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HomeMy WebLinkAbout10/1/2014 - STAFF REPORTS - 2.H. �OFpPLM SA4 i2 U N c °aa°ue°`°•e R CQ<fFORN�P. CITY COUNCIL STAFF REPORT DATE: October 1, 2014 CONSENT CALENDAR SUBJECT: APPROVE MEMORANDUM OF UNDERSTANDING BETWEEN THE AGUA CALIENTE BAND OF CAHUILLA INDIANS AND THE CITY OF PALM SPRINGS TO CONSIDER ACQUIRING TRIBAL LAND FOR THE DEVELOPMENT OF A SOCCER COMPLEX FROM: David H. Ready, City Manager BY: Community & Economic Development SUMMARY The MOU describes an Agreement between the Tribe and the City regarding the development of a Soccer Park Facility on a parcel of land (PSL-351), currently held under master lease by the Tribe. The two parties are interested in pursuing further due diligence discussions in order to explore the feasibility of a possible business relationship to develop soccer park facilities on approximately 20 — 40 acres of leased land. RECOMMENDATION: 1) Approve the Memorandum of Understanding between the Agua Caliente Band of Cahuilla Indians and the City of Palm Springs. 2) Authorize the City Manager to execute all necessary documents. STAFF ANALYSIS: This MOU forms the basis of Public/Private Partnership between two government entities, established to demonstrate the parties' commitment to collaboration and innovation in the delivery of public services. The Tribe and City wish to explore developing a soccer complex on a parcel of land (PSL-351) owned by the Tribe. The negotiations to consider include, land lease structure, design build aspects, water conservation, business opportunities, and operations. The MOU meets the goals of the November 2013 Desert Recreation District Master Plan to consider options for increasing sports fields as a way to attract a larger number of youth and adult sports, including tournaments. The City's softball/baseball fields are being used at or near capacity, making the ability to expand the number of tournaments difficult. Rectangle fields designated for soccer and football are also being used at or near capacity. ITEM NO.-.T _ City Council Staff Report (October 1, 2014)-- Page 2 (MOIL between Tribe and City) As stated in the Recreation Master Plan, expansion of athletic fields of any kind within the City's existing park system might be difficult, if not impossible. Searching for other sites to develop additional sports fields revealed the Tribe's exploration of a sports and entertainment venue on land near or abutting the future CV Link. The MOU defines and formalizes a working relationship between the parties and sets out their roles and responsibilities within the partnership. FISCAL IMPACT: There is no fiscal impact with the approval of this MOU. Any subsequent program proposed will be reviewed by City Council for scope and budget considerations. ohn R ym n4 Director Cathy Van Aorn, Administrator Co unity conomic Development Community & Economic Development David H. Ready, City er Attachments: Memorandum of Understanding 02 Memorandum of Understanding Between Agua Caliente Band of Cahuilla Indians And The City of Palm Springs This Memorandum of Understanding ("MOU") is made this _ day of September, 2014 between the Agua Caliente Band of Cahuilla Indians ("Tribe"), a federally recognized Indian tribe, with offices at 5401 Dinah Shore Drive, Palm Springs, California, and the City of Palm Springs ("City"), California, acting through its City Council, with offices at 3200 East Tahquitz Canyon Way, Palm Springs, California. Collectively the Tribe and the City will be referred to herein as the "Parties". RECITALS 1. The Agua Caliente Band of Cahuilla Indians ("Agua Caliente") is a federally recognized Indian tribe governing itself according to a Constitution and exercising sovereign authority over the lands of the Agua Caliente Indian Reservation ("Reservation"). 2. The City of Palm Springs is a California charter city, possessing full powers with respect to municipal affairs to regulate the territory under its jurisdiction and in accordance with the California Constitution, its Charter, and State law. 3. As a result of discussion between the Tribe and the City regarding the potential development of a soccer park complex with accompanying facilities ("Proposed Project') on a parcel of land (PSL-351), currently held under master lease by the Tribe, the two Parties are interested in pursuing further due diligence discussions in order to explore the feasibility of a possible business relationship to develop soccer park facilities on approximately 20-40 acres of leased land. NOW THEREFORE, the Parties hereto enter into this Memorandum of Understanding (MOU) as follows: Section 1. Purpose and Scope 1.1 Pur ose. This MOU describes an agreement between the Tribe and the City to discuss the feasibility of developing the Proposed Project on approximately 20-40 acres of Agua Caliente Indian Reservation (ACIR) land in the City of Palm Springs. 