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HomeMy WebLinkAbout9/19/2007 - STAFF REPORTS - RA.3. bFQALM gA� A iy + G1 V N * µ e gSlFbRN, Community Redevelo ment Agency Staff Report DATE: SEPTEMBER 19, 2007 CONSENT CALENDAR SUBJECT: APPROVAL. OF A CONSTRUCTION LICENSE AGREEMENT WITH ENDURE INVESTMENTS, LLC TO ALLOW ACCESS TO AN AGENCY OWNED PARCEL OF APPROXIMATELY 19,000 SQUARE FEET FOR THE PLACEMENT OF A CONSTRUCTION TRAILER TO FACILITATE THE COMPLETION OF THE SPRINGS SHOPPING CENTER, MERGED PROJECT AREA NO. 1 FROM: David H. Ready, Executive Director BY: Community and Economic Development Department SUMMARY This action would allow Endure Investments, LLC, the developers of The Springs Shopping Center, the use of a parcel currently owned by the Agency for the location of the construction trailer for the project. This would allow the builder the flexibility to complete the improvements on the shopping center site. The 19,000 square foot parcel was created by a grant deed that conveyed the southern portion of a larger wedge parcel to the developer as part of the DDA. This parcel was not part of the original Planned Development application and would be sold and entitled separately, either as an amendment to the PD or as a separately permitted use. Staff is still negotiating that transaction with the developer and is not prepared to bring the DDA forward at this time. RECOMMENDATION: 1. Adopt Resolution No. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A CONSTRUCTION LICENSE AGREEMENT WITH ENDURE INVESTMENTS, LLC TO ALLOW ACCESS TO AN AGENCY OWNED PARCEL OF APPROXIMATELY 19,000 SQUARE FEET FOR THE PLACEMENT OF A CONSTRUCTION TRAILER TO FACILITATE THE COMPLETION OF THE SPRINGS SHOPPING CENTER, MERGED PROJECT AREA NO. 1 ITEM NO.!ter•-� Community Redevelopment Agency Staff Report September 19, 2007 Construction License Agreement with Endure Investments, LLC Page 2 of 2 2. Authorize the Executive Director or his designee to execute all necessary documents. STAFF ANALYSIS: This action would allow Endure Investments, LLC, the developers of The Springs Shopping Center, the use of a parcel currently owned by the Agency for the location of the construction trailer for the project. This would allow the builder the flexibility to complete the improvements on the shopping center site. The 19,000 square foot parcel was created by a grant deed that conveyed the southern portion of a larger wedge parcel to the developer as part of the DDA. This parcel is at the northwest corner of the project site, at the corner of Mission Road and Gene Autry Trail, and lies between Gene Autry Trail and the southerly extension of San Joaquin Road. It was not part of the original Planned Development (PD) application and would be sold and entitled separately, either as an amendment to the PD or as a separately permitted use. Staff is still negotiating that transaction with the developer and is not prepared to bring the DDA forward at this time. Under the terms of the License, the developer would still need to comply with City codes in terms of fencing, dust control, and other Planning or Building items. FISCAL IMPACT: IFinance Director Review: No fiscal impact. � �—4"" 'G, �l p ' ;X ' rJ J n ym Tho �s J. Wilson D ector Co nity and Assistan City Manager c is Development f David H. Ready, Executive _or, Attachments: 1. Resolution 2. Construction License Agreement 000002 RESOLUTION NO. A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A CONSTRUCTION LICENSE AGREEMENT WITH ENDURE INVESTMENTS, LLC TO ALLOW ACCESS TO AN AGENCY OWNED PARCEL OF APPROXIMATELY 19,000 SQUARE FEET FOR THE PLACEMENT OF A CONSTRUCTION TRAILER TO FACILITATE THE COMPLETION OF THE SPRINGS SHOPPING CENTER, MERGED PROJECT AREA NO. 1 THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS DOES HEREBY RESOLVE AS FOLLOWS,- SECTION 1. The Construction License Agreement with Endure Investments, LLC to allow access to an Agency owned parcel of approximately 19,000 square feet for the placement of a construction trailer to facilitate the completion of the Springs Shopping Center, Merged Project Area No. 1, is hereby approved. SECTION 2. The Executive Director or his designee is hereby authorized to execute all documents related to the Agreement. ADOPTED THIS day of 2007. AYES: NOES: ABSENT: ABSTAIN: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA David H. Ready Executive Director ATTEST: James Thompson, Assistant Secretary 000003 Resolution No. Page 2 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, Assistant Secretary of the Community Redevelopment Agency 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, Assistant Secretary City of Palm Springs, California 000004 CONSTRUCTION LICENSE AGREEMENT THIS LICENSE BETWEEN THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AND ENDURE INVESTMENTS, LLC FOR PERFORMANCE OF REMEDIATION