The URL can be used to link to this page

Home My WebLink About12/17/2014 - STAFF REPORTS - 1.G. c V N t CITY COUNCIL STAFF REPORT DATE: December 17, 2014 PUBLIC HEARING SUBJECT: PARKING EASEMENT WITH PALM SPRINGS, LLC, FOR PUBLIC PARKING LOCATED AT A 414 NORTH PALM CANYON DRIVE IN AN AMOUNT NOT TO EXCEED $2,000,000 FROM: David H. Ready, City Manager BY: Community & Economic Development Department SUMMARY As part of the City's effort to increase the availability of public parking in the Downtown and Uptown Design District area, the City has negotiated a Parking Easement with Palm Springs, LLC, (the "Developer"), the Developer of the Port Lawrence Hotel project, to acquire public parking spaces in the Project for the amount of $2,000,000, payable if and when the project is completed (at least two years). The City has public parking available in the Downtown Revitalization Project, numerous downtown surface lots, and in a public parking structure at Baristo and Indian, but is short of available public spaces in the north end of Downtown and in the Uptown Design District area. In addition to a private parking area, the Developer's site plan shows an at-grade parking structure located at the north end of the project, bordered by Indian Canyon Drive and Alejo Road, with 124 parking spaces. The Easement covers this structure, all of which would become open public parking. RECOMMENDATION: 1. Approve Parking Agreement with Palm Springs, LLC, a California limited liability company ("Owner'); 2. Authorize the City Manager to execute all documents to effectuate the Amendment. ITEM NO. City Council Staff Report December 17, 2014 -- Page 2 Easement and Parking Maintenance Agreement STAFF ANALYSIS: Although not yet fully entitled, the Port Lawrence project today, proposed by Palm Springs, LLC, consists of a 150-room hotel and approximately 32,705 square feet of ancillary commercial retail, restaurant and parking structures. The property is approximately 4.1 acres of vacant land bounded by Alejo Road on the north, North Palm Canyon Drive on the west, North Indian Canyon Drive on the east, and existing commercial development on the south. The Developer is in the process of obtaining approval of the Final Development Plan for Planned Development District 324. The Preliminary Planned Development Plan was reviewed by City Council on appeal on October 15, 2014. The amount of parking spaces provided by the applicant remains the same as with the preliminary PD. Pursuant to the parking requirements of the Palm Springs Zoning Code, the total required parking for the development is 226 spaces. The entire development, including the hotel, will have 283 parking spaces including an on-street parking credit of 16 spaces. Development and Ownership The Easement provides that the Developer would be responsible for the development and construction of all of the parking spaces in the Port Lawrence project. The 124 "public" spaces are in the location specified on the attached site plan (near Alejo, and behind the retail spaces on Palm Canyon). The Developer's hotel is a podium construction with the hotel itself a level above the parking, but retail uses are at grade and therefore in front of the parking, as seen from Palm Canyon Drive. Payment for Spaces The Planning Department's overall parking calculation shows the project has 57 "excess" spaces throughout the entire project. The Parking Easement provides that the City acquire rights for public use over all 124 spaces in the north structure — which will function as free public parking in perpetuity. The sum total of the 124 spaces is $2,000,000. If the project is completed, this amount would be paid at the completion of construction from the City's Property Acquisition Account. The Owner will be able to assign the City's obligation to the lender financing the project. oa City Council Staff Report December 17, 2014— Page 3 Easement and Parking Maintenance Agreement Maintenance Given that the spaces would be in the Developer's four star hotel the Developer has P p � ) P an interest in ensuring that the spaces are maintained to the standard of the rest of the property. The easement will outline the owners obligation to maintain the facility and how the area will be controlled. Hours of operation will be determined by mutual agreement. FISCAL IMPACT The Agreement calls for a payment of $2,000,000 for the parking easement. This amount is to be paid if and when the project is completed, from the City's Property Acquisition Account. The Owner will be required to pay any ongoing maintenance costs. i JohA R4 m d, Director of David H. Ready, Ci er Com,pdnit Economic Development Attachments: MATERIALS TO BE PROVIDED D3 CITY OF PALM SPRINGS PUBLIC HEARING NOTIFICATION (a Date: December 17, 2014 Subject: PARKING MANAGEMENT AGREEMENT WITH PALM SPRINGS, LLC, FOR PUBLIC PARKING LOCATED AT A 400 NORTH PALM CANYON DRIVE AFFIDAVIT OF POSTING I, Kathie Hart, MMC, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice of Public Hearing was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on December 11, 2014. 