1.2 Public Partnership. This MOU evidences the understanding that the Parties are willing to demonstrate their commitment to collaboration and innovation in the delivery of 03 public services solely for the Proposed Project. The MOU defines and formalizes the relationship between the Parties and sets out their roles and responsibilities. The MOU covers the services agreed by the Parties, to be designed and delivered within the scope of this Proposed Project. The scope of this Proposed Project is still not completely defined and the Parties agree to work in a good faith manner to negotiate all aspects of the services to be offered. 1.3 Proposed Project Site. The Proposed Project shall be located upon approximately 20-40 acres of Agua Caliente Indian Reservation (ACIR) land in the City of Palm Springs (the "Property'), as generally described in the description of the Property, attached hereto as Exhibit "A" and incorporated herein by this reference. The Agua Caliente Tribe owns a Master Lease to this allotted Tribal land until 2100. 1.4 Good Faith Negotiations, The Tribe and the City agree that for the period set forth in Section 4 herein they will negotiate diligently and in good faith to prepare a lease agreement (the "Lease") consistent with the provisions of this MOU for the development of the Proposed Project on the Property, as described in Exhibit "B." 1.5 Rules and Regulations. The Proposed Project will be subject to all rules, regulations, standards, and criteria set forth in the City's General Plan, Zoning Code, and Parks Master Plan, and the Tribal Land Use Ordinance, and with this MOU. 1.6 Water Conservation. Landscape and turf managernent practices shall be established by the City and Tribe with the intention of ensuring maximum water efficiency and promoting the natural environment of the Property. 1.7 Construction and Ownership Concept, The Proposed Project design shall be consistent with the Tribal development review process and City's design approval process (Architectural Advisory Committee and Planning Commission approvals). City's architect/land planner shall strive to create a harmonious and attractive soccer facility with a distinct identity (the "Facility'). The Proposed Project shall be of a quality adequate to achieve the mutual vision of the Parties. 1.8 Financial Provisions. Any agreement that may be the product of this MOU shall provide that: (a) the City is responsible for financing and constructing all soccer-related improvements upon the Property; (b) the City shall pay for all necessary public improvements and pay all City's fees for processing the Proposed Project, if any, without assistance from the Tribe; and (c) any element of the Proposed Project that would be developed by or on behalf of the Tribe would be financed by the Tribe. 1.9 Schedule. The Parties goal is to complete the entitlement and design of the Proposed Project by June 30, 2015, with construction completed in early 2016. 04 1.10 Proposed Project Scope. During the term of this MOU the Tribe is ultimately seeking to obtain a Lease for a portion of the land from the City of Palm Springs for the area north of Dinah Shore Drive and east of Crossley Road, which is a portion of PSL 351, a Master Lease held by the Tribe. Additionally, during the term of the MOU, the Tribe and City will strive to come to an agreement about the management of the facilities of the Proposed Project, including but not limited to concession stands, and other recreation facilities, such as a gym for basketball, volleyball and other indoor sports. 1.11 Lessor. Agua Caliente Band of Cahuilla Indians (ACBCI) 1.12 Lessee. City of Palm Springs 1,13 Size. The site is approximately 20-40 acres, extending from the western side of the wash area, east of Crossley Road. The western side of the wash is projected to be part of the initial phase of the CV Link. The CV Link is a non-motorized transportation corridor proposed by the Coachella Valley Association of Governments linking Palm Springs with other Coachella Valley cities. 1.14 Deal Points. Anticipated Lease Structure (a) The Tribe seeks to develop a long term ground lease agreement with the City of Palm Springs on a portion of PSL 351. The master lease to this allotted Tribal land is owned by the Agua Caliente Tribe until 2100. (b) The Tribe would lease the Proposed Project site to the City of Palm Springs for a yet- to be-determined value based on appraised value of the land- (c) ACBCI, in its discretion, may discount the value of the anticipated Lease in return of the opportunity to manage or maintain a portion of the Property for its own use for future development, concessions, and other business opportunities. (d) The anticipated Lease will provide for base rent for the initial lease year with rent adjustments beginning 5 years after the initial lease year and every 5 years thereafter based on CPI, with a minimum 2% and a maximum 5% rental adjustment over five years. (e) Appraisal of Properties. The Tribe is negotiating this MOU subject to the provisions of PSL 351, which it acquired from the original Master Lease holder. It is the desire of both Parties that the unencumbered lease amount would represent a fair market 05 price for the parcels. The City shall commission and pay for an MAI appraisal during the term of this MOU to determine the fee value of the parcel and the fair market value of the leasehold. Should the negotiated contract term exceed the fair market value for the Site, City shall have the right to withdraw from this Agreement without penalty. 