HomeMy WebLinkAbout5/18/2005 - STAFF REPORTS (4) COMMUNITY REDEVELOPMENT AGENCY AND CITY COUNCIL MAY 18, 2005
JOINT PUBLIC HEARING
SUBJECT: APPROVAL OF AMENDMENT NO, 1 TO A DISPOSITION AND
DEVELOPMENT AGREEMENT WITH VIP MOTOR CARS,INC.,
4095 EAST PALM CANYON DRIVE, AND FDH ENTERPRISES,
INC., TO RECALCULATE THE FINANCIAL ASSISTANCE
FORMULA FOR THE RENOVATION AND EXPANSION OF THE
AUTO DEALERSHIP AND EXTEND THE TERM OF THE
AGREEMENT FOR TWELVE YEARS
FROM: David H. Ready, Executive Director
BY: Community & Economic Development Department
SUMMARY:
This amendment to the DDA amends the lease on the subject property, which the
Agency leases from FDH Enterprises, Inc. and subleases to VIP Motors, Ltd. in order to
restructure the Agency assistance which allows the Agency to further assist the
dealership with its expansion and extend such assistance for a period of another twelve
years. The amendment increases the amount of time the dealer must operate in Palm
Springs to receive the assistance, removes the BMW dealership from the annual
calculation of assistance and reduces the maximum amount received each year, though
it increases the total amount of financial assistance.
RECOMMENDATION:
COMMUNITY REDEVELOPMENT AGENCY RECOMMENDATION:
1. Adopt Resolution No. , "A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING AMENDMENT NO. 1 TO AGREEMENT NO.
A0399C WITH VIP MOTOR CARS, LTD. AND FDH ENTERPRISES, INC. TO
RECALCULATE THE FINANCIAL ASSISTANCE FORMULA FOR THE
RENOVATION AND EXPANSION OF THE AUTO DEALERSHIP AND EXTEND
THE TERM OF THE AGREEMENT FOR TWELVE YEARS FOR PROPERTY
IMPROVEMENTS AT AN AUTOMOBILE DEALERSHIP AT 4095 EAST PALM
CANYON DRIVE, MERGED PROJECT AREA #1
CITY COUNCIL RECOMMENDATION:
1. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA CONCURRING WITH THE
COMMUNITY REDEVELOPMENT AGENCY REGARDING THE APPROVAL OF
AMENDMENT NO. 1 TO COMMUNITY REDEVELOPMENT AGENCY
Item No. RAI
AGREEMENT NO. A0399C A DISPOSITION AND DEVELOPMENT
AGREEMENT WITH VIP MOTOR CARS, LTD. AND FDH ENTERPRISES, INC."
2. Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, MAKING FINDINGS PURSUANT TO
SECTION 33421.1 AND 33445 OF THE CALIFORNIA HEALTH & SAFETY
CODE RELATING TO AMENDMENT NO. 1 TO A DISPOSITION AND
DEVELOPMENT AGREEMENT WITH VIP MOTOR CARS, LTD. AND FDH
ENTERPRISES, INC. FOR PROPERTY IMPROVEMENTS AT AN
AUTOMOBILE DEALERSHIP AT 4095 EAST PALM CANYON DRIVE, MERGED
PROJECT AREA #1.
STAFF ANALYSIS:
FDH Enterprises purchased VIP Motors (Palm Springs Mercedes, Infiniti and BMW) at
the end of 1998 and proceeded to improve the business, which was underperforming
badly under the previous owner. The Agency entered a DDA with the dealership in
January, 2000 to rebate back about $1,000,000 over a period of up to 12 years based
on their sales tax performance, as an incentive for them to remain and expand in Palm
Springs. The formula pays them effectively a "sales tax increment"from redevelopment
tax increment over an established base.
California Redevelopment Law allows agencies to pay for improvements on properties
they lease, though, which lead to the structure of the original DDA: the DDA provides
that the Agency lease the real property from FDH Enterprises, Inc., the property owner,
and then sublease it to VIP Motor Cars, Ltd. at the same lease rate, minus an amount
equal to the sales tax "increment" (the amount of sales tax the dealership generated
over a base amount determined by the Agency). The reduced rent to VIP worked as a
tenant improvement allowance; in this case the subtenant (VIP) performed the
improvements on the property and were reimbursed a portion of their cost by the tenant
(the Agency). Currently, the aggregated lease (there are three separate properties that
comprise the dealerships) was $58,250 per month in the first year, and increased by an
amount no more than the Consumers Price Index. This amount was paid to the Agency
by VIP, and then passed through to FDH by the Agency. The rebate was a separate
calculation and payment, and was paid on an annual (not monthly) basis to the dealer.
Currently three brands remain at the location: Mercedes-Benz, BMW, and Infiniti, which
was such a laggard in the early years of FDH's ownership that they considered
terminating the franchise and using the space for BMW. The brand has since recovered
with some very strong products (G35 and FX35 and FX45 wagons) so they're keeping
it. They have added Maybach in the Mercedes showroom (Maybach is Mercedes'
super-luxury brand, selling for about $300,000) and may have opportunities to add
other brands not currently in the market.
