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HomeMy WebLinkAbout5/2/2018 - STAFF REPORTS - 4A PALM S A. phi h y u a } Co n �b T RPTE� CgIiFORa�P City Council Staff Report DATE: May 2, 2018 NEW BUSINESS SUBJECT: APPROVAL OF TIME EXTENSIONS OF SUBDIVISION IMPROVEMENT AGREEMENTS FOR TM 28966, TM 32233-1, TM 32233-4 AND TM 33561 FROM: David H. Ready, City Manager BY: Engineering Services Department SUMMARY This action will address the current status of subdivision that are inactive and not making progress with completion of public improvements. To ensure these legal remedies remain available to the City, it is important that the City Council approve this action to preserve the City's rights to file claims against the Subdivider's bonds in the event the Subdivider is unwilling or unable to complete the public improvements. This action does not extend the subdivision entitlements, as all of these projects are vested, and building permits have b6en issued. RECOMMENDATION: Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING TIME EXTENSIONS OF SUBDIVISION IMPROVEMENT AGREEMENTS FOR TM 28966, TM 32233-1, TM 32233-4, AND TM 33561." BACKGROUND: Subdivision Improvement Agreements require the Subdivider to provide the City with securities for the cost of on-site and off-site Public Improvements and generally provides for a 2-year period to complete all works of improvement. The approval of SIAs are established concurrent with Council's approval of a subdivisions final Map. The purpose of SIA are to secure completion of works of improvement. If the Subdivider fails to construct all the necessary public improvements to within the 2-year period, the City retains the ability to call the securities necessary to complete the public improvements. rMM NO. �• �. City Council Staff Report May 2, 2018 -- Page 2 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 City Council previously approved en masse a one-year time extension to various subdivision improvement agreements due to the effects the recession had on the real estate market and economy. Although development has resumed and new subdivisions are under construction a few previously stalled subdivisions have yet to complete the works of improvement. Staff has and will continue to coordinate with each Subdivider, and in cases where the property has defaulted to the lender, staff will coordinate with a new developer or the bank on completion of remaining improvements. The City Council's formal approval of a time extension to the Subdivision Improvement Agreements establishes a public record of the action, and ensures that the surety companies continue to acknowledge the validity of the agreement and the City's ability to use the securities in the event of a Subdivider's default of the Agreement. Extending these SIA's will allow staff to contact the Subdivider, notifying them of the required remaining works of improvement, and furthermore failure to respond and complete these public improvements will result in the City filing a claim against the Subdivider's surety provided by their Agreement. STAFF ANALYSIS: Staff has continued to pursue resolving completion of the following subdivision improvements, identified in Table 1. 2018 SUBDIVSION IMPROVEMENT AGREEMENT TIME EXTENSIONS PROPOSED TRACT MAP SUBOIVDER SUBDIVISION MAP TIME EXPIRES TIME EXTENSION APPROVAL EXTENDED PRESERVE GOLF COMPANY,LLC 28966 (IRIPALMS MEW PROPERTIES,LLQA PRESERVEESTATES 5142005 11-YEARS 61182018 EI1812019 1-YEAR cALEOR LIMITED nABILRYCOMPANY_ 32233-1 STAND PACIFIC LIMITED LIABILITY ESCENA 5/4/2005 11-YEARS 40n18 42/2019 1-YEAR CORPORATION. 322,E STANDARD PACIFIC,LLC A LIMITED ESCENA 326d2008 8-YEARS 4Q 2018 4212019 1-YEAR LIABILITY CORPORATION. P.S.VENTURE NDIAN CANYONISAN 33561 RAFAEL,LLC,A DELAWARE LIMITED PALERMO 11142006 11-YEARS 422019 4112020 1-YEAR L64BIUTY COMPANY. Table 1 Staff will coordinate with the City Attorney's office to initiate legal action to pursue completion of the improvements, or other appropriate remedies available to the City. However, to ensure these legal remedies remain available to the City, it is important that the City Council approve this action to preserve the City's rights to file claims against the Subdivider's bonds in the event the Subdivider is unwilling or unable to complete the public improvements. 02 City Council Staff Report May 2, 2018-- Page 3 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 The following 4 Subdivision Improvements Agreement extensions, are recommended for approval to allow staff to pursue legal actions to call securities bonds for the completion of Public Improvements. 