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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
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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.
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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
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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
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