HomeMy WebLinkAbout23545 RESOLUTION NO. 23545
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS
CAPACITY AS THE SUCCESSOR AGENCY TO THE
COMMUNITY REDEVELOPMENT AGENCY, APPROVING
THE TERMINATION OF A SUBLEASEHOLD INTEREST IN
A 9.62 ACRE PORTION OF BUSINESS LEASE 315
(PSL 315) PURSUANT TO AN ORDER OF THE STATE
CONTROLLER AND THE CALIFORNIA DEPARTMENT OF
FINANCE.
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs
(the "Agency") owns certain real properties in the City of Palm Springs (collectively, the
"Properties"); and
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs
('Redevelopment Agency") was a redevelopment agency in the City of Palm Springs
("City"), duly created pursuant to the California Community Redevelopment Law (Part 1
(commencing with Section 33000) of Division 24 of the California Health and Safety
Code) ('Redevelopment Law"); and
WHEREAS, the Redevelopment Agency was responsible for the administration
of redevelopment activities within the City; and
WHEREAS, in 2007, the Community Redevelopment Agency of the City of Palm
Springs, acquired a subleasehold interest in certain real property (the "Leasehold")
within Merged Project Area No. 2, generally being 9.62 acres located at the intersection
of Amado Road and Avenida Cabelleros. The City of Palm Springs, a California charter
city ("City'), is the Master Lessee under Business Lease No. PSL 315 ("Original
Lease"), which is on file with the Bureau of Indian Affairs ("BIA"), which lease affects
certain Sublease Land as more particularly described in said lease ("Master Lease
Property"). The Master Lease has been amended pursuant to: 1) Amendment No. 1 to
PSL-315 approved by the BIA on October 13, 1995; 2) the First Amendment to
Business Lease-315, dated April 7, 2004, and approved by the BIA on May 26, 2004;
and 3) the Second Amendment to Business Lease No. PSL-315, dated February 9,
2006, and approved by the BIA on February 9, 2006. The Original Lease as amended
by the three amendments is collectively referred to in this Agreement as the "Master
Lease"; and
WHEREAS, AB X1 26 and AB X1 27 were signed by the Governor of California
on June 28, 2011, making certain changes to the Redevelopment Law, including adding
Part 1.8 (commencing with Section 34161) and Part 1.85 (commencing with Section
34170) ('Part 1.85") to Division 24 of the California Health and Safety Code which
effectively dissolves the Redevelopment Agency ("Dissolution Act'); and
Resolution No. 23545
Page 2
WHEREAS, under the Dissolution Act, the term "successor agency" was defined
to refer to the dissolved redevelopment agency's sponsoring community (the city,
county or city and county that formed the Dissolved RDA), unless the sponsoring
community adopted a resolution electing not to serve in that capacity; and
WHEREAS, as part of the Dissolution Act, agencies were required to dispose of
all real property assets in a timely manner, though the Act did create an exception to the
disposition requirement for governmental use properties, defined in HSC section
34181(a); and
WHEREAS, though the State has mostly narrowly construed governmental use
properties to be only those specifically included in Section 34181(a), and rejected a
number of former Redevelopment Agency properties to be considered governmental
use, the California Department of Finance ("Finance") determined that the Convention
Center is part of the Leasehold Agreement that the City has with the Bureau of Indian
Affairs (Bureau), and did not object to the PSL 315 sublease returning to the City since
the City is the primary lessee; and
WHEREAS, Finance further directed that any subleases that the former
Redevelopment Agency was a party to should be amended to remove the former
Redevelopment Agency, since agreements between the City and its former
Redevelopment Agency are no longer enforceable pursuant to HSC section 34171 (d)
(2), thereby merging the leasehold interest and sublease interest.
NOW THEREFORE BE IT RESOLVED THAT the City Council of the City of Palm
Springs, acting solely in its capacity as the Successor Agency to the Community
Redevelopment Agency of the City of Palm Springs hereby authorizes the termination of
the PSL 315 Sublease as follows:
SECTION 1. The City Council hereby finds and determines that the foregoing
recitals are true and correct, and incorporates them herein by reference.
SECTION 2. The City Council approves the termination of a sublease over a 9.62
acre section of PSL 315, acquired by the former Redevelopment Agency in 2007
pursuant to Section 33445 of California Redevelopment Law, from PS Venture
Caballeros/Amado, LLC, the previous sublessee.
SECTION 3. The sublease interest and leasehold interest in the 9.62 acre parcel
is hereby merged.
SECTION 4. This Resolution shall take effect three days after its adoption.
Resolution No. 23545
Page 3
ADOPTED THIS 7T" DAY OF MAY, 2014.
DAVID H. READY, CITYi GER
ATTEST:
MES THOMPSON, CITY CLERK
v CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. 23545 is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on the 7th day of May, 2014, by
the following vote:
AYES: Councilmember Lewin, Councilmember Mills, Mayor Pro Tern Hutcheson,
and Mayor Pougnet.
NOES: None.
ABSENT: Councilmember Foat.
ABSTAIN: None.
AAMES THOMPSON, CITY CLERK
City of Palm Springs, California