BMW corporate anticipates that in the next five years VIP's BMW sales will grow
significantly. The dealership anticipates a more conservative growth, but still assumes
a considerable increase of sales within that period of time. They needed to identify by
the end of 2004 the location where they'll build a new facility and be in by 2007. They
need adequate land for a building of approximately 20,000-25,000 square feet, plus 20
service bays.
The plans are that the expansion of the BMW facility will occur on an adjacent parcel
which will be covered by a separate agreement. The purpose of this amendment is to
add approximately $1,700,000 in additional assistance over the life of the deal in return
for extending the lease and sublease of the property, which will ensure the dealer would
remain and operate in Palm Springs for that period of time. In return for the extension,
the Agency shall reduce the annual assistance payment (which has the effect of
increasing the term) and extend the term. The reduction in annual payment will be
accomplished by removing the BMW sales figures from the calculation of assistance
once the BMW has moved from the site to the adjacent parcel. The formula is based on
paying, through tax increment, an amount approximately equal to the incremental sales
tax over the base year.
Based on the original formula, the dealer received approximately $264,000 this year.
The new formula would pay an amount of approximately $169,000 in the first year of the
new formula payment.
The amount of rent rebate will continue to be calculated based on a portion of the
dealership's sales tax performance, less the BMW sales, but will be paid from the
(property) tax increment that flows to the Agency. Sales tax, which flows to the City's
General Fund, then becomes the index for the payment but not the source. This
structure preserves a major sales tax source for the General Fund, as well as allowing
the General Fund to keep the growth in sales tax revenue.
By separate agreement, the Agency is processing a land exchange with the Bureau of
Indian Affairs for the adjacent parcel, which the Agency will then sell to VIP and FDH for
fair market value. That is a separate Disposition and Development Agreement.
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FISCAL IMPACT:
The total amount of additional financial assistance to the project is $1,700,000, paid
over a 12 year period, all from Redevelopment tax increment. However, the amount of
subsidy in a given year will be reduc 'd by nearly $100,000 from today's levels.
c---P
ohn S Raymo 'd Director of David H. Ready, City Ma gr�er
unity & E onomic Development
Attachments:
1. CRA Resolution
2. City Council Conformance Resolution
3. City Council Findings Resolution
4. Amendment No. 1 to the Disposition and Development Agreement
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING AMENDMENT NO. 1 TO AGREEMENT NO.
A0399C WITH VIP MOTOR CARS, LTD. AND FDH
ENTERPRISES, INC. TO RECALCULATE THE FINANCIAL
ASSISTANCE FORMULA FOR THE RENOVATION AND
EXPANSION OF THE AUTO DEALERSHIP AND EXTEND
THE TERM OF THE AGREEMENT FOR TWELVE YEARS
FOR PROPERTY IMPROVEMENTS AT AN AUTOMOBILE
DEALERSHIP AT 4095 EAST PALM CANYON DRIVE,
MERGED PROJECT 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 in the City of Palm Springs ("the City"); and
WHEREAS, VIP Motor Cars, Ltd., FDH Enterprises, Inc. ("Developer") and the Agency
entered a Disposition and Development Agreement in January, 2000 for the Agency to
provide financial assistance in their efforts to expand and upgrade their automobile
dealership at 4095 East Palm Canyon Drive, in order to retain the business in Palm
Springs, make it a more profitable facility for the dealer and the City, and increase the
level of employment; and
WHEREAS, expansion of the dealership created additional sales tax revenue for the
City, as well as create additional on-site jobs for documented low and moderate income
households, therefore improving the City's ability to provide services to all its residents,
as well as overall living conditions for low and moderate income households in the City;
and .
WHEREAS, Section 33430 of the Community Redevelopment Law allows that an
agency may, "for purposes of redevelopment, sell, lease, for a period not to exceed 99
years, exchange, subdivide, transfer, assign, pledge, encumber by mortgage, deed of
trust, or otherwise, or otherwise dispose of any real or personal property or any interest
in property;" and
WHEREAS, Community Redevelopment Law allows agencies to use tax increment to
pay for improvements on properties which the agency owns or leases; and
WHEREAS, Section 33432 of the Community Redevelopment Law requires that any
such lease shall be conditioned on the redevelopment and use of the property in
conformity with the redevelopment plan; and
"Y
WHEREAS, Developer now seeks to further expand and improve the dealerships, which
will result in additional public benefits, and has sought an amendment to the DDA to
provide additional assistance through an extension of the term of the Agreement, and
the Agency has sought a recalculation of the annual assistance amount; and
WHEREAS, a Notice of Public Hearing concerning Amendment No. 1 to the Disposition
and Development Agreement was published in accordance with applicable law; and
WHEREAS, the California Redevelopment Law requires certain findings before the
Agency can enter into this Amendment, as follows:
a) Section 33421.1 - that the City Council find that the provision of such
improvements will effectuate the Redevelopment Plan;
b) Section 33445 - that the City Council find that the improvements benefit
the Project Area; that no other means of financing the improvements are
available; that payment of the funds will assist in eliminating blight, and
that assistance to the project is consistent with the Agency's adopted Five
Year Implementation Plan.
WHEREAS, the Agency has considered the staff report, and all the