1.15 Proposed Project Development. (a) 8 regulation size soccer fields, 1 or more with lighting (b) 4 pee-wee size soccer fields (to be included within the boundary of 2 of the regulation fields) (c) Parking lot with appropriate number of spaces (d) Landscaped picnic area, benches or other viewer seating (e) Concession area or other food development area (f) Access to CV link area on eastern border of fields (g) Appropriate field management in order to maintain top quality playing surfaces for tournaments and leagues. 1.16 Proposed Project Management. (a) The City of Palm Springs may determine that it is more beneficial to seek a private entity to manage the Proposed Project, rather than manage it through City staff resources. This may create an opportunity for the Tribe to contract with the City to manage the Proposed Project facilities, or the Parties would cooperate to obtain an outside entity to manage all or a portion of the landscaping, grounds and facility upkeep, activity coordination, scheduling, tournaments, marketing, administration, and other related activities. 1.17 Proposed Project Concessions. (a) Concessions stands, snack bars, food trucks plazas, or other recreation-related enterprises to be developed may be considered as part of a structured "Concessions Plaza" development with appropriate access to the soccer park complex and from the proposed CV Link. (b) The Tribe may seek to develop this "Concession Plaza" on its own or as a co- development with the City of Palm Springs. Section 2. MOU Does Not Convey Real Property 2.1It is expressly understood and agreed by the Parties hereto that this is an MOU regarding the conduct and scope of negotiations to reach a Lease agreement that is acceptable to the Parties and incorporates the Deal Points noted above. This MOU does 06 not convey any interest in the Property whatsoever. It is further agreed and understood that this MOU does not imply any obligation on the part of the City or Tribe to enter into any agreement that may result from negotiations contemplated herein. Nevertheless, neither party would have entered the MOU if the City's proposal did not have merit, as represented. 2.2 This MOU is not a real property contractual document and does not impose any legal obligation on any party. The overall relationship described by the MOU is a voluntary arrangement. The MOU is independent of any other agreements signed by or between the two Parties. Section 3. General Terms and Conditions 3.1 Governing Law. Unless inconsistent with Federal Law, which shall be supreme, the laws of the State of California shall govern the interpretation and enforcement of this MOU. 3.2 Modifications. Any alteration, change or modification of or to this MOU, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each of the Parties. 3.3 Approval. This MOU shall be effective upon approval by the Tribal Council and the City Council. 3.4 Termination. Either party may terminate this agreement, without prejudice to any legal position thereafter asserted, upon thirty (30) days written notice of the other party. Section 4. Duration of the MOU The intent of the Parties while this MOU in in effect shall be to proceed with the drafting of the anticipate Lease, which will require the negotiation of all the business terms and a preliminary design of a soccer park facility. As such, the Lease shall require a CEQA action by the City. An Initial Study for CEQA, purposes shall be undertaken for the purpose of determining the appropriate CEQA action. Once the appropriate action is determined, a more precise environmental timeline can be developed. The MOU shall be in effect for one (1) year from the date of signature by both Parties. During this time the Tribe and City agree to make good faith effort to continuously move the Proposed Project forward. 07 IN' WITNESS WHEREOF the Tribe and the City have executed this MOU as of the date first written above. "TRIBE" AGUA CALIENTE BAND OF CAHUILLA INDIANDS ('Tribe"). a federally recognized Indian tribe C�Iiif a ing & Development Officer G� Date: I i "CITY" David H. Ready, Esq., Ph.D. City Manager Date: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney 08 EXHI BIT"A" PSL 351 PROPERTY LEGAL DESCRIPTION The Northeast one-quarter of the Southwest one-quarter of Section 20, Township 4 South, Range 5 East, S.B.B.M., according to the official plat thereof. 09 EXHIBIT"B" PROPOSED SOCCER PARK LOCATION ' I RAMON ROAD O u f J N a � p s i DINAR SHORE DRIVE V. l� k t , ice • j �-'. � ; �,4 �1 t a, jN 10