HomeMy WebLinkAbout12/7/2005 - STAFF REPORTS (11) *PALMS..
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COMMUNITY REDEVELOPMENT AGENCY
STAFF REPORT
DATE: December 7, 2005 New Business
SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO AN OWNER PARTICIPATION
AGREEMENT WITH WESSMAN DEVELOPMENT COMPANY FOR THE
DEVELOPMENT OF A BOUTIQUE HOTEL AT THE SOUTHWEST
CORNER OF CAHUILLA ROAD AND TAHQUITZ CANYON WAY
FROM: David H. Ready, Executive Director
BY: Community & Economic Development
SUMMARY
This action approves an amendment to an Owner Participation Agreement with
Wessman Development Company (the "Developer") that facilitates the development of
a boutique hotel on a site Wessman owns at the southwest corner of Cahuilla Road and
Tahquitz Canyon Way. The original OPA was approved by the Agency in May, 2004
requiring The Developer to submit plans and complete the entitlement by December,
2005. The plans, however, were completed and submitted in October, 2005 and the
entitlements will not be completed prior to the December 2, 2005 expiration. The
revised schedule includes a reasonable entitlement period but commits The Developer
to commencing construction within six (6) months of receiving the City's land use
approval of the hotel. The Agency approved a short-term amendment to the Agreement
on November 16, 2005 to the December 7, 2005 to allow the neighboring property
owner to review the plan and have an opportunity to be at the meeting.
RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE CITY OF PALM
SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING
AMENDMENT NO. 1 TO OWNER PARTICIPATION AGREEMENT NO. 0478C
WITH WESSMAN DEVELOPMENT COMPANY, FOR THE DEVELOPMENT OF
A BOUTIQUE HOTEL AT THE SOUTHWEST CORNER OF CAHUILLA ROAD
AND TAHQUITZ CANYON WAY, MERGED AREA #1
2. AUTHORIZE THE EXECUTIVE DIRECTOR OR HIS DESIGNEE TO EXECUTE
Item No. RA4.
ALL DOCUMENTS RELATED TO THE AGREEMENT
STAFF ANALYSIS:
'The Agency approved an Owner Participation Agreement with Wessman Development
Company in May, 2004 to facilitate the development of a boutique hotel at Cahuilla and
Tahquitz, adjacent to the Casa Cody Country Inn. The OPA developed in order to settle
a dispute over the purchase of the adjacent single family home, owned at the time by
Frances Winter, which under a previous Settlement Agreement the Agency had the right
to purchase. The owners of Casa Cody (collectively, "Casa Cody"), who offered to
purchase the Winter property in order to expand their hotel, were allowed to finalize the
purchase without interference from the Agency; in return, the owners signed a waiver of
protest against a potential hotel project on the Developer's site and the Developer was
allowed to proceed with a hotel using the allowed density from the Developer-owned
property as well as the Winter property. The owners had expressed several concerns
about the development of a hotel on the Developer's site, but their primary concern was
the setback of the project from the property line of the Winter property and the
possibility that the building could obstruct most of their view to the north. The Developer
has attempted to accommodate those concerns by doing several things:
1. Orienting the main building north-to-south along Cahuilla to reduce the width of
the building along the Winter property line and not obscure mountain views from
it or Casa Cody.
2. Pulling the building back from the Winter property line (it was at 5') to create
more distance between properties.
3. Stepping the top floor back, with a patio, to reduce the scale of the building at the
rear setback.
The Developer has now submitted a development plan that features a four story hotel in
a modern architectural style, with a rear pool and deck area. Most of the frontage along
the south and west property lines, abutting the Winter property line and the Le Vallauris
parking lot, have the open space/pool area rather than buildings. The mass of the
building is pulled toward the street.
