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Community Redevelopment Agency Staff Renort
DATE: JUNE 20, 2007 LEGISLATIVE AGENDA
SUBJECT: AMENDMENT NO. 2 TO IMPLEMENTATION AGREEMENT WITH VISTA
SUNRISE APARTMENTS, LP, AND MBA DEVELOPMENT CORP. TO
ALLOW $55,000 OF THE PUBLIC IMPROVEMENTS HOLDBACK TO BE
USED TO INCREASE AND ENHANCE THE MECHANICAL SCREENING
AND LANDSCAPING ALONG THE VISTA CHINO ROAD/HIGHWAY 111
FRONTAGE
FROM: David H. Ready, Executive Director
BY: Community & Economic Development Department
SUMMARY:
This Amendment allows for the funding of landscaping and mechanical screening
enhancements at the new Rick Weiss Apartments, formerly Vista Sunrise Apartments,
along Vista Chino Road. The original Implementation Agreement and subsequent DDA
Amendments dealt with the issue of the offsite improvements by reserving $125,000 of
the original $1,300,000 Agency cash contribution toward the estimated $250,000 cost of
the offsite improvements, to be shared with the County of Riverside as it develops its
Family Care Center on the same campus. The estimated cost of the additional
screening and upgraded landscaping is approximately $75,000, of which $55,000 would
be released from the $125,000 to be used for this purpose. The Developer,
McCormack Baron Salazar, Inc., would contribute $20,000 toward the landscaping
costs. The City Council approved the plans, specifications and estimates of the offsite
improvements at its May 2, 2007 meeting, to facilitate the bidding of the project; the
$55,000 to be used for screening and landscaping from Agency funds would be
replaced in the offsite improvement project at the point of awarding the contract with
Merged Project Area #1 funds. The off-site improvements contract with Dateland
Construction is on this agenda as a separate item from the Public Works Department.
RECOMMENDATION:
COMMUNITY REDEVELOPMENT AGENCY RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING AMENDMENT NO. 2 WITH VISTA SUNRISE
Item RA2 .
Community Redevelopment Agency
June 20,2007
Pago 2
APARTMENTS, LP AND MBA DEVELOPMENT CORP. TO ALLOW $55,000 OF
THE PUBLIC IMPROVEMENTS HOLDBACK TO BE USED TO INCREASE AND
ENHANCE THE MECHANICAL SCREENING AND LANDSCAPING ALONG
THE VISTA CHINO ROAD/HIGHWAY 111 FRONTAGE
2. AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE ALL DOCUMENTS
RELATED TO THE AGREEMENT
STAFF ANALYSIS:
This Amendment allows for the funding of landscaping and mechanical screening
enhancements at the Rick Weiss Apartments along Vista Chino Road, formerly called
Vista Sunrise Apartments, developed by Desert AIDS Project and McCormack Baron
Salazar, Inc. In completing the project the City overlooked several aesthetic elements
of the project, including the screening of the at-grade air conditioning compressors and
the landscaping facing Vista Chino Road. The Agency discussed the item at its May 23,
2007 meeting and directed staff to talk to Desert AIDS Project and the Developer about
sharing in the cost of the improvements. The Developer has agreed to fund $20,000 of
the landscaping improvements, but Desert AIDS Project, which did not participate in the
project financing, was unable to contribute toward the aesthetic improvements without
jeopardizing client services.
The proposal includes additional landscaping designed by landscape architect Michael
Buccino. There will be a total of 18 sycamore (36" box) trees with 21 ocotillos added to
the project in order to soften the mass of the building as viewed from the street. The
shrubs around the air conditioning units will be relocated outside of the new fence line
so that they could be perceived along Vista Chino. The landscape architect will help
determine final location of all new tree and plants at the time of installation and will
provide tree, planting and irrigation plans so that the Developer can cost the project
before going out to bid. The conceptual landscape plan is attached.