WORK ("Agreement") is made and entered into, to be effective the day of 2007 ("Effective Date"), by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA a public body corporate and politic ("Owner"), and Endure Investments, LLC ("Licensee"). Agency and Licensee may hereinafter be referred to individually as a "Party" and collectively as "Parties." RECITALS WHEREAS, the Owner is a public body, corporate and politic, exercising governmental functions and powers and organized and existing under the Community Redevelopment Law of the State of California (Health and Safety Code §§ 33000, et seq.); and WHEREAS, the Owner desires to effectuate the Redevelopment Plan for Redevelopment Project Area No. 4, part of Merged Project Area #1, by providing for the development of a regional retail shopping center within a portion of the approximately 38-acre vacant property at the northeast corner of Gene Autry Trail and Ramon Road ("Shopping Center" and "Shopping Center Site") in the City of Palm Springs, California ("City"); and WHEREAS, Owner is the fee owner of certain real property, totaling approximately 19,000 square feet, located at the southeast corner of Gene Autry Trail and Mission Road, Palm Springs, California ("Owner Parcel") located in the City of Palm Springs, County of Riverside, adjacent to the Shopping Center Site now under construction and the northern portion of APN Number 677-280-041, and which is legally described in Exhibit "A" attached and made a part hereof. WHEREAS, Licensee acquired that portion of the Shopping Center Site which was not owned by Owner and acquired the Owner's 14.95 acres subject to a Disposition and Development Agreement, leaving a the Owner Parcel not included in the Shopping Center's Planned Development District application; and WHEREAS, a true and correct map of the Shopping Center Site, including the Property, is attached hereto and incorporated herein as Exhibit "A"; and WHEREAS, Licensee is experienced in shopping center development and remediating sites subject to environmental contamination and has dealt with the major tenants who might occupy the Shopping Center; and WHEREAS, Licensee has prepared a remediation action plan ("RAP") detailing Licensee's plan to clean up the Shopping Center Site, and which was approved by the County of Riverside Health Services Agency ("County") as the lead agency for the IRV#256I2 v2 00000'5 Shopping Center Site's remediation, and the California Department of Toxic Substances Control ("DTSC"); and WHEREAS, Licensee now has completed the remediation of the Shopping Center Site and commenced the construction of the Shopping Center; and WHEREAS, Licensee has proceeded with the construction of the Shopping Center Site and now desires to use the Remainder Parcel to locate the construction trailer, until such time as the Center is completed or the parcel has been acquired from the Owner subject to a Disposition and Development Agreement.. WHEREAS, pursuant to this Agreement, and subject to the terms and conditions set forth herein, the Owner desires to grant to Licensee a license to enter upon and utilize a portion of the Owner's Parcel for the purpose of facilitating the construction of the Licensee's adjacent parcel for a proposed shopping center development. WHEREAS, as consideration for the use of the Owner's Parcel pursuant to this Agreement, Licensee has agreed to provide certain improvements to the Owner's parcel including grading, graveling, screening and certain landscaping improvements and the performance of this work is fair compensation for the temporary use of Owners Parcel. NOW, THEREFORE, in consideration of the foregoing, the parties agree as follows: 1. Definitions. (a) The term "Permittees" means (a) all employees, agents, contractors, visitors, invitees, and licensees of Owner and the Licensee, respectively; and (b) any person or entity legally entitled to the use and occupancy of space in any improvements situated on the Owner's Parcel, and their respective employees, agents, contractors, visitors, invitees, licensees, and subtenants. (b) The term "Party or Parties" means Owner or Licensee, their grantees, successors, and assigns who become owners of any portion of the respective parcels. At such time as any person becomes an owner of any portion of a parcel, he shall be deemed to be a Party to this Agreement and shall be conclusively presumed to have taken subject to and assumed all of the obligations and burdens set forth in this Agreement pertaining to the parcel of which their property is a part and to have automatically granted and conveyed all easements described in this Agreement to all other Parties, their successors and assigns, immediately upon such Party's acceptance of delivery of a deed granting and conveying any portion of a parcel to such Party. 