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Home My WebLink About11/7/2001 - STAFF REPORTS Il DATE: OCTOBER 17, 2001 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF REDEVELOPMENT AGENCY PUBLIC HEARING ON THE SECOND AMENDMENT TO A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE AGUA CALIENTE BAND OF CAHUILLA INDIANS AND THE AGUA CALIENTE TRANSFER CORPORATION, A CALIFORNIA CORPORATION, REGARDING THE RECLASSIFICATION OF PROPERTIES WITHIN THE AGREEMENT RECOMMENDATION: That the Community Redevelopment Agency of the City of Palm Springs ("CRA") approve the Amendment No. 2 to a Disposition and Development Agreement ("DDA")with the Agua Caliente Band of Cahuilla Indians("Developer')and the Agua Caliente Transfer Corporation ("Transfer Corporation") reclassifying two properties in the DDA from "Developer Acquired Parcels" to "Second Acquired Parcels" subjecting them to the terms and conditions of Section 5.2 of Amendment No. 1 of the DDA (1996 Amendment). BACKGROUND: The Agency and the Agua Caliente Band of Cahuilla Indians entered a Dispostion and Development Agreement in 1994 to help facilitate the development of a downtown gaming facility. The original DDA defined certain properties within a radius of the proposed facility as those the Developer would acquire on its own and those that the Agency could and would assist acquiring, including the potential use of its eminent domain powers. Amendment No. 1 to the DDA designated two parcels —the"Walter Parcel" and the"Segundo Parcel"as both Developer Acquired Parcels and Second Acquired Parcels. This Amendment removes those two properties from the category of Developer Acquired Parcels, leaving them solely in Section 3.12 of Amendment No. 1, "Second Acquired Parcels,"and therefore subject to Section 5.2 of Amendment No. 1, "Agency's Acquisition of Second Acquired Parcels." Other terms of the DDA and Amendment No.1, including the project description, are not amended at this time. This action is necessary to allow the Developer to acquire the property for the project: they include the parking lot at Amado and Calle El Segundo and the tennis facility at Andreas and Calle El Segundo. )OHN S. RAYMOND Director f Redevel ment PP APPROVE Executive Director " P ATTACHMENTS: 1. Resolutions (Agency and City) 2. Second Amendment to the Disposition and Development Agreement 3. Public Hearing Notice e kh o4 �I"I AMENDMENT NO. 2 TO DISPOSITION AND DEVELOPMENT AGREEMENT THIS AMENDMENT NO. 2 TO DISPOSITION AND DEVELOPMENT AGREEMENT ("Amendment") is made and entered into as of the date of execution by and between THE COMMUNITY REDEVELOPMENT AGENCY FOR THE CITY OF PALM SPRINGS ("Agency"), THE AGUA CALIENTE BAND OF CAHUILLA INDIANS ("Developer") and AGUA CALIENTE TRANSFER CORPORATION, a California corporation ("Transfer Corporation"). RECITALS A. Agency, Developer and the Transfer Corporation previously entered into a Disposition and Development Agreement with an Effective Date of October 24, 1994 (the"Agreement"). B. Agency, Developer and the Transfer Corporation previously entered into an amendment to the original Agreement on August 8, 1996 (the "1996 Amendment"). All terms defined in the Agreement shall have the same meaning as provided in the original Agreement as modified by the 1996 Amendment when used in this Amendment unless otherwise specifically provided. C. The 1996 Amendment provided that Caesars had withdrawn from the Project in a mutual and amicable agreement with Developer. The Casino at that time was relocated and the Agency was no longer required to contribute any property or the proceeds of any sale to the Project. The 1996 Amendment also withdrew the involvement of the Prairie Schooner Parcel from the Agreement. D. This Amendment provides that both the Walter and Segundo Parcels, as defined by the original Agreement, are to be omitted from the "Developer-Acquired Parcels" category as to facilitate the completion of Phase II of the Casino project. In facilitating the Project, the City proposes to acquire the fee interest in the Walter Parcel through eminent domain pursuant to section 4.5 of the original Agreement as modified by section 5.2 of the 1996 Amendment. Similarly, the City also proposes to acquire the leasehold interest in the Segundo parcel pursuant to section 4.5 of the original 1996 Agreement as modified by section 5.2 of the Amendment. Pursuant to these provisions, the interests in both the Segundo and Walter Parcels will be acquired for the sum of$1.65 million as just compensation. E. The Developer, upon review by its agents, has indicated that the Project Description, Scope of Development and Schedule of Performance adequately reflect the scope of Phase II of this development at the present time. Any future changes to the Project Description, Scope of Development and Schedule of Performance shall be accomplished by a subsequent amendment. NOW, THEREFORE, the parties hereto agree as follows: IRV#14416 v3 '1' 'nJ All A 1.0 Nature and Summary of Modifications. The Agreement shall be deemed modified and amended as provided in this Amendment. The following is a simunary of the changes to the Project and modifications to the Agreement, as modified by the 1996 Amendment: (a) The term"Developer-Acquired Parcels" shall be revised to exclude the "Walter Parcel" and the "Segundo Parcel" (as those terms are defined in the Agreement). (b) The location to which notices are to be sent to the Agency's counsel of record, David J. Aleshire, is revised to reflect his change in law firms to Burke, Williams & Sorensen, LLP and his current business address. Wherever a specific provision of the Agreement is modified or amended by a provision of this Amendment, the referenced provision of the Agreement shall be deemed superseded by the provision of this Amendment. In addition, in the event that a general change or modification is provided in this Amendment, or an agreement of the parties set forth in this Amendment is contrary or different than a provision of the Agreement, whether or not the provision in the Agreement is specifically referenced in this Amendment, the provisions of this Amendment shall control and supersede the provisions of the Agreement and the 1996 Amendment in order to give affect to the intent of the parties as described in this Amendment. 