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oR<IFOFe`p CITY COUNCIL STAFF REPORT
DATE: APRIL 6, 2016 NEW BUSINESS
SUBJECT: SELECTION OF PROPOSER WITH WHOM TO NEGOTIATE A
PURCHASE AND SALE AGREEMENT TO REDEVELOP THE
SUCCESSOR AGENCY-OWNED PROPERTY AT 342-344 NORTH
PALM CANYON DRIVE (APN 513-081-017)
FROM: David H. Ready, City Manager
BY: Community and Economic Development Department
SUMMARY
This action is to approve the ranking of proposals received for purchase and
redevelopment of the Successor Agency-owned property at 342-344 North Palm
Canyon Drive, and to direct staff to negotiate a Purchase and Sale Agreement with the
top-ranked respondent.
RECOMMENDATION:
1. Review evaluation and ranking of proposals received in response to a Request
for Proposals (RFP) to purchase the Successor Agency-owned property at 342-
344 North Palm Canyon Drive (Cork n Bottle) and approve selection of top-
ranked respondent.
2. Direct staff to negotiate a purchase and sale agreement with top-ranked
respondent for disposition of the Successor Agency-owned property at 342-344
North Palm Canyon Drive.
STAFF ANALYSIS:
The City and the Oversight Board for the Successor Agency have recently completed
the process mandated by the State of California applicable to the disposition and use of
the Successor Agency property. Having completed the process, the Successor Agency
is now capable of conveying property in accordance with the requirements of 34191.5(c)
of the Health and Safety Code.
The City desires to dispose of the property in a manner to maximize value and develop
the property to its highest and best use.
{TEM NO. V
City Council Staff Report
April 6, 2016 -- Page 2
Sale of Cork n Bottle Property at 342-344 North Palm Canyon Dr.
On January 16, 2016, City Council directed staff to undertake a Request for Proposals
(RFP) process to obtain offers for the Cork n Bottle property located at 342-344 N. Palm
Canyon Drive.
The Community & Economic Development Department issued a Request for Proposals
(RFP) that was noticed in the Desert Sun on January 30, 2016 and February 6, 2016
and posted to the City's website. The RFP was requested by eleven respondents. Three
firms submitted responsive proposals that were evaluated by a committee consisting of
members from Community & Economic Development, Planning, and Engineering
Departments. Proposals were received from the following three interested entities listed
in the order they were received: Jack R. Frost; Aliece Pickett and Edward P. Shroeder;
and Atelier Zinque.
Proposals were evaluated on multiple criteria including developer qualifications,
economic proforma for the proposed project, development concept/planned use,
development schedule and purchase price.
The evaluation committee scored Atelier Zinque as the highest ranked firm with a score
of 73 out of 100 possible points based on their proposal and overall price offer of
$425,000.
The second highest ranked firm, Aliece Pickett and Edward P. Shroeder, had a score of
46 out of 100 possible points and price offer of $350,000.
The ranking of the three proposals were consistent among all three evaluators and the
top ranking of the proposal submitted by Atelier Zinque was unanimous. The developer
has already purchased five parcels that surround the Cork n Bottle property and would
incorporate the property into a larger project. The project design includes a boutique
hotel with suites, a full service restaurant, rooftop bar, salon and spa along with a small
retail component. Atelier Zinque has already raised $1.5 million and has commitments
of an additional $5 million for the project, which would result in the highest and best use
of the property.
If approved, staff will return to the RDA Oversight Board for approval and to the City
Council/Successor Agency (at a Public Hearing — per the City Manager's October 2014,
revised policy for sale of City and/or RDA property), with a purchase and sale
agreement with Atelier Zinque, the top-ranked proposer, for disposition of the property
in accordance with Health and Safety Code requirements
The RFP document, the three proposals received, and evaluation scores are attached.
FISCAL IMPACT:
The price offer from the selected proposer is $425,000. The sales proceeds collected
by the Successor Agency (net of transaction costs) would be transferred later to the
zi�'
City Council Staff Report
April 6, 2016 -- Page 3
Sale of Cork n Bottle Property at 342-344 North Palm Canyon Dr.
county Auditor-Controller for distribution to each of the affected taxing agencies of the
former redevelopment project area. It is expected that the City would receive a 27%
share of those proceeds.
Diana Shay, Redevelo nt Coordinator aun Aylaian, Director of Community
and Economic Development
David H. Ready, City N]�pag
Attachments:
1 . RFP
2. Proposals (3)
3. Evaluation Scoring Spreadsheet
03
Attachment No. 1
Request for Proposals
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342-344 North Palm Canyon Drive
Redevelopment Project
Request for Purchase Offers, Qualifications and
Conceptual Proposals
I. BACKGROUND
The City of Palm Springs (City) is seeking interested parties to purchase and redevelop
the property at 342-344 North Palm Canyon Drive, known as the Cork n Bottle in the
central business district area of downtown Palm Springs, California (see Attachment A
with map and legal description). The property is currently owned by the City acting as
Successor Agency to the Palm Springs Redevelopment Agency and its disposition is
pursuant to the requirements of 34191.5 of the Health and Safety Code. The City and
the Oversight Board for the Successor Agency to the Palm Springs Redevelopment
Agency have recently completed the process mandated by the State of California
applicable to the disposition and use of the Successor Agency Property. Having
completed the process, the Successor Agency is now capable of conveying the property
in accordance with Section 341191.5(c) of the Health and Safety Code.
The minimum value for disposition of the 2,080 square foot property and the Class 1
historic structure situated on it approved by the State of California is $339,620. It is the
City's preference to dispose of this property with a view to maximizing long-term value.
The property is designated as a Class 1 Historic site, thereby limiting future development
options. The site is landlocked and has no parking.
The property is located in the Central Business District zone and has a vacant lot to the
north, vacant lots to the east and commercial properties to the south. The building is
currently leased to a commercial business and is used as a liquor store and smoke
shop.
The City review of proposals submitted in response to this RFP will focus on the
proposals'fulfillment of three major policy objectives, which can be described as follows:
• To provide a high quality design with a strong aesthetic component along North
Palm Canyon Drive;
• To maximize the quality and marketability of the commercial space including
remediation of building code deficiencies; and
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To maximize the financial return to the City and to the taxing entities who will
benefit from the property disposition.
II. DEVELOPMENT CONCEPT
The City is seeking a developer that will meet the City's objectives stated above and
enhance the overall quality of the surrounding neighborhood through quality building
design and landscaping.
An appraisal completed in September, 2015 estimated the properly to be worth
$350,000.
The City is seeking to complete the sale of the property to a developer at "fair market
value" (of at least $350,000). The City reserves the right to accept or reject any offers
received in response to this Request for Proposals (RFP).
III. DEVELOPMENT GUIDELINES
The following development guidelines for the property are intended to serve as general
parameters for design of the proposed project. The guidelines are also meant to ensure
that appropriate amenities are incorporated into the proposed design and to promote the
completion of the project while meeting the highest standards for quality.
