HomeMy WebLinkAbout4/18/2012 - STAFF REPORTS - 4A \V
4.A. PROGRESS REPORT AND UPDATE FROM THE CITY COUNCIL
MUSEUM MARKET PLAZA PROJECT AD HOC SUBCOMMITTEE:
RECOMMENDATION: Direct staff as appropriate.
Item No. 4. A .
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DATE: April 18, 2012 UNFINISHED BUSINESS
SUBJECT: APPROVE AN AMENDMENT TO THE PROJECT FINANCING
AGREEMENT WITH PALM SPRINGS PROMENADE, LLC TO PROVIDE
FOR THE SIMULTANEOUS CLOSING WITH THE CITY OF PALM
SPRINGS 2012 LEASE REVENUE BONDS, FOR THE
REDEVELOPMENT OF CERTAIN REAL PROPERTY AT 123 NORTH
PALM CANYON DRIVE
FROM: David H. Ready, City Manager
BY: Community and Economic Development
SUMMARY
This Amendment will expressly allow for the simultaneous closing of the 2012 Financing
Authority Lease Revenue Bonds and the Acquisition Escrow with the Developer, Palm
Springs Promenade, LLC. The bond issue was approved by the Council and Financing
Authority Board on April 11, 2012, and will provide the source of funds for the City to
fulfill its obligations under the Agreement. However, since the property to be acquired
by the City from the Developer constitutes a portion of the security for the bond issue,
the City needs to have fee title to the property in order to close on the bonds. The
parties cannot close on the acquisition, however, unless the funds are deposited or
available to be deposited in the Acquisition Escrow account.
This amendment will allow for the coordination of the two escrows to allow the deal to
move forward.
RECOMMENDATION:
1. APPROVE AN AMENDMENT TO THE PROJECT FINANCING AGREEMENT
WITH PALM SPRINGS PROMENADE, LLC TO PROVIDE FOR THE
SIMULTANEOUS CLOSING WITH THE CITY OF PALM SPRINGS 2012 LEASE
REVENUE BONDS
RECOMMENDATION: 1) Approve Amendment No. 1 to the Project Financing
Agreement No. 6144 with Palm Springs Promenade, LLC; and 2) Authorize the
City Manager to execute all documents to effectuate the Amendment. A6144.
ITEM NO. `�---
Joh Ray on ( Di ctor om Wilson
Co mu an E nomic Development Assistan Manager
David H. Ready Douglas Holland
City Manager City Attorney
Attached Documents:
1. Amendment to Project Financing Agreement
AMENDMENT NO. 1 TO
PROJECT FINANCING AGREEMENT
(AGREEMENT NO. A6144)
THIS AMENDMENT NO. 1 TO PROJECT FINANCING AGREEMENT
("Amendment") is made and entered into this 18th day of April, 2012 by and between
the City of Palm Springs, a California charter city ("City") and Palm Springs Promenade,
LLC, a California limited liability company ("Developer").
RECITALS
A. City and Developer entered into a Project Financing Agreement ("PFA")
for the purpose of implementing the Downtown Revitalization Project on September 29,
2011.
B. The City desires to fund its obligations under the PFA by the sale of lease
revenue bonds secured in part by property and improvements the City will acquire from
Developer pursuant to the PFA. It is the desire of the Parties that the sale of the lease
revenue bonds and the sale of the property to the City will occur simultaneously. This
Amendment expressly provides for the concurrent or simultaneous closing of the sale of
the lease revenue bonds and the Acquisition Escrow as described in the Agreement.
AGREEMENT
1. The foregoing Recitals are true and correct.
2. Exhibit D, Schedule of Performance, Item 14 is amended in part to read:
14 Deposit of Purchase Price Concurrent or
And Other Required Sums. Simultaneous with
The City shall deposit the Purchase Closing
Price of the Parking Structure and
Other public assets, funds for the
Public improvements and other
Required sums in escrow
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678705.2
3. Except as expressly provided above, all other terms and conditions of the
original PFA shall remain unchanged and in full force and effect.
City of Palm Springs
"City„
Date: By:
David Ready, City Manager
APPROVED AS TO FORM: ATTEST:
By: By:
City Attorney City Clerk
PALM SPRINGS PROMENADE, LLC
"Developer"
Date: By:
Name:
Title:
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678705