The air conditioner compressors will be screened from view with new metallic mesh
fencing. Because of the drainage swale along the Vista Chino, the room to locate an
effective fence with appropriate footings between the top of the slope and the air
conditioner is limited. Since the property management team at the apartments has
recommended that all the ground floor units facing Vista Chino should be fenced for
security purposes, the challenge was to develop a fence that will screen the units from
view and provide some measure of additional screening and security for the ground
floor residents, though it cannot be construed as security fencing. The proposal for the
Fencing is for approximately 4Y2' painted steel mesh. Interactive Design, the project ,
architect, has simplified the design so that the screening breaks between buildings and
does not present as a single long fence.
C002
Community Redevelopment Agency
June 20,2007
Page 3
The Developer had requested that the Agency modify the Implementation Agreement to
reflect utilizing $75,000 from the off-sites improvement line item towards the costs
associated with the landscaping and fence. Essentially, these funds would be moved
from the off-sites line item into another line item in their budget. The other Agency funds
that Staff is recommending would instead be allocated to pay for the off-sites. The
reason for this shift is as follows:
1. If the City were to pay for the landscaping directly through another source such
as CDBG, this expenditure would actually reduce the eligible tax credit basis and
cost the project equity. In order to not reduce the basis, the money would have
to be lent to the project, as the current Agency contribution is, subject to a Deed
of Trust and Promissory Note.
2. Amendment of the Implementation Agreement would expedite the completion of
the fence and landscaping, as the funds are already appropriated and the project
could be bid by the Developer right away.
The original Implementation Agreement and subsequent DDA Amendments dealt with
the issue of the offsite improvements by reserving $125,000 of the original $1,300,000
Agency cash contribution toward the estimated $250,000 cost of the offsite
improvements, to be shared with the County of Riverside as it developed its Family
Care Center on the same campus. The estimated cost of the additional screening and
upgraded landscaping is approximately $75,000, of which $55,000 would be released
from the $125,000 to be used for this purpose. The City Council approved the plans,
specifications and estimates of the offsite improvements at its May 2, 2007 meeting, to
facilitate the bidding of the project; the $55,000 to be used for screening and
landscaping from Agency funds would be replaced in the offsite improvement project at
the point of awarding the contract with Merged Project Area #1 funds. The off site
improvements contract with Dateland Construction is on this agenda as a separate item
from the Public Works Department.
The County is separately working on the development of the health care facility, which
was the motivation of the Desert Healthcare District to participate in the project. The
County has broken ground on the health care facility within the past few weeks. One
issue with the separation of the health care facility from the housing project (since they
were approved as a single project) was coordinating the construction of the off-site
improvements and dividing the cost responsibility between the two projects. The largest
single cost item in the required improvements is the additional right turn lane on Vista
Chino Road, which requires the relocation of a storm drain and a traffic signal in
addition to the street widening. The improvement is not adjacent to either the health
care facility or the apartment project; either project proposed alone would have to install
it; and, the Developer originally divided the estimated cost 50/50 between the two. The
Developer was concerned that, given they would be completed with their apartments
prior to the completion of the health care facility, that their Certificate of Occupancy
�,0(1',3
Community Redevelopment Agency
June 20,2007
Page 4
could be withheld because their conditions of approval require all the improvements to
be installed.
In the Implementation Agreement and the Public Improvements Reimbursement
Agreement, the Agency assumed the responsibility (through the City's Public Works
Department) for constructing the improvements with the costs ultimately being borne by
the Developer and County. The Developer's share was through a "holdback" of
$125,000 from the original $1,300,000 Agency cash contribution to the housing project;
and, the County would reimburse the City for its share up to $125,000 through the
Reimbursement Agreement, once it has completed the health care facility. Therefore,
the Agency would "front" the County's share of the improvements but receive payment
once the project is built.
FISCAL IMPACT:
The approval of this action would require that the Agency contribute an additional
$55,000 toward the construction of the off-site improvements. The resolution approving
the off-site improvement construction contract with Dateland Construction does not
include his itional amount.