• The proposed land use and design shall meet the provisions of the City's Zoning
Code for the Central Business District standards in the areas of building height,
setbacks, lot coverage, parking, and other relevant standards.
• The architectural standards and renovation or construction quality must be
commensurate with or higher than the City's established standards.
• Renovation or construction shall be consistent with City building codes and
sensitive to the historic significance of the structure. The use of alternative
materials and/or construction methods to reduce costs is encouraged; provided
there is no reduction in the overall quality of design or construction.
It shall be the sole responsibility of the developer to refine their specific development
concept through further research and discussions with City staff (i.e., Planning,
Engineering, Building and Safety, and Fire) to ensure full compliance with all applicable
State, County and City Codes, while achieving the highest degree of quality
development.
IV. SUBMITTAL REQUIREMENTS
Five (5) copies of the comprehensive proposal shall be submitted to the City for
consideration and contain all of the required elements listed below.
A. DEVELOPER QUALIFICATIONS
1. Development Entity. Name and address of developer; phone and
fax numbers; email address. Identify all joint venture or limited
partners. Is the developer a subsidiary of, or affiliated with, any
other corporation(s) or firms? If yes, list each such corporation or
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firm by name and address, specify its relationship to the developer
and such other corporation or firm.
2. Development Team. Identify the role of each development partner
in the implementation of the development. Identify and describe
role of key individuals in the development team (architects,
engineers, project manager, and others), who would be involved
in the implementation, including their relevant experience. Also
identify the party who will be responsible, and has the authority to
make decisions for the development team.
Include resume of the developer describing the qualifications of
the developer as well as recent development experience. If the
proposal is based upon a development team, the resumes of each
team member and their respective roles should be submitted.
3. Developer Experience. The developer's previous relevant project
experience for projects of this type and size: A description of
three similar projects (date, location, land uses, size, architectural
features, role of development entity in the project, etc.). Include
photographs of recently completed projects with information on
location and date of the project.
4. Developer's Financial Capability. Include a statement of the
developer's financial qualification. Proposers should describe
their ability to raise equity/debt dollars including current
relationships with major lenders, and names and addresses of
bank references. Provide information regarding financing and
equity arrangements for the three projects listed as developer's
relevant experience.
B. ECONOMIC PROFORMA
1. Include a detailed pro forma outlining the proposed hard, soft, and
financing costs associated with the proposed development.
2. Identify all sources of financing, including developer equity,
construction and permanent financing.
3. Identify all anticipated assistance such as street, utility, parking or
other improvements that the developer would seek to be
constructed at the expense of the City or Successor Agency.
4. Identify sales tax, property tax, transient occupancy tax, and any
other anticipated revenue to the City or other governmental taxing
entities-
C. DEVELOPMENT CONCEPT/PLANNED USE
1. Include a narrative description of the proposed building
improvement and overall development if part of a larger assembly.
2. Provide an architectural rendering depicting any proposed exterior
modifications to the building and a rendering of the overall
development if part of a larger assembly. The rendering may be
schematic in nature.
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3. Describe plans for remediation of structural, electrical, and
accessibility deficiencies in the existing structure.
4. Identify opportunities for land assembly for use of the property as
part of an overall larger development project.
5. Provide a proposed construction schedule.
6. Identify any particular constraints or other barriers to developing
this project, how the Developer should respond to those barriers,
and what the City should be expected to do during the project to
address those.
D. SCHEDULE
Provide an anticipated schedule that identifies proposed dates for
opening and closing escrow, for obtaining required permits, and for
completing all proposed renovation or construction work.
E. PURCHASE PRICE OFFER
Provide a price offer for the property including escrow costs. Please note
that the City does not pay brokerage fees.
V. EVALUATION CRITERIA
An in-house review committee will review all proposals received by the City and
proposals will be evaluated on the basis of the following criteria:
A. DEVELOPER QUALIFICATIONS
The developer must demonstrate sufficient experience and resources to obtain
private financing and implement their proposal in an expedient manner.
B. ECONOMIC PROFORMA
The likelihood of success is a very important consideration for each proposal.
The economic feasibility of the proposals should be primarily based on the
developer obtaining construction and permanent mortgage financing from private
sources. Long term tax revenue to the City and other taxing entities will also be
a strong consideration in the evaluation of proposals.
C. DEVELOPMENT CONCEPT/PLANNED USE
A strong development concept for the site, especially one that enhances the
historic significance of the site to accommodate the proposed use of the property
will be an important consideration in the evaluation of the proposals. An
attractive high quality development is desired for the subject property. The
aesthetic character of the proposal and the developer's ability to create attractive
finished products, as demonstrated through examples of previous work similar to
this proposal, will be given careful consideration
D. SCHEDULE
Preferential consideration will be given to proposals with short escrow durations.
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E. PURCHASE PRICE OFFER
The proposed purchase price of the property will be an important consideration.
As stated above, the appraised value in September 2015 was $350,000 and will
serve as the minimum acceptable price offer that the City would consider.
Staff will notify all applicants of the selected proposal within ten (10) days after approval
of the City Council. The City retains the right to reject all proposals.
VI. SCHEDULE
Request for proposals distributed and available..................... Tuesday, February 9, 2016
Deadline for receipt of proposals...............................4:00 P.M., Thursday, March 3, 2016
Developer short list .............................................Wednesday, March 16, 2016 (tentative)
Interviews................................................................................................To be scheduled
City Council Review ..................................................Wednesday, April 6, 2016(tentative)
The requirements of this section are mandatory and failure to comply will deem the
proposal as non-responsive. The following criteria shall be observed.
The proposal should not exceed 20 pages, single sided (8%" by 11")
including all site and building plans, staff resumes and references, and cover
letter.
Five (5) original proposals are required. Facsimile (fax) proposals will not
be accepted.
• The proposal shall include the name of the Developer submitting the
proposal, mailing address, telephone number, and the name of the individual to
contact for further information.
• The prospective Developer shall designate by name the project manager
to be employed. Substitution of the project manager by the selected Developer
will not be allowed without prior approval by the City of Palm Springs.
All proposals must be received in the City of Palm Springs, Department of
Community and Economic Development, by 4:00 P.M., Thursday, March 3, 2016.
Proof of receipt before the deadline is a City of Palm Springs, Department of
Community and Economic Development date stamp. Proposals must be
submitted to:
Diana Shay
Community & Economic Development Department
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
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• Specific questions regarding this Request for Proposals should be directed to:
Diana Shay
Community & Economic Development Department
City of Palm Springs
Phone: (760) 323-8260
Email: Diana.shay@palmspringsca.gov
VII. RESPONSIBILITY OF PROPOSER
All Developers shall be responsible for information submitted. If it is found that a
Developer is found irresponsible (e.g. has not paid taxes, is not a legal entity, does not
have a business license, submitted a proposal without an authorized signature, falsified
any information in the proposal package, etc.), the proposal shall be rejected.
VIII. DEVELOPER SELECTION
• Each proposal will be reviewed by an evaluation group to determine if it meets
the proposal requirements. Failure to meet the requirements for the Request for
Proposals may be cause for rejection of the proposal.