1 declare under penalty of perjury that the foregoing is true and correct. l A= Kathie Hart, MMC Chief Deputy City Clerk oY NOTICE OF PUBLIC HEARING CITY COUNCIL CITY OF PALM SPRINGS PARKING AGREEMENT APPROVAL OF ECONOMIC DEVELOPMENT SUBSIDY NOTICE IS HEREBY GIVEN that the City Council of the City of Palm Springs, California, will hold a public hearing at its meeting of December 17, 2014. The City Council meeting begins at 6:00 p.m., in the Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm Springs. The purpose of this hearing is to consider approving a Parking Agreement to acquire an Easement for Public Use for 124 public parking spaces from the Port Lawrence Hotel at 400 North Palm Canyon Drive, to provide for the acquisition, operation and maintenance of parking facilities to enhance the tourist and travel experience for visitors to the City, provide attractive and desirable parking facilities in the Downtown area, and assist the City in achieving its economic development goals. The payment to the Developer for the public parking may be considered an Economic Development Subsidy under Section 53083 of the California Government Code. REVIEW OF INFORMATION: The staff report and other supporting documents regarding this matter are available for public review at City Hall between the hours of 8:00 a.m. and 6:00 p.m., Monday through Thursday. Please contact the Office of the City Clerk at (760) 323-8204 if you would like to schedule an appointment to review these documents. COMMENTS: At the hearing any person may present oral or written testimony. The City Council will consider all objections or protests, if any, to the Agreement. Response to this notice can be made verbally at the Public Hearing and/or in writing before the hearing. Written comments can be made to the City Council by letter (for mail or hand delivery) to: James Thompson, City Clerk 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Any challenge of the proposed in court may be limited to raising only those issues raised at the public hearing described in this notice, or in written correspondence delivered to the City Clerk at, or prior, to the public hearing. (Government Code Section 65009(b)(2)). An opportunity will be given at said hearing for all interested persons to be heard. Questions regarding this case may be directed to John Raymond at (760) 323-8228. Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springs y puede hablar con Felipe Primera telefono (760) 323-8253. 44 mes Thompson, City Clerk 0� il . Exibit A To DECLARATION AND COVENANT ESTABLISHING PARKING EASEMENT Map and Description of Public Parking .:. '-� fi4 rvK pA9y plrr.:rMtlVr. RV. M w K 1 _ _ 77.9 TC f7,97Tt 7T.69 6 6 CFTC BUILDING PPIMETER Lobo --MYt ��p{f_ {pg� � I PROP 79. 7 .9d LU111 -.1- J.-I I I i'- i ' ,Mc /� �y.R, /y�y.��y� /yam �T 2 nKS LGtl4/yi�OF��NQ01M,V'fplAlr ROM V" R J 1 . .._..� tfLOOR QAK LFL -I I T TIMI-11 1 447F , i i at Exibit A To DECLARATION AND COVENANT ESTABLISHING PARKING EASEMENT Map and Description of Public Parking Overall Project Parking Plan s..d I 1 � • �, j 1 a 1 I 11 a77I ' ��_ � ; q I I a 11-1 I —JU _ 9 �E ; ; '� - - Fx STNf: IF , "guwilac'! emou*.c I '� LI- ._ Detail of Public ParkinE Area _ T- { I �T ! OW IFra OF ~ -.— Fn°°' I . I I y�r.verare. ar rrs.«ea.. dSMr GMI t 1 S _ U 1 F.F.=B 30 W I F.F.= 30 I F P F.F.