HomeMy WebLinkAbout9/5/2012 - STAFF REPORTS - 4.A. ppLM 9
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cq�IFORN�P CITY COUNCIL STAFF REPORT
DATE: September 5, 2012 UNFINISHED BUSINESS
SUBJECT: APPROVE AMENDMENT NO. 1 TO THE REIMBURSEMENT
AGREEMENT WITH WESSMAN HOLDINGS, LLC TO COVER
ADDITIONAL PURSUIT COSTS UNDER THE AGREEMENT FOR THE
REDEVELOPMENT OF REAL PROPERTY AT 123 N. PALM CANYON
DRIVE
FROM: David H. Ready, City Manager
BY: Community and Economic Development
SUMMARY
Owner and City entered into a Reimbursement Agreement for the redevelopment of the
Desert Fashion Plaza in March, 2011, which provided that the City reimburse the Owner
for 50% of the architecture and engineering costs ("Pursuit Costs"), which was
estimated not to exceed $400,000. However, given the complexity of the project, the
actual Pursuit Costs incurred totaled $460,238.20, thereby increasing the City's 50%
share to $230,119.10. It is recommended the City increase its contribution by
$30,119.10 consistent with the intent of the Agreement. Funds are available in the
account 00 1-1400-65232.
RECOMMENDATION:
1. APPROVE AMENDMENT NO. 1 TO THE REIMBURSEMENT AGREEMENT
WITH WESSMAN HOLDINGS, LLC TO PROVIDE AN ADDITIONAL $30,119.10
FOR PURSUIT COSTS FOR THE REDEVELOPMENT OF CERTAIN REAL
PROPERTY AT 123 NORTH PALM CANYON DRIVE
2. Authorize the City Manager to execute all documents to effectuate the
Amend ent.
Jo n R mon Director David H. Ready
C unity aW Economic Development City Manager
Attached Document: Amendment to Reimbursement Agreement
REM NOS, y��
AMENDMENT NO. 1 TO REIMBURSEMENT AGREEMENT
This AMENDMENT NO. 1 TO A REIMBURSEMENT AGREEMENT
("Amendment") is entered into as of this day of 2012, by
and between the CITY OF PALM SPRINGS, a California public entity ("City"), and
JOHN WESSMAN, an individual, and WESSMAN HOLDINGS, LLC, a California limited
liability company (collectively the "Owner ').
RECITALS
A. Owner and City entered into that certain Reimbursement Agreement
related to the development of the Desert Fashion Plaza ("Property") on or about March
2, 2011.
B. The City and Owner desire to enter into this Agreement to provide for City
to reimburse Owner for 50% of Owner's costs for architectural and engineering costs
("Pursuit Costs").
C. It was originally estimated that the Pursuit Costs would not exceed
$400,000, and the City's share of the Pursuit Costs was estimated at the time not to
exceed Two Hundred Thousand Dollars ($200,000.00). Owner has incurred a total of
$460,238.20 in Pursuit Costs City and Owner now desire to amend the Agreement to
cover the costs of additionally beneficial design work.
AGREEMENT
Based upon the foregoing Recitals and for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by both parties, City and
Owner hereby agree as follows:
1. Pursuit Period. The "Pursuit Period" shall be from March 2, 2011, until
November 1, 2012.
2. City Reimbursement. The total reimbursement obligation of City for
Pursuit Costs shall be Two Hundred Thirty Thousand, One Hundred Nineteen Dollars
and Ten Cents ($230,119.10).
3. No Other Amendment. Except as expressly amended herein, the
Reimbursement Agreement shall remain in full force and effect.
(signatures on next page)
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IN WITNESS WHEREOF, City and Owner have entered into this Amendment as
of the date set forth above.
,,CITY"
CITY OF PALM SPRINGS
By:
David H. Ready, Esq., Ph.D.
City Manager
ATTEST:
James Thompson
City Clerk
APPROVED AS TO FORM:
Douglas C. Holland, Esq.
City Attorney
"OWNER"
By:
John Wessman
Manager
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