• The evaluation group may ask for formal oral presentations by the selected
Developers. The City reserves the right to waive the requirement for formal
presentations, and to make final sections determined upon review of the work
proposals only.
• A final selection of the Developers will be determined following review of all work
proposals and/or formal oral presentations. The City Council will be asked to
award a Purchase and Sale Agreement to the top-ranked Proposer.
1.0
Attachment A - Description of Property
The subject properties are owned by the following:
APN 513-081-017 former Community Redevelopment Agency of the City of Palm
Springs
Legal Description
Por Lot 7 Blk 24 MB 009/432 SD Map of Palm Springs
Zoning
APN 513 081 017 is zoned Central Business District fronting N. Palm Canyon Dr. with a
depth of approximately 53'.
i
Cork n Bottle Property
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Attachment No. 2
Proposals (3)
Proposal No. 1-Jack R. Frost
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To: Diana Shay
Community & Economic Development Department
City Of Palm Springs
Phone: (760) 323-8260
Email: Diana.shav@palmspringsca.gov
From: Jack R. Frost
2595 Savanna Way
Palm Springs CA 92262
Phone: (808) 554-4053
Email: donandiax@mac.com; Vanderkolk@gmail.com
Subject: 342-344 North Palm Canyon Drive Redevelopment Project— Request for
Purchase
Overview
If granted purchase, it is our intent to preserve this historical building at 342-344
North Palm Canyon Drive with the rules outlined for a Class 1 Historical site. We
hope to bring a fresh look to the storefront, and interior, that in compliance with
the rules to bring back its more original appeal that will maximize commerce and
financial return to the City. To do so, we will seek out a respected architect and
contractor that are versed in historical preservation and remedying building code
deficiencies in the Palm Springs area to meet the Cities standards or above.
Development Team
The proposed buyer (Jack R. Frost) is an entrepreneur developer, and is affiliated
with Highland Palm Partners LLC (24132 Long valley Rd. Hidden Hills CA 91302),
Jack R. Frost 90% stakeholder, Gary Credle 10% stakeholder). In regards to 342-
344 North Palm Canyon, Highland Palm Partners LLC will exist as a separate entity
not involved with this purchase or development. Jack R. Frost to act as sole owner
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with architect and engineer to be determined and sought out if proposal goes
forward. Jack R. Frost will be the entity responsible for development team
decisions and Cornelius John Vanderkolk (2595 Savanna Way Palm Springs CA
92262) will act as assistant to Jack R. Frost.
Developer Experience
As an entrepreneur/developer, Jack R. Frost has purchased and sold over 50
properties (both residential and commercial) throughout his professional
experience. His most prominent size project being the Highland Palms Healthcare
Center (7534 Palm Avenue Highland, CA 92346. http://highlandpalmshc.com/) in
which he co-developed in 1968 and owns today as 90% stakeholder under
Highland Palm Partners LLC (24132 Longvalley rd, Hidden Hill CA 91302; 818-612-
8026). The Highland Palms Healthcare Center is a 96 bed rehab facility on 3 acres.
Jack R. Frost co-developed the Circle DJ Ranch (47-561 Mapele Rd Kaneohe HI
96744) in 1988. Built from the ground up is the 12,000 sq. foot ranch home on 21
acres. The Property is now valued at $2.5 Million and can be viewed on Zillow.
Jack R. Frost was owner and lessor of multiple commercial properties in Riverside
CA. including 19 and 10 unit apartment buildings, furniture store, beauty salon,
barber shop, and beauty supply. Ocean front rentals were once a part of Jack's
assets located in Newport Beach CA, and Lido Isle.
Developers Financial Capabilities
With assets more than $6 million and liabilities less than $1 million, Jack R. Frost
has the ability to raise funds via cash and/or loan.
First Entertainment Credit Union, CA. private banker Nikki Marcota 323-845-4472.
Bank Of Hawaii, HI. Private banker Davin Nakasato 808-694-8679.
Stonegate Mortgage. Lender Brad Tilford 760-777-0727.
Development Concept/Planned Use
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If the City plans to move forward, Jack R. Frost intends to preserve and enhance
the historical characteristics of the building and to update its original appeal
compliant for a Class 1 historical site to maximize commerce and financial return
to the City. It is the intent of the developer to convert the existing Cork N Bottle
to a local art studio that celebrates and focuses on Palm Spring's desert, LGBT,
and old Hollywood art, and would not require any additional structure. Should
the City move forward, identifying structural, electrical, and accessibility issues
will be explored followed with plans for remedying these issues.
Schedule
Once approved, we can open escrow and have an architect and building inspector
within in a week, and close escrow in 60 days.
Purchase Price Offer
We will offer the ask price of $350K including escrow and brokerage fees.
Jack R. Frost
Date:
7
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Proposal No. 2
Aliece Pickett and Edward P. Schroeder
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. RECEIVED
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PLANNING SERVICES
DEPARTMENT
OFFER TO PURCHASE
342-344 N. Palm Canyon
Palm Springs, CA 92262
Edward P. Schroeder
Aliece Pickett
(949) 240-9220 x 113
443 Santa Elena
Palm Springs, CA 92262
1 $
OFFER TO PURCHASE
342-344 N. Palm Canyon Dr., CA 92262
TABLE OF CONTENTS
Chapter 1 - INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
1 .1 Proposed Annex for Palm Springs Historical Society. . . . . . . . . . . 1
1 .2 Non-conforming Exterior Elements. . . . . . . . . . . . . . . . . . . . . . . 1
1 .3 Deplorable Interior Condition. . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Chapter 2 - DEVELOPER QUALIFICATIONS . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.1 Development Entity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2.2 Development Team. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.3 Developer Experience. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.4 Developer's Financial Capability. . . . . . . . . . . . . . . . . . . . . . . . . 5
Chapter 3 - ECONOMIC PROFORMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.1 Hard, Soft and Financing Costs. . . . . . . . . . . . . . . . . . . . . . . . . 6
3.2 All Sources of Financing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.3 Assistance From City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
3.4 Revenue to City. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Chapter 4 - DEVELOPMENT CONCEPT/PLANNED USE . . . . . . . . . . . . . . . . . 7
4.1 Narrative Description of Building Improvement. . . . . . . . . . . . . . . 7
4.2 Architectural Rendering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.3 Exterior Modifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
4.4 Building Name Change. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
4.5 Interior Modifications. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Chapter 5 - SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
5.1 Transaction Dates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Chapter 6 - PURCHASE PRICE OFFER . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
6.1 Fair Market Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
6.2 Proposed Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
6.3 Offer To Purchase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
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OFFER TO PURCHASE
342-344 N. PALM CANYON DR., PALM SPRINGS
Chapter 1 - INTRODUCTION
342-344 N. Palm Canyon Dr. (Property), is a Class 1 Historical Site, #31, Art
Moderne (aka Streamline Moderne building). The Property is currently occupied by a
liquor store and smoke shop. The interior of the building is in deplorable condition,
which does not reflect well on the building or the City of Palm Springs.
The contiguous parcels have been recently purchased by a developer. This
Property may not add much development value to the contiguous parcels, since this
Property is a Class 1 Historical Site and cannot be razed or materially altered.
1 .1 Proposed Annex for Palm Springs Historical Society.
Developer proposes to purchase, remodel and lease space to the Palm Springs
Historical Society for $1 per year.
The Historical Society could then display the Helen Rose costume collection
donated by Bill Marx, which collection is currently in a vault at the Welwood Murray
Memorial Library. .
The Historical Society would have prominent signage on Palm Canyon Drive.
This use would be ideal for walking traffic, and would create another important
destination for residents and visitors.
The Historical Society's use of this Property would follow in the tradition of
using iconic, historic properties for a museum.
The remainder of the space would be remodeled and leased to a retail business.
1 .2 Non-conforming Exterior Elements.
Art Moderne-Streamline Moderne is characterized by aerodynamic curving
forms, simple long horizontal lines, symmetrical cement, windows, doors and
moldings, and subtle colors. Art Deco-style fonts are used for address numbers and
business sign letters.
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OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 2
The Property's exterior has several non-conforming elements that conflict with
its Art Moderne-Streamline Moderne architecture and design:
• Coarse Spanish Lace Stucco Finish. The coarse Spanish Lace stucco finish
on the exterior is inappropriate. The stucco should be a smooth plaster-like
finish.
• Monochromatic Horizontal Moldings. The horizontal moldings are painted
monochromatically the same color as the building. The horizontal moldings
should be painted a subtle, contrasting color to showcase this important
architectural detail.
• Cork N Bottle Sign. The Cork N Bottle sign is inappropriate for several
reasons: the sign is placed asymmetrically on the building and smoke shop sign
on the blue awning does not provide balance or symmetry; the sign letters are
in an inappropriate non-Art Deco font (see Cafe Europa sign letters at 515 N.
Palm Canyon Dr.); and the sign coloring is inappropriately using primary colors
rather than subdued colors of the period.
• Metal Rails. The metal rails in front have inappropriate vertical members and
ornamentation. The metal rails should be removed. Railing, if any, should be
horizontal and made of polished stainless, for an appropriate shiny-metal
appearance.
• Front Windows. The front windows are scored with gang markings, creating
visual blight and the appearance that Palm Canyon Drive is gang territory.
• Encroachment. The fence rail from the building adjacent to the south is
encroaching on the Property, as evidenced by the brass survey marker in the
sidewalk.
Developer proposes removing inaccurate and inappropriate architectural and
design elements from the Property, and modifying the exterior to restore and
showcase design elements integral to Art Moderne-Streamline Moderne architecture.
See next page for artistic rendering for proposed modifications to the exterior.
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OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 3
Before
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After
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OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 4
1 .3 Deplorable Interior Condition.
The Property's interior in currently in deplorable condition. It is unknown if the
Property contains asbestos or is in compliance with the local, state and national
building codes, Americans With Disabilities Act, and earthquake compliance laws.
If, upon issuance of a building permit to remodel the interir, the City allows the
344 building addition and 342 back addition to remain, Developer proposes removing
and replacing the drywall, ceilings, flooring, plumbing and electric; insulating walls
and ceilings; and creating two open spaces, two bathrooms and one office.
Developer's offer to purchase is conditioned upon the City allowing the 344
building addition and the 342 back addition to remain with the issuance of a building
permit to remodel the interior as described above.
Chapter 2 - DEVELOPER QUALIFICATIONS
2.1 Development Entity.
Developer will establish PS ART MODERNE, LLC, as a newly formed single-
purpose California limited liability company located at 443 W. Santa Elena, Palm
Springs, CA 92262.
Organizers and owners of LLC: Aliece Pickett and Edward P. Schroeder
LLC Managers: Aliece Pickett and Edward P. Schroeder
Project Manager: Aliece Pickett
Phone Number: Aliece Pickett (949) 240-9220, ext. 113
Email: EPSBrokerage@outlook.com
Fax Number: (949) 240-9280
Mission: Restore and preserve the historically significant structure at 342 N.
Palm Canyon, Palm Springs. Remove and replace inaccurate architectural and
design elements on the building's exterior, as shown in the artistic rendering.
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OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 5
2.2 Development Team.
Edward P. Schroeder. Mr. Schroeder has developed and managed properties
since 1989. He is also a licensed attorney, Certified Public Accountant, and real estate
broker.
Aliece Pickett. Ms. Pickett has developed and managed properties since 1989.
She is also a licensed attorney.
Architect and Engineer. To be determined.
2.3 Developer Experience.
The development team has the following experience:
1988-2007 Administered rezoning, building design, construction and
management of Marshall Square Professional Centre, 2600-2620
W. Lincoln Hwy., Merrillville, Indiana. In 1989, the development
received an award for architectural distinction. Square Feet:
8,400. Zoning: Commercial.
1993-2016 Administered the design, rezoning, construction and management
of the office condominium at 20311 Birch St., Newport Beach,
CA. Square feet: 5,080. Zoning: commercial and medical.
2006-2008 Administered the exterior restoration of the Bluffside Villas
condominium development, 24531-24575 Santa Clara Ave., Dana
Point. Square feet: 22,868. Zoning: residential.
2014-2015 Oversaw the redesign and remodel in historic Old Town at 1607
Seal Way, Seal Beach, CA. Square feet: 2,455. Zoning:
residential.
2.4 Developer's Financial Capability.
The Property will be purchased without financing, and the development team
has the financial resources to remodel the Property without encumbering the Property.
2d
OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 6
It is impossible to prepare a remodel budget until it is known if the Property
contains asbestos or other latent conditions, and if it is in compliance with the local,
state and national building codes, Americans With Disabilities Act, and earthquake
compliance laws.
Chapter 3 - ECONOMIC PROFORMA
3. 1 Hard, Soft and Financing Costs.
Not applicable.
3.2 All Sources of Financing.
Developer Financing. Not applicable. No financing required for the project.
Developer Equity. There will be no loan secured by the Property.
Construction Financing. Not applicable.
Permanent Financing. Not applicable.
3.3 Assistance From City.
Developer requests the City waive any fees for street improvements, utility
improvements, demolition permit fees, construction permit fees, inspection fees, and
parking impact fees and/or in-lieu-of parking fees.
3.4 Revenue to City.
Though the City will not derive sales tax from the Historical Society, indirect
revenue will be substantial. The Palm Springs Historical Society Annex will become
a destination and will increase foot traffic on North Palm Canyon, benefitting
surrounding businesses.
25
OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 7
The Historical Society has a collection of costumes and gowns designed by
Academy Award winner Helen Rose and donated by Bill Marx. These costumes and
gowns represent MGM Studios during its golden age, the era of the building and when
movie stars populated Palm Springs.
The balance of the space will be leased to a retail establishment that will
generate sales tax revenue to the City.
Chapter 4 - DEVELOPMENT CONCEPT/PLANNED USE
4.1 Narrative Description of Building Improvement.
Developer proposes removing non-conforming exterior design elements from the
building exterior and adding Art Moderne elements as shown in the artistic rendering.
