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HomeMy WebLinkAbout10/17/2001 - STAFF REPORTS (5) DATE: OCTOBER 17, 2001 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF REDEVELOPMENT APPROVAL OF AMENDMENT NO. 2 TO EXCLUSIVE AGREEMENT TO NEGOTIATE WITH BURNETT DEVELOPMENT CORPORATION OF NEWPORT BEACH, CALIFORNIA, ON A 19.17ACREAGENCY-OWNED PARCELANDA22.21 ACRE CITY-OWNED PARCEL NEAR THE CORNER OF SUNRISE WAY AND SAN RAFAEL ROAD RECOMMENDATION: It is recommended that the Agency approve the Amendment No. 2 to an Exclusive Agreement to Negotiate with Burnett Development Corporation on the 19.17 + acre and 22.21 acre Agency-owned parcels at the corner of Sunrise Way and San Rafael Road to facilitate the development of a major single-family-home development. SUMMARY: This Agreement adds six months to the Exclusive Agreement to Negotiate (EAN) with Burnett Development Corporation on the 19.17 acre and 22.21 acre Agency- owned parcels near Sunrise Way and San Rafael Road. The Developer has proceeded in good faith and is nearing completion of the entitlement process: part of the project, "Palm Springs East," should go to Planning Commission in November; "Palm Springs West," including the Agency-owned parcels, should go to Planning Commission in early 2002. The Agency has acquired title to the 22.21 acre parcel from the City, and negotiations with another party over the release of the 19.17 acre parcel from another lease are proceeding. A DDA has been drafted but is undergoing revision based on the scope and scale of the project; the Developer also desires to incorporate a Community Facilities District into the project, which will necessitate the negotiation of a City Development Agreement as well as the formation of the District. BACKGROUND: In November, 2000 the Agency approved an Exclusive Agreement to Negotiate with Burnett Development Corporation (the "Developer") to purchase a 19.17 + acre Agency-owned parcel and a 22.21 acre City-owned parcel at the corner of Sunrise Way and San Rafael Road for fair market value. The Developer is in the process of assembling land to build a major single-family-home development in the area. The City sold an 11,000 s.f. parcel of land to the Developer in 1998 as part of the Developer's land assemblage. The Developer has proceeded diligently on the planning of the site and expects that a portion of the subdivision will be approved by the Planning Commission at a public hearing in November, 2001 with the other half in early 2002. There were several property-related issues that have been nailed down, however, including the release of easements on the Agency- and City-owned parcels held by the Desert Water Agency, Southern California Edison, and the Coachella Valley Housing Coalition. Meanwhile, the negotiation between the Agency and the non-profit that has proposed purchasing the Sunrise Village Mobile Home Park is proceeding on a separate schedule; that sale must close before the Agency can convey the 19.17 acre parcel to Burnett. Staff had originally requested the agreement be for a term of six months, anticipating that most of the work on the preparation of the DDA would be done during that period. The Agreement was extended for another four months in June, 2001. A draft of the DDA is currently circulating but a portion of it related to the phasing of the project and the development of infrastructure is being rewritten. The Developer is concerned that the Exclusive Agreement has now lapsed and has requested an extension. Therefore, staff is recommending that the Exclusive Agreement be amended to add an additional six months, during which the developer should receive his Planning approvals, successfully negotiate the Disposition and Development Agreement with the Agency, and begin the creation of the Community Facilities District. J`OHN S. RAYMOtV irecto of Redevelopment APPROV DE Executive Direct G.