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HomeMy WebLinkAbout7/25/2007 - STAFF REPORTS - RA.1. ;df?ALMSp� iy U N R* rywyoeni¢v♦n, c44 1Foa City Council/Community Redevelopment Agency Staff Report DATE: JULY 25, 2007 JOINT LEGISLATIVE CALENDAR SUBJECT: REIMBURSEMENT AGREEMENT WITH SUNCAL COMPANIES FOR THE PAVING OF A PORTION OF SAN RAFAEL ROAD, MERGED PROJECT AREA NO. 1, IN THE AMOUNT OF $27,984.80: FROM: David H. Ready, Executive Director BY: Community & Economic Development Department SUMMARY: City staff coordinated with SunCal Companies, developer of the Avalon development located east of Indian Canyon Drive and north of San Rafael Drive, to repair the south half of San Rafael Drive adjacent to their project. City Engineering staff believes that development related project traffic has had an impact on the condition of the south half of San Rafael Drive, and requested that as part of SunCal's completion of the north half of San Rafael Drive adjacent to the Avalon project that Sun Cal include a asphalt overlay of the south half of the street. In this way, the entire width of San Rafael Drive would be repaved and brought up to a new condition. The requested repairs to San Rafael Drive extended to Indian Canyon Drive, adjacent to the Palermo project and the Agency's property located at the southeast corner of Indian Canyon Drive and San Rafael Drive. As SunCal's contractor was mobilized to construct the required improvements and repairs to San Rafael Drive adjacent to the Avalon project, City staff coordinated with SunCal to include an asphalt overlay of the remaining segment of San Rafael Drive west of the Avalon project and adjacent to the Agency property. This allowed for lower construction costs and avoided having additional street closures, and allowed San Rafael Drive to open to traffic sooner. The cost to repair the portion of San Rafael Drive adjacent to the Agency property was $27,984.80. Staff preliminarily approved the work to commence, ITEM NO. pursuant to formal approval of the reimbursement of this work by the Agency to SunCal Companies. Staff recommends that the Agency approve the reimbursement to Sun Cal Companies the amount of $27,984.80 for the repairs to San Rafael Drive directly benefiting the Agency property. RECOMMENDATION: 1. COMMUNITY REDEVELOPMENT AGENCY 1) Adopt Resolution No- "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A REIMBURSEMENT AGREEMENT WITH SUNCAL COMPANIES FOR THE PAVING OF A PORTION OF SAN RAFAEL ROAD, MERGED PROJECT AREA NO. 1, IN THE AMOUNT OF $27,984.80;" 2. Authorize the Executive Director to execute all necessary documents; and I CITY COUNCIL Adopt Resolution No- , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MAKING A FINDING PURSUANT TO SECTION 33421.1 OF THE CALIFORNIA HEALTH & SAFETY CODE RELATING TO THE FINANCING OF CERTAIN ROAD IMPROVEMENTS BY THE COMMUNITY REDEVELOPMENT AGENCY TO EFFECTUATE THE REDEVELOPMENT PLAN IN MERGED PROJECT AREA NO. 1." A C. FISCAL IMPACT: This agreement would repay SunCal in the amount of $27,984.80 from Merged Project Area #1 funds. John S. a m nd, Director of Tom Wilso Commu ity conomic Development Assistant ity Manager David H. Ready Executive Director Attachments: 1. CRA Resolution 2. City Resolution 3. Reimbursement Agreement a o0aI RESOLUTION NO. "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A REIMBURSEMENT AGREEMENT WITH SUNCAL COMPANIES FOR THE PAVING OF A PORTION OF SAN RAFAEL ROAD, MERGED PROJECT AREA NO. 1, IN THE AMOUNT OF $27,984,80 WHEREAS, the Redevelopment Plan for the Merged Project Area #1 states that the Agency is authorized to install and construct, or to cause to be installed and constructed, within or without the Project Area, for itself or for any public body or entity, for the benefit of the Project Area, public improvements and public utilities, including, but not limited to, street and alley improvements and bridges. (§324); and WHEREAS the Community Redevelopment Agency has approved, by resolution, the construction of certain street improvements in the Project Area on San Rafael Road, as furthering the purposes of the Redevelopment and allowed under §324 of the Redevelopment Plan; and WHEREAS the Community Redevelopment Agency and the SunCal Companies have approved a Reimbursement Agreement that provides for the payment for the construction of those improvements; and WHEREAS the California Health & Safety Code Section 33421.1 requires that the legislative body make a finding that the provision of public improvements such as streets, sidewalks, utilities, or other public improvements which an owner or operator of the site would otherwise be obliged to provide is necessary to effectuate the purposes of the Redevelopment Plan. 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 Reimbursement Agreement ("RADDA") with SunCal Companies is hereby approved and incorporated herein by this reference. 000003 SECTION 3. The Executive Director, or his designee, is hereby authorized to execute on behalf of the Agency the Agreement, in a form approved by Agency Counsel. ADOPTED this 18th day of July, 2007. David H. Ready, Executive Director ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) $s. 