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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
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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
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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:
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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
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