HomeMy WebLinkAbout9/19/2001 - STAFF REPORTS (9) RESOLUTION NO. 20172
OF THE COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, CONCURRING WITH COMMUNITY
REDEVELOPMENT AGENCY APPROVAL OFTHETHIRD
AMENDMENT TO A DISPOSITION AND DEVELOPMENT
AGREEMENT WITH JOHN WESSMAN, DBA WESSMAN
DEVELOPMENT COMPANY, SETTLING A LIQUIDATED
DAMAGES CLAIM ARISING FROM THE CONSTRUCTION
OF THE PLAZA MERCADO SHOPPING CENTER, 155
SOUTH PALM CANYON DRIVE, AND PROVIDING FOR
THE CONSTRUCTION OF A SONNY BONO MEMORIAL
FOUNTAIN AT THE SITE, MERGED PROJECT AREA #1
(CBD)
-------------------
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs,
California ("Agency") is constituted under the Community Redevelopment Law(California
Health and Safety Code Section 33000 et. seq.) to carry out the purpose as the
redevelopment in the City of Palm Springs ("the City"); and
WHEREAS, the Agency and Developer entered into that certain Disposition and
Development Agreement dated July 7, 1992, which was approved by the Agency Board
pursuant to Resolution No. 866 on June 23, 1992, as supplemented/modified by that
certain letter agreement dated January 21, 1993 (collectively the "Original DDA"), with
respect to the acquisition and development of certain real property located in the City of
Palm Springs and more particularly described in the Original DDA; and
WHEREAS, the Original DDA was amended by that certain First Amendment to
Disposition and Development Agreement ("Bullock's Property") dated for reference
purposes as of July 23, 1997 (First Amendment"); and
WHEREAS, The Original DDA, as amended by the First Amendment, was further
amended bythatcertain Second Amendment to Disposition and Development Agreement
dated for reference purposes as of September 22, 1997 ("Second Amendment"). The
Original DDA, as amended by the First Amendment and Second Amendment, is referred
to herein as the DDA. Capitalized terms used and not defined in this Third Amendment
shall have the meanings ascribed as such terms in the DDA; and
WHEREAS, as the date of this Third Amendment, the Developer has substantially
completed the improvements to be completed by the Developer pursuant to the DDA
("Developer's Improvements"). During the course of completing Developer's
Improvements, the Developer performed and completed certain work and improvements
for the Agency ("Agency's Improvements"). The Agency's Improvements consisted
primarily of work performed in connection with a parking lot located adjacentto Developer's
Improvements, and a portion of Heritage Trail located adjacent to said parking lot; and
WHEREAS, as a result of and pursuant to the work performed by Developer in
connection with completing the Agency's Improvements, Developer has submitted billing
statements to the Agency, in the total sum of Four Hundred Twenty-One Thousand Five
Hundred Eighty-Fourand20/100 Dollars ($421,584.20) ("Developer's Claim"),the amount
of which is not in dispute by the City, and of which the City has paid Developer Two
Hundred Ninety-Three Thousand Five Hundred Eighty-Four and 20/100 Dollars /1
Res. No. 20172
Page 2
($293,584.20). In addition, as a result of the liquidated damages provisions in the Second
Amendment of the DDA, and the Agency's position with respect to Developer's completion
of Phase I of Developer's Improvements, the Agency has submitted a request that
Developer pay the sum of One Hundred Twenty-Eight Thousand and no/100 Dollars
($128,000.00) ("Agency's Liquidated Damages Claim"), the amount of which Developer
disputes. (The Developer's Claim against the Agency and the Agency's Liquidated
Damages Claim against the Developer are hereinafter sometimes referred to collectively
as the "Dispute"); and
WHEREAS, the Agency and Developer now desire to enter into this Third
Amendment to the DDA for purposes of settling the Dispute and to avoid the costs,
disruption, inconvenience and uncertainty of litigation to enforce the terms of the DDA, and
releasing their respective claims relating to the Dispute; and
WHEREAS, the City considered the staff report, and all the information, testimony
and evidence provided at its regularly scheduled meeting of September 19, 2001.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Springs
as follows:
SECTION 1. The above recitals are true and correct and incorporated
herein.
