HomeMy WebLinkAbout2/19/2014 - STAFF REPORTS - 2.L. .IOFp ALM spy
c
V N
k
f
• Cq</PORN% CITY COUNCIL STAFF REPORT
DATE: FEBRUARY 19, 2014 CONSENT CALENDAR
SUBJECT: APPROVAL OF A LEASE IN FURTHERANCE OF CONVEYANCE WITH
PRAETOR INVESTMENTS, LLC FOR A 7.8+ ACRE PARCEL AT THE
NORTHEAST CORNER OF CALLE ALVARADO AND AMADO ROAD,
FOR THE DEVELOPMENT OF A 200-ROOM DOLCE HOTEL, AND
AUTHORIZING THE CITY MANAGER TO EXECUTE ALL DOCUMENTS
RELATED TO THE AGREEMENTS
FROM: David H. Ready, City Manager
BY: Community & Economic Development Department
SUMMARY
This action is to approve a Lease in Furtherance of Conveyance with Praetor
Investments, LLC (the "Developer") for a 7.8+ acre parcel across Amado Road from the
Palm Springs Convention Center for the development of a 200-room Dolce Hotel. The
City anticipates that it will sell the property to the Developer within the next several
months, but the Lease is necessary to give the Developer access and rights to the
property to continue to process building permits applications and engineering and site
work. The City is also providing assistance in the acquisition of the adjacent 2.7+ acre
parcel by the Developer, which is part of the overall project site. The Developer will
close on the acquisition when both properties have cleared the steps necessary to be
able to close simultaneously.
RECOMMENDATION:
1. Approve Agreement No. A LEASE IN FURTHERANCE OF
CONVEYANCE WITH PRAETOR INVESTMENTS, LLC FOR A 7.8+ ACRE
PARCEL AT THE NORTHEAST CORNER OF CALLE ALVARADO AND
AMADO ROAD, FOR THE DEVELOPMENT OF A 200-ROOM DOLCE HOTEL
2. Authorize the City Manager or his designee to execute all necessary documents.
ITEM NO.
City Council Staff Report
February 19, 2014-- Page 2
Praetor Investments, LLC Lease in Furtherance of Conveyance
BACKGROUND
This action would approve a Lease in Furtherance of Conveyance with Praetor
Investments, LLC (the "Developer") for a 7.8+ acre parcel across Amado Road from the
Palm Springs Convention Center for the development of a 200-room Dolce Hotel and
related improvements. In November, 2013, the City also approved a Memorandum of
Sale with the adjacent allottee to assist the Developer in the acquisition of the adjacent
2.7 acre parcel, which is part of the overall project site.
The Developer has received Preliminary Planned Development District approval, as well
as approval of a Tentative Tract Map.
The lease allows to Developer to continue to meet the planning and design milestones
necessary to keep the hotel project on schedule. There are a number of additional
steps the City is undertaking to convey clean title to the property, and the adjacent
allottee parcel still needs to clear through the BIA office. The Developer anticipates
closing on the acquisition of all the properties simultaneously, but the timing is
somewhat problematic against the development schedule. The Lease would allow the
project to proceed through the normal development steps and give both the equity
investors and construction lender comfort that they can proceed with the project,
whatever the timing of the property conveyance.
L_ r N %
Jo n S. aym n , Director of D4HR'Oe'ady, ,Citiy as rC unity & conomic Development
Dnd Cty Attorney
Attachments:
Lease in Furtherance of Conveyance
LEASE AGREEMENT
TO FOLLOW