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: James Thompson, City Clerk City of Palm Springs, California RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, MAKING A FINDING PURSUANT TO SECTION 33421.1 OF THE CALIFORNIA HEALTH & SAFETY CODE RELATING TO THE FINANCING OF CERTAIN ROAD IMPROVEMENTS BY THE COMMUNITY REDEVELOPMENT AGENCY TO EFFECTUATE THE REDEVELOPMENT PLAN IN MERGED PROJECT AREA #1 WHEREAS, the Community Redevelopment Agency of the City of Palm Springs ("Agency") adopted the Amended and Restated Redevelopment Plan for Merged Redevelopment Project No. 1 (the "Project Area") on February 19, 2003 by Ordinance No. 1623 and 1624 and amended said Redevelopment Plan on May 5, 2004 by Ordinance No. 1649; and WHEREAS, the Redevelopment Plan for the Project Area states that the Agency is authorized to install and construct, or to cause to be installed and constructed, within or without the Project Area, for itself or for any public body or entity, for the benefit of the Project Area, public improvements and public utilities, including, but not limited to, street and alley improvements and bridges. (§324); and WHEREAS the Community Redevelopment Agency has approved, by resolution, the construction of certain street improvements in the Project Area on San Rafael Road as furthering the purposes of the Redevelopment and allowed under Section 324 of the Redevelopment Plan; and WHEREAS the Community Redevelopment Agency and SunCal Companies have approved a Reimbursement Agreement that provides for the payment for the construction of those improvements; and WHEREAS the California Health & Safety Code Section 33421.1 requires that the legislative body make a finding that the provision of public improvements such as streets, sidewalks, utilities, or other public improvements which an owner or operator of the site would otherwise be obliged to provide is necessary to effectuate the purposes of the Redevelopment Plan. 0600+9-0 NOW THEREFORE, it is hereby resolved that the City of Palm Springs, California, does hereby give its consent and find that the provision of such improvements, including the financing of the installation of public improvements with tax increment funds are necessary to effectuate the purposes of the Redevelopment Plan. ADOPTED this 18«' day of July, 2007. David H. Ready, City Manager ATTEST: James Thompson, City Clerk 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: James Thompson, City Clerk City of Palm Springs, California REIMBURSEMENT AGREEMENT , 2007 Palm Springs, California FOR VALUE RECEIVED,the undersigned ("Agency") hereby promises to pay SUNCAL COMMUNITIES, ("Developer"), the sum of Twenty Seven Thousand Nine Hundred Eighty Four Dollars and Eighty Cents ($27,984.80), to reimburse the Developer for the costs of constructing certain public improvements in the City of Palm Springs on San Rafael Road and North Indian Canyon Drive, in Merged Area #1. a. Repayment by Agency. Agency shall pay in full to the Developer the Amount in lawful money of the United States, from tax increment accrued in Merged Area #1. Payment shall be made upon the recording of the Notice of Completion by the City's Director of Public Works, or other appropriate notice to Agency. b. Prepayment. This Agreement sum may be prepaid in whole or in part at any time without penalty, provided the payment is at least equal to the Loan Amount plus the City costs incurred to that date. C. Acceleration of Obligation. Upon the failure to make payment due under this Agreement as and when the same becomes due and payable (whether by extension, acceleration or otherwise), or any breach of any other promise or obligation in this Agreement or in any other instrument now or hereafter securing the indebtedness evidenced hereby, then, and in any of such events, Developer may, at its option, declare this Agreement and the entire indebtedness hereby evidenced, including,without limitation, all accrued interest, to be immediately due and payable and collectible then or thereafter as Developer may elect, regardless of the date of maturity, and notice of the exercise of said option is hereby expressly waived by Agency. d. Severability. The unenforceability or invalidity of any provision or provisions of this Agreement as to any persons or circumstances shall not render that provision or those provisions unenforceable or invalid as to any other provisions or circumstances, and all provisions hereof, in all other respects, shall remain valid and enforceable. e. Modifications. Neither this Agreement nor any term hereof may be waived, amended, discharged, modified, changed orterminated orally; nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by Agency and Developer. No delay or omission on the part of Developer in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Agreement. f. No Waiver by Developer. No waiver of any breach, default or failure of 060007 condition under the terms of this Agreement or the obligation secured thereby shall be implied from any failure of the Developer to take, or any delay be implied from any failure by the Developer in taking action with respect to such breach, default or failure from any prior waiver of any similar or unrelated breach, default or failure. g. Governing Law. This Agreement has been executed and delivered by Agency in the State of California and is to be governed and construed in accordance with the laws thereof. IN WITNESS WHEREOF, Parties have executed this Agreement as of the date and year first above written. "Developer" SUNCAL COMMUNITIES By: Its: "Agency" COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a California municipal corporation By: Chairman ATTEST: Assistant Secretary APPROVED AS TO FORM: Agency Counsel O00008