HomeMy WebLinkAbout7/13/2016 - STAFF REPORTS - 1.C. c
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CITY COUNCIL STAFF REPORT
DATE: JULY 13, 2016 CONSENT CALENDAR
SUBJECT: APPROVING AMENDMENT NO. 6 TO A PURCHASE AND SALE
AGREEMENT WITH SELENE PALM SPRINGS, LLC AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS
RELATED TO THE AGREEMENTS
FROM: David H. Ready, City Manager
BY: Community & Economic Development Department
SUMMARY
This action is to approve Amendment No. 6 to a Purchase and Sale Agreement with
Selene Palm Springs, LLC (the "Developer") to extend the closing date for the sale of
the property from the City to the Developer from July 31, 2016 to August 12, 2016.
RECOMMENDATION:
1) Approve Amendment No. 6 to Agreement No. A6329 with Selene Palm Springs
LLC for the sale of a 7.8 acre parcel at the northeast corner of Calle Alvarado
and Amado;
2) Authorize the City Manager to execute all necessary documents.
Background:
Pursuant to the terms of the current purchase and sale agreement, as amended,
between the City and Selene Palm Springs LLC, the City agreed to sell a 7.8 +/- acre
parcel at the northeast corner of Calle Alvarado and Amado to Selene Palm Springs
LLC ("Selene") for the development of a luxury hotel on the site. On June 15, 2016, the
City and Selene agreed to extend the closing date of the sale of the property to July 31,
2016. The purpose of the extension was in part to allow the Council the opportunity to
review the change in hotel brand which was also accomplished on June 15. The
Developer has also requested a revision in the timing of the City's review of the
Developer's evidence of financing for the project which is required to be submitted prior
to closing of escrow. It was anticipated that this amendment to the Agreement would be
presented to the Council at its meeting of July 20, 2016; however, with the cancellation
of this meeting, the next meeting of Council on August 3, 2016, is three days after the
ITEM NO. 2.0 ,
City Council Agenda
Amendment No. 4 to Purchase and Sale
June 15, 2015
Page 2
current closing date. To facilitate the completion of the negotiations of this amendment
and timely presentation of the amendment to the Council, staff recommends the
deadline for escrow closing be extended to August 12.
Lauri Aylaian, Director of Community David H. Ready, Ci a
Development
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Douglas olland, City Attorney
Attachment: Amendment No. 6 to Purchase and Sale Agreement
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AMENDMENT NO. 6 TO PURCHASE AND SALE AGREEMENT(SELENE)
THIS AMENDMENT NO. 5 TO PURCHASE AND SALE AGREEMENT ("Amendment") is made and
entered into by and between the City of Palm Springs, a California charter city ("City") and Selene Palm
Springs, L-C, a California limited liability company("Developer").
RECITALS
A. City entered into a Purchase and Sale Agreement with a predecessor company of
Developer on March 6, 2013 for the purpose of developing and maintaining a Dolce Hotel Project
("Hotel') on property owned by the City.
B. The Purchase and Sale Agreement has been amended previously to address delays
caused by changes in state law and the additional reviews and oversight required to comply with the
requirements of state law and to fully satisfy certain requirements of state law. Escrow for the sale of
the property has opened; however,the parties wish to extend the close of escrow an additional 12 days.
NOW, THEREFORE, in consideration of the foregoing Recitals and promises and covenants contained in
this Agreement,the City and Developer agree as follows:
Section 1. The foregoing Recitals are true and correct.
Section 2. Section 7 of the Purchase and Sale Agreement is amended to read:
7. Purchase Date. Property shall be purchased prior to the start of construction by
Developer but no later than August 12, 2016. Escrow shall be opened no less than thirty (30) days
before the anticipated Purchase date.
Section 3. Except as expressly provided above, all other terms and conditions of the Purchase and
Sale Agreement,as amended, shall remain unchanged and in full force and effect.
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The Parties have executed this Agreement and acknowledge November 4, 2015 as the effective
date of this Agreement.
"City"
City of Palm Springs
Date: By:
David H. Ready
City Manager
APPROVED AS TO FORM ATTEST
By: By:
Douglas Holland James Thompson
City Attorney City Clerk
Developer
Selene Palm Springs, LLC
Date: By:
Lauri Kibby for CDI Ventures, LLC
Managing Member for Selene Palm
Springs, LLC
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