HomeMy WebLinkAbout06082 - VENCE VENTURES LLC REMODEL INCENTIVE AGR 1
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AMENDMENT NO. 1 TO
REMODEL INCENTIVE AGREEMENT
THIS AMENDMENT NO. 1 TO REMODEL INCENTIVE AGREEMENT ("Amendment")
is made and entered into this may of toil, by and between the City of Palm
Springs, ("City"), and Vence Ventures, LLC the ("Owner'). Collectively the City and
Owner are referred to as the Parties.
RECITALS
A. City and Owner previously entered into a Remodel Incentive Agreement
("Agreement") related to improvements to the property at 200 South Palm
Canyon Drive.
B. Pursuant to Section 2 of the Agreement, Owner was required to complete all
improvements identified in the Scope of Work no later than May 31, 2011.
C. The required improvements were not completed by the original May 31 deadline
and the Owner has requested an extension of time until August 15, 2011.
AGREEMENT
NOW, THEREFORE, the parties hereto agree as follows:
1. Section 2 of the Agreement is amended to read as follows:
Schedule. The Parties agree that all interior improvements shall be completed no
later than August 15, 2011. The City shall not be obligated to make any payment
if the Owner fails to complete the project and secure a certificate of completion
and be open for business and operating by the August 15, 2011 deadline.
2. This modifying Amendment is supplemental to the Agreement and is by
reference made a part of said Agreement. All the terms, conditions, and
provisions, thereof, unless specifically modified herein, shall continue in full force
and effect.
781612.1
IN WITNESS WHEREOF, City and Owner have signed this Amendment on the
respective dates set forth below. \\
Ord 6ROVED BY CITY COUNCIL
Dated: The City of Palm Springs,
a California Charter City
By:
David Ready, Cify
APPROVED AS TO FORM: ATTEST:
By By.
Douglas Holland Ines Thompson �q/tS�1Gt
City Attorney City Clerk
"Owner"
Vence Ventures, LLC
Dated: By
r >
Its ~r `e
781612.1
H. The City has reviewed the project scope, the evidence of financial participation
by Owner, the location of the Property, and the approvals, and has approved the
Application.
I. The Project was not completed by the original May 31 deadline and the ner
has requested an extension of time until August 15, 2011.
AGREEMENT
NOW, THEREFORE, the parties hereto agree that Section 2 of a Agreement is
amended to read:
1. Schedule. The Parties agree that all interior improv ents shall be completed
within days of the date of this Agreement, but no ater than August 15, 2011.
The City would not be obligated to make any ayment if the Owner fails to
complete the project and secure a certifica of completion and be open for
business and operating by the August 15, 11 deadline.
IN WITNESS WHEREOF, City and Owner ave signed this Amendment on the
respective dates set forth below.
"City-
Dated: The City of Palm Springs,
a California Charter City
By: le
David Ready, City Ma r
APPROVED AS TO FORM: ATT'O:.' a��0
By: By:
Douglas Holland James Thompson
City Attorney City Clerk
"Owner'
Vence Ventures, LLC
Dated: By
Its
V N
CITY OF PALM SPRINGS
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REMODEL INCENTIVE AGREEMENT
THIS INCENTIVE GRANT AGREEMENT (the "Agreement") is made and entered into
this gT*day of by and between the City of Palm Springs, ("City"), and Vence
Ventures, LLC ("Owner'). Collectively the City and Owner are referred to as the
Parties.
RECITALS
A. City has established a number of Remodel Grant Programs and other incentive
programs for Owners and Tenants of commercial-retail businesses in the City of
Palm Springs to promote economic activity during the recession and the
subsequent slow economic recovery.
B. Owner is the owner of real property located at 200 South Palm Canyon Drive,
Palm Springs, ("Property"), and owner of the business occupying the Property
known as LULU California Bistro.
C. The Property has been vacant for more than two years and is in considerable
disrepair, and Owner proposes to spend over $1,000,000 in renovating and
furnishing the restaurant.
