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Home My WebLink About5/4/2016 - STAFF REPORTS - 2.K. �OQ P P LM s'09 iy Q Y N 4 • �ONw..w`• Cq<,FOR N�P City Council Staff Report DATE: May 4, 2016 CONSENT SUBJECT: APPROVE A CONSENT TO EASEMENT AS THE HOLDER OF A PERFORMANCE DEED OF TRUST THAT BURDENS BLOCK Al IN THE DOWNTOWN PALM SPRINGS PROJECT FOR A SIDEWALK IMMEDIATELY SOUTH OF THE HYATT HOTEL FOR THE BENEFIT OF THE HYATT HOTEL FROM: David Ready, City Manager BY: Douglas Holland, City Attorney SUMMARY The City has been asked to consent to the recordation of an easement over property immediately south of the Hyatt Hotel. The City holds the beneficial interest in the performance deed of trust that burdens Block Al and other properties in the Downtown Palm Springs project area. The sidewalk easement is part of an improvement project on the south side of the Hyatt and will ensure the provision of pedestrian access to a newly remodeled entrance to the Hyatt Hotel. The consent to the easement will not impair the City's interest in the performance deed of trust which will continue in full force and effect on the remainder of Block Al. RECOMMENDATION: Authorize the City Manager to execute the Consent to Easement on behalf of the City of Palm Springs as the beneficiary of the Performance Deed of Trust. STAFF ANALYSIS: Palm Springs Promenade, LLC, provided the City with a Performance Deed of Trust to secure the PSP's obligations to complete private improvements under the Project Financing Agreement. The current request is for a sidewalk easement for the benefit of the Hyatt Hotel along the southern wall of the Hyatt Hotel. This sidewalk will be constructed over Blocks A and Al in the Downtown Palm Springs Project and is intended to provide pedestrian access to a newly constructed entrance to the Hyatt. (On the map attached to the proposed Consent to Easement, Block A is referred to as Parcel 1 and Block Al is referred to as Parcel 2.) This easement and the pedestrian ITEM NO. '2 ' K City Council Staff Report May 4, 2016 - Page 2 Consent to Easement use of the easement are consistent with the plans for development of the properties. As the holder of an interest in these properties by virtue of the Performance Deed of Trust, the City has been asked to consent to the easement. Staff recommends the Council approve the Consent to Easement and authorize the City Manager to execute the Consent. Pursuant to the 4th Amendment to the Project Financing Agreement, the City agreed to incrementally reconvey the Performance Deed of Trust on a parcel by parcel basis concurrently with the recordation of any loan to fund all private improvements on each such parcel. To date the City has only approved reconveyances for Blocks C1 and A. The current request is not a request for reconveyance and will not impair the City's interests under the Performance Deed of Trust which will continue in full force and effect. ENVIRONMENTAL ANALYSIS Pursuant to California Environmental Quality Act ("CEQA') Guidelines Section 15060(c)(2) the proposed consent to easement is exempt from CEQA because the activity will not result in a direct or reasonably foreseeable indirect adverse physical change in the environment. Marcus Ful er, Assistant City Manager/ Douglas Holland, City Attorney City Engineer David Ready, City M Attachment: Consent to Easement 1058537.1 (� CONSENT TO EASEMENT City of Palm Springs This Consent to Easement is made by the undersigned ("Promenade Mortgagee"), the beneficiary under that certain Performance Deed of Trust granted by Promenade to Fidelity National Title Company, a California corporation, as trustee for the benefit of Promenade Mortgagee, dated June 12, 2012, and recorded on June 27, 2012 as Instrument number 2012-0298857 in the office of the Riverside County Recorder (as heretofore or hereafter amended, modified, restated or replaced, the "Promenade Deed of Trust"). The undersigned Promenade Mortgagee does hereby execute this Consent to Easement to acknowledge its consent to the conveyance of a non-exclusive sidewalk easement over and on Parcel 2 of the Certificate of Compliance, Instrument # 2015-0171415, Recorded in the Office of the Riverside County Recorder on April 28, 2015 ("Subject Property") and as depicted and described in Exhibit A to this Consent and Subordination ("Easement") for the benefit of RBD Hotel Palm Springs LLC, a Delaware limited liability company ("RBD"). Promenade Mortgagee hereby acknowledges and agrees that its right, title, interest and estate by virtue of the Promenade Deed of Trust and the other documents and instruments executed and delivered to or for the benefit of Promenade Mortgagee in connection with the Promenade Deed of Trust (collectively, the "Promenade Loan Documents") in and to the Subject Property shall be subject and subordinate to the Easement. The undersigned Promenade Mortgagee hereby evidences such consent, approval, agreement and subordination by causing its duly authorized officer to sign and deliver this Consent to Easement, which is given for the sole purpose of consenting to the Easement and subordinating the undersigned's interest under the Promenade Deed of Trust to such Easement. Except for such consent and subordination, the Promenade Deed of Trust is ratified and confirmed in all other respects, and no real or personal property encumbered by the Promenade Deed of Trust shall be affected hereby and all real or personal property encumbered by the Promenade Deed of Trust shall remain as security for the indebtedness described in the Promenade Deed of Trust. PROMENADE MORTGAGEE: City of Palm Springs, a municipal corporation and charter city By: Name: Its: [NOTARY ACKNOWLEDGMENT FOLLOWS] (� 3 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness,accuracy,or validity of that document. State of California County of On April J 2016, before me, a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s)whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s)on the instrument the person(s),or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) 04 EXHIBI T PARCEL ANCE j CERT. OF OK40 71415 fN57 �APRIL 2R 2015 L r— - --REG.— -- --. — m � J Lir L9 o4i''p L sdp L5 I.S. 4146 d. * EXP. 6/30/18 O 4 EASEMENT �ryb �0� CALti0 oh - 1 e�� `'J35'h�0� LINE TABLE h # BEARWG LENGTH PARCEL CA Q�1 L1 SS95 '00'W 2250' GM NE eP L S E .CERS � 02 L3 SST13'WW 70.WT2015—� 05 REC, APRIL L4 SB9'52'00'W a .09' J L5 N00'08'00'W 9.58' L6 INSIrWOTE 21.17' L13 L7 N00'08'0O'W 4.50' L8 N89'52'007E 16.67' L9 NOO'08'0O'W 1439' L10 N89'52'00'E 4&59' P06 Lit NOO'OS'00'W a48' L2 L12 N83'13'50'E 54.03' L13 N44'5700'E 3.63' POC J L14 N99'52'00'E Iat7' in - -- -CAL—_y .--- - PRIM CANYON DR. 0 30 60 SCALE 1.-M' GRAPHIC SCALE SIDEWALK EASEMENT °M"*er SCALE- �xa: LEGAL DESM OM _- A.M.S. 1` = 30' SEE EXN1817 E" a#cmm en ka l s+mr ma-- J.L.S, 13-110 1 OF 2