John S. a mo d, Director of Tom Wils
Co unity conomic Development Assistant City Manager
DAVID H. READY
Executive Director
Attachments:
1. Resolution
2. Amendment No. 2 to the Implementation Agreement
3. Planting Plan —to be provided
4, Conceptual Fence Plan —to be provided
Community Redevelopment Agency
June 20,2007
Page 5
RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING
AMENDMENT NO. 2 WITH VISTA SUNRISE
APARTMENTS, LP AND MBA DEVELOPMENT
CORP. TO ALLOW $75,000 OF THE PUBLIC
IMPROVEMENTS HOLDBACK TO BE USED TO
INCREASE AND ENHANCE THE MECHANICAL
SCREENING AND LANDSCAPING ALONG THE
VISTA CHINO ROAD/HIGHWAY 111 FRONTAGE
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs
(the "Agency") has established an affordable housing setaside fund in
accordance with Section 33000 et. seq. of the California Health and Safety
Code; and
WHEREAS, the Agency and the Developer entered into that certain Restated
and Amended Disposition and Development Agreement ("RADDA") dated
February 15, 2005 which provided for the construction of 85 affordable housing
units pursuant to the terms of the RADDA; and
WHEREAS, as the parties began the implementation of the terms of the
RADDA they discovered that certain assumptions Concerning financing
requirements and timing of the adjacent health care facility project necessitated
non-material revisions for purposes of the Agency in the form of the Promissory
Notes and Deeds of Trust which have to be clarified but which do not affect the
Agency's basic financial contribution to the Project or the Scope of the Project;
and
WHEREAS, the Agency and the Developer entered into that certain
Implementation Agreement ("Original Agreement ") approved May 18, 2005, for
purposes of clarifying the parties' understandings of how the RADDA will be
implemented and to make certain non-material revisions to the terms of the
RADDA as more particularly set forth therein;
WHEREAS, in September 2005, the Parties approved the First Amendment to
the Implementation Agreement to make certain additional revisions to the
financing of the Project which were which did not materially affect the Agency's
basic financial contribution to the Project or materially change the Scope of the
Project.
O(Vr�s
Community Redevelopment Agency
June 20,2007
Page 6
WHEREAS, the Agency and the Developer now desire to approve Amendment
No. 2 to the Implementation Agreement in accordance with the terms and
conditions set forth in this Amendment. For purposes hereof, the Amended
Agreement and this Amendment are collectively referred to as the "Agreement."
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment
Agency of the City of Palm Springs, as follows:
SECTION 1. The above recitals are true and correct and incorporated
herein.
SECTION 2. This Amendment No. 2 to the Implementation Agreement with
Vista Sunrise Apartments, LP, is hereby approved and incorporated herein by
this reference.
SECTION 3, The Executive Director, or his designee, is hereby authorized to
execute on behalf of the Agency the Amendment No. 2 to the Implementation
Agreement and other documents necessary to the Agreement, and make minor
changes as may be deemed necessary, in a form approved by Agency
Counsel.
ADOPTED this day of 2007.
AYES:
NOES:
ABSENT:
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM
SPRINGS, CALIFORNIA
Chairman
ATTEST.-
James Thompson, City Clerk
Community Redevelopment Agency
June 20,2007
Page 7
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk 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 City Council of the City of Palm Springs on
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
AMENDMENT NO. 2 TO
IMPLEMENTATION AGREEMENT
This Amendment No. 2 to Implementation Agreement ("Amendment") is made
and entered into as of May _, 2007 by and between the Community Redevelopment
Agency of the City of Palm Springs, a public body, corporate and politic ("Agency"), and
Vista Sunrise Apartments, L.P., a California limited partnership ("Developer"), with
reference to the following recitals of fact:
RECITALS:
A. WHEREAS, the Agency and the Developer have entered into that certain
Restated and Amended Disposition and Development Agreement ("RADDA") dated
February 15, 2005, which provides, among other things, for the construction of 85
affordable housing units pursuant to the terms of the RADDA;
B. WHEREAS, the Agency and the Developer have entered into that certain
Implementation Agreement ("Original Agreement ") approved May 18, 2005, for
purposes of clarifying the parties' understandings of how the RADDA will be
implemented and to make certain non-material revisions to the terms of the RADDA as
more particularly set forth therein;
C. WHEREAS, in September 2005, the Parties approved the First
Amendment to the Implementation Agreement to make certain additional revisions to
the financing of the Project which were which did not materially affect the Agency's
basic financial contribution to the Project or materially change the Scope of the Project.