SECTION 2. Pursuant to the California Environmental Quality Act
(CEQA), the City Council and the Community
Redevelopment Agency find as follows:
a) In connection with the approval of the DDA,
the project is Categorically Exempt because
all the work is to occur on existing facilities
and there are no changes in the effects of
the proposed project or the circumstances in
which it is being carried out which require any
modification of the Categorical Exemption.
b) The Council and Agency find that the
Planning Commission adequately discussed
the potential significant environmental effects
of the proposed project (land use,
traffic/circulation, parking, air quality, noise,
aesthetics, geology/soils, water quality,
drainage, public utilities, public safety,
archaeological/historic resources and light
and glare). The Community Redevelopment
Agency further finds that the Categorical
Exemption reflects its independentjudgment.
SECTION 3. The City Council concurs with the Agency proposal that,
through this Third Amendment to the Disposition and
Development Agreement, the Agency reimburse Developer
in progress payments up to theAgency Liquidated Damages
Claim Amount ($128,000) for the construction of a fountain
and sculpture in memory of Sonny Bono, constructed on the
Developer's Improvements at 155 South Palm Canyon
Res. No. 20172
Page 3
Drive, under terms set forth in the Third Amendment.
SECTION 4. The proposed project is consistent with the Implementation
Plan for this area, insofar as this project will beautify the
downtown and decrease blight. It will also add another
tourist attraction in a commercial area heavily dependent on
tourism.
SECTION 7. Based on foregoing reasons, the City Council concurs with
the Agency's approval of the Third Amendment to the
Disposition and Development Agreement.
SECTION 8. The City Manager is authorized to execute all necessary
documents, in a form approved by the City Attorney.
ADOPTED this 19th day of September, 2001.
AYES: Members Hodges, Jones, Oden, Reller-Spnrgin and Mayor Kleindienst
NOES: None
ABSENT: None
ATTEST: _
CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED
RESOLUTION NO.
OF THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING THE THIRD AMENDMENT TO A
DISPOSITION AND DEVELOPMENT AGREEMENT WITH
JOHN WESSMAN, DBA WESSMAN DEVELOPMENT
COMPANY, SETTLING A LIQUIDATED DAMAGES CLAIM
ARISING FROM THE CONSTRUCTION OF THE PLAZA
MERCADO SHOPPING CENTER, 155 SOUTH PALM
CANYON DRIVE, AND PROVIDING FOR THE
CONSTRUCTION OF A SONNY BONO MEMORIAL
FOUNTAIN AT THE SITE, MERGED PROJECT AREA #1
(CBD)
-------------------
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs,
California ("Agency") is constituted under the Community Redevelopment Law(California
Health and Safety Code Section 33000 et. se . to carry out the purpose as the
redevelopment in the City of Palm Springs ("the City"); and
WHEREAS, the Agency and Developer entered into that certain Disposition and
Development Agreement dated July 7, 1992, which was approved by the Agency Board
pursuant to Resolution No. 866 on June 23, 1992, as supplemented/modified by that
certain letter agreement dated January 21, 1993 (collectively the "Original DDA"), with
respect to the acquisition and development of certain real property located in the City of
Palm Springs and more particularly described in the Original DDA; and
WHEREAS, the Original DDA was amended by that certain First Amendment to
Disposition and Development Agreement ("Bullock's Property") dated for reference
purposes as of July 23, 1997 (First Amendment"); and
WHEREAS, The Original DDA, as amended by the First Amendment, was further
amended by that certain Second Amendment to Disposition and Development Agreement
dated for reference purposes as of September 22, 1997 ("Second Amendment"). The
Original DDA, as amended by the First Amendment and Second Amendment, is referred
to herein as the DDA. Capitalized terms used and not defined in this Third Amendment
shall have the meanings ascribed as such terms in the DDA; and
WHEREAS, as the date of this Third Amendment, the Developer has substantially
completed the improvements to be completed by the Developer pursuant to the DDA
("Developer's Improvements"). During the course of completing Developer's
Improvements, the Developer performed and completed certain work and improvements
for the Agency ("Agency's Improvements"). The Agency's Improvements consisted
primarily of work performed in connection with a parking lot located adjacent to Developer's
Improvements, and a portion of Heritage Trail located adjacent to said parking lot; and
