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Home My WebLink About2/21/2007 - STAFF REPORTS - 2.P. ?ALMS. .y c U N k C" °Rauvcp' ��'FOR��p CITY COUNCIL STAFF REPORT DATE: FEBRUARY 21, 2007 CONSENT CALENDAR SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH THE OASI GROUP FOR A 7.8+ ACRE CITY- OWNED PARCEL AT THE NORTHEAST CORNER OF CALLE ALVARADO AND AMADO ROAD, MERGED REDEVELOPMENT PROJECT AREA #2, EXTENDING THE TERM TO JULY 1, 2007 AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS RELATED TO THE AMENDMENT FROM: David H. Ready, City Manager BY: Community & Economic Development Department SUMMARY This action would extend the Exclusive Agreement to Negotiate with the Oasi Group for the 7.8 acres north of the Palm Springs Convention Center to July 1, 2007. Previously, the Executive Director had granted the Developer additional time to meet certain milestones under the ENA but these extensions did not extend the overall term. The original ENA expires on March 1, 2007. The project is through its design phase and has already been through the Architectural Advisory Committee, with a proposed Planning Commission date in March, 2007. It could come to the City Council for entitlement approval as early as late March, though likely in April. The four months are to allow adequate time for the final drafting of the Disposition and Development Agreement by the City Attorney. RECOMMENDATION: 1. Adopt Minute Order No. "A MINUTE ORDER OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH THE OASI GROUP FOR A 7.8+ ACRE CITY-OWNED PARCEL AT THE NORTHEAST CORNER OF CALLE ALVARADO AND AMADO ROAD, MERGED REDEVELOPMENT PROJECT AREA #2, EXTENDING THE TERM TO JULY 1, 2007" 2. AUTHORIZE THE CITY MANAGER TO EXECUTE ALL DOCUMENTS RELATED TO THE AMENDMENT ITEM NO. i City Council Staff Report February 21, 2007 -- Page 2 Oasi Group ENA Amendment i - v-r— ohn nS. ayrtio Director of om Wilson, As tant City Manager o unity nomic Development David H. Ready, City%!l -gey� Attachments: Minute Order Amendment No. 1 to Exclusive Agreement to Negotiate MINUTE ORDER NO. APPROVING AMENDMENT 1 TO AGREEMENT NO. WITH THE OASI GROUP FOR A 7.8+ ACRE CITY-OWNED PARCEL AT THE NORTHEAST CORNER OF CALLE ALVARADO AND AMADO ROAD, MERGED REDEVELOPMENT PROJECT AREA #2, EXTENDING THE TERM TO JULY 1, 2007 AND AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS RELATED TO THE AMENDMENT I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this Minute Order Approving Amendment No. 1 to Agreement No. with the Oasi Group for a 7.8+ acre City-Owned Parcel at the Northeast Corner of Calle Alvarado and Amado Road, Merged Redevelopment Project Area #2, extending the term to July 1, 2007 and Authorizing the City Manager to Execute All Documents Related to the Amendment, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 21st day of February, 2007. James Thompson, City Clerk AMENDMENT NO. 1 TO THE EXCLUSIVE AGREEMENT TO NEGOTIATE The Oasi Group, LLC THIS AMENDMENT NO. 1 TO THE EXCLUSIVE AGREEMENT TO NEGOTIATE ("Agreement") is made this day of 2007, by and between THE CITY OF PALM SPRINGS ("City"), and THE OAS] GROUP, LLC, a California Limited Liability Corporation ("Developer"). RECITALS A. On February 23, 2006 the City and Developer entered into an Exclusive Agreement to Negotiate ("ENA") for the purposes of negotiating a Disposition and Development Agreement for the sale of City property generally described as the Convention Center parking lots and the development of a Group Meeting Hotel and condominiums on the Parcel. B. Developer has proceeded in good faith in the planning of the project and the acquisition of an adjoining property for inclusion in the project. C. Developer has requested additional time to complete the required milestones identified in the Schedule of Performance and an extension of the period of negotiation in which to complete all tasks identified in the ENA and the Schedule of Performance; such changes were a result of the Developer's redesign of the project to be able to accommodate public parking on the site- D. The ENA provides for extensions by the mutual agreement of the parties (Section 2.A.3). E. City agrees that an extension of time is warranted and in the best interests of the City for the orderly completion of the required milestones and the negotiation of a disposition and development agreement. NOW, THEREFORE, and in consideration of the foregoing Recitals, City and Developer agree as follows: AGREEMENT 1. The foregoing Recitals are true and correct. 2. Exhibit B to the ENA is amended to read as provided in the document labeled "Exhibit B" to this First Amendment and milestones provided therein shall be deemed the milestones for the ENA. 3. The first sentence of Section 2.A of the ENA shall be amended to read: "The term of this Agreement shall be for the period of time from February 23, 2006 to July 1, 2007 (the "Period of Negotiation") and it is the intent of the Parties to negotiate and prepare definitive documentation reflecting the transaction for execution and delivery within such Period of Negotiation." 4. All other terms and conditions of the original ENA shall remain unchanged and in full force and effect. 5. The persons executing this Amendment on behalf of the Parties warrant that they are duly authorized to execute this Amendment on behalf of said parties and that by doing so executing this Amendment the parties hereto are formally bound to the provisions of this Amendment. "CITY" THE CITY OF PALM SPRINGS, a Charter City and municipal corporation David H. Ready, J.D., Ph.D., City Manager ATTEST: City Clerk APPROVED AS TO FORM: City Attorney [SIGNATURES CONTINUED ON NEXT PAGE] -2- "DEVELOPER" THE OAS[ GROUP, LLC, a California Limited Liability corporation (Check One: _individual, partnership, corporation) [NOTARIZED] Signature Print Name: Print Title: [NOTARIZED] Signature Print Name: Print Title: Mailing Address: (Corporations require two signatures; one from each of the following: (A) Chairman of Board, President, any Vice President; AND (B) Secretary, Assistant Secretary, Treasurer, Assistant Treasurer, or Chief Financial Officer_) [END OF SIGNATURES / NOTARY JURAT(S) FOLLOW) -3- STATE OF CALIFORNIA ) ss. COUNTY OF ) ON before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. [SEAL] Signature STATE OF CALIFORNIA ) ) ss. COUNTY OF ) ON before me, Notary Public, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. [SEAL] Signature