HomeMy WebLinkAbout1/15/2003 - STAFF REPORTS (3) DATE: JANUARY 15, 2003
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: DIRECTOR OF COMMUNITY& ECONOMIC DEVELOPMENT
APPROVAL OF AMENDMENT#1 TO AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH
PHILLIP CLEARY ON TWO PARCELS AT THE SOUTHWEST CORNER OF NORTH PALM
CANYON DRIVE AND STEVENS ROAD
RECOMMENDATION:
It is recommended that the Agency approve Amendment#1 to an Exclusive
Agreement to Negotiate with Phillip Cleary ('Developer'), extending the Agreement for
six months, on a property consisting of two parcels totaling 1.75+ acres at the
southwest comer of North Palm Canyon Drive and Stevens Road, in Merged Project
Area#1, formerly the North Palm Canyon Project Area (#6), for a mixed use
commercial/residential 'project.
BACKGROUND:
The Agency approved an Exclusive Agreement to Negotiate one year ago with
Phillip Cleary of San Marcos, California on the City- and Agency-owned parcels at
Stevens Road and North Palm Canyon Drive (the Casa del Camino and Reservoir
Parcels). The developer wants to build a high-end mixed use
commercial/residential project on the site. He was also considering the adjacent
33,000 s.f. parcel and adjacent 15,000 + s.f. parcel to the south to assemble
enough land to increase the size and scale of his project, as well as to provide
additional room for parking and access required by code.
For the past several months the Developer has been negotiating with the owners of
the adjacent parcels, to no avail. The Developer had originally sought to ask the
Agency for assistance with the acquisition, but was forced to wait until the Plan
Amendment process was completed before such language could be included in a
Disposition and Development Agreement. Because of the change in the Plan
Amendment process, the original Plan Amendment approval timetable was pushed
back several months to allow for the drafting of the amended and restated plans as
well as incorporating language on the Indian land issues. Therefore, mindful of the
timing of the Exclusive Agreement, the Developer has designed the project without
the need for the adjacent parcels, thereby eliminating the need to ask the Agency
for assistance with the acquisition.
In addition, the Developer's original concept of a true live/work project, where the
condo owner also owned the ground floor retail space, was deemed too difficult to
finance conventionally by the project lender; that change required a redesign of the
project. Staff suggested in September that the project be rescoped to be a more
traditional ground-floor-retail/upper-story-living project; once it was changed the
financing became available.
A nearly completed draft of the DDA was completed in September, 2002.
Redevelopment law, however, requires that the Agency certify the CEQA action at
the time it approves the DDA, which requires the project to be through the Planning
Commission before the DDA is noticed for Agency action. The Developer has
submitted plans to Planning and will complete the entitlement process withing the
next several months. The project has received very positive comments from
Design Review, and will proceed to Planning Commission within a few months.
Proposed project elevations are available for the Agency to review to demonstrate
that the Developer is working through the City's process.
The Amendment is for a period of six months, during which staff will finalize the
Disposition and Development Agreement with the Developer. The Agency
Counsel's office has already drafted the agreement. The Developer has borne
the cost of the appraisal of the two properties; the appraisal on the Agency
property will need to be updated prior to the approval of the DDA.
With the completion of the Desert Shadows III project across the street, this project
will be an excellent complement to the development in the Palm Canyon corridor
and in the Uptown area.
JOHN . RAY O D
Dire r of Co nity & Economic Development
APPROVED
Executive Direc or
ATTACHMENTS:
1. Resolution P,
2. Exclusive Agreement to Negotiate . noT�' b
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING AMENDMENT#1 TO
AN EXCLUSIVE AGREEMENT TO NEGOTIATE
WITH PHILLIP CLEARY OF SAN MARCOS,
CALIFORNIA, EXTENDING THE AGREEMENT
FOR SIX MONTHS, FOR THE DEVELOPMENT OF
A MIXED USE COMMERCIAURESIDENTIAL
PROJECT IN MERGED PROJECT AREA #1,
FORMERLY THE NORTH PALM CANYON
REDEVELOPMENT PROJECT AREA (AREA#6)
WHEREAS the Community Redevelopment Agency is responsible for eliminating blight
within Merged Project Area# 1 (formerly the North Palm Canyon Redevelopment Project
Area); and
WHEREAS in the project area are two blighted vacant parcels, one acquired by the
Community Redevelopment Agency in a nuisance abatement action of a dilapidated hotel,
and another a former irrigation reservoir; and
WHEREAS Phillip Cleary of San Marcos, California requested the Agency to enter into an
Exclusive Agreement to Negotiate on the parcels while he negotiated a Disposition &
Development Agreement with the Agency to acquire the Agency-owned parcels, to begin to
design a project, and work to assemble the two adjacent parcels; and
WHEREAS the Agency approved an Exclusive Agreement to Negotiate with the Developer
on December 5, 2001 for the development of the site, and notwithstanding delays in the
project, desire to extend the Agreement for a period not to exceed six months; and
d AA _ '.
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the
City of Palm Springs, that Amendment#1 to the Exclusive Agreement to Negotiate, granting
the Developer six additional months, between the Agency and Phillip Cleary, in a form
approved by the Agency Counsel, is hereby approved.
ADOPTED this day of 2003.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Executive Director
REVIEWED &APPROVED AS TO FORM