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Home My WebLink About2/21/2007 - STAFF REPORTS - RA.2. O�pPLM S''P �Z V y c �P 'g1rFORH COMMUNITY REDEVELOPMENT AGENCY STAFF REPORT DATE: February 21, 2007 Consent Calendar SUBJECT: APPROVAL OF A LETTER OF INTENT WITH THE UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF INDIAN AFFAIRS AND ROSANNA SAUBEL, FOR THE LEASE OF ALLOTMENT PS-71A IN SECTION 14, TA S., R. 4 E. FOR PUBLIC PARKING OR THE DEVELOPMENT OF A HOTEL FROM: David H. Ready, Executive Director BY: Community & Economic Development SUMMARY The Agency proposes to lease the parcel of approximately 2.66 acres, more or less, at the southeast corner of Alejo Road and Calle Alvarado for purposes related to the Convention Center: either public parking (e.g. a parking structure) or for the development of an additional small hotel to serve the Convention Center. This action would approve the Letter of Intent with the Allottee and the BIA to allow the negotiation of a lease and all of the environmental (NEPA) processing to move forward. This does not approve the lease but allows the Agency to move forward with the acquisition of the parcel. RECOMMENDATION: 1. APPROVE A LETTER OF INTENT WITH THE UNITED STATES DEPARTMENT OF THE INTERIOR, BUREAU OF INDIAN AFFAIRS AND ROSANNA SAUBEL, FOR THE LEASE OF ALLOTMENT PS-71A IN SECTION 14, TA S., R. 4 E. FOR PUBLIC PARKING OR THE DEVELOPMENT OF A HOTEL, AND 2. AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE THE LETTER OF INTENT. ITEM NO. �k' 7 Community Redevelopment Agency Staff Report (February 21, 2007) -- Page 2 STAFF ANALYSIS: This action authorizes the Executive Director to execute a Letter of Intent with the Bureau of Indian Affairs on behalf of Rosanna Saubel, a member of the Agua Caliente Band of Cahuilla Indians and the Allottee of parcel PS-71A, the 2.66 acre parcel at the southeast corner of Alejo Road and Calle Alvarado. The Letter of Intent process allows the Agency to proceed with negotiation of the lease, including commissioning an appraisal and other studies necessary to determine whether the Agency wishes to process with acquiring the parcel. Staff made inquiry to the BIA about the parcel in Fall 2006 as part of the Agency's negotiation with the developers of the adjacent Westin Hotel for the location of public, Convention Center parking. A small parking structure there could hold 450 or so cars. Subsequent to making the inquiry to the BIA, staff and the Westin developers developed an alternative public parking plan at the corner of Amado and Caballeros, which is superior to this site for Convention Center parking and would fit the same or more cars. In addition, staff has received a proposal from a related developer to build a smaller (125 room) hotel on this site and would like to pursue the lease to facilitate that development, even if the Agency does not wish to acquire the parcel for parking purposes. The recommendation is to approve the Letter of Intent and negotiate the flexibility to enter a lease for either Hotel or Public Parking purposes. The final negotiated lease will then return to the Agency for formal approval. Z'I�Z7 Z-� FISCAL IMPACT: Finance Director Review: - a U42 This action only approves the Letter of Intent to negotiate a lease for the parcel. The actual lease would return to the Agency for approval. ,John S. ay o d, Director of om Wilson m nity onomic Development Assistant City anager David H. Ready, J.D., P Executive Director Attachments: 1. Resolution 2. Letter of Intent Nr of ryF'ym United States Department of the Interior a BUREAU OF INDIAN AFFAIRS Palm Springs Agency �gRCN as +6� P.O. Box 2245 Patin Springs, CA 92263 IN RLPLY REFER 7O February 5, 2007 John Raymond Director of Community & Economic Development City of Palm Springs 3200 Tahquitz Canyon Way Palm Springs, California 92262 Re: Letter of Intent- PS-71A in Section 14, T. 4 S., R. 4 E. Dear Mr. Raymond: In response to you letter of interest to lease land for a parking structure, enclosed is a letter of intent signed by the Landlord (landowner/beneficiary), Rosanna Saubel. If you can agree on the basic terms, please sign the same letter and return it to this office so we can advise on the next steps toward leasing this tract. The landowner has your letter and she may contact you with any questions. However, until instructed otherwise, please send all correspondence through this office. Should you wish to move forward, we enclosed a checklists for Lease Package, and Environmental Assessment. You may submit your lease package to this office for review in preparation of final review by the authorized approving official. We included a reference map to highlight the Allotment Tract 71A, located in Section 14, Township 4 South, Range 4 East, San Bernardino Meridian, California, containing 2.66 gross acres. If you have any questions, please contact Bruce Beyal, Realty Specialist, at (760) 416-2133, extension 226, or Belinda Ray, Realty Officer, at (760) 416- 2133, extension 230, erely, Kim S yder 'GSuper ntendent Enclosures LETTER OF INTENT (Sample) Proposed AaKn: Ground Lease Purpose: parking structure Parties: Rosanna Saubel, hereinafter referred to as LANDLORD, and Community Redevelopment Agency, City of Palm Springs, hereinafter referred to as TENANT. Description of Property: Allotment PS-71A, Section 14, Township 4 South, Range 4 East, SBM, California, containing approximately 2,66 acres, more or less_ Proposed Term: no more than 65 years Rent: No less than Pair Annual Rental determined by an appraisal, OR to be negotiated and specified in the written agreement- 1. The lease shall be finalized and entered into pursuant to the provisions of the Act of August 9, 1955, as amended and as subsequently modified, 25 U.S.C. 415, as implemented by Part 162 Leasing and Permitting from the Code of Federal Regulations, Title 25 Indians, and any amendments thereto relative to Business Leases and restricted Indian lands which by reference are made a part thereof. If a conflict arises with any subsequent modification of Part 162 and the lease, the modification will apply, unless specifically waived by the Secretary. 2_ TENANT understands cost (amounts available upon request) related to appraisals, environmental studies (including their review) and processing fees as well as the section and coordination of these activities with the approval of the Bureau of Indian Affairs (BIA) will be the responsibility of the prospective TENANT. 3. None of the parties to this Letter of Intent are bound until a definitive lease is entered into by the parties and is approved by the BIA. TENANT: By: Date: Community Redevelopment Agency City of Palm Springs 3200 Tahquitz Canyon Way Palm Springs, California 92262 (760) 323-8259/8197 FAX(760) 322-8325 LANDLORD:By:R� b. &-Ja Date, �j —7 r u Rosanna Saubel