4.2 Architectural Rendering.
See Section 1 .2 for artistic rendering of proposed exterior modifications.
4.3 Exterior Modifications.
Developer proposes removing elements from the exterior that conflict with Art
Moderne-Streamline Moderne architecture and design; and increasing the aesthetic
characteristics of the building by adding attractive and historically accurate elements
to the exterior and showcasing the double and triple bands of horizontal moldings, and
installing new business signs with Art Deco letters and number fonts; and installing
the signs to balance the facade and create symmetry.
Developer proposes to remove the following inaccurate and inappropriate
elements:
• Coarse Spanish lace stucco finish
• Business name signs, letter font and colors
• Business name signs location, asymmetrical placed on building
• Metal rails with vertical members and incorrect ornaments.
• Front glass windows with scored/etched gang markings in the glass.
26
OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 8
Developer proposes to add the following Art Moderne design elements:
• Smooth stucco finish
• Place business name signs in balanced locations to create symmetry
• Use Art Deco-style fonts on signage (e.g., Bernhard Fashion, Park Lane)
• Use colors on business signs that coordinate with architectural elements
• Paint horizontal moldings a contrasting color to accent architectural details
• Install polished stainless steel rails with horizontal members.
4.4 Building Name Change.
The name "Cork 'N Bottle Building" is technically correct while the liquor store
occupies the building. However, naming the building after the current occupant is
somewhat misleading because the building was erected in 1935 but the liquor store
did not occupy until 1950.
Developer proposes changing the name to the "Simpson's Radio & Frigidaire Co.
Building". This would follow the template used by other historical buildings in Palm
Springs, referring to a building by the name of its original occupant.
More importantly, the words "Radio" and "Frigidaire" reflect indirectly on the
building's architecture. This is historically significant. Art Moderne Architecture in the
1930s was profoundly influenced by advances in technology, such as radio and
refrigeration.
Once the liquor store has vacated, the building should be referred to as "The
Simpson's Radio & Frigidaire Co. Building", including in the Palm Springs Historical
Registry; and the City should have a new historical designation plaque installed using
that name.
4.5 Interior Modifications.
The interior of the Property is in deplorable condition, which reflects badly on the City.
27
OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 9
Developer proposes to modify the interior as follows:
• remove any remaining liquor store and smoke shop fixtures
• remove the existing drywall
• update the electric
• install a second electric meter
• insulate the walls and ceiling
• install new electric outlets and light fixtures
• install two new ADA-compliant bathrooms and a sink
• install new flooring.
Chapter 5 - SCHEDULE
5.1 Transaction Dates
• Date to open escrow: 4/15/16
• Date to close escrow: 5/15/16
• Date for demolition permit for interior: 8/1/16
• Date for historical approval of exterior modifications: 8/1/16
• Date to complete exterior modifications: 1 1/1/16
• Date to complete interior construction: 11/1/17.
Chapter 6 - PURCHASE PRICE OFFER
6.1 Fair Market Value
The Property is designated as a Class 1 Historical Site. The building cannot be
demolished and the underlying land incorporated into a development with the
surrounding contiguous parcels. This severely limits development options, and
decreases the Property's value.
The Property is landlocked and has no parking, further decreasing its value.
According to the Request for Purchase Offers, the State of California values the
property at $339,620. A City appraisal estimates the value at $350,000.
�8
OFFER TO PURCHASE
342 N. PALM CANYON, PALM SPRINGS
Page 10
6.2 Proposed Use
Developer proposes using the Property as an Annex for the Palm Springs
Historical Society to display a revolving collection of Helen Rose costumes and gowns
donated by Bill Marx. This use will bring in no monthly rent to Developer and no direct
revenue to the City. The remaining space will be leased to a retail establishment.
6.3 Offer To Purchase
Edward P. Schroeder and Aliece Pickett offer to purchase the Property for the
lesser of: the minimal amount the City will accept so that the Palm Springs Historical
Society can lease space for $1 per year; or $350,000.00. This offer is contingent on
a purchase agreement, property inspection report and environmental report that are
satisfactory to purchaser.
We guarantee that the contents of this Proposal shall be valid for one hundred
twenty (120) days from March 3, 2016.
Dated: February 29, 2016
Aliece Pickett
E and P. Schroeder
29
Proposal No. 3
Atelier Zinque
30
RECEIVED
MAR 0 9 '2016
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ATELIER ZINGUE.LLC ZINOUE HOTEL MAI
OECEMBER10,3015 354 N PALM CANYON OR PALM SPRINGS,CA KEVIN TSAI ARCHITECTURE
31
PROPOSAL
Cork & Bottle
In 2015, North Palm Canyon Drive Development, LLC,A Delaware Corporation, closed escrow
on the 5 parcels which surround the subject Cork and Bottle Property. Atelier Zinque, LLC, has already
raised $1.S million and has commitments of an additional$5 million.
There intent was to also purchase that subject parcel and incorporate it into a larger project.
The project designed includes a boutique hotel with suites, a full service restaurant, rooftop Bar,Salon
and Spa. In addition, there will be a rooftop tennis court, Resort-style pool with whirlpool. A small
retail component will also be included.
In discussions with staff,we were informed that our application would require us to appear
before the Historic Site Preservation Board if we were able to incorporate the subject property.
Additional discussions and investigation determined that the existing structure did not comply with
• current building codes, including ADA and Seismic. For those reasons,this applicant will propose to
protect the historic facade, and replace the structure with new construction. There are no significant
interior features which need to be preserved.
The proposed development will meet all City design criteria, and have public hearings with all
applicable councils, commissions, committees and boards.
Although the development will propose subterranean parking,we may also request the ability
to pay some in-lieu of parking. The developer reserves the right to apply for any financial incentive
programs the City makes available to the business community at large.
Developer is prepared to open escrow within 5 days of acceptance of his offer, and close within
60 days.
Developer is prepared to submit their application immediately upon acceptance of their offer.
If their offer is not accepted,then drawings will need to be revised forthe parcels they currently
control. Construction will begin within 90 days of Entitlement approval.
Because the RFP was comprehensive in the information requested, and yet limited the number of pages
to 20, additional information is available upon request.
•
32
• Owner
North Palm Canyon Development, LLC
A Delaware LLC
James Vincent, Member
James is currently the President, International, of TBWA Worldwide. Drawing from his
many years of experience creating and running TBWA\Media Arts Lab, James will be
responsible for developing new and innovative client models for global client business.
Previously Co-Founder and CEO of Apple's unique agency partner, TBWA\Media Arts
Lab, he began running the Apple account at TBWA\Chiat\Day LA in 2000. In 2006, he
helped create Media Arts Lab as a separate global network within TBWA to cater
specifically to the creative cadence and executional demands of the growing Apple
brand.