- ATTACHMENTS: 1. Resolution 2. Amendment No. 2 to Exclusive Agreement to Negotiate ejoi • o4_ FIRST AMENDMENT TO EXCLUSIVE AGREEMENT TO NEGOTIATE THIS FIRST AMENDMENT TO EXCLUSIVE AGREEMENT TO NEGOTIATE ("Amendment") is entered into this day of , 2001 (the "Effective Date") by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic, ("Agency") whose offices are located at P.O. Box 2743, 3200 East Tahquitz Canyon Way, Palm Springs, California 92263 and Burnett Development Corporation whose offices are located at 1300 Bristol Street North, Suite 200, Newport Beach, California 92660 ("Developer"). RECITALS A. On October 18, 2000, the Agency approved that certain Exclusive Agreement to Negotiate ("Original Agreement") with Developer pursuant to which Agency and Developer agreed to work mutually on the development of a single family home development at the northwest corner of Sunrise Way and San Rafael Road in Palm Springs, as more particularly described therein, and which was amended on June 6, 2001 by Amendment No. 1. B. Agency and Developer desire to amend the terms of the Original Agreement and Amendment No. 1 as more particularly described herein. C. Any capitalized terms not defined herein shall have the meanings ascribed to them in the Original Agreement. The Original Agreement, as modified by this Amendment, is hereinafter referred to as the "Agreement." NOW, THEREFORE, the parties hereto agree as follows: SECTION 2. PERIOD OF NEGOTIATIONS. The period of negotiation shall be one hundred eighty (180) days from the expiration date of the Original Agreement, and this Agreement shall terminate after the expiration of such period unless extended as follows: A. For sixty (60) days if an agreement has been prepared by the Agency and executed by the Developer, and has been submitted to the Agency but has not yet been approved by the Agency Board; or B. For thirty (30) days if the major business terms have been agreed to and the Executive Director determines that further negotiations are likely to result in a written agreement; or C. By mutual agreement of the parties. Developer understands and acknowledges that if negotiations culminate in an agreement, such agreement shall be effective only after and if the agreement has been considered and approved by the Agency Board after public hearing thereon as required by law. IN WITNESS WHEREOF the Agency and Participant have executed this Agreement as of the date first written above. "AGENCY" ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic By: By: Assistant Secretary Executive Director APPROVED AS TO FORM: BURKE, WILLIAMS & SORENSEN, LLP By: Agency Counsel "DEVELOPER" C� � • �4y RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO.2 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH BURNETT DEVELOPMENT CORPORATION OF NEWPORT BEACH, CALIFORNIA FOR THE PURCHASE AND DEVELOPMENT OF AN AGENCY-OWNED AND CITY- OWNED PARCEL TO FACILITATE THE DEVELOPMENT OF A SINGLE-FAMILY HOME DEVELOPMENT WHEREAS the Community Redevelopment Agency does own a parcel of land of approximately 40 acres, which is divided between a mobile home park and a 19.17+ acre vacant parcel, which it acquired from the City of Palm Springs in 1995; and WHEREAS the City of Palm Springs did own a 22.21 acre parcel adjacent to the Agency-owned parcel and which was acquired for the development of affordable housing in the City; and WHEREAS a number of developments have been constructed on the entire 100 acre parcel which have restrictive covenants on them to preserve affordability, including the mobile home park, Coyote Run, and Sunrise Norte; and WHEREAS the City of Palm Springs has conveyed its 22.21 acre parcel to the Agency to facilitate the development of the combined 39.38+ acre parcel with market rate housing to ensure a demographic balance in the area; and WHEREAS the Agency desires to sell the parcel to a Burnett Development Corporation so that it can return the land to productive use and facilitate additional development in the area around the site, including the generation of tax increment and low- and moderate-income housing set-aside; and WHEREAS the Agency and Burnett Development Corporation entered into an Exclusive Agreement to Negotiate in November, 2000 for a period of six months while the Developer undertook site planning and project approvals, which was amended in June, 2001 adding an additional four months, but the Developer and Agency find they needs an additional six months to complete the Planning approvals, negotiation of the DDA, and creation of a Community Facilities District. NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City of Palm Springs, that Amendment No. 2 to the Exclusive Agreement to Negotiate between the Agency and Burnett Development Corporation in a form approved to the Agency Counsel, is hereby approved. ADOPTED this day of 2001. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Executive Director REVIEWED &APPROVED AS TO FORM CQA �.