D. Owner has demonstrated that the additional costs of expediting the remodel
of the Property by May 31 would be nearly $300,000 above the baseline
remodel costs to make interior improvements to the Property as described in
Exhibit "B," Scope of Work, by the end of the 2011 calendar year.
E. Given the additional expense of expediting and the opening so close to the
slower summer season, there exists considerable disincentive to move
quickly at increased expense to open the restaurant sooner.
F. The City desires to enter this Agreement is to maintain the positive momentum
in downtown, as well as see the creation of the jobs earlier in the year, rather
than waiting until December. Opening sooner also gives the City an additional
six months of new sales tax from the business which will offset a portion of the
incentive payment.
G. Prior to any disbursement under the terms of this Agreement, Owner shall apply
for and receive all necessary approvals from the City's Planning, Building or
Engineering Departments, which are shown in Exhibit "C", Evidence of Approval,
and shall have completed work on the Property sufficient to receive a Certificate
of Occupancy. The business shall be open and operating.
781607.1
ORIGINAL BID
AND/OR AGREEMENT
H. The City has reviewed the project scope, the evidence of financial participation
by Owner, the location of the Property, and the approvals, and has approved the
Application.
NOW, THEREFORE, in consideration of the promises and mutual agreements
contained herein, City agrees to grant to Owner the amount of $100,000 and Owner
agrees to undertake the approved improvements, under the following terms and
conditions:
AGREEMENT
1 . Property Ownership/Right to Undertake Work. Owner represents that it is
the Owner of the Property or holds Tenancy in the Property which entities it
to undertake interior physical improvements to the Property.
2. Schedule. The Parties agree that all interior improvements shall be completed
no later than May 31, 2011. The City shall not be obligated to make any
payment if the Owner fails to complete the project and secure a certificate of
completion and be open for business and operating by the May 31, 2011
deadline.
3. Contractor. The Parties agree that Owner has sole responsibility for
choosing and hiring the contractor, , entering into the Contractor/Vendor
Agreement, a copy of which is attached as Exhibit "D", and accepting the
material used and the work performed. The City is not a party to any agreement
with the vendor or contractor and does not guarantee the quality of workmanship
of the property improvements, nor have any liability whatsoever therefor. At all
times hereunder, the Contractor shall have a valid City of Palm Springs Business
License, a current copy of which is attached hereto as Exhibit "A".
4. Design Approval and Permits. The Parties agree that Owner has sole
responsibility for obtaining design approval and evidence of required permit
approvals from the City of Palm Springs as shown in Exhibit C, and ensuring
the compliance with those permits.
5. Grant Limitations. The maximum City matching grant shall not exceed
$100,000.
6. Evidence of Completion and Operation. The Parties agree that the City will
release the Grant funds upon the completion of the work by the Owner or his
contractor. Evidence of completion shall include but is not limited to:
photographs of the finished work; a final inspection by a representative of the
City of Palm Springs; and, a copy of the final invoice for the work completed and
Remodel Incentive Program
Page 2
781607.1
proof of payment to the contractor. The business must also be open and
operating.
7. Release of Liens. The Parties Agree that the Owner is responsible for obtaining
the release of any Mechanics Liens or other liens placed upon Owner's property
by any contractor or subcontractor hired under this program.
8. Maintenance. Owner agrees and covenants that, after the City issues its
Certificate of Completion, Owner shall be responsible for maintenance of all
improvements that may exist at the Property from time to time, including without
limitation buildings, parking lots, lighting, signs, and walls in first-class condition
and repair, and shall keep the Property free from any accumulation of debris or
waste materials. Owner shall also maintain all landscaping required pursuant to
Property's approved landscaping plan, if any, in a healthy condition, including
replacement of any dead or diseased plants with plants of a maturity similar to
those being replaced. Owner hereby waives any notice, public hearing, and
other requirements of the public nuisance laws and ordinances of the City that
would otherwise apply.
MISCELLANEOUS PROVISIONS
9. Covenant Against Discrimination. Owner covenants that, by and for itself, its
heirs, executors, assigns, and all persons claiming under or through them, that
there shall be no discrimination or segregation in the performance of or in
connection with this Agreement regarding any person or group of persons on
account of race, color, creed, religion, sex, marital status, disability, sexual
orientation, national origin, or ancestry.
10. Notice. Any notice, demand, request, consent, approval, or communication
either party desires or is required to give to the other party or any other person
shall be in writing and either served personally or sent by pre-paid, first-class
mail to the address set forth below. Either party may change its address by
notifying the other party of the change of address in writing. Notice shall be
deemed communicated seventy-two (72) hours from the time of mailing if mailed
as provided in this Section.
To City: City of Palm Springs
Economic Development Administrator
E. Tahquitz Canyon Way
Palm Springs, California
Remodel Incentive Program
Page 3
781607.1
To Owner: Gerald Keller
LULU California Bistro
200 South Palm Canyon Drive
Palm Springs, CA 92262
11. Integrated Agreement. This Agreement contains all of the agreements of the
parties and cannot be amended or modified except by written agreement.
12. Amendment. This Agreement may be amended at any time by the mutual
consent of the parties by an instrument in writing.
13. Severability. In the event that any one or more of the phrases, sentences,
clauses, paragraphs, or sections contained in this Agreement shall be declared
invalid or unenforceable by valid judgment or decree of a court of competent
jurisdiction, such invalidity or unenforceability shall not affect any of the
remaining phrases, sentences, clauses, paragraphs, or sections of this
Agreement, which shall be interpreted to carry out the intent of the parties
hereunder.
14. Indemnification. Owner shall indemnify and hold harmless, the City of Palm
Springs ("City") and the City, the City Council, the Community Redevelopment
Agency Board of Directors, its officers, agents, employees and independent
contractors free and harmless from any liability whatsoever based and asserted
upon any act or omission of the City for property damage, bodily injury, or death
or any other element of damage of any kind or nature, relating to or in any way
connected with participation in the Program.
15. Authori . The persons executing this Agreement on behalf of the parties
hereto warrant that they are duly authorized to execute this Agreement on behalf
of said parties and that by so executing this Agreement the parties hereto are
formally bound to the provisions of this Agreement. Owner certifies that the
above statements are true and accurate to the best of Owner's belief. Failure
to meet any of the terms of this Agreement shall result in the forfeiture of
any Grant funds from the City for this program.
Remodel Incentive Program
Page 4
781607.1
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
dates stated below.
"CitY' pn 1 APPROVED BY CITY COUNCIL
City of Palm S ings �_2. tt} bwb-tl
Not;
Date: By:
u ity & Economic Development
Date: By:
Director, Community&Ec is Development
Date: O`T/f 5lZOI 1 gy; /
David H. Ready hD.
City Manager
ATTEST: APPROVED AS TO FORM:
B . y:
roes Thompson �'0ouglas C. Holland
City Clerk City Attorney
"OWNER"
Date: ` By :
Date:
Remodel Incentive Program
Page 5
EXHIBIT "A"
License Verification
See Attached Copy of Owner's Business License and
Copy of Contractor's Business License
Remodel Incentive Program
Page 6
CITY OF PALM SPRINGS BUSINESS LICENSE
3200 E TAHQUITZ CANYON WAY,PALM SPRINGS,CA 92262(760)323-8289
PLEASE NOTE THAT IT IS YOUR RESPONSIBILITY TO RENEW AND UPDATE THIS LICENSE ANNUALLY.
BUSINESS NUMBER: 20014590 EXPIRATION TARIADMIN.FEE CERT NO
BUSINESS TYPE: RESTAURANT&BAR 08/3I/2012 18.00 48471
OWNER NAME: P&K INVESTMENT CO,LLC 08/31/2012 28.00 48472
08/31/2012 399.00 48473
08/31/2012 101.00 48474
BUSINESS NAME: LULU CALIFORNIA BISTRO 08/31/2012 92.00 48475
BUSINESS ADDRESS: 200 S PALM CANYON DR
PALM SPRINGS,CA 92262
LULU CALIFORNIA BISTRO ISSUANCE OF THIS LICENSE DOES NOT ENTITLE
200 S.PALM CANYON DR THE LICENSEE TO OPERATE OR MAINTAIN A
BUSINESS IN VIOLATION OF ANY OTHER LAW
PALM SPRINGS CA 92262 OR ORDINANCE. THIS IS NOT AN ENDORSEMENT
OF THE ACTIVITY NOR OF THE APPLICANT'S
QUALIFICATIONS
MUST BE POSTED IN A CONSPICUOUS PLACE
CITY OF PALM SPRINGS BUSINESS LICENSE
3200 E TAHQUITZ CANYON WAY, PALM SPRINGS, CA 92262(760)323-8289
PLEASE NOTE THAT IT IS YOUR RESPONSIBILITY TO RENEW AND UPDATE THIS LICENSE ANNUALLY.
BUSINESS NUMBER: EXPIRATION TAX/ADMIN. FEE CERT NO
BUSINESS TYPE:
OWNER NAME:
BUSINESS NAME:
BUSINESS ADDRESS:
i
ISSUANCE OF THIS LICENSE DOES NOT ENTITLE
THE LICENSEE TO OPERATE OR MAINTAIN A
BUSINESS IN VIOLATION OF ANY OTHER LAW
OR ORDINANCE. TMS IS NOT AN ENDORSEMENT
OF THE ACTIVITY NOR OF THE APPLICANT'S
QUALIFICATIONS
MUST BE POSTED IN A CONSPICUOUS PLACE
jCITY OF PALM SPRINGS BUSINESS LICENSE
3200 E TAHQUITZ CANYON WAY, PALM SPRINGS,CA 92262(760)323-8289
PLEASE NOTE THAT IT IS YOUR RESPONSIBILITY TO RENEW AND UPDATE THIS LICENSE ANNUALLY.
BUSINESS NUMBER: EXPIRATION TAX/ADMIN.FEE CERT NO
BUSINESS TYPE:
OWNER NAME:
j BUSINESS NAME:
BUSINESS ADDRESS:
ISSUANCE OF THIS LICENSE DOES NOT ENTITLE
THE LICENSEE TO OPERATE OR MAINTAIN A
BUSINESS IN VIOLATION OF ANY OTHER LAW
OR ORDINANCE. THIS IS NOT AN ENDORSEMENT
OF THE ACTIVITY NOR OF THE APPLICANTS
QUALIFICATIONS.
MUST BE POSTED IN A CONSPICUOUS PLACE
9 �.
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100i11A 02 Aldrlo (D
CITY OF PALM SPRINGS BUSINESS LICENSE e
3200 E TAHQUITZ CANYON WAY, PALM SPRINGS, CA 92262 (760) 323-8289
PLEASE NOTE THAT IT IS YOUR RESPONSIBILITY TO RENEW AND UPDATE THIS LICENSE ANNUALLY,
BUSINESS NUMBER: 20013493
EXPIRATION TAXlADMIN. FEE CERT NO
BUSINESS TYPE: CONTRACTOR-GENERAL 06/30/2012 18.00 44423
OWNER NAME: MICHAEL S DOBRENSKY 06/30/2012 100.00 44425 =
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BUSINESS NAME: DESERT HABITATS INC n
BUSINESS ADDRESS: 39203 LEOPARD ST m
PALM DESERT,CA 92211 r
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DESERT HABITATS INC ISSUANCE OF THIS LICENSE DOES NOT ENTITLE A
39203 LEOPARD ST THE LICENSEE TO OPERATE OR MAINTAIN A Z
BUSINESS IN VIOLATION OF ANY OTHER LAW N
PALM DESERT CA 92211 OR ORDINANCE. THIS IS NOT AN ENDORSEMENT <
OF THE ACTIVITY NOR OF THE APPLICANT'S
QUALIFICATIONS.
MUST BE POSTED IN A CONSPICUOUS PLACE
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EXHIBIT 'B"
SCOPE OF WORK
LULU Build-Out Items
Carpet--main upper floor& stairs 6,000 square feet
Floor Tile 4,500 square feet
Insulation-ceiling-
Square feet--egg crate & wedges 5,550 square feet
Wall tile--peadescent glass 1,500 square feet
Insulation-wall, Glass partition to bar, Glass Walls upstairs, Ceiling-acrylic confetti
clouds, Drapes-460 yards, Drapes--valances, tracks, bases, Lit "dot' acrylic seating,
Signs, Sprinklers, Lighting, Chandeliers & Wraps Ceiling; Wall; Drapery; Banquet
Room; Below bar, etc., Point of Sale System, Security Camera System, Telephone
System/computers, Alarm/Security System, Televisions
Kitchen
Plans through health dept
Equipment
Special Flooring
Dishes, Cutlery, Glassware, etc.
Chairs, Bar chairs, Tables, Bar Tables, Banquettes & booths, Welcome desk
Construction
Bathrooms (4), Mirrored Banquet Wall, New Staircase; move wall; dining levels; ramp;
bar; kitchen "trench"
Architect, Interior& Exterior Design, Art & Graphic Design, Electrical, Plumbing, HVAC
Remodel Incentive Program
Page 7
EXHIBIT "C"
EVIDENCE OF APPROVAL
(PLANNING, BUILDING, ENGINEERING DEPARTMENT)
Building permit required on all or a portion of the work described in Exhibit "B" Scope
of Work. Yes No
Community& Economic Development Eligibility Letter
Remodel Incentive Program
Page 8
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GENERAL BUILDING INSPECTIONS
JOB CARD
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Building &Safety scesacs ti�
City of Palm Springs PW om�
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Add a 0200 PALM CANYON DRM SOUTH Pam*s C 28961 Roos Rai pbmwQ Release9 ZOM _
SWIMMING POOLS oamae wrap Fie ',,``
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EXHIBIT "D"
CONTRACTOR/VENDOR AGREEMENT
SEE NEXT PAGE
Remodel Incentive Program
Page 9
=FORM 101-HO
HOME IMPROVEMENT CONTRACT
(Business and Professions Code §7159)
This AGREEMENT is made as of the_rdaay of �-A1* Ir20��bcetween:
Owner: LLlo 1PK i M&0,5 Contractor:/1 t L N- o�—
'n .p� fpwner ame) �P,,�
2�a16 f'Ar" 1frYW AND ' 4domi2.[)a7t z
IMT Add Contractor' Address)
(City,State and Zip) 9 Q ...
(City,state and Zp)
(Co ors Li N mbar)
You are entitled to a completely filled in Es t
copy of this agreement signed by both you
and the Contractor before any work may (Name s Registration Number of sales Person)
be started. The above address is to be used when submitting
a"NOTICE OF CANCELLATION"
The Project is: &5-016 �150-4 1TALA1 6914YO /r
(Name and Address)Diliscription of the P nd De n riptioofthe Significant Materials to be Used and Equipment to be Installed:
Cl
iT
ie
List of Documents Attached and Incorporated into the Contract: Contract Price: $�ir� /�lir1TP1. '
1. Notice of Cancellation Form
2. Home Improvement Change Order Form(BNi Form No.101-HI-C) Finance Charge: $ (if applicable)
3.
q, Down Payment $
5. THE DOWN PAYMENT MAY NOT EXCEED$1,000
OR 10% OF THE CONTRACT PRICE,
Schedule of Progress Payments: WHICHEVER IS LESS.
Work to be completed and materials supplied: Amount due: When due:
❑see attachment for remaining progress payments
The schedule of progress payments must specifically describe each phase of work,including the type and amount
of work or services scheduled to be supplied in each phase,along with the amount of each proposed progress
payment.IT IS AGAINST THE LAW FOR A CONTRACTOR TO COLLECT PAYMENT FOR WORK NOT YET COMPLETED,
OR FOR MATERIALS NOT YET DELIVERED. HOWEVER, A CONTRACTOR MAY REQUIRE A DOWN PAYMENT. Once
payment has been made for any portion of the work,the Contractor must,priorto any further payment being made,furnish.to the owner a full
and unconditional releasefor any clgimfor mechanic's lien forthe portion of the work for which payment has previously
ybeen made.
Approximate Start Date: JM 9 .A11/ //
Approximate Completion Date: gl tea!
Substantial commencement of the work shall mean when the first installation of work or delivery of materials occurs at the Project.
Commercial General Liability Insurance(CGL):The Contractor(check one)
❑ Does not carry commercial general liability insurance. �s��
}if Carries commercial general liability insurance written by�/L/ �]P`O.Gl �/�� . You may
call the insurance company at/31* 'AMA&W to check the Contractolfs insurance coverage.
❑ Is self-insured. -:�j IS 760 3Z4 11."
THIS CONTRACT IS CONTINUED ON THE REVERSE SIDE
■-1 M
TERMS AND CONDITIONS
Plans and Specifications: The project shall be Permits:Contractor shall obtain and pay for all required
constructed according to the Plans, Drawings, and building permits.Owner shall be responsible for all taxes,
Specifications.Contractor shall be entitled to rely on the assessments and charges required by public agencies.
accuracy of the Plans, Drawings, and Specifications
provided by Owner. Contractor shall be entitled to a Attorneys Fees: In any dispute relating to the
change in.the Contract Sum and Contract Time if the interpretation or enforcement,of this Agreement, the
Plans,Drawings and Specifications contain errors. prevailing party shall be entitled-to its costsand
-:a - attorneys'fees. -
Property _insurance: Owner -shall purchase and `
maintain,until final payment is due,property insurance in Bankruptcy:lf either party files for Bankruptcy ormakes
the amount of the initial Contract Sum plussubsogtlent an assignment for creditors,the other party has the right
modifications for the entire Work at the site written on an to cancel this Agreement.
All-Risk policy form and shale name Contractor as an
additional insured.lf the Project,or any portion thereof,is Assignment: Neither party shall assign its rights or
destroyed or damaged by accident, disaster or calamity delegate its duties under this Agreement without prior
resulting from any cause, including the negligence of written consent of the other.
Contractor or its subcontractors, Contractor shall -
nevertheless be paid for all Work completed, Work in Delay: Contractor shall be excused for any delay and
pr ogress, and the cost of the Wcrk as of the date of the - ;nay be entitled toan increase-in the ContractTime dueto
caiarnity,including an appropriate percentage(based on any or the fol'sowing events provided that such event is
percentage of completion) of the Contractors overhead beyond the reasonable control of Contractor, (i) acts of
and profits earned to date of the calamity; to the extent God including,but not limited to,wind, rain,flood,storm,
covered by said all--risk policy, so long as the loss is a landslide, subsidence, and earthquake, (ii) acts of
covered loss under the Owner's all-risk policy, At the( neglect of Owner (1ii) failure of Owner to promptly
option of the Owner, this Agreement may be terminated process ^submittals, payment applications, or change
under such circumstances, or the Project may be rebuilt orders; (iv) delays caused by work which is not the
under the terms of this`Agreement, with appropriate responsibility of Contractor; (v) acts of neglect of
adjustments for pnce,scopeof Work and schedule. separate contractors employed by Owner; (vi) delays
caused by public utilities or government or public bodies
Waiver of Subrogation: The Owner and Contractor of their agents, (vii) materials embargoes; (viii) labor
waive all rights against each other and any of their troubles, labor slow down, strikes, union activity causing
subcontractors, agents and employees for damages reduction in. productivity, none of which is caused or
caused by fire or other causes of loss to the extent aggravated by Contractor; (ix; fire, (x) delays in
covered by property insurance applicable to the work, transportation; (xi) changes ordered in the Work; (xii)
except such rights as they had to proceeds of such wrongful failure of Owner to make payments to
insurance held by the Owner as fiduciary. Policy shall Contractor required under the Contract Documents; or
provide such waivers of subrogation by endorsement or (xiii) other causes beyond the reasonable control of
otherwise. Contractor,its employees,agents and subcontractors.
Right to Stop Work. C_ntractor shall have the right to
cease work on the Project if any amount due Contractor
has not been paid when due.
X '
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OWNER SIGN HERE - (GONtRACTOR OR AGENT SIG ERE)
X
(If More Than One Owner,Second Owner Sign Here) -