This project was part of the overall conceptual plan for the Fashion Plaza made public in
May, 2005 which included several Developer-owned properties surrounding the Fashion
Plaza, including this site, in an integrated downtown design plan. The original OPA
required that the Developer have completed the entitlement process by June 2, 2005,
but gave the Executive Director the authority to extend the agreement for up to a
cumulative 180 days. That extension was granted and the OPA was extended at the
November 16, 2005 meeting to the December 7, 2005 meeting to allow the adjacent
owner to review the submitted plan and comment at the meeting. Staff met with the
owners on November 22 to discuss the plan and the OPA amendment.
The action before the Agency is to approve an Amendment to the Owner Participation
Agreement with the Developer that sets forth the full development/entitlement schedule,
and that also commits the Developer to commence construction on the hotel within six
(6) months of receiving his entitlements.
FISCAL IMPACT:
This Amendment does not h e any fiscal impact to the Agency.
A
JOH S. A MOND, THOMAS J. /ILSON,
Direc r of mmunity & Assistant City Manager—
�= onomic Development Development Services
DAVID H. READY,
Executive Director '!'
City Council
Month Day,Year
Page 4
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING AMENDMENT
NO. 1 TO AN OWNER PARTICIPATION
AGREEMENT WITH JOHN WESSMAN, D/B/A
WESSMAN DEVELOPMENT COMPANY,
FOR THE DEVELOPMENT OF A BOUTIQUE
HOTEL AT THE SOUTHWEST CORNER OF
CAHUILLA RAOD AND TAHQUITZ CANYON
WAY, MERGED AREA #1
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs,
California ("Agency") is constituted under the Community Redevelopment Law
(California Health and Safety code Section 33000 et. seq.) to carry out the purpose as
the redevelopment agency in the City of Palm Springs ("City"); and
WHEREAS, on May 4, 1988, the Community Redevelopment Agency entered into a
Settlement Agreement with Frances Winter ("Owner") related to eminent domain of a
property at 141 South Cahuilla Road whereby if Owner received from any third party a
proposal in writing to purchase the property which Owner is prepared to accept, Owner
shall provide Notice to the Agency and the Agency shall have a right of first refusal for a
period of thirty (30) days after the receipt of Owner's Notice in which to notify Owner in
writing whether it agrees to purchase the Property for the same price and on the same
terms and conditions as the offer made by the third party; and
WHEREAS the Agency's intent in acquiring the Winter property was to facilitate the
development of a luxury boutique hotel of at least 40 rooms on the adjacent property to
the north, which would have then included the Winter property, but opted to pursue a
negotiated development strategy with Winter's two neighbors; and
WHEREAS, on May 19, 2004 the Agency approved an Owner Participation Agreement
with John Wessman d/b/a Wessman Development Company (the "Developer") to
facilitate the development of a 51-room boutique hotel on the Developer's property, with
the consent and release from Frank Tyson and Therese Hayes, owners of the adjacent
Casa Cody Country Inn (collectively, "Casa Cody"); and
WHEREAS, the original OPA required that the Developer have completed the
entitlement process by June 2, 2005, but gave the Executive Director the authority to
extend the agreement for up to a cumulative 180 days, whereby the OPA will terminate
on December 2, 2005; and
WHEREAS, the Developer formally submitted the development plan featuring a four
story hotel in a modern architectural style on October 28, 2005, and has agreed to a
City Council
Month Day,Year
Page 5
revised Schedule of Performance that commits the Developer to commence
construction of the hotel within six months of receiving the entitlements on the project;
and
WHEREAS, the Agency has considered the staff report, and all the information,
testimony and evidence provided at its regularly scheduled meeting of November 16,
2005.
NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of
the City of Palm Springs as follows:
SECTION 1. The above recitals are true and correct and incorporated herein.
SECTION 2. The Developer proposes to construct a new high-end hotel on the
36,900 s.f. parcel at the southwest corner of Cahuilla Road and
Tahquitz Canyon Way, and seeks accommodation through the
code to transfer some of the development rights from the adjacent
Winter property, which the Agency has foregone a legal opportunity
to purchase.
