HomeMy WebLinkAbout3/7/2007 - STAFF REPORTS - 2.M. MINUTE ORDER NO.
ORDERING THE TERMINATION OF THE DEVELOPMENT
AGREEMENT BETWEEN WYNDHAM VACATION
RESORTS, INC., FORMERLY KNOWN AS FAIRFIELD
RESORTS, INC., AND THE CITY OF PALM SPRINGS
A4823
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this
Minute Order 1) Ordering the termination of the Development Agreement between
Wyndham Vacation Resorts, Inc., formerly known as Fairfield Resorts, Inc., and the City
of Palm Springs, subject to the condition that the termination shall become effective
upon the close of the sale and the property from Wyndham Vacation Resorts to the
Trails at Palm Springs, LLC, and City approval of a development agreement or other
entitlements for the development of the site for the benefit of the Trails at Palm Springs
or its successor or designee: and 2 Authorize the City Manager to execute appropriate
releases and other documentation including the Declaration of Covenants. Conditions
dated April 7, 2003, between SCHLPS. LLC, the Aaencv, and the City, and as the City
Attorney may approve or recommend as reasonably necessary to evidence the
termination of the Development Agreement as conditioned above, was adopted by the
City Council of the City of Palm Springs, California, in a meeting thereof held on the 7tn
day of March, 2007.
James Thompson, City Clerk
City of Palm Springs, California
ADDITIONAL MATERIAL
Item 2.M. — Revised Minute Order
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CAOFOR��P CITY COUNCIL STAFF REPORT
DATE: March 7, 2007
SUBJECT: TERMINATION OF A DEVELOPMENT AGREEMENT DATED
FEBRUARY 4, 2004 BETWEEN FAIRFIELD RESORTS, INC. (NOW
KNOWN AS WYNDHAM VACATION RESORTS) AND THE CITY OF
PALM SPRINGS AND AUTHORIZE THE RELEASE OF CERTAIN
COVENANTS AND RESTRICTIONS RELATED TO OBLIGATIONS AND
BENEFITS OF THE DEVELOPMENT AGREEMENT.
FROM: David H. Ready, City Manager
BY: Douglas Holland, City Attorney
STAFF REPORT
The City and its Community Redevelopment Agency have approved various
agreements and entitlements regarding the Fairfield timeshare project over the last
several years. Fairfield (now known as Wyndham Vacation Resorts) is selling its
interest in the affected property to The Trails at Palm Springs, a limited liability company
(and an affiliate of Contempo Homes). The new owner does not wish to proceed with
the proposed timeshare project and has requested that various restrictions and
encumbrances on the property related to the Fairfield project be removed. The new
owner is also requesting that the City and its Community Redevelopment Agency
terminate the applicable agreements and authorize the release of the various
restrictions on the property related to these various agreements. Staff is recommending
that the City terminate the development agreement and authorize the release of the
restrictions as requested so that the new owner can close the sale and purchase of the
property and apply for a new development plan for the property. (On the Community
Redevelopment Agency agenda, staff is also recommending that the Agency terminate
the Development and Disposition Agreement and related documents regarding the
Fairfield project.)
RECOMMENDATION:
Staff recommends the City Council:
1. Order the termination of the Development Agreement between Wyndham Vacation
Resorts, Inc., formerly known as Fairfield Resorts, Inc., and the City of Palm Springs,
STEM NO. I"�
City Council Staff Report
March 7, 2007 -- Page 2
Termination of Failed Development Agreement
subject to the condition that the termination shall become effective upon the close of the
sale of the property from Wyndham Vacation Resorts to The Trails at Palm Springs, LLC.
2. Authorize the City Manager to execute appropriate releases and other
documentation, including the Declaration of Covenants, Conditions dated April 7, 2003,
between SCHLPS, LLC, the Agency, and the City, and as the City Attorney may approve
or recommend as reasonably necessary to evidence the termination of the Development
Agreement as conditioned above.
Douglas Holland, City Attorney Assistant City M7ager
David H. Ready, Cit ager
MINUTE ORDER NO.
ORDERING THE TERMINATION OF THE DEVELOPMENT
AGREEMENT BETWEEN WYNDHAM VACATION
RESORTS, INC„ FORMERLY KNOWN AS FAIRFIELD
RESORTS, INC., AND THE CITY OF PALM SPRINGS
A4823
I, James Thompson, City Clerk of the City of Palm Springs, hereby certify that this
Minute Order Ordering the termination of the Development Agreement between
Wyndham Vacation Resorts, Inc., formerly known as Fairfield Resorts, Inc., and the City
of Palm Springs, subject to the condition that the termination shall become effective
upon the close of the sale and the property from Wyndham Vacation Resorts to the
Trails at Palm Springs, LLC, was adopted by the City Council of the City of Palm
Springs, California, in a meeting thereof held on the 7th day of March, 2007.
James Thompson, City Clerk
City of Palm Springs, California