Prior to TBWA\MAL, James ran the Dot.Com group at TBWAIChiat\Day LA. He also
spent several years at JWT New York, where he led Kodak and Merrill Lynch accounts
globally, and ran a small London-based technology agency, where he launched both
Novell and Dell in Europe in the early 1990s. James began his advertising career with
Saatchi & Saatchi in 1988.
• As President, International, James joins a dynamic group of leaders who will all focus
on specialties to lead the agency across different disciplines.
A graduate of the London School of Economics, James now lives with wife Marie and
their two children in Venice, California.
Emmanuel Dossetti, Managing Member
Atelier Zinque, LLC
Emmanuel owns several successful restaurants in the Southern California area,
including; Venice, West Hollywood and Newport Beach. He is currently developing a
restaurant in Downtown Los Angeles and hopes to open one in Palm Springs.
Other Members of the entitlement and development team include:
Stan Asaro-Asaro Builders
Studio MAI-Los Angeles
Ron Feiro-Feiro Engineering
Rick Stokes-Team Integrated
•
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C�?MMERCIAL REAL ES1i-'UE
Shane Won Murphy
Vice President
Beverly Hills Office
9744 Wilshire Boulevard
Ste 207
Beverly Hills,CA 90212
M:626.233.0071
F:310.807.9387
E:shane@brcadvisom.com
March 9, 2015
Del Gagnon
via email: delgagnonco@aol.com
RE: Letter of intent to purchase property located at 342 N. Palm Canyon
Drive
Dear Del,
• This letter of intent ("LOI") outlines Atelier Zinque, LLC's ("Buyer's") proposal
to purchase the fee interest in the property located at 342 N. Palm Canyon Drive,
located in the city of Palm Springs, County of Riverside ("Property").
Buyer: Atelier Zinque, LLC
Seller: City of Palm Springs
Property 342 N. Palm Canyon Drive, located in the city of Palm Springs, County
of Riverside
Size:
- Land: 40' (Palm Canyon) X 52'
- Building: Approx. 1,600 square feet
Price: $425,000 with no loan contingency
35
D
• A total initial deposit in the amount of$4,000 shall be deposited into escrow
upon execution of the Commercial Property Purchase Agreement ("PA").
Upon removal of contingencies, a secondary deposit in the amount of$4,000
shall be deposited into escrow.
Escrow:
Buyer shall open escrow with Five (5) days after the execution of the PA
by both parties.
Additional Terms:
- The existing tenant shall continue occupancy and payment of rent at the
current rate on a month-to-month basis.
- The contingency period shall expire June 3rd, 2015
Due Diligence Materials:
This purchase is subject to the verification or approval of the various and
usual contingencies common to the purchase of similar properties. Seller
shall provide and make available to Buyer all pertinent information with the
Seller's possession or control not otherwise prohibited by confidentiality
• reasonably necessary for feasibility approval. Such information would
include but not be limited to title reports, surveys, building plans, structural
engineering, civil engineering and soils studies, zoning and building
regulations applicable to the Property.
Close of Escrow: Close of Escrow shall occur by September 3, 2015 or earlier.
Pro-rations and closing costs:
The PA shall provide that real estate taxes, property insurance, res, income
and expense items relating to the Property, and other typical closing costs
shall be pro-rated to the day of the closing as agreed to by Buyer and Seller.
Any taxes or fees imposed by the regulatory, governmental or tax authority
as a result of the transaction shall be borne by the Seller as is customary in
the industry.
Brokerage:
All brokerage commission is to be paid by the Seller per separate agreement.
36
Notice to Buyer and Seller:
• Real Estate Broker is not authorized to give legal or tax advice; no
representation, recommendation, financial or otherwise, is made by Real
Estate Broker or its agents or employees as to the profitability, legal
sufficiency, legal effect or tax consequences of this document or any
transaction relating thereto, since these are matters which should be discussed
with an attorney or financial advisor. Buyer and Seller fully indemnify and
hold harmless Brokers from any claims whatsoever.
This LOI is not, nor is it intended to be, a legally enforceable and/or binding
agreement by either party. A binding agreement is subject to execution of both
parties of a Commercial Property Purchase Agreement.
Best regards,
Shane Murphy
BRC Advisors
•
Le Zinc Bar, LLC.
Buyer Date
Seller Date
37
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1. View of a typical common Open space PUBLIC AND PRIVATE OPEN SPACES ¢?
3. View of a typical private open space PROPOSED VIEWS w
3. View of a typical common open space
16
ZINQUE HOTEL-PALM SPRINGS, CA
Projected Stabilized Hotel/Restaurant Operations
February 6,2015
OperationsStabilized Hotel/Restaurant
2017 2018 2019 2020 2021
Number of Rooms 53 53 53 53 53
N umber of Annual Rooms Available 19345 19345 19345 19345 19345
Number of Rooms Occupied 9286 10678 11746 12334 12950
Annual Occupancy 48% 55% 61% 64% 6796
Average Daily Rate $280.00 $288.00 $297.00 $306.00 $315.00
Revenue Per Available Room $134.40 $158.98 $180.34 $195.09 $210.87
Amount Ratio Per Room Amount I Ratio I Per Room Amount Ratio Per Room Amount Ratio Per Room Amount Ratio Per Room
Revenues
Rooms _ $ 2,600,000 41.34% $ 49,057 $ 3,075,000 42.01% $ 58,019 $ 3,489,000 42.77% $ 65,830 j 43. % 71,208 4,079,000 44.21% $ 76,962
5 3,774,000 I 50 $ $
Food&geverage 3,200,000 50.87% 60,377 3,680,000 50.28% 69,434 4,048,000 49.63% 76,377 I 4,250,000 48.99% 80,189 4,463,000 48.37% 84,208
Spa/Health Club 220,000 3.50% 4,151 253,000 3.46% 4,774 2 88,000 3.41% 5,245( 292,000 3.37% 51509 307,000 3.33% 5,792
Other Operated Departments. 20,000 0.32% 377 23,0D0 0.31% 434 25,000 0.31% 472j 26,000 0.30% 491 27,000 0.29% 509
Rentals and Other income 254000 3.97% 4,717 2 88,000 3.93%, 5,434 317,000 3.89% 5,981 333,000 3.84% 6,283 350,000 3.79% 6,604
Total Revenues) $ 6,290,000 100.00%1 9128,679 $ 7,319,000 100.00%, $138,094'$ 8,157AW 100.0046 4153,906 $ 6,675,000 100.00% $163,679 $ 9,226AW 100.00% $174,075