WHEREAS, as a result of and pursuant to the work performed by Developer in
connection with completing the Agency's Improvements, Developer has submitted billing
statements to the Agency, in the total sum of Four Hundred Twenty-One Thousand Five
Hundred Eighty-Fourand 20/100 Dollars($421,584.20) ("Developer's Claim"),the amount
of which is not in dispute by the City, and of which the City has paid Developer Two
Hundred Ninety-Three Thousand Five Hundred Eighty-Four and 20/100 Dollars
($293,584.20). In addition, as a result of the liquidated damages provisions in the Second 14
Amendment of the DDA,and the Agency's position with respect to Developer's completion
of Phase I of Developer's Improvements, the Agency has submitted a request that
Developer pay the sum of One Hundred Twenty-Eight Thousand and no/100 Dollars
($128,000.00) ("Agency's Liquidated Damages Claim"), the amount of which Developer
disputes. (The Developer's Claim against the Agency and the Agency's Liquidated
Damages Claim against the Developer are hereinafter sometimes referred to collectively
as the "Dispute".); and
WHEREAS, the Agency and Developer parties now desire to enter into this Third
Amendment to the DDA for purposes of settling the Dispute and to avoid the costs,
disruption, inconvenience and uncertainty of litigation to enforce the terms of the DDA, and
releasing their respective claims relating to the Dispute; and
WHEREAS, the Agency has considered the staff report, and all the information,
testimony and evidence provided at its regularly scheduled meeting of April 4, 2001.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Palm Springs
as follows:
SECTION 1. The above recitals are true and correct and incorporated
herein.
SECTION 2. Pursuant to the California Environmental Quality Act
(CEQA), the Community Redevelopment Agency finds as
follows:
a) In connection with the approval of the DDA,
the project is Categorically Exempt because
all the work is to occur on existing facilities
and there are no changes in the effects of
the proposed project or the circumstances in
which it is being carried outwhich require any
modification of the Categorical Exemption.
b) The Agency finds that the Planning
Commission adequately discussed the
potential significant environmental effects of
the proposed project (land use,
traffic/circulation, parking, air quality, noise,
aesthetics, geology/soils, water quality,
drainage, public utilities, public safety,
archaeological/historic resources and light
and glare). The Community Redevelopment
Agency further finds that the Categorical
Exemption reflects its independentjudgment.
SECTION 3. The Agency proposes, through this Third Amendmentto the
Disposition and Development Agreement, to reimburse
Developer in progress payments up to the Agency
Liquidated Damages Claim Amount ($128,000) for the
construction of a fountain and sculpture in memory of Sonny
Bono, constructed on the Developer's Improvements at 155
South Palm Canyon Drive, under terms set forth in the Third
Amendment. ��
SECTION 4. The proposed project is consistent with the Implementation
Plan for this area, insofar as this project will beautify the
downtown and decrease blight. It will also add another
tourist attraction in a commercial area heavily dependent on
tourism.
SECTION 7. Based on foregoing reasons, this Third Amendment to the
Disposition and Development Agreement is hereby
approved and incorporated herein by this reference.
SECTION 8. The City Manager is authorized to execute all necessary
documents, in a form approved by the City Attorney.
ADOPTED this day of , 2001.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk Mayor
REVIEWED &APPROVED
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA,AMENDING THE BUDGET FOR THE 2001-02
FISCAL YEAR.
WHEREAS Resolution 20062 approving the budget for the fiscal year 2001-02 was adopted
on June 6, 2001; and
WHEREAS the City Manager has recommended, and the City Council desires to approve,
certain amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record
inter-fund cash transfers as required in accordance with this Resolution, and that Resolution
20062, adopting the budget for the 2001-02 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS -Transfer to Community Redevelopment Agency
Fund Activity Account Amount
811 8191 50172 $128,000
Purpose
SECTION 2. SOURCE City Parking Fund, Plaza Mercado Parking Lot
FUND Activity Account Amount
131 4461 50172 $128,000
Adopted this day of 2001.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED