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HomeMy WebLinkAbout4/4/2018 - STAFF REPORTS - 1I �VALM$a iy G1 u N f �CQ 9 OgAgq� CQ41FORN`P City Council Staff Report DATE: April 4, 2018 CONSENT CALENDAR SUBJECT: APPROVAL OF TIME EXTENSIONS OF SUBDIVISION IMPROVEMENT AGREEMENTS FOR VARIOUS PROJECTS FROM: David H. Ready, City Manager BY: Engineering Services Department SUMMARY A part of the City's approval of a final subdivision map is the concurrent approval of a subdivision improvement agreement between the City and the Subdivider. The agreement secures the costs of on-site and off-site public improvements, and provides a 2-year period to complete the improvements. Although the economy shows positive signs of improvement, many investors remain cautious, and construction progress is at times slow. Hence, some projects remain incomplete and it is necessary to extend the subdivision improvement agreements to ensure the City retains an ability to pursue the securities in the event a developer defaults. RECOMMENDATION: Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING TIME EXTENSIONS OF VARIOUS SUBDIVISION IMPROVEMENT AGREEMENTS." STAFF ANALYSIS: Subdivision improvement agreements are approved as part of the City Council's approval of a final map for subdivision of property for residential purposes. The agreement between the City and Subdivider obligates the Subdivider to construct all the necessary public improvements, which are secured with bonds or other suitable security to ensure the improvements are constructed and laborers and suppliers are paid. The City retains the ability to call the securities in the event necessary public improvements are not completed and the Subdivider has defaulted on the property. During the economic recession, some residential projects stopped construction and remained on indefinite hold, and only recently have commenced completion of housing construction within the project. Over the years, the City Council has approved time ITEM NO. -1 'T- City Council Staff Report April 4, 2018-- Page 2 Time Extension for Various Subdivision Agreements extensions for various subdivision improvement agreements. Terms of the subdivision improvement agreements require that the Subdivider complete the public improvements within a certain time frame (generally two years from the City's approval of the improvement plans). Although construction on most projects has resumed, some Subdividers required more time to commence and complete construction. Therefore, it is staff's recommendation that the City Council acknowledge that factors beyond the Subdivider's control have delayed completion of the projects, and requires an additional time extension to various subdivision improvement agreements. Staff has pursued resolving completion of the subdivision improvements at these projects, however, in certain cases the developer is not prepared to commence completion of the improvements. In these cases, 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. Annually, the City Council has approved en masse of time extension to various subdivision improvement agreements. Most of the projects that have previously received time extensions have now completed the required public improvements and are no longer listed as part of this annual time extension. However, the following nine projects are in various stages of completing required public improvements, and staff recommends that the City Council approve time extensions to the subdivision improvement agreements for the following projects: 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. Yj „< 6 I F ja} (j akvP V. ..t�wi *- s t� Figure 1 02 City Council Staff Report April 4, 2018 -- Page 3 Time Extension for Various Subdivision Agreements At the March 2, 2016, City Council meeting, the City Council deferred approval of an extension of time to the Subdivision Improvement Agreement for Tract Map 28966, and requested that staff identify the property owner to confirm lack of any conflict of interest for any member of City Council approving the extension of time. Staff was able to confirm the current property owner of Tract Map 28966 is Tripalmsview Properties, LLC and it's manager is Shaul Mezrahi, and Council approved a 1-year time extension during the March 16, 2016 meeting 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 extension 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. PM was subsequently approved in Plan Check review on April 12, 2017. Due to the revisions of TM 28966 and PM 36706 utility relocations or extensions needed to be completed prior to the completion of on-site Public Improvement for TM 28966. During discussion and approval of another 1-year time extension to June 18, 2018 at the March 1, 2017, Council meeting, staff was directed to initiate discussions with the developer and the efforts with the current property owner to complete the remaining on- site Public Improvements. Staff has met and discussed the required on-site Public Improvements with Developer and staff has been provided a construction cost and is working on a construction schedule with the Developer to complete the required improvements in 2018. Upon the completion of the require Public Improvements, this would allow the recordation of Parcel Map 36706, which is a re-apportionment and extension of 28966. Following the completion of on-site Public Improvements the subdivider is required to enter into a maintenance and warranty phase for the duration of one-year. Therefore, staff recommends a 2-year time extension be approved to allow the Developer to complete the required improvements and the maintenance and warranty phase. If on- site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Information: Owner: Tripalmview Properties, LLC 03 City Council Staff Report April 4, 2018 -- Page 4 Time Extension for Various Subdivision Agreements Tract Map 32233, "Escena", extend to April 16, 2018 Tract Map 32233 is one phase of residential development and includes 72 residential lots located within the Escena development shown here in Figure 2. N'. n 4�L III �/►�,,, � �'�►.' :�-• Figure 2 On-Site Public Improvements are substantially complete. This development is currently under active construction anticipated to continue for an additional year. The property owner has deferred final paving improvements until completion of housing construction. Following the completion of on-site Public Improvements the subdivider is required to enter into a maintenance and warranty phase for the duration of one-year. Therefore, staff recommends a 2-year time extension be approved to allow the Developer to complete the required improvements and the maintenance and warranty phase. If on- site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Information: Owner: Beazer Homes 04 City Council Staff Report April 4, 2018 -- Page 5 Time Extension for Various Subdivision Agreements 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 3. t. w + k; V W e' y . < ~Z M 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. This work had been deferred by the current property owner (Standard Pacific Corporation) until completion of housing construction. Staff has initiated discussion with the Developer and current property owner to complete the remaining improvements. Staff recommends another 1-year time extension be approved to reserve the City's ability to filing a claim against the Developers surety to force completion of these improvements. Property Information: Owner: Standard Pacific Corporation 05 City Council Staff Report April 4, 2018-- Page 6 Time Extension for Various Subdivision Agreements Tract Map 32233-2, "Escena", extend to April 2, 2019 Tract Map 32233-2 is the second phase of residential development and includes 145 residential lots located within the Escena development shown here in Figure 4. ti O 1 y�__ •a, 7• rp, jr kip-Am Figure 4 Public improvements are substantially complete with ongoing construction anticipated to continue for an additional year. The property owner has deferred final paving improvements until completion of housing construction. Following the completion of on-site Public Improvements the subdivider is required to enter into a maintenance and warranty phase for the duration of one-year. Therefore, staff recommends a 2-year time extension be approved to allow the Developer to complete the required improvements and the maintenance and warranty phase. If on- site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Information: Owner: Alta Verde/Lennar C6 City Council Staff Report April 4, 2018 -- Page 7 Time Extension for Various Subdivision Agreements 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 5 f' S y- Y NJ Figure 5 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 owner to complete the remaining improvements. Staff recommends another 1-year time extension be approved to reserve the City's ability to filing a claim against the Developers surety to force completion of these improvements. Property Information: Owner: Standard Pacific Corporation C7 City Council Staff Report April 4, 2018-- Page 8 Time Extension for Various Subdivision Agreements Tract Map 32233-5, "Escena". extend to December 18, 2019 Tract Map 32233-5 is the fifth phase of residential development and includes 128 residential lots located within the Escena development shown here in Figure 6. Kre • -� � auk� � .i as Figure 6 Public improvements are substantially complete with ongoing construction anticipated to continue for an additional year. The property owner has deferred final paving improvements until completion of housing construction. Following the completion of on-site Public Improvements the subdivider is required to enter into a maintenance and warranty phase for the duration of one-year. Therefore, staff recommends a 2-year time extension be approved to allow the Developer to complete the required improvements and the maintenance and warranty phase. If on- site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Information: Owner: Toll Brothers 08 City Council Staff Report April 4, 2018-- Page 9 Time Extension for Various Subdivision Agreements 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 7. moms odn,11111411110111111 mows �s_ �► Figure 7 This is a large condominium project that was developed into multiple phases, and only the north half of the site associated with 117 of the 211 condominium units has been completed within this subdivision. The original Subdivider deferred completion of the underground utilities and onsite street improvements 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, and the timing for construction of the remainder of the property is unknown. Staff recommends that a 2-year time extension be approved. During this extension, staff will make contact with the current property owner and review the remaining on-site public improvements and intent of ultimate buildout. Property Information: Owner: Palermo Community Association (HOA) 09 City Council Staff Report April 4, 2018 -- Page 10 Time Extension for Various Subdivision Agreements Tract Map 36548, "Dakota". extended to November 4, 2018 Tract Map 36548 is a subdivision of 39 new residential lots on private streets located at the south end of Belardo Road shown here in Figure 8. t• ♦ . LLL r' •. ,►*` has �`. r , '.rVrr -W � ZE, r Figure 8 This subdivision was approved by the City Council on November 4, 2014, and construction on a portion of the on-site public improvements has commenced. Completion of the underground utilities and onsite street improvements is continuing concurrent with subsequent building phases within this subdivision by the Subdivider. The initial 2-year time for completion identified in the subdivision improvement agreement expires November 4, 2017, and staff recommends that a 1-year time extension be approved to allow the Subdivider to complete the remaining onsite public improvements. The Subdivier has initiated a request for security bond release for the public improvements that are complete. Following the completion of on-site Public Improvements the subdivider is required to enter into a maintenance and warranty phase for the duration of one-year. Therefore, staff recommends a 2-year time extension be approved to allow the Developer to complete the required improvements and the maintenance and warranty phase. If on- site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Information: Owner: PS Dakota 10 City Council Staff Report April 4, 2018-- Page 11 Time Extension for Various Subdivision Agreements Tract Map 366738, "Skye", extended to September 2, 2019 Tract Map 36738 is a subdivision of 40 new residential lots on private streets located at on the south side of Ramon Road between Fern Canyon and Belardo Road shown here in figure 9. LaiAbIN.FlUm MI Ism ----- ---- 4 . ,.Lt--. i 71 Figure 9 Construction and on-site Public Improvements are substantially complete; staff is reviewing and will be generating a punch list of remaining items. Public Improvements are anticipated to be complete by the end of 2018. Following the completion of on-site Public Improvements the subdivider is required to enter into a maintenance and warranty phase for the duration of one-year. Therefore, staff recommends a 2-year time extension be approved to allow the Developer to complete the required improvements and the maintenance and warranty phase. If on- site Public Improvements are not complete within this time frame staff will initiate filing a claim against the security to force completion of these improvements. Property Information: Owner: Palm Ridge /Woodbridge 11 City Council Staff Report April 4, 2018-- Page 12 Time Extension for Various Subdivision Agreements 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: (9) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: None. SUBMITTED: Prepared by: Thomas G rcia Marcus L. Fuller Director of Engineering Services Assistant City Manager Approved by: David H. Ready, Esq. City Manager 1. Resolution 12 ATTACHMENT 1 13 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING TIME EXTENSIONS OF VARIOUS SUBDIVISION IMPROVEMENT AGREEMENTS 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. 6517, Tract Map 32233, extend to April 16, 2018 Agreement No. 5086, Tract Map 32233-1, extend to April 2, 2019 Agreement No. 5087, Tract Map 32233-2, extend to April 2, 2019 Agreement No. 5089, Tract Map 32233-4, extend to April 2, 2019 Agreement No. 6476, Tract Map 32233-5, extend to December 18, 2019 Agreement No. 5246, Tract Map 33561, "Palermo", extend to April 2, 2019 Agreement No. 6626, Tract Map 36548, "Dakota", extended to November 4, 2018 Agreement No. 6743Tract Map 366738, "Skye", extended to September 2, 2019 14 Resolution No. Page 2 ADOPTED this 4th day of April, 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 April 4, 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Anthony J. Mejia, MMC, City Clerk City of Palm Springs, California 15