1. Tract Map 28966, "Preserve Estates", extend to June 18, 2019 2. Tract Map 32233-1, "Escena", extend to April 2, 2019 3. Tract Map 32233-4, "Escena", extend to April 2, 2019 4. Tract Map 33561, "Palermo", extend to April 2, 2019 Tract Map 28966, "Preserve Estates", extend to June 18, 2019 Tract Map 28966 is a subdivision of 15 new residential lots on one private street located at the south end of Via Monte Vista shown here in Figure 1. tijl n .R _, .,y y��•" '*�" � � i .,, .. ,.yam,.-,. �` r,. t EkS^l r, �4 y sx. Y f d'` ri Figure 1 On March 16, 2016, Council approved a 1-year time extension to June 18, 2017. Since this extension staff issued a letter on October 25, 2016, to the Developer advising of the outstanding Public Improvements and security bonds being held. In 2014, City Council approved Parcel Map (PM) 36706, which is an apportionment and re-subdivision of TM 28966. A series of lot line adjustments needed to be completed prior to the completion of PM 36706. Parcel Map 36706 was submitted for review and approval in 2015, and was subsequently approved in Plan Check review on April 12, 2017. Due to the revisions of TM 28966 and PM 36706 utility relocations needed to be completed prior to the completion of on-site Public Improvements for TM 28966; which has delayed the completion of the final lift of asphalt concrete. 03 City Council Staff Report May 2, 2018 -- Page 4 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 During early 2018 staff initiated additional outreach to the Subdivider; informing staff of the current movement to secure a contract services agreement between the Subdivider and contractor for the completion of works of improvements along with the contractor's estimated schedule. Subdivider's improvements also require coordination with Desert Water Agency (DWA) for service installations and relocations. Recordation of Parcel Map 36706, which is a re-apportionment of TM 28966, is on hold until the required Public Improvements are complete. Staff recommends another 1-year time extension be approved to reserve the City's ability to file a claim against the Subdivider's surety to force completion of these improvements. The images below depict the current state of TM 28966 J� Property Owner: Tripalmview Properties, LLC � 4 City Council Staff Report May 2, 2018 -- Page 5 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 Tract Map 32233-1, "Escena", extend to April 2, 2019 Tract Map 32233-1 is the first phase of residential development and includes 43 residential lots located within the Escena development shown here in Figure 2. fR+` i N �,,t t 7 Figure 2 On May 4, 2005, City Council approved a Final Map for Tract No. 32233-1, a 43 lot single family subdivision, and a corresponding Subdivision 'mprovement Agreement (Agreement No. 5086). The agreement secures the cost of constructing certain on-site and off-site public improvements necessary for the single family subdivisions. The original expiration date for the agreements was March 28, 2007. However, due to the recession, the developer requested and received two administrative time extensions by the City Engineer, extending the expiration of the Subdivision Improvement Agreements to April 2, 2008, followed by Council's first time extension to April 2, 2009. All public improvements are completed with the exception of construction of the final layer of asphalt concrete pavement on the private street, with associated final adjustment of sewer manholes and water valves. This work had been deferred by the current property owner (Standard Pacific Corporation) until completion of housing construction. Staff has been in contact with the Subdivider requesting completion of the remaining improvements. Most recently in April, staff issued a letter notifying the Subdivider of intent to file a claim against the Surety, as only four of the forty-three residential properties are complete. 05 City Council Staff Report May 2, 2018-- Page 6 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 The image below depict the current state of TM 32233-1 Staff recommends another 1-ye r time extension be approved to reserve the City's ability to file a claim against t�e Subdivider surety to force completion of these improvements. The City Engineer has initiated correspondence with the Subdivider, outlining completion deadlines for the remaining works of improvement and identifying that failure to meet said deadlines will result in the City filing a claim against the Subdivider's surety bonds to complete works of improvements. Property Owner: Standard Pacific Corporation City Council Staff Report May 2, 2018-- Page 7 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 Tract Map 32233-4, "Escena'; extend to April 2, 2019 Tract Map 32233-4 is the fourth phase of residential development and includes 59 residential lots located within the Escena development shown here in Figure 3 t' i w+ + e Figure 3 All public improvements are completed with the exception of construction of the final layer of asphalt concrete pavement on the private street, with associated final adjustment of sewer manholes and water valves. The current property owner (Standard Pacific Corporation) had deferred this work until completion of housing construction. Staff has initiated discussion with the Developer and current property owners to complete the remaining improvements. Staff recommends another 1-year time extension be approved to reserve the City's ability to file a claim against the Subdivider's surety to force completion of these improvements. City Engineer has initiated correspondence with the Subdivider, outlining completion deadlines for the various remaining works of improvement and failure to meet deadlines will result in the City filing a claim against the Subdivider's surety bonds to complete works of improvements. 07 City Council Staff Report May 2, 2018 -- Page 8 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 These images depict the current state of Tract Map 32233-4 , n y P try Z i� K+ a � r/�, Fya"., sir z r t r e .w Property Owner: Standard Pacific Corporation r; R City Council Staff Report May 2, 2018-- Page 9 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 Tract Map 33561, "Palermo", extend to April 2, 2019 Tract Map 33561 is a residential condominium development approved for 211 condominium units located at the northeast corner of Indian Canyon Drive and San Rafael Drive shown here in Figure 4. 'I AIL Figure 4 On March 15, 2006, City Council approved a Final Map for Tract No. 33561, a 211 unit residential condominium and mixed use (retail) subdivision, and a corresponding Subdivision Improvement Agreement (Agreement No. 5246), with the developer, P.S. Venture Indian Canyon/San Rafael, LLC, a Delaware Limited Liability Company. The original expiration date for the agreement was March 26, 2008. However, due to the downward trend in the real estate market, the developer requested and received an administrative time extension by the City Engineer, extending the expiration of the Subdivision Improvement Agreement to April 2, 2008. The developer had not completed the improvements required under the Subdivision Improvement Agreement, by the revised expiration date of April 2, 2008. Although all off-site improvements have been completed, the south half of the site has not been completed; on-site street and drainage improvements have not yet been constructed. The on-site work to be completed in the future includes construction of the on-site streets within the south half of the site, including construction of on-site sewer and water systems. City Council Staff Report May 2, 2018 -- Page 10 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 122 of the 211 residential condominium units have been constructed, all of which are located in the north half of the project site. All of the units have fully paved streets on the north half of the site. The completion of the underground utilities and onsite street improvements were previously deferred until subsequent building phases within this subdivision, however, the property was the subject of a bank foreclosure and the current property owner is the Palermo Community Association. The images below show the north half of the project, which was previously completed by the original Subdivider. i i These images depict the unfinished south side of the project, which remains incomplete. i rV d ' The Palermo Community Association has not shown any progress to move forward with the subsequent building phases within the subdivision, staff has issued a letter requesting a meeting with the HOA to review the future subdivision improvements and agreement terms and required public improvements associated with this subdivision. 10 City Council Staff Report May 2, 2018-- Page 11 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 Staff recommends that a 1-year time extension be approved, to assess the Subdivider's intent of ultimate buildout, and if not satisfied call the security bond. Property Owner: Palermo Community Association (HOA) ENVIRONMENTAL IMPACT: The requested City Council action is not a `Project' as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a 'Project' means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to adopt a Resolution authorizing extension of time for performance of obligations identified in various subdivision improvement agreements, and is exempt from CEQA pursuant to Section 15378(b), in that a "Project' does not include: (4) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: None. SUBMITTED: Prepar d by: ---- P, Thomas Garcia Marcus L. Fuller Director of Engineering Services Assistant City Manager Approved by: I David H. Ready, Esq., City Manager 1. Resolution Ii RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING AUTHORIZING TIME EXTENSIONS OF SUBDIVISION IMPROVEMENT AGREEMENTS FOR TM 28966, TM 32233-1, TM 32233-4, AND TM 33561." WHEREAS, the City Council has approved various subdivisions for development projects throughout the City; and WHEREAS, included with the City Council's approval of each subdivision is approval of a Subdivision Improvement Agreement between the City and Subdivider identifying certain obligations of the Subdivider, including an obligation to complete subdivision improvements within two years of commencement of work; and WHEREAS, certain residential subdivisions throughout the City are in various stages of completion and require additional time for completion of subdivision improvements; and WHEREAS, it is in the public's best interest to secure the City's security associated with the subdivision improvement agreements by granting an extension of time for completion of subdivision improvements. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. The City Council does hereby approve an extension of time for completion of subdivision improvements for the following subdivision improvement agreements, as follows: Agreement No. 4814, Tract Map 28966, extended to June 18, 2019 Agreement No. 5086, Tract Map 32233-1 , extend to April 2, 2019 Agreement No. 5089, Tract Map 32233-4, extend to April 2, 2019 Agreement No. 5246, Tract Map 33561, extend to April 2, 2019 12 Resolution No. Page 2 ADOPTED this 2nd day of May, 2018. David H. Ready, City Manager ATTEST: Anthony J. Mejia, MMC, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, ANTHONY J. MEJIA, 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 May 2, 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Anthony J. Mejia, MMC, City Clerk City of Palm Springs, California 13 City Council Staff Report May 2, 2018-- Page 2 Time Extension of SIA for TM 28966, TM 32233-1, TM 32233-4, and TM 33561 City Council previously approved en masse a one-year time extension to various subdivision improvement agreements due to the effects the recession had on the real estate market and economy. Although development has resumed and new subdivisions are under construction a few previously stalled subdivisions have yet to complete the works of improvement. Staff has and will continue to coordinate with each Subdivider, and in cases where the property has defaulted to the lender, staff will coordinate with a new developer or the bank on completion of remaining improvements. The City Council's formal approval of a time extension to the Subdivision Improvement Agreements establishes a public record of the action, and ensures that the surety companies continue to acknowledge the validity of the agreement and the City's ability to use the securities in the event of a Subdivider's default of the Agreement. Extending these SIA's will allow staff to contact the Subdivider, notifying them of the required remaining works of improvement, and furthermore failure to respond and complete these public improvements will result in the City filing a claim against the Subdivider's surety provided by their Agreement. STAFF ANALYSIS: Staff has continued to pursue resolving completion of the following subdivision improvements, identified in Table 1. 2018 SUBDIVSION IMPROVEMENT AGREEMENT TIME EXTENSIONS PROPOSED TRACTMAP SUBDIVIDER SUBDIVISION MAP TIME APPROVAL EXTENDED EXPIRES TIME EX TEN SIGN PRESERVE GOLF COMPANY,LLC 28966 (TRIPALMS VIEW PROPERTIES,LLQA PRESERVE ESTATES U412005 11-YEARS 611812018 6M82019 1-YEAR CALIFORNIA LIMITED LIAIRUTY COMPANY. 32233-1 STANDARD CPA��D LIABILITY ESCENA 5/412005 11-YEARS 4122018 4/212019 1-YEAR 32233-4 STANDARD PACIFIC,LLC A LIMITED LIABUFY CORPORATION- ESCENA 328-YEARS008 8-YEARS 4Z2018 402019 9-YEAR 33561 i i i r e DE eWARE LIMITED ' PALEPMO 1F14QQN 11 YEARS 41X2@4 411 120A 1 YFAR '-6AMRADIK P.S.VENTURE NDIW CANYONISAN 33561 RAFAEL,LLC,A DELAWARE LIMITED PALERMO 1M42006 10-YEARS 4!M18 422/2019 1-YEAR LNBAM COMPANY. Table 1 Staff will coordinate with the City Attorney's office to initiate legal action to pursue completion of the improvements, or other appropriate remedies available to the City. However, to ensure these legal remedies remain available to the City, it is important that the City Council approve this action to preserve the City's rights to file claims against the Subdivider's bonds in the event the Subdivider is unwilling or unable to complete the public improvements.