Deparbnental Expenses
Rooms $ 792,000 30.45% $ 14,943 $ 857,000 27.87% $ 16,170 $ 898,000 25.73%1 $ 16,943 $ 939,000 24.89% $ 17,717 $ 997,000 24.44% $ 18,811
Food&Beverage 2,079,000 64.98% 39,226 2,393,000 65.02% 45,151 2,631,000 65.00% 49,642 2,763:2 65.00% 52,132 2,901,000 65.00% 54,736
Spa/Heath Club 209,000 95.00% 3,943 240,000 94.98% 4,528 264,000 95.10% 4,981 277,000 94.92% 5,226 291AM 94.93% 5,491
Other Operated Departments 18,00D 90.OD% 310 22,0001 95.83% 415 23,000 93.10% 434 25,0001 96.77%1 472 26.000 96.97% 491
Sub-total $ 3,0981000 1 49.25% $ 58,453 $ 3,512,000 1 47.98% $ K264 $3,816,000 46.78% $ 72,WO $ 4,004,000 1 46.16% $ 75,547 $ 4,215,000 45.69% $ 79528
"stributed Expenses
Administrative&General 479,000 7.61%1 9,038 520,000 7.10% 9,811 538,000 6.60% 10,151 553,OW 6.37% 14434 578,000 6.27% 10,906
Marketing 328,000 5.22% 6,189 358,000 4.88% 6,755 370,000 4.53% 6,982 381,ODO 4.39%1 7,189 397,000 4.31% 7,491
Property Operation and Maintenance 131,000 2.09% 2,472 143,000 1.95% 2,698 148,000 1.92% 2,792 152,000 1.75% 2,868 159,000 1.73% 3,000
Utility Costs 120,000 1.91% 2,264 130,000 2.77% 2,453 135,000 1.65% 2.547 138,000 1.59% 2,604 1441000 1.56% 2,727
Base Management Fee 189,000 3.00% 3,566 220,000 3.00% 4,151 245,000 3.00% 4,623 260,000 3A0% 4,906 277,000 3.00% 5,226
Sab-total $ 1,247.000 19.83% $ 23,518 $ 1,371,000 1 1973% $ 25868 $ 1,436000 17.60% $ 27,094 $ 1,484,000 1731% $ 18,OOD $ 1,555000 16.85% $ 29340
Irked Expenses&Reserves
Property Taxes 320,000 5.09% 6,036 358,000 4.89%1 6,755 378,000 4.63% 7,132 392,000 1 4.51%111 A7,3 411,000 4.46% 7,755
Insurance 64,000 1.02% 1,208 $3,000 1.14% 1,566 88,000 1.08% 1,660 94,000 1.08% 99,OOD 1.07% 1,868
FF&E Reserves 252,000 4.00% 4,755 293,000 d.00% 5526326,000 4.00% 6,151 347,000 4.00% 369,000 4.OD% 6,962
Sub-total $ 636000 I0.31% $ 12,000 t$ 734,000 30.03% $ 13,849 $ 791,000 9.71% $ 14,943 S 833,000 9.W% $ $ 879,000 1 9.53% $ 16,585
Total Expenses'$4.981,000 79.19% $ 93,981 ' $ 5,617,000 76.75% $105,981 ' $ 6,044.000 74.10% $124,038 $ 6,321,000 72.86% $119,Z64 $ 6,649,000 72.07% S U5,453
t I l j
Net Operating Income 1 $ 1,309,00D 1 20.01%1 $ 24,698 I $ 1,702,000 1 23.25%1 $ 32,1131 $ 2,113,000 25.90%1 $ 39,868 i $ 2,354,000 27.14% $ 44,415 $ 2,577,000 27.93%1 $ 48,623
_ _ _ ___ _
Debt Service on Perm Loan $ 693,687�11 ----------------------__ ______1_______....{- _
- ______r.� y
Net Ofstri ------e Cash Flaw S 1,66 ,3 --------- ' ------ 3,313 -------41% �—
__ _
$ 615,313 9.78% $ 1,008,313 I.. 13.78%; $ 1,419,313 17.40% $ 1,660,313 19.14%; j $ 1------ -- 2------_JJW _
stor Equity Remaining•
0II investor equ*rojected to be returned through a combination of proceeds from condo sales and thOancing of construction debt upon stabilization of the property(see previous page). •
•
Delaware PAGE I
Ire First State
I, JEFFREY W. BULLOCK, SECRETARY OF STATE OF THE STATE OF
DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT
COPY OF THE CERTIFICATE OF FORMATION OF "NORTH PALM CANYON DRIVE
DEVELOPMENT, LLC", FILED IN THIS OFFICE ON THE NINTH DAY OF
JULY, A.D. 2015, AT 5:39 O'CLOCK P.M.
•
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h
J6 _Z9
Jeffrey W.Bullock,Secretary of State
5782266 8100 AUTHENI TION: 2544309
• 151031311 DATE: 07-10-15
You may verify thia certificate online
at carp.delaaare.gov/avthver.ehtml
42
Development, LLC(the"Companyj-
SEcoND:The address of its registered office in the State of Delaware is 2711 Centerville
Road,Suite 400,Wilmington,County of New Castle,Delaware 19808.
THIRD: The name of its Registered Agent at such address is Corporation Service
• Company.
'AN WITNESS WHEREOF,the undersigned has executed this Certificate of Formation this
V'day of July,201 S.
Karl E.Kuhn,Authorized Person
•
•
43
• LIMITED LIABILITY COMPANY AGREEMENT
OF
NORTH PALM CANYON DRIVE DEVELOPMENT,LLC
A DELAWARE LIMITED LIABILITY COMPANY
PREAMBLE
This Limited Liability Company Agreement("Agreement")of North Palm Canyon Drive
Development, LLC is made effective as of July 10, 2015 (the"Effective Date")by the Persons
that are a party to this Agreement on the signature pages hereto,as all of the"Members" of the
Company.
NOW, THEREFORE,the undersigned hereby declares the following to be the Limited
Liability Company Agreement of the Company as of the Effective Date.
Article I. DEFINITIONS AND TERMS
Section 1.01 Definitions. Unless the context otherwise requires,the following terns
shall have the following meanings for the purposes of this Agreement:
"Act"means the Delaware Limited Liability Company Act, 6 Del C. §§ 18-101, et seq.,
as amended from time to time(or any corresponding provisions of succeeding law).
• "Agreement"means this Limited Liability Company Agreement, as the same may be
amended from time to time.
"Assets"means, at any time, any real property and other assets owned or leased by the
Company from time to time.
"Certificate"means the Certificate of Formation filed with the Secretary of State of the
State of Delaware on July 9,2015 to form the Company pursuant to the Act, and as amended,
modified, supplemented, or restated from time to time,as the context requires.
"Company"means the limited liability company formed pursuant to this Agreement.
"Effective Date"shall have the meaning set forth in the opening recital.
"Interest"means the ownership interest in the Company at any time, including the right
of the Member to any and all benefits to which the Member may be entitled as provided in this
Agreement, together with the obligations of the Member to comply with all the terms and
provisions of this Agreement. The Member shall have a one hundred percent(100%)ownership
interest in the Company.
"Member"means any member or members admitted to the Company in accordance with
this Agreement or any amendment or restatement hereof in accordance with Section 18301 of the
Act, and as defined in opening recital.
•
44
IN WITNESS WHEREOF,this Limited Liability Company Agreement has been duly
executed effective as of the date first set forth above.