2. Consideration for License. In consideration of the granting of this license, the Licensee shall undertake the following tasks at their sole expense: IRV#25612 v2 OD0��6 2.1 Remove all existing structures from the Owner's Parcel, including concrete slabs, conduit, or septic tanks prior to October 1, 2007; 2.2 Grade and gravel the Owner's Parcel prior to November 1, 2007 with such gravel to be removed by Licensee prior to the termination of the Agreement at the option of Owner; 2.3 Provide the screening and landscaping improvements set forth in Exhibit "B" attached hereto and incorporated herein by this reference; 2.4 Perform all procedures necessary to address the Licensee's Remedial Action Workplan drafted for the adjacent shopping center site pursuant to applicable federal and state requirements so that Licensee will agree that no additional mitigation measures are needed when the property is developed; and 3. Permits. Licensee will obtain all necessary permits for the use of the Owner Parcel from the City of Palm Springs. 4. Grant of License 4.1 Grant of License bV Owner. Owner hereby grants to Licensee a license to enter upon the Owner's Parcel to perform the consideration specified in Section 2 above and to utilize the property for staging and facilitation of construction on Licensee's adjacent Parcel. Said license shall be nonexclusive and Owner shall retain the right to enter the Owner's Parcel at any time. 4.2 Term of License. The license granted to the Licensee pursuant to Section 3.1 above shall commence on September 15, 2007 and terminate on June 30, 2008, provided that with mutual agreement the Agreement may be further extended. 4.3 Early Termination. Owner may terminate this Agreement at its sole discretion at any time upon providing sixty (60) days written notice to Licensee. 4.4 Condition of Owner's Parcel. Licensee shall return the Owner's Parcel in good condition with all improvements specified herein to the satisfaction of the Owner. 5. Indemnity and Insurance; Assumption of All Risks and Liabilities. Licensee, as a material part of the consideration to Agency, hereby assumes all risks and liabilities arising out of or relating to the use of the Property including, without limitation, injury to persons in, upon or about the Property during Licensee's use of the Property, arising from any use of or work undertaken upon the Property or other activities of Licensee or Licensee's employees, contractors, agents, representatives, guests or invitees ("Licensee's Parties") on the Property. Licensee hereby waives all claims with respect thereof against Owner_ Owner shall not be liable for any injury to the Property or Shopping Center Site, or injury to or death of any of Licensee's Parties, or injury or death to any trespasser, or injury to or death of any other person in or about IRV#25612 v2 _3- 000007 the Property from any cause except to the extent caused by the negligence or willful misconduct of the Owner, the City or the City or Owner's employees, contractors, agents, representatives, guests or invitees. Should Owner and Licensee arrive at a purchase and sale agreement on the parcel, Owner shall and will not retain liability for any soils conditions on the Property following the remediation and/or sale of the Property. 6. Security. The parties acknowledge that the security of the public and the Shopping Center Site is a priority. For this reason, Licensee shall implement safeguards to minimize security breaches and to prevent the public from accessing the Owner Parcel. Prior to commencement of remediation activities, Licensee shall install a chain link fence around the perimeter of the Owner Parcel to prevent the public from accessing the Owner Parcel. Licensee shall be solely responsible for the cost of any security necessary in connection with this Agreement. 7. Insurance. Prior to the commencement of the remediation of the Property, Licensee will provide Agency with proof of insurance, at Licensee's sole cost and expense, to remain in full force and effect during the entire term of this Agreement. The following policies of insurance shall be maintained: 7.1 Workers' Compensation Insurance. Workers' Compensation Insurance in an amount required by the laws of California and Employer's Liability Insurance in an amount not less that ONE MILLION DOLLARS ($1,000,000) combined single limit for all damages arising from each accident or occupational disease. 7.2 Commercial General Liability. Commercial General Liability Insurance written on a per-occurrence and not a claims-made basis in an amount not less that ONE MILLION DOLLARS ($1,000,000) combined single limit. 7.3 Automobile Liability Insurance. A policy of comprehensive automobile liability insurance written on a per-occurrence basis in an amount not less than TWO MILLION DOLLARS ($2,000,000) combined single limit covering all owned, non-owned, leased, and hired vehicles used in connection with operations occurring on the Property. 