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Home My WebLink About5/18/2005 - STAFF REPORTS (9) COMMUNITY REDEVELOPMENT AGENCY MAY 18, 2005 CONSENT CALENDAR SUBJECT: APPROVAL OF AMENDMENT NO. 1 TO AN OWNER PARTICIPATION AGREEMENT WITH WESSMAN DEVELOPMENT COMPANY FOR THE DEVELOPMENT OF A BOUTIQUE HOTEL AT THE SOUTHEAST 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 that would encourage the development of the boutique hotel on a site Wessman owns at the southwest corner of Cahuilla Road and Tahquitz Canyon Way. Wessman has submitted preliminary plans to the Agency but seeks additional time to obtain entitlements to coordinate the project with the submittal of the Desert Fashion Plaza plans. 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 PURPOSE JOHN WESSMAN, D/B/A WESSMAN DEVELOPMENT COMPANY, FOR THE DEVELOPMENT OF A BOUTIQUE HOTEL AT THE SOUTHEAST CORNER OF CAHUILLA ROAD AND TAHQUITZ CANYON WAY, MERGED AREA#1 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 Inn. The OPA was entered into in order to settle a dispute over the purchase of the adjacent single family home, owned at the time by Frances Winter. Casa Cody had several concerns about the development of a hotel on the 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 the view to the north. Wessman has attempted to accommodate those concerns by doing several things: Item No. RA6 . 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. Wessman has produced a conceptual 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. Recently, Wessman has been asked to concentrate his efforts on developing a plan for the redevelopment of the Desert Fashion Plaza. He has now produced an overall conceptual plan for the Fashion Plaza and surrounding properties that he owns, including this site. The OPA requires that he have the entitlements approved by June 30, 2005, but would like to move that deadline back several months to get feedback on the Fashion Plaza project. The action before the Agency is to approve an Amendment to the Owner Participation Agreement with Wessman to allow give him until January 31, 2006 to obtain the entitlements on the project FISCAL IMPACT; This Amendment does not have an fiscal impact to the Agency. ohn S Ray o d, Director of Community & David H. Ready0Gi#firManager E is De opment RESOLUTION NO. A RESOLUTION OF THE CITY OF PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING AMENDMENT NO. 1 TO OWNER PARTICIPATION AGREEMENT NO. 0478C WITH JOHN WESSMAN, D/B/A WESSMAN DEVELOPMENT COMPANY, FOR THE DEVELOPMENT OF A BOUTIQUE HOTEL AT THE SOUTHEAST CORNER OF CAHUILLA ROAD 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 19, 2004 the Agency approved an Owner Participation Agreement with John Wessman d/b/a Wessman Development Company to facilitate the development of a 48-room boutique hotel on Wessman's property, with the consent and release from Frank Tysen and Therese Hayes, owners of the adjacent Casa Cody Country Inn (collectively, "Casa Cody"); and WHEREAS, Wessman has asked for an extension in the Schedule of Performance to allow additional time to obtain entitlements for the hotel project, in order to coordinate the approval process with that of the Desert Fashion Plaza; and WHEREAS, the Agency has considered the staff report, and all the information, testimony and evidence provided at its regularly scheduled meeting of May 19, 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 intent of the Owner Participation Agreement is to help the Owner facilitate the development of a 48-room room hotel in style and quality similar to a "W" hotel. The project still needs to go through the Planning approval process. The Owner, in turn, commited to a development schedule, as well as a maximum development "envelope". He is seeking, through the amendment, to extend the development schedule to allow until January 31, 2006 to obtain entitlements. 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 Owner'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, which has not been extended. SECTION 4. The Agency does hereby find and determine as follows: (a) The Owner=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. (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 Owner Participation Agreement is hereby approved and incorporated herein by this reference. SECTION 7. The Chairman 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: ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA By: Chairman Assistant Secretary 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 dba 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 Date 1. Participant to submit plans and Within six (6) months of execution of this drawings for the project agreement. 2. Participant to secure all government On or before January 31, 2006. approvals related to the Project 3. Participant to commence Within sixty (60) days of approvals. construction of Project 4. Participant to complete construction Within 360 days of commencement. of the Project All other terms and conditions in the Original OPA shall remain in effect. innam i a/aneo7 m 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: