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Home My WebLink About4/1/2015 - STAFF REPORTS - 2.F. 0 tp P.LM S'04 iy c V N Cq��FORN�P+ CITY COUNCIL STAFF REPORT DATE: April 1, 2014 CONSENT CALENDER SUBJECT: APPROVE A GRANT AGREEMENT UNDER THE CITY'S SPECIAL ECONOMIC DEVELOPMENT FOCUS INCENTIVE AREAS PROGRAM IN THE AMOUNT OF $25,000 WITH PALM SPRINGS MOTORSPORTS, INC., FOR A PROPERTY LOCATED AT 6550 NORTH INDIAN CANYON DRIVE, PALM SPRINGS 92262 FROM: David H. Ready, City Manager BY: Community & Economic Development Department SUMMARY Review and approve a Grant Agreement under the Special Economic Development Focus Incentive Areas Program's - Interior Remodel Grant Program. The applicant has met the program criteria and qualifies for the Interior Remodel grant reimbursement upon evidence of payment of all eligible expenditures allowed under the program. RECOMMENDATION: 1. Approve the Special Economic Development Focus Incentive Areas Interior Remodel Grant Agreement in the amount of $25,000 with Palm Springs Motorsports, Inc. 2. Authorize the City Manager to execute all documents related to the Special Economic Development Focus Incentive Areas Agreement. STAFF ANALYSIS: On July 3, 2013, the City Council adopted Resolution 23413 approving the creation of two Special Economic Development Focus Incentive Areas generally located along the major corridors south of Ramon Road and north of Tachevah Road, at the entryways into the Downtown and Uptown areas. On September 4, 2013, the City Council adopted Resolution 23433, amending the budget for Fiscal Year 2014-14 to provide the $1,000,000 in funding for the Special Economic Development Focus Incentive Areas. The Special Focus Incentive Area Program is a collection of several City incentives to create an inducement to redevelop vacant properties or spur stalled development projects in the area. The four types of investments that the City approved include: ITEM NO. �L� — City Council Staff Report April 1, 2015 -- Page 2 Major Catalyst Project Interior Remodel Grant Agreement • assisting stalled vacant land projects • renovating and repositioning major vacancies as catalyst projects • creative uses of the Hotel Incentive Program for small, dilapidated hotels • extending the Facade Improvement and Interior Remodel programs for the area This is an approval of an economic development subsidy under the City's Interior Remodel Grant Program to Palm Springs Motorsports, Inc., the owner/occupant of a 9,372 square foot commercial space located within the eligible area at 6550 North Indian Canyon Drive, Palm Springs, California 92262. This project meets the criteria of the program by undertaking the economically successful renovation of a long-vacant building and deteriorated site at the entry of the City. The project was originally tentatively qualified under the Major Remodel Program, because it was anticipated costing in excess of $1,000,000 over both phases. However, the completed portion of the project, the 9,372 square foot remodel and the site work, only totaled $330,000 in qualified costs. The second phase may commence later in 2015 and the applicant may be eligible to apply for a different incentive. Phase II of the project includes constructing an 1,800 square foot Subway (drive-thru) restaurant, preparing pad sites for two additional restaurants, and a smaller retail space. The applicant is working with an architect to complete the site plan drawings and start the planning process. The total investment for Phase I and II is estimated to be $2,170,000. The applicant has undertaken the remodel of the existing building, at an estimated cost of $330,000, which makes him eligible for the $5,000 in Facade Improvement Program assistance, plus $25,000 in Interior Remodel Assistance. The Council Subcommittee recommended the applicant be qualified under the Interior Remodel and Facade Grants to expedite the release of the grant for Phase I of the project. Since the site improvements for the Subway building and future restaurant pad sites have not completed the Planning process, nor is construction started, this Agreement is based on the Interior Remodel Grant only. Over the next ten years the City expects to receive significant direct sales taxes from both phases, plus its allocated share of increased property tax. Motorcycle sales alone are a significant tax generator. The project also redeveloped a very blighted, vacant building at a key entryway to the City and will also help act as a catalyst for future development in the Indian/1-10 area, thereby further increasing property tax to the City as well sales tax. Palm Springs Motorsports created 10 full time and 4 part time new jobs; the Subway restaurant, plus two future restaurants and retail business expects to create 22 total jobs, with 14 full time jobs and 8 part time jobs. 02 City Council Staff Report April 1, 2015-- Page 3 Major Catalyst Project Interior Remodel Grant Agreement FISCAL IMPACT: Funding established by Resolution 23433; no additional funding needed or is being requested at this time. <�;40kA,J �� L) — Jo n Ray on rector Cathy Van Hor , Economic Development Administrator David H. Ready, Ci r Attachments: Agreements: PS Motorsports Y 03 .IO�PA,LM S'04 iy u in ' CITY OF PALM SPRINGS Cq<I 0 %V1 COMMERCIAL - RETAIL PROPERTY PROPERTY REMODEL GRANT PROGRAM INTERIOR REMODEL GRANT AGREEMENT THIS REMODEL GRANT AGREEMENT (the "Agreement") is made and entered into this 1st day of April, 2015, by and between the City of Palm Springs, ("City"), and Lalith Chandrasena the ("Owner/Tenant"). Collectively the City and Owner/Tenant are referred to as the Parties. RECITALS A. City has established a Property Remodel Grant Program for Owners and Tenants of commercial-retail businesses in the City of Palm Springs. B. Owner/Tenant is the owner or tenant of a real property/business (circle one) located within the eligible area at 6550 N Indian Canyon Drive, Palm Springs, ("Property"), otherwise known as Palm Springs Motorsports, Inc. (building or business). C. Grant Limitations. The maximum City matching grant shall not exceed $25,000. Example: if the applicant's interior improvement cost is $50,000 the City Match Grant would be $25,000. If the total improvement cost is $10,000, the City Match Grant would be $5,000.00 D. Owner/Tenant has applied for a Grant in the amount of $25,000.00 to make interior improvements to the Property as described in Exhibit "B," Scope of Work. E. Owner/Tenant has received all necessary approvals from the City's Planning, Building or Engineering Departments, which are shown in Exhibit "C", Evidence of Approval. The estimated cost of the work proposed is $330,000 as shown in Exhibit "D". F. The City has reviewed the application, the evidence of financial participation by Owner/Tenant, the location of the Property, and the approvals, and has approved the Grant Application. NOW, THEREFORE, in consideration of the promises and mutual agreements contained herein, City agrees to grant to Owner/Tenant the amount of $25,000.00 and Owner/Tenant agrees to undertake the approved improvements, under the following terms and conditions: 04 AGREEMENT 1. Property Ownership/Right to Undertake Work. Owner/Tenant represents that it is the Owner/Tenant of the Property or holds Tenancy in the Property which entitles it to undertake interior physical improvements to the Property. 2. Schedule. The Parties agree that all interior improvements shall be completed within 90 days of the date of this Agreement. 3. Contractor. The Parties agree that Owner/Tenant has sole responsibility for choosing and hiring the contractor, which shall be shown in Exhibit "D", Contractor/Vendor Agreements, and the acceptance of the material used and the work performed is Owner/Tenant's responsibility, and 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. 4. Design Approval and Permits. The Parties agree that Owner/Tenant 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 $25,000.00. The estimated cost of the work proposed is $330,000.00, as shown in Exhibit "D". 6. Evidence of Completion. The Parties agree that the City will release the Grant funds upon the completion of the work by the Owner/Tenant 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 proof of payment to the contractor. 7. Release of Liens. The Parties Agree that the Owner/Tenant is responsible for obtaining the release of any Mechanics Liens or other liens placed upon Owner/Tenant's property by any contractor or subcontractor hired under this program. 8. Maintenance. Owner/Tenant agrees and covenants that, after the City issues its Certificate of Completion, Owner/Tenant 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/Tenant shall also maintain all landscaping Remodel Grant Program 3-23-10 2 05 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/Tenant 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/Tenant 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 City Manager/City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, California 92262 To Owner/Tenant: Lalith Chandrasena 420 S. Palm Canyon Drive, Floor 2 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 Remodel Grant Program 3-23-10 3 06 hereunder. 14. Indemnification. Owner/Tenant shall indemnify and hold harmless, the City of Palm Springs ("City"), the City Council, its officers, agents, employees and 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/Tenant certifies that the above statements are true and accurate to the best of Owner/Tenant'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 Grant Program 3-23-10 4 07 ____. .. .__ . . . IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates stated below. "City" City of Palm Springs Date: By: Community & Economic Development Date: By: Director, Community & Economic Development Date: By: David H. Ready, Esq., PhD. City Manager ATTEST: APPROVED AS TO FORM: By: By: James Thompson Douglas C. Holland City Clerk City Attorney "OWNER/TENANT" Date: By : Lalith Chandrasena Date: Remodel Grant Program 3-23-10 5 08 EXHIBIT "Aa MAP Property located at 6550 N. Indian Canyon Drive, Palm Springs, CA 92262 v Palcel Number 96909301Z y Su ACtlRss'M N INDMN OANYCN CR 'PALM SPRNOS c482281 A•t�' MM 9PRNGS MOTORSP ORTS LLc M..h'AAar¢ss MW N WDMN Wa1'ON GR. SOM C G Ox 2. Z.Ba ACRES M4 W POR N L"W Homutbm W US OF SEC 23 T3S R<E FOR TOTAL DESCRIPTION SEEASSESSORSMAFS 2ww RC Ld S've(sn fysessar:114,999 ♦'. la Sae�gl CakuMlaD:107,M _ Year 9ui 1 BUMirg Area: NWeS:DRCauls D ua .0Re . Perm!cnarra Am w Remodel Grant Program 3-23-10 6 09 .y Northern Section - Special Economic Development Focus Incentive �a4 Map 1.Noah.S.,. z �� Speciil fcaaaiuc Derycpna.,i f«va 4xewve P'ogam Area o Oarn't � yv i,gNrk vra i 4 Y(a141RY4eliT �}. Ffw NaalR .. .•. •.-. - , a , F Va,Y O.pO ,:,i� FVibWG3.w Q t•`: tvuu CJWw Ewsw C+wrr: vwsa awm .nr,cww •. e.iviia 2 views FV z f x} g,. a PALM 2.F awp.w! A S PR ING S ram,. N �M d i`Ynu C36138.....:Gaap4 YN 4u W013"b* p J Buxton EXHIBIT "B" SCOPE OF WORK Phase 1 — Remodel and repurpose the northern part of the vacant property, consisting of 9,372 square feet for the purpose of motorcycle sales and services. Major interior repairs include drywall, ceiling tiles, permanent fixtures and cabinets, glass work, epoxy flooring, electrical, and tile in bathrooms. Remodel Grant Program 3-23-10 7 � 1 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 _X_ No If yes, Building Permit # 2014-1881 Community & Economic Development Eligibility Letter Remodel Grant Program 3-23-10 8 ,,ALA City of Palm Springs BUILDING PERMIT faa Building Address: 6550 Indian Canyon Dr N Date 02/24/2014 CaseNo.: 3.3050 Permit AngelaLaFrance Submitted Technician Owner Address Phone Li Chandrasena 2304 N Milo Dr 760 275 4872 Palm Spirngs CA Contractor Address Phone Lic. Number Li Chandrasena 2304 N Milo Dr 760 275 4872 Palm Spirngs CA Architect Address Phone Engineer Address Phone Lot# Block# Trait Parcel Number + + 669-093-012 Lot Size Zone Occupancy 108029 Building Sq.Ft. Garage/Carport Roofed Patio/Porch Remodeled Area New Use of building Permit Type Consl.Type Fixture Units Commercial CommercialAddition/aIteration Fire Sprinkler Units Valuation Permit Fees Paid 8000.00 228.19 Describe work in detail: Two sign walls & lighting. Special Conditions: DO NOT CONCEAL OR COVER ANY CONSTRUCTION UNTIL THE WORK IS INSPECTED , IMPORTANT The issuance of this permit shall not be held to be an approval of the violation of any provisions of any city or county ordinance or state law. Inspections of work are subject to an approved set of plans being on the job. Changes to plans are not to be made without permission of the Building and Safety Divisions. The owner and/or contractor is responsible for establishing all property lines. All utilities must be underground. This permit will expire if work is not started in 180 days or if more than 180 days elapses between inspections. I certify that I am familiar with all requirements of the City of Palm Springs as they apply to this permit and understand that these requirements must be completed prior to final inspection and that no certification of occupancy will be issued until such time as these requirements are met. I certify that I have read this application and state that the information is true and correct. Ia OWNER/CONTRACTOR/AGENT DATE ISSUED BY Finaled This is a Building when properly filled out,signed and validated,and is not transferable. PERMITNUMBER 2014-551 Arµ� City of Palm Springs BUILDING PERMIT , )cook. Building Address: 6550 Indian Canyon Dr N Date 0412 212 01 4 Case No. Permit AlbertoGradilla Submitted Technician Owner Address Phone Li Chandrasena 2304 N Milo Dr 760 275 4872 Palm Spirngs CA Contractor Address Phone Lic. Number Li Chandrasena 2304 N Milo Dr 760 275 4872 Palm Spirngs CA Architect Address Phone Engineer Address Phone Lot# Block# Tract Parcel Number + + 669.093-012 Lot Size Zone Occupancy Building Sq.Ft. Garage/Carport Roofed Patio/Porch Remodeled Area Use of building Permit Type Const.Type Fixture Units Commercial Re-Roof Fire Sprinkler Units Valuation Permit Fees Paid 1600Q.00 430.19 Describe work in detail: Permit to reroof over existing roof material with foam.approved coating per planning approval.(Light Gray) Special Conditions: Rooftop mechanical equipment must be on minimum six inch high sheet metal covered platforms or other approved support. Condensate lines must be in hard copper. DO NOT CONCEAL OR COVER ANY CONSTRUCTION UNTIL THE WORK IS INSPECTED IMPORTANT The issuance of this permit shall not be held to be an approval of the violation of any provisions of any city or county ordinance or state law. Inspections of work are subject to an approved set of plans being on the job. Changes to plans are not to be made without permission of the Building and Safety Divisions. The owner and/or contractor is responsible for establishing all property lines. All utilities must be underground. This permit will expire if work is not started in 180 days or if more than 180 days elapses between inspections. I certify that I am familiarwith all requirements of the City of Palm Springs as they apply to this permit and understand that these requirements must be completed prior to final inspection and that no certification of occupancy will be issued until such time as these requirements are met. I certify that I have read this application and state that the information is true and correct. 14 OWNER/CONTRACTOR/AGENT DATE ISSUED BY Finaled This is a Building when properly filled out,signed and validated,and is not transferable. PERMITNUMBER 2014-1234 �FALM Sp �- city of Palm Springs - ti c Community and Economic Development Department * 3200 E.Tahquirz Canyon Way • P:dm Springs, California 92262 . TEL:(-60)323-8259 • FAX('60)322-8325 •TDD(760)SM 9527 Oq>o PniFO�e'� �y- Community Redevelopment Agency Community D:velopmenr Rfock Gran, ��!FORN ntwn,,a•n Drvebpm,.n, • E,,, ,om„ 1)e.e HorvJng • pnbia A,t Marc , 2015 Lee Chandrasena 420 S. Palm canyon Drive, Floor 2 Palm Springs, CA 92262 RE: Interior Remodel Grant Program 6550 N Indian Canyon Drive Dear Lee: The City of Palm Springs has received your application for an owner/tenant grant under the Interior Remodel Program. Based on your application you are eligible for a reimbursement grant up to $25,000.00 from the City following completion of the work. The exact reimbursement grant amount will be defined in the Agreement once all the supporting documents are received. The next step is for you to obtain all necessary permits and approvals from the City's Building Department. You may need to submit diagrams or floor plans showing the work proposed. It is recommended that you check with the building department at 760-323- 8242 to determine what permits will be necessary to comply with the 2013 California Building Codes. Please show a copy of this letter to the planning or building staff when you apply for permits as evidence of your enrollment in the Interior Remodel Program. All fees must be paid at the time permits are issued. Once you obtain a permit from the Building Department; have a signed contract with your contractor, you will enter into a Reimbursement Agreement with the City. To complete the Reimbursement Agreement, please provide copies of the contractor's proposal; a copy of their Contractors License and a copy of their City of Palm Springs Business License. When the Agreement is signed you will be notified via email, mail or phone. When you are notified that the Agreement has been fully executed you may authorize your contractor to do the work. When the work is completed you will need to submit proof of payment to the City for reimbursement, as well as a signed job card showing all applicable inspections, including final building inspection. If you have any questions or require further assistance, please don't hesitate to contact me at 323-8175 or email Cathy.Vanhorn(opalmsprinas-ca.aov . Sincerely, Cathy Vang or Economic De lopment Administrator P.S. Don't forget to take some digital before and after photos and email them to us! Post Office Box 2743 0 Palm Springs, California 92263-2743 15 EXHIBIT "D" CONTRACTORNENDOR AGREEMENT SEE NEXT PAGE Remodel Grant Program 3-23-1 D 9 16 Construction Budget Site Work $ 125,000 Improvements to PS building I $ 450,OD0 Phase I Actual $330, 000 Subway Building $ 850,000 Construction Contingency $ 50,000 Parking& Driveways $ 90,000 Sub Total $ 1,565,000 Permits &Fees $ 50,000 Architectural&Engineering $ 40,000 Legal&Accounting $ 15,000 Taxes &Insurance $ 12,000 Leasing Commissions Environmental/Soils Reports $ 3,000 Sub Total $ 120,000 Loan Costs-&SBA Fees $ 45,000 Interest Reserve $ 50,000 Inspection & Disbursement $ 3,000 Appraisal $ 6,500 Title, Closing and Document Fee 1 $ 4,500 Sub Total $ 109,000 17 Construction Budget Site Work $ 125,000 Improvements to PS building 1 $ 450,000 Phase I Subway Building $ 850,000 Actual $330, 000 Construction Contingency $ 50,000 Parking&Driveways $ 90,000 Sub Total $ 1,565,000 Permits&Fees $ 50,000 Architectural& Engineering $ 40,000 Legal&Accounting $ 15,000 Taxes &Insurance $ 12,000 Leasing Commissions Environmental/Soils Reports $ 3,000 Sub Total $ 120,000 Loan Costs-&SBA Fees $ 45,000 Interest Reserve $ 50,000 Inspection& Disbursement $ 3,000 Appraisal $ 6,500 Title, Closing and Document Fee $ 4,500 Sub Total $ 109,000 17