D. WHEREAS, the Agency and the Developer now desire to approve
Amendment No. 2 to the Implementation Agreement in accordance with the terms and
conditions set forth in this Amendment. For purposes hereof, the Amended Agreement
and this Amendment are collectively referred to as the "Agreement."
NOW THEREFORE, in consideration of the mutual covenants and agreements
hereinafter set forth and for other good and valuable considerable considerations the
receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Original Agreement. The Agency and the Developer acknowledge that the
Original Agreement, as amended in September 2005, is in full force and effect, except
as modified by this Amendment. All capitalized terms not otherwise defined herein shall
have the meaning set forth in the Original Agreement. In the event of any inconsistency
between the terms and conditions set forth in the Original Agreement and the terms and
conditions set forth in this Amendment, the terms and conditions in this Amendment
shall control.
2. Additional Prolect Landscaping. The Developer has agreed to develop a
plan for and install several aesthetic upgrades of the project along Vista Chino Road,
including the screening of the at-grade air conditioning compressors, as well as the
LA/46326695.1 C) PrB
landscaping. The additional landscaping shall include no fewer than eighteen sycamore
(36" box) trees with twenty-one ocotillos added to the project in order to soften the mass
of the building as viewed from the street. The shrubs around the air conditioning units
will be relocated outside the new fence line so that they could be seen from Vista Chino
Road. The landscape architect will help determine final location of all new tree and
plants at the time of installation and will provide tree, planting and irrigation plans.
3. Screening of "At-Grade" Mechanical Equipment on Vista Chino. The air
conditioner compressors will be screened from view with new fencing. Because of the
drainage swale along the Vista Chino, the room to locate an effective fence with
appropriate footings between the top of the slope and the air conditioner is limited.
Interactive Design, the project architect has designed a fence that will screen the units
from view and provides some measure of additional screening and security for the
ground floor residents; the design uses 4'x8' metallic mesh panels (as shown in Exhibit
A), along the entire building face of Vista Chino.
4. Funding of the Improvements. The Parties agree to modify the
Implementation Agreement to reflect utilizing the $55,000 from the off-sites
improvement line item ("holdback") towards the costs associated with the landscaping
and fence. These funds would be moved from the off-sites line item into another line
item in the Development budget and accessible to the Developer for the landscaping
and screening costs, including City fees and design costs, to be matched by a
Developer contribution of $20,000. Staff would recommend to the Agency that an
additional $55,000 in Redevelopment funds be allocated to cover the off-site
improvement costs.
5. Effect on Tax Credit Basis and Project Equity. The Parties agree that the
reallocation of Agency funds, to be replaced in the public works project by
Redevelopment funds, would have the least impact on project equity through a potential
reduction in Low Income Housing Tax Credit basis. The existing Agency funds are
already subject to the Cash Contribution Note and existing Regulatory Agreement and
Deed of Trust, which do not need to be modified.
6. No Other Modifications. Except as otherwise provided herein, all other
terms and provisions of the Agreement shall remain in full force and effect, unmodified
by this Amendment.
7. Binding Effect. The provisions of this Amendment shall be binding upon
and inure to the benefit of the heirs, representatives, successors and permitted assigns
of the parties hereto.
8. Counterparts, This Amendment may be executed in any number of
original counterparts. Any such counterpart, when executed, shall constitute an original
of this Amendment, and all such counterparts together shall constitute one and the
same Amendment. For purposes of this Amendment, facsimile signatures shall be
deemed to be originals.
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W40320$9$.1
IN WITNESS WHEREOF, this Amendment has been duly executed by the
parties hereto as of the day and year written above.
DEVELOPER:
VISTA SUNRISE APARTMENTS, L.P., a California
limited partnership
By: MBA Development Corp.,
a Missouri corporation
Its: Development General Partner
By:
Name:
Title:
By: Coachella Valley AIDS Consortium,
a California nonprofit public benefit
corporation
Its: Managing General Partner
By:
Name:
Title:
AGENCY:
ATTEST: THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, a public body,
corporate and politic
By:
Executive Director
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