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HomeMy WebLinkAbout3/7/2007 - STAFF REPORTS - RA.4. RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENTAGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, ORDERING THE TERMINATION OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN SCHLPS, LLC, AND THE COMMUNITY REDEVELOPMENT AGENCY DATED SEPTEMBER 19, 2001, AS AMENDED BY THE FIRST AMENDMENT DATED NOVEMBER 5, 2002, AND ASSIGNED TO FAIRFIELD RESORTS, INC. (NOW KNOWN AS WYNDHAM VACATION RESORTS, INC.) PURSUANT TO AN ASSIGNMENT AND ASSUMPTION AGREEMENT AND CONSENT OF AGENCY DATED FEBRUARY 26, 2003, 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. A0428C. The Community Development Agency of the City of Palm Springs, hereby resolves: Section 1. Order the termination of the Disposition and Development Agreement between SCHLPS, LLC, and the Community Redevelopment Agency dated September 19, 2001, as amended by the First Amendment dated on November 5, 2002, and assigned to Fairfield Resorts, Inc. (now known as Wyndham Vacation Resorts, Inc.) pursuant to an Assignment and Assumption Agreement and Consent of Agency dated February 26, 2003, 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, 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, Section 2. Authorize the Executive Director to execute appropriate releases and other documentation, including the Declaration of Covenants, Conditions, and Restrictions dated April 7, 2003, between SCHLPS, LLC, the Agency, and the City, Paragraphs 1 —3, 5, and 8 of the Grant Deed dated April 7, 2003 from the Agency to the SCHLPS, LLC, and such other covenants and restrictions as Agency Counsel may approve or recommend as reasonably necessary to evidence the termination of the Disposition and Development Agreement as conditioned above. ADOPTED THIS 7th day of March, 2007. David H. Ready, Executive Director ATTEST: James Thompson, Assistant Secretary ADDITIONAL MATERIAL. Item RA4. — Revised Resolution Resolution No. Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, Assistant Secretary of the Community Redevelopment Agency 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 Community Redevelopment Agency of the City of Palm Springs on the 7th day of March, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, Assistant Secretary Community Redevelopment Agency City of Palm Springs, California �FP.LM S. RZ "C�`0neenno PM gLlFPRN\ COMMUNITY REDEVELOPMENT AGENCY STAFF REPORT DATE: March 7, 2007 SUBJECT: TERMINATION OF DISPOSITION AND DEVELOPMENT AGREEMENT DATED SEPTEMBER 19, 2001, AMENDED ON NOVEMBER 5, 2002, BETWEEN SCHLPS, LLC AND THE PALMS SPRINGS COMMUNITY REDEVELOPMENT AGENCY, AND ASSIGNED TO FAIRFIELD RESORTS, INC. (NOW KNOWN AS WYNDHAM VACATION RESORTS, INC.), AND AUTHORIZE THE RELEASE OF CERTAIN COVENANTS AND RESTRICTIONS RELATED TO OBLIGATIONS AND BENEFITS OF THE DISPOSITION AND DEVELOPMENT AGREEMENT. FROM: David H. Ready, Executive Director BY: Douglas Holland, Agency Counsel STAFF REPORT The Community Redevelopment Agency and the City 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 Community Redevelopment Agency and the City 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 Agency terminate the Disposition and Development Agreement, including the amendment to the DDA, and authorize the release of various covenants and related restrictions 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 City Council agenda, staff is also recommending that the City terminate the Development Agreement and related documents regarding the Fairfield project.) ITEM NO. — Community Redevelopment Agency Staff Report March 7, 2007 -- Page 2 Termination of Fairfield DDA RECOMMENDATION: Staff recommends the Community Redevelopment Agency: 1. Order the termination of the Disposition and Development Agreement between SCHLPS, LLC, and the Community Redevelopment Agency dated September 19, 2001, as amended by the First Amendment dated on November 5, 2002, and assigned to Fairfield Resorts, Inc. (now known as Wyndham Vacation Resorts, Inc.) pursuant to an Assignment and Assumption Agreement and Consent of Agency dated February 26, 2003, 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 Executive Director 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, Paragraphs 1 — 3, 5, and 8 of the Grant Deed dated April 7, 2003 from the Agency to the SCHLPS, LLC, and such other covenants and restrictions as Agency Counsel may approve or recommend as reasonably necessary to evidence the termination of the Disposition and Development Agreement as conditioned above. Douglas,�Holland, Agency Counsel Thomas Wilso Assistant City Manager David H. Ready, Execuie�llreetor RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, ORDERING THE TERMINATION OF THE DISPOSITION AND DEVELOPMENT AGREEMENT BETWEEN SCHLPS, LLC, AND THE COMMUNITY REDEVELOPMENT AGENCY DATED SEPTEMBER 19, 2001, AS AMENDED BY THE FIRST AMENDMENT DATED NOVEMBER 5, 2002, AND ASSIGNED TO FAIRFIELD RESORTS, INC. (NOW KNOWN AS WYNDHAM VACATION RESORTS, INC.) PURSUANT TO AN ASSIGNMENT AND ASSUMPTION AGREEMENT AND CONSENT OF AGENCY DATED FEBRUARY 26, 2003, 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, A0428C. The Community Development Agency of the City of Palm Springs, hereby resolves: Section 1. Order the termination of the Disposition and Development Agreement between SCHLPS, LLC, and the Community Redevelopment Agency dated September 19, 2001, as amended by the First Amendment dated on November 5, 2002, and assigned to Fairfield Resorts, Inc. (now known as Wyndham Vacation Resorts, Inc.) pursuant to an Assignment and Assumption Agreement and Consent of Agency dated February 26, 2003, 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. Section 2. Authorize the Executive Director to execute appropriate releases and other documentation, including the Declaration of Covenants, Conditions, and Restrictions dated April 7, 2003, between SCHLPS, LLC, the Agency, and the City, Paragraphs 1 —3, 5, and 8 of the Grant Deed dated April 7, 2003 from the Agency to the SCHLPS, LLC, and such other covenants and restrictions as Agency Counsel may approve or recommend as reasonably necessary to evidence the termination of the Disposition and Development Agreement as conditioned above. ADOPTED THIS 7th day of March, 2007. David H. Ready, Executive Director ATTEST: James Thompson, Assistant Secretary Resolution No. Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, Assistant Secretary of the Community Redevelopment Agency 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 Community Redevelopment Agency of the City of Palm Springs on the 71" day of March, 2007, by the following vote: AYES: NOES: ABSENT: ABSTAIN: James Thompson, Assistant Secretary Community Redevelopment Agency City of Palm Springs, California