SECTION 3. The Agency proposed, through the Owner Participation Agreement,
to help the Developer facilitate the development of a 51-room hotel
in style and quality similar to a "W" hotel. A formal development
application was submitted on October 28, 2005 for the project to go
through the Planning approval process. The Developer, in turn,
shall commit to a development schedule, as well as a maximum
development "envelope." Other requirements shall be placed on the
project by the City in the entitlement process, including, but not
limited to, a parking covenant to run with the land on the
Developer's property at the Desert Fashion Plaza. The Agency
obtained a consent and release of the maximum development
envelope from the neighboring property owners, Casa Cody. The
agreement shall have a schedule of three (3) years.
SECTION 4. The Agency does hereby find and determine as follows:
(a) The Developer's property was originally developed in
the 1920's or 1930's and by the early 1980's was
razed and has remained vacant for over 20 years; the
Winter property was purchased by the Winter family in
the 1930's was in family ownerships for nearly 70
years; the Winter family desired to see the home
preserved and has opted to place a preservation
covenant on the property, severely restricting what a
buyer may do with the property, which caused the
City Council
Month Day,Year
Page 6
Developer and Agency to seek other avenues for the
development of a hotel.
(b) The OPA effectuates the purposes of the Community
Redevelopment Law by reversing or alleviating any
serious physical, social, and economic burden of the
Community which cannot reasonably be expected to
be reversed or alleviated by private enterprise acting
alone, in that the OPA will facilitate the redevelopment
of the hotel site by causing the reconstruction and
upgrade of the property and locating at the property a
first class hotel, in order to increase transient
occupancy tax revenue and attract additional high-
end hotel and retail development within the City and
increase the City's tax base.
(c) The OPA effectuates the purposes of the Community
Redevelopment Law as it is intended to eliminate
blight and promote the health, safety and general
welfare of the people of Palm Springs.
SECTION 5. The proposed project is consistent with the Amended and
Restated Redevelopment Plan for Merged Area #1, insofar
as this project will increase tax increment and will expand
hotel opportunities and transient occupancy tax. It will
increase the City's commercial sector by locating a high-end
boutique hotel at the boundary of the City's downtown and
Tennis Club area, in order to capture ever more affluent
visitors to the downtown and create additional retail demand
in Palm Springs.
SECTION 6. Based on foregoing reasons, this Amendment No. 1 to the
OPA is hereby approved and incorporated herein by this
reference.
SECTION 7. The Executive Director of the Agency is authorized to
execute all necessary documents, in a form approved by the
Agency Counsel.
ADOPTED this day of , 2005.
AYES:
NOES:
ABSENT:
City Council
Month Day,Year
Page 7
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Chairman
REVIEWED & APPROVED
AMENDMENT NO. 1 TO OWNER PARTICIPATION AGREEMENT
THIS Amendment No. 1 to an OWNER PARTICIPATION AGREEMENT
("Agreement') is entered into this day of , 2005 by and
between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS, CALIFORNIA, a public body, corporate and politic, whose offices are located
at 3200 East Tahquitz Canyon Way, Palm Springs, California 92262 ("Agency") and
John Wessman d/b/a Wessman Development Company, whose offices are located at
300 South Palm Canyon Drive, Palm Springs, California, 92262 ("Participant'). The
Agency and the Participant hereby agree as follows:
EXHIBIT C
SCHEDULE OF PERFORMANCE
Description Time Period Date
1. Participant submits Already completed. October 28, 2005
plans and drawings for
the project to the City for
application review
2. City issues a Within 30 days of formal On or before
"completeness" letter to application. November 27, 2005
Participant
3. Participant cures any Within 30 days of receipt of On or before
deficiencies in the Completeness Letter. December 27, 2005
application.
4. Project is reviewed by Within sixty (60) days of On or before January
Architectural Advisory application being deemed 30, 2006 if there are
Commission complete by the Director of no deficiencies in the
Planning Services. application.