2.0 Changes and Additions to Defined Terns. The terms set forth below which are contained in the original Agreement are hereby modified to have the meanings hereinafter provided, and certain terms are hereby added as defined terms for the purposes of this Amendment. The following terns shall have the meanings hereinafter provided: 2.1 Developer-Acquired Parcels. The tenn "Developer-Acquired Parcels" shall be revised to omit the "Walter Parcel" and the "Segundo Parcel" (as those terns are defined in the Agreement). 2.2 Notices: All Notices, Demands and Communications between the Agency and Developer, as provided in section 12.1 of the Agreement, shall be copied to the attention of the Agency's legal counsel, David J. Aleshire, at Burke, Williams & Sorensen, LLP, 18301 Von Kannan Ave., Suite 1050, Irvine, CA 92612, in lieu of Rutan & Tucker, LLP, 611 Anton Blvd., Suite 1400, Costa Mesa, CA 92626. 3.0 No Other Modification. Except as provided in this Amendment, all provisions of the 1996 Amendment and the Agreement shall remain unmodified and in full force and effect. [SIGNATURES NEXT PAGE] IRV#14416 v3 C 4 A A -3 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date and year first above written. THE COMMUNITY REDEVELOPMENT AGENCY FOR THE CITY OF PALM SPRINGS By: Chainnan Date: ATTEST: Assistant Secretary APPROVED AS TO FORM: Burke, Williams & Sorensen, LLP David J. Aleshire, Esq. Attorney for the Community Redevelopment Agency for the City of Pahn Springs THE AGUA CALIENTE BAND OF CAHUILLA INDIANS By: Chainnan, Tribal Council APPROVED AS TO FORM: Art Bunce, Esq. Tribal Attorney IRV#14416 v3 RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE SECOND AMENDMENT TO A DISPOSITION AND DEVELOPMENT AGREEMENT WITH THE AQUA CALIENTE BAND OF CAHUILLA INDIANS AND THE AGUA CALIENTE TRANSFER CORPORATION PROVIDING FOR THE ACQUISITION OF THE WALTER PARCEL AND SEGUNDO PARCEL IN SECTION 14, MERGED PROJECT AREA #2 (TAHQUITZ ANDREAS) ------------------- WHEREAS,the Community Redevelopment Agency of the City of Palm Springs,California ("Agency") is constituted underthe Community Redevelopment Law(California Health and Safety Code Section 33000 et. seq.) to carry out the purpose as the redevelopment in the City of Palm Springs ("the City"); and WHEREAS, the Agency and Developer entered into that certain Disposition and Development Agreement, which was approved by the Agency Board pursuant to Resolution No. 952 on September7, 1994 (the"Original DDA") as supplemented/modified by,with respect to the acquisition and development of certain real property located in the City of Palm Springs and more particularly described in the Original DDA; and WHEREAS, the Original DDA was amended by that certain Amendment No. 1 dated August 7, 1996 (First Amendment'); and WHEREAS, the Original DDA, as amended by the First Amendment and Second Amendment, is referred to herein as the DDA. Capitalized terms used and not defined in this Third Amendment shall have the meanings ascribed as such terms in the DDA; and WHEREAS, the Agency and Developer now desire to enter into this Second Amendment to the DDA for purposes of facilitating the acquisition of the Walter and Segundo parcels by the Developer or the Agency; and WHEREAS, the Agency has considered the staff report, and all the information, testimony and evidence provided at its regularly scheduled meeting of October 17, 2001. 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. Pursuant to the California Environmental Quality Act (CEQA), the Community Redevelopment Agency finds as follows: a) In connection with the approval of the DDA, the project is Categorically Exempt because all the work is to occur on existing facilities and there are no changes in the effects of the proposed project or the circumstances in which it is being carried out which require any modification of the Categorical Exemption. 6a c. b) The Agency finds that the Planning Commission adequately discussed the potential significant environmental effects of the proposed project (land use, traffic/circulation, parking, air quality, noise, aesthetics, geology/soils, water quality, drainage, public utilities, public safety, archaeological/historic resources and light and glare). The Community Redevelopment Agency further finds that the Categorical Exemption reflects its independent judgment. SECTION 3. The proposed project is consistent with the Implementation Plan for this area, insofar as this project will beautify the downtown and decrease blight. It will also add another tourist attraction in a commercial area heavily dependent on tourism. SECTION 4. Based on foregoing reasons, this Second Amendment to the Disposition and Development Agreement is hereby approved and incorporated herein by this reference. SECTION 5. The Executive Director is authorized to execute all necessary documents, in a form approved by the Agency Counsel. ADOPTED this day of , 2001. AYES: NOES: ABSENT: ATTEST: COMMUNITY REDEVELOPMENT AGENCY CITY OF PALM SPRINGS, CALIFORNIA By Assistant Secretary Chairman REVIEWED & APPROVED