• Member:
Atelier Zinque LLC
By:
Emmanuel Dossetti
Manager
r
i
James Vincent
•
Signature Page to Limited Liability Company Agreement
•
45
• Exhibit A
Members, Capital Contributions,and Ownership Percentages
Name Capital Contribution Ownership Percentage
Atelier Zinque LLC $102,000.00 6.17%
James Vincent $1,552,205.00 93.83%
Total: $1,654,205.00 100.00%
•
• Signature Page to Limited Liability Company Agreement
46
Branch :S06 User :4022
DOC#2015-0345392
08/03/2015 04:49 PM Fees: $31.00
Page 1 of 3
• Recorded in Official Records
RECORDING REQUESTED BY: County of Riverside
First Amerkan Tee Peter Aldana
AND WHEN RECORDED MAIL TO: Assessor-County Clerk-Recorder
MR. EMMANUEL DOSSETTI
726 Palma Blvd **This document was electronically submitted
Venice. CA 90291 R the County of Riverside for retarding"
eceipted by:MABRERA
THIS SPACE FOR RECORDER'S USE lN1LY:
TNIe Order No.: 4830394-60 Escrow No.: 56906-TL
APO:513-081-011-0 and 513-081-016-5 GRANT DEED
THE UNDERSIGNED GRANTOR(S)DECLARE(S) IRA Olf L�JB
DOCUMENTARY TRANSFER TAX Is$2,090.00
[X]computed on full value of property conveyed,or
[ [computed on full value less value of liens or encumbrances remaining at time of sal.
[ [Unincorporated area [X] City of PALM SPRINGS AND
FOR A VALUABLE CONSIDERATION,receipt of which Is hereby acknowledged.
PROJECT 92,a California General Partnership
hereby GRANT(s)to:
NORTH PALM CANYON DRIVE DEVELOPMENT,LLC,a Delaware Limited Liability Company
the real property in the City of PALM SPRINGS,County of RIVERSIDE,State of California,described as:
. LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT"A"AND MADE A PART HEREOF
Also Known as: 340 NORTH PLAM CANYON DRIVE&317 NORTH INDIAN CANYON DRIVE,PALM
SPRINGS,CA 92262
DATED:July 29,2015 SignaturePage attached hereto
and made a part hereof
MAIL TAX STATEMENTS TO PARTY SHOWN BELOW:IF NO PARTY SHOWN,MAIL AS SHOWN ABOVE
•
$7
RIVERSIDE,CA Document:DD2015.345392 Page:Iof3
oa...va ,....anrvere 111.40 A A4
Branch :S06 User :4022
DOC#2015-0329840
07/24/2015 04:27 PM Fees: $30.00
Page 1 of 6
RECORDING REQUESTED BY: Recorded in Official Records
• ORANGE COAST TITLE County of Riverside
Peter Aldana
AND WHEN RECORDED MAIL TO: Assessor-County Clerk-Recorder
Mr. Emmanuel Dossetti
...)a.� TC1-``'1'L 5 d.}J� "This document was electronically submitted
��.•// to the County of Riverside for recording"
ye,, (, CA go.Zq I Receipted by:MABRERA
o i l THIS SPACE FOR RECORDER'S USE ONLY:
Title Order No.: 2101557559-02 Escrow No.: 56352-TL
AP#: 513-081-010-9/-018-7/-019-8 GRANT DEED
THE UNDERSIGNED GRANTOR(S)DECLARE(S)
DOCUMENTARY TRANSFER TAX is$1,595.00
[X]computed on full value of property conveyed,or
[ ]computed on full value less value of liens or encumbrances remaining at time of sale.
[ ] Unincorporated area [X] City of Palm Springs AND
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
Wolf Investment Properties,LLC,a Delaware Limited Liability Company,a ana-haN intema+and Ii
Kenneth Goldberg,Trustee of the Kenneth Goldberg Trust dated June 10,2003
hereby GRANT(s)to:
North Palm Canyon Drive Development,LLC,a Delaware Limited Liability Company
the real property in the City of Palm Springs, County of Riverside, State of California, described as:
LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT"A"AND MADE A PART HEREOF
Also Known as: 351 North Indian Canyon and 354 North Palm Canyon, Palm Springs,CA 92262
DATED:July 9,2015 Signature Page attached hereto
and made a part hereof
MAIL TAX STATEMENTS TO PARTY SHOWN BELOW;IF NO PARTY SHOWN,MAIL AS SHOWN ABOVE:
48
RIVERSIDE,CA Document:DD 2015.329840 Pagel of
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• TEAM MEMBERS
Owner-Developer
North Palm Canyon Drive Development, LLC
A Delaware Limited Liability Company
726 Palms Blvd.
Venice, CA 90291
Emmanuel@lezinque.com
(310) 748-8258
Managing Member
Atelier Zinque, LLC
Att: Emmanuel Dossetti
726 Palms Blvd.
Venice, CA 90291
Emmanuel@Iezinque.com
(310) 748-8258
Member
James Vincent
• 2908 Clune Avenue
Venice, CA 90291
Other Development Team Members
Protect Manager Architect-Designer
Team Integrated Studio MAI
Rick Stokes Kevin Tsai
PO BOX 987 833 S. Spring Street
Palm Springs, CA 92263 Los Angeles, CA 90014
rstokes@teamintegrated.com Kevin@studio-mai.com
(760) 285-5388 (310) 968-2892
Civil Engineer General Contractor
Feiro Engineering, Inc. Asaro Builders
Ron Feiro, President Stan Asaro, President
PO BOX 12980 42-220 Green Way, Suite H
Palm Desert, CA 92255 Palm Desert, CA 92211
ron@feiro.net Stan@asaro-builders.com
(760) 346-8015 (760) 776-0043
•
49
Attachment No. 3
Evaluation Scoring Spreadsheet
50
Cork n Bottle RFP-Evaluation Scoring
Name of Proposer: Jack R. Frost
SCORE
Evaluator#1 Evaluator#2 Evaluator#3 Average
Criteria Weighting Point Value
Developer Qualifications 20% 20 4 12 4 7
Economic Proforma 20% 20 4 4 4 4
Development Concept/Planned Use 30% 30 18 6 6 10
Schedule 10% 10 4 2 2 3
Price 20% 20 16 8 4 9
TOTAL 100% 100 46 32 20 }
Name of Proposer: Aliece Pickett and Edward P. Schroeder
SCORE
Evaluator#1 Evaluator#2 Evaluator#3 Average
Criteria Weighting Point Value
Developer Qualifications 20% 20 4 8 4 5
Economic Proforma 20% 20 4 8 4 5
Development Concept/Planned Use 30% 30 24 24 12 20
Schedule 10% 10 8 6 4 6
Price 20% 20 16 8 4 9
TOTAL 100% 100 56 54 28 46
Name of Proposer: Atelier Zinque
SCORE
Evaluator#1 Evaluator#2 Evaluator#3 Average
Criteria Weighting Point Value
Developer Qualifications 20% 20 8 4 12 8
Economic Proforma 20% 20 16 16 12 15
Development Concept/Planned Use 30% 30 30 24 24 26
Schedule 10% 10 6 6 8 7
Price 20% 20 20 16 16 17
TOTAL 100% 100 80 66 72 73
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