. Developer revises and Within 30 days after The Gates in this schedule
resubmits plans, disapproval will be adjusted by the
drawings, and additional time necessary to
g resubmit and review
specifications, if disapproved plans.
necessary
6. City reviews and Within 15 days after The dates in this schedule
approves or disapproves resubmittal will be adjusted by the
resubmitted tans, additional time necessary to
p resubmit and review
drawings, and disapproved plans.
specifications, if
inmmivnnxov m
necessary
5. Project receives its Within sixty (60) days of On or before January
environmental application being deemed 30, 2006 if there are
determination from the complete by the Director of no deficiencies in the
Planning department Planning Services. application.
(Environmental
Assessment)
6. Environmental review of Within one hundred twenty On or before May 30,
the project is complete. (120) days of completion of 2006
the Environmental
Assessment.
7. Project is reviewed by Within forty-five (45) days of On or before July 15,
Planning Commission. completion of draft 2006
environmental document.
8. Project is reviewed and Within 60 days of approval On or before
environmental document by the Planning Commission. September 15, 2006
certified by City Council.
9. City files Notice of Notice period is 30 days. On or before October
Determination of CEQA 15, 2006
action.
10. Participant submits Within 90 days of approval On or before
construction documents by City Council. December 15, 2006
for Building Department
review.
11. City reviews building Within 90 days of submittal On or before March
plans and prepares to to the Building Department. 15, 2007
issue permit.
12. Developer obtains all On or before the date that is On or before March
necessary permits and ten (10) days after the date 15, 2007
approvals City notifies Developer that
City is prepared to issue
building permits for the
Project
12. Participant submits Within 90 days after approval On or before
evidence of financing of Project by the City December 15, 2006
commitment for the Council.
Project to Agency.
'13. Agency approves or Within 30 days of receipt by On or before January
disapproves financial Agency 15, 2007
commitment and lender
14. Participant commences Within 45 days of receiving On or before April 30,
construction of the Notice from the City that it is 2007
Project. ready to issue building
permits.
15. Participant completes Within 540 days of issuing On or before October
construction on the building permits. 30, 2008
Project.
16. Participant requests final Within 15 days of completing On or before
inspection of the Project construction of the Project. November 15, 2008
by the City
17. Agency issues certificate Within ten (10) days of On or before
of Completion for the written request by Developer, November 25, 2008
Site and Developer's satisfactory
completion of all
improvements
It is understood that the foregoing Schedule of Performance is subject to all of
the terms and conditions set forth in the text of the Agreement. The summary of the
items of performance in this Schedule of Performance is not intended to supersede or
modify the more complete description in the text. In the event of any conflict or
inconsistency between this Schedule of Performance and the text of the Agreement, the
text shall govern.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the day first
above written.
"AGENCY"
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, a public
body, corporate and politic
Chairman
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
Agency Counsel
"DEVELOPER"
John Wessman dba
Wessman Development Company
(Check One: _individual, _partnership, _corporation)
[NOTARIZED]
Signature
Print
Name:
Print Title:
Mailing Address:
(Corporations require two signatures; one from each of the following: (A) Chairman of
Board, President, any) ice President; AND (B) Secretary, Assistant Secretary,
Treasurer, Assistant Treasurer, or Chief Financial Officer.)
[END OF SIGNATURES / NOTARY JURAT(S) FOLLOW]
STATE OF CALIFORNIA )
) ss.
COUNTY OF )
ON before me,
Notary Public,
personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal. [SEAL]
Signature
STATE OF CALIFORNIA )
) ss.
COUNTY OF )
ON before me,
Notary Public,
personally appeared
personally known to me (or proved to me on the basis of satisfactory evidence) to be
the person(s) whose name(s) is/are subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their authorized
capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
Witness my hand and official seal. [SEAL]
Signature