=80.70 F . I q rtaoe wow°{�oreEa+l Age mmm g ( 3 I , I ! I a 11 -----n �-- ------ -- �} -------r -- ------- -- to - , --- c--- -- - Iti I', RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: THE CITY OF PALM SPRINGS 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attention: City Clerk (Space above this line for Recorder's use) DECLARATION AND COVENANT ESTABLISHING PARKING EASEMENT AND MAINTENANCE AGREEMENT This DECLARATION AND COVENANT ESTABLISHING PARKING EASEMENT AND MAINTENANCE AGREEMENT (this "Declaration") is made as of December 30, 2014, by and between PALM SPRINGS. L.L.C., a Delaware limited liability corporation ("Grantor"), and The City of Palm Springs, a California charter city (the "City"), with reference to the following facts: A. Grantor is the owner of that certain real property located in the City of Palm Springs, County of Riverside, State of California, commonly known as 414 North Palm Canyon Drive, Palm Springs, as more particularly described on Exhibit A to this Declaration (the "Port Lawrence Hotel Project"). The Port Lawrence Hotel Project site is approximately 4.1 acres of vacant land bounded by Alejo Road on the north, North Palm Canyon Drive on the west, North Indican Canyon Drive on the east, and existing commercial development on the south. B. The Port Lawrence Hotel Project shall consist of a 150 +/- rooms hotel and approximately 32,705 square feet of ancillary commercial retail, restaurant, and parking facilities. The project requires a total of 226 parking spaces. The project has been designed for a total of 283 parking spaces, 124 of which will be located in the north area of the project site ("North Parking Lot.") The area of the North Parking Lot is depicted on Exhibit A and the legal description of the North Parking Lot is provided in Exhibit A to this Declaration. C. Grantor is willing to grant the City a parking easement over the entire North Parking Lot for free public parking on the terms provided in this Declaration. The City is willing to pay Grantor Two Million Dollars ($2,000,000.00) for this parking easement on the terms provided in this Declaration. D. The parties are desirous of reducing such agreement to writing hereby, which shall be a binding covenant and servitude running with the land in perpetuity. NOW, THEREFORE, in consideration of the grant of easement hereinafter set forth, of the mutual undertakings and agreements hereinafter set forth, and of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:: 1. Parking Easement. Grantor hereby grants to the City, and agrees to provide in perpetuity, an exclusive, perpetual easement over the vehicular parking areas now or in the future 915469.1 7 �/,7111 located on the North Parking Lot for the use of the general public,at no charge or cost to the public, of one hundred and twenty-four (124) parking spaces, together with the rights of access, ingress and egress over and upon the North Parking Lot for the sole purpose of using such parking spaces as permitted herein. 2. Use and Maintenance of Parking Easement Area. A. The Grantor shall have the obligation to maintain, repair, and replace as necessary, at its sole cost and expense,the North Parking Lot and the 124 parking spaces located thereon, in a manner consistent with the City approved design for the North Parking Lot and the improvements thereon and approved for occupancy by the City , and shall comply with all applicable laws, ordinances,rules, regulations and requirements of governmental authorities in connection with the use, operation, and maintenance of the such North Parking Lot. B. Neither Grantor nor City shall obstruct in any manner any portion of the North Parking Lot which will in any way impair its continuous and uninterrupted use for the purposes set forth in this Declaration,except to the extent reasonably necessary to maintain and repair the North Parking Lot, as provided herein, including without limitation, the temporary closure over the North Parking Lot in order to perform necessary repairs. Grantor's maintenance obligations shall include, but shall not be limited to, the following: (i) placing, maintaining and replacing any necessary striping lines, signs designating parking spaces for public's use and conducting periodic sweeping and debris removal on the North Parking Lot; (ii) placing, keeping in repair, the North Parking Lot; and(iii)repairing damage due to the elements and ordinary wear and maintaining and replacing as needed the driveway elements of the North Parking Lot. C. The North Parking Lot shall remain open and accessible to the public at all times, except that Grantor my restrict or limit access to the North Parking Lot between the hours of 2:00 am and 6:00 am every day at its discretion. Grantor may also limit access to the Public Easement for such times or days commercially necessary for maintenance and/or repair except that any limitation of access for maintenance and/or repair that affects, limits, or restricts twenty-one (21) or more parking spaces in the North Parking Lot for more than twenty-four (24) hours in any one month period of time shall require the prior written consent of the City Manager or the City Manager's designee ("City Manager"). D. No parking space in the North Parking Lot shall be reserved for or designated as valet parking. 3. Consideration. City shall pay to Grantor Two Million Dollars ($2,000,000.00) in consideration for the grant of the Parking Easement (the "Cash Payment"). The Cash Payment shall be paid in full within three business days following the issuance of a certificate of occupancy of the Port Lawrence Hotel Project, including the North Parking Lot. 4. Successors and Assigns. The Parking Easement and each of the restrictions, obligations and covenants set forth herein (collectively, the "Covenants") shall be covenants which run with the North Pakring Lot and the Port Lawrence Hotel Project, and shall be binding upon and enforceable by the City or any successor public agency to the City. Every person or entity who now or hereafter owns or acquires any right, title or interest in or to any portion of the -2- North Parking Lot or the Port Lawrence Hotel Property is and shall be conclusively deemed to have consented and agreed to the Parking Easement and the Covenants contained herein, whether or not any reference to this instrument is contained in the instrument by which such person or entity acquired their right, title or interest in such property. The City shall have the right, but not the obligation, to enforce those provisions of this Declaration benefitting the City by a proceeding at law or in equity against any person or persons violating or attempting to violate any condition, covenant, equitable servitude, or restriction provided for herein, either to restrain such violation or to recover damages. Violation of this Declaration by Grantor and/or its successors or assigns shall also constitute a violation of the conditions of approval to the Port Lawrence Hotel Project, enforceable by City by any legal or administrative proceeding authorized by law. 5. Mortgage Protection. No portion of this Declaration or any amendment or violation thereof shall operate to defeat or render invalid, in whole or in part, the rights of the beneficiary,insurer,guarantor,or holder of any mortgage or deed of trust encumbering any portion of the North Parking Lot or the Port Lawrence Hotel Project. After a beneficiary or other person obtains title to the North Parking Lot or the Port Lawrence Hotel Project by judicial foreclosure or by means set forth in a mortgage or deed of trust, such property shall remain subject to this Declaration. 6. No Third Party Rights. The provisions of this Declaration shall not be deemed to create any rights in any third parties other than the City,as specifically set forth in this Declaration. 7. Modification: Termination. This Declaration may not be modified, removed, extinguished or rescinded in whole or in part, except by written instrument executed by the Grantor and the City Manager, and recorded in the Official Records of Orange County, California. 8. Governing Law. This Declaration shall be governed by and construed in accordance with the laws of the State of California. 9. Counterparts. This Declaration may be executed in counterparts, each of which shall be an original and all of which counterparts taken together shall constitute one and the same Declaration. 10. Entire Declaration. This Declaration, together with the Exhibits attached hereto, contain the entire agreement among the parties respecting the matters set forth herein, and supersede all prior agreements among the parties hereto respecting such matters. -3- IN WITNESS WHEREOF, the parties have made this Declaration as of the date first written above. Palm Springs, L.L.C., a Delaware limited liability company By: LGA Investments, L.L.C., a Delaware limited liability company, Managing Member By: Name: Title: The City of Palm Springs, a California Charter City By: Name: Title: -4- ACKNOWLEDGMENT State of California ) County of ) On before me, (insert name of notary) Notary Public,personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) ACKNOWLEDGMENT State of California ) County of ) On before me, (insert name of notary) Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ics), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) -1- 915469.1