at a public
hearing in July, 2001. There were several property-related issues to nail down,
however, including the release of easements on the Agency- and City-owned
parcels held by the Desert Water Agency, Southern California Edison, and the
Coachella Valley Housing Coalition.
Staff had originally requested the agreement be for a term of six months,
anticipating that most of the work on the preparation of the DDA would be done
during that period. A draft of the DDA is currently being prepared but is not
complete. The Developer is concerned that the Exclusive Agreement has now
lapsed and has requested an extension.
Therefore, staff is recommending that the Exclusive Agreement be amended to
add an additional four months, during which the developer should receive his
Planning approvals and successfully negotiate the Disposition and Development
Agreement with the�Agency.
JOHN S. YMOND
Dir for o Redevelop nt
APPRO EVO EV D ��.--�� ✓�a
Executive Direc
ATTACHMENTS:
1. Resolution
2. Amendment No. 1 to Exclusive Agreement to Negotiate
C�-� Z
FIRST AMENDMENT TO EXCLUSIVE AGREEMENT TO NEGOTIATE
THIS FIRST AMENDMENT TO EXCLUSIVE AGREEMENT TO NEGOTIATE
("Amendment') is entered into this day of 2001 (the "Effective
Date") by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS, CALIFORNIA, a public body, corporate and politic, ("Agency") whose offices
are located at P.O. Box 2743, 3200 East Tahquitz Canyon Way, Palm Springs, California
92263 and Burnett Development Corporation whose offices are located at 1300 Bristol Street
North, Suite 200, Newport Beach, California 92660 ("Developer").
RECITALS
A. On October 18, 2000, the Agency approved that certain Exclusive Agreement
to Negotiate ("Original Agreement') with Developer pursuant to which Agency and Developer
agreed to work mutually on the development of a single family home development at the
northwest corner of Sunrise Way and San Rafael Road in Palm Springs, as more particularly
described therein.
B. Agency and Developer desire to amend the terms of the Original Agreement as
more particularly described herein.
C. Any capitalized terms not defined herein shall have the meanings ascribed to
them in the Original Agreement. The Original Agreement, as modified by this Amendment, is
hereinafter referred to as the "Agreement."
NOW, THEREFORE, the parties hereto agree as follows:
SECTION 2. PERIOD OF NEGOTIATIONS.
The period of negotiation shall be three sixty (360) days from the date the Original
Agreement was signed by the Agency, and this Agreement shall terminate after the expiration
of such period unless extended as follows:
A. For sixty (60) days if an agreement has been prepared by the Agency and
executed by the Developer, and has been submitted to the Agency but has not yet been
approved by the Agency Board; or
B. For thirty (30) days if the major business terms have been agreed to and the
Executive Director determines that further negotiations are likely to result in a written
agreement; or
C. By mutual agreement of the parties.
Developer understands and acknowledges that if negotiations culminate in an
agreement, such agreement shall be effective only after and if the agreement has been
considered and approved by the Agency Board after public hearing thereon as required by
law.
l-'
IN WITNESS WHEREOF the Agency and Participant have executed this Agreement as
of the date first written above.
"AGENCY"
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS,
CALIFORNIA, a public body, corporate
and politic
By: By:
Assistant Secretary Executive Director
APPROVED AS TO FORM:
BURKE, WILLIAMS & SORENSEN, LLP
By:
Agency Counsel
"DEVELOPER"
RESOLUTION NO. 1127
OF THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING AMENDMENT NO. 1 TOAN EXCLUSIVE
AGREEMENT TO NEGOTIATE WITH BURNETT
DEVELOPMENT CORPORATION OF NEWPORT
BEACH, CALIFORNIA FOR THE PURCHASE AND
DEVELOPMENT OFAN AGENCY-OWNEDAND CITY-
OWNED PARCEL TO FACILITATE THE
DEVELOPMENT OF A SINGLE-FAMILY HOME
DEVELOPMENT
WHEREAS the Community Redevelopment Agency does own a parcel of land of
approximately 40 acres, which is divided between a mobile home park and a 19.17+
acre vacant parcel, which it acquired from the City of Palm Springs in 1995; and
WHEREAS the City of Palm Springs does own a 22.21 acre parcel adjacent to the
Agency-owned parcel and which was acquired for the development of affordable
housing in the City; and
WHEREAS a number of developments have been constructed on the entire 100 acre
City-owned parcel which have restrictive covenants on them to preserve affordability,
including the mobile home park, Coyote Run, and Sunrise Norte; and
WHEREAS the City of Palm Springs shall convey its 22.21 acre parcel to the Agency to
facilitate the development of the combined 39.38+ acre parcel with market rate housing
to ensure a demographic balance in the area; and
WHEREAS the Agency desires to sell the parcel to a Burnett Development Corporation
so that it can return the land to productive use and facilitate additional development in
the area around the site, including the generation of tax increment and low- and
moderate-income housing set-aside; and
WHEREAS the Agency and Burnett Development Corporation entered into an
Exclusive Agreement to Negotiate in November, 2000 for a period of six months while
the Developer undertook site planning and project approvals, but the Developer finds
he needs an additional six months to complete the Planning approvals and negotiation
of the DDA.
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of
the City of Palm Springs, that Amendment No. 1 to the Exclusive Agreement to
Negotiate between the Agency and Burnett Development Corporation in a form
approved to the Agency Counsel, is hereby approved.
ADOPTED this day of 2001.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Executive Director
REVIEWED & APPROVED AS TO FORM