7.4 Other Insurance. Such other policies of insurance including, but not limited to, casualty insurance, business interruption insurance and fidelity insurance, as may be required by the nature of operations. 7.5 General Provisions. All of the foregoing policies of insurance shall name the Agency as an additional insured and shall be primary insurance and any insurance maintained by Agency shall be excess and non-contributing. Each insurer of Licensee shall waive all rights of contribution and subrogation against Agency and its respective insurers. Each of such policies of insurance shall name Agency and its affiliated entities, and their respective officers, directors, agents, and employees (collectively, "Agency's Parties.") All policies of insurance required to be obtained by Licensee hereunder shall be issued by insurance companies authorized to do business IRV R25612 v2 in California and must be rated no less than B+:VII or better in Best's Insurance Guide. Prior to engaging in any operations hereunder, Licensee shall deliver to Agency certificate(s) of insurance evidencing the coverages specified above. Such policies shall not be cancelled or materially altered to the detriment of Agency or Licensee without the insurer providing Agency with 30 days' written notice. 8- Notices. Any notice to be given under this Agreement shall be given by personal delivery or by depositing the same in the United States Mail, certified or registered, postage prepaid, at the Following address: Owner: The Community Redevelopment Agency of the City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Attn: Executive Director With Copy to: Woodruff, Spradlin & Smart 701 South Parker Street, Suite 8000 Orange, CA 92868-4760 Attn: Douglas C. Holland Licensee: Endure Investments, LLC c/o The Charles Company 1888 Century Park East, Suite 450 Los Angeles, CA 90067 Attn: Mr. Mark Gabay Any notice delivered personally shall be effective upon delivery. Any notice given by mail as above provided shall be effective forty-eight (48) hours after deposit in the mails. Any party may change address for notice by giving written notice of such change to the other party. 9. General Provisions. 9.1 California Law. This Agreement shall be interpreted, enforced and governed by and under the laws of the State of California and applicable Federal laws. 9.2 Transfers. Nothing contained in this Agreement does, or shall be construed to, limit in any way the right and ability of the Parties to transfer, sell or encumber their respective properties. 9.3 Miscellaneous, This Agreement may be modified only by a written agreement signed by the owners of the respective Parcels. This Agreement shall be binding on and benefit each successive owner of the Parcels. If any action or proceeding is commenced by any Party to enforce the terms of this Agreement, the prevailing Party shall be entitled to recover from the other Party reasonable attorneys' fees and costs in addition to any other relief awarded by the court. Time is of the IRV#25612 v2 _5_ essence of this Agreement. The Parties' respective rights and remedies under this Agreement are cumulative with and in addition to all other legal and equitable rights and remedies which the Parties may have under applicable law. "LICENSEE" By: Name: By: Name: Endure Investments, LLC c/o The Charles Company 1888 Century Park East, Suite 450 Los Angeles, CA 90067 "OWNER" COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic By: Its: ATTEST: Assistant Secretary APPROVED AS TO FORM: Douglas C. Holland, Agency Counsel IRV't25612 v2 _6_ 000010 EXHIBIT "A" OWNER PARCEL LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE, STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF PALM SPRINGS DESCRIBED AS FOLLOWS: THAT PORTION OF PARCEL 2 OF PARCEL MAP NO. 24604 ON FILE IN BOOK 159 OF PARCEL MAPS, PAGES 66 AND 67, LYING NORTHERLY OF THE WESTERLY PROLONGATION OF THE NORTHERLY LINE OF THE REMAINDER PARCEL AS SHOWN ON PARCEL MAP NO. 18787 ON FILE IN BOOK 135 OF PARCEL MAPS, PAGES 53 AND 54, BOTH OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. IRV#25612 vz A-1 EXHIBIT "B" IMPROVEMENTS TO OWNER'S PARCEL Remove all existing structures from the Owner's Parcel, including concrete slabs, conduit, or septic tanks; Grade and pave with gravel the Owner's Parcel and provide the landscaping and improvements set forth as follows: Install adequate gravel ground cover on graded areas to reduce blowing dust. Perform all procedures necessary to address the Licensee's Remedial Action Workplan drafted for the adjacent shopping center site pursuant to applicable federal and state requirements so that Licensee will agree that no additional mitigation measures are needed when the property is developed. IRV Y25612 Q C-1 000012