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Home My WebLink About3/1/2017 - STAFF REPORTS - 5.A. PALM SA A.off 4�y O V N ` M1�o�•ounc .4 c�`10:0 �p City Council Staff Report DATE: March 1, 2017 NEW BUSINESS 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. Jr• A• City Council Staff Report March 1, 2017 -- 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 a one-year time extension to various subdivision improvement agreements due to the economic recession. 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 four 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: 02 City Council Staff Report March 1, 2017-- Page 3 Time Extension for Various Subdivision Agreements Tract Map 28966, "Preserve Estates", extend to June 18, 2018 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 . f. 7 r_ 1b F i a � r t e - . l 40, ""11 -A Figure 1 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 until completion of housing construction, however, the property had been subject of a bank foreclosure. Staff has initiated discussions with the developer and recommends another 1-year time extension be approved to allow staff to follow up on the efforts with the current property owner to complete the remaining improvements, or to file a claim against the security to force completion of these improvements. Property Information: Owner: Tripalmview Properties, LLC Manager: Shaul Mezrahi o3 City Council Staff Report March 1, 2017 -- Page 4 Time Extension for Various Subdivision Agreements Tract Map 32233-1, "Escena", extend to April 2, 2018 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. - n :f #f i Figure 2 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 recommends another 1-year time extension be approved to allow staff to initiate efforts with the current property owner to complete the remaining improvements, or to file a claim against the security to force completion of these improvements. Property Information: Owner: Standard Pacific Corporation Qy City Council Staff Report March 1, 2017 -- Page 5 Time Extension for Various Subdivision Agreements Tract Map 32233-4, "Escena", extend to April 2, 2018 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. i M a ,• r :J 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 recommends another 1-year time extension be approved to allow staff to initiate efforts with the current property owner to complete the remaining improvements, or to file a claim against the security to force completion of these improvements. Property Information: Owner: Standard Pacific Corporation 05 City Council Staff Report March 1, 2017 -- Page 6 Time Extension for Various Subdivision Agreements Tract Map 32736, "Vibrante", extend to August 5, 2019 Tract Map 32736 includes 41 residential condominium lots located at the east end of 34th Avenue shown here in Figure 4. ' • c . Ot i ♦ Y • y o t e r w • n ■rw111 .. Figure 4 No work has been performed by the current property owner (Tahquitz 41, LLC). It is unknown if the developer will commence development of this project, which has been approved and vested with a recorded final map. In accordance with Section 2.5 of the subdivision improvement agreement, staff will coordinate with the City Attorney's office to determine whether the City should pursue elimination of the recorded final map through the reversion to acreage process. In order to preserve the City's rights, staff recommends a 2-year time extension be approved to allow staff time to work with the current property owner to complete the process. Property Information: Owner: Tahquitz 41 , LLC Officers: Corman Leigh Housing, LP Authorized Agent: Rick Scott � s City Council Staff Report March 1, 2017 -- Page 7 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: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. FISCAL IMPACT: None. SUBMITTED: arcus L. Fuller, MPA, P.E., P.L.S. David H. Ready, Esq. Assistant City Manager/City Engineer City Manager Attachments: 1 . Resolution 07 ATTACHMENT 1 ua 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, 2018 Agreement No. 5086, Tract Map 32233-1 , extended to April 2, 2018 Agreement No. 5089, Tract Map 32233-4, extended to April 2, 2018 Agreement No. 6729, Tract Map 32736, extended to August 5, 2019 09 Resolution No. _ Page 2 ADOPTED this 1 st day of March, 2017. DAVID H. READY, CITY MANAGER ATTEST: KATHLEEN D. HART, INTERIM CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim 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 on March 1, 2017, by the following vote: AYES: NOES: ABSENT: ABSTAIN: KATHLEEN D. HART, INTERIM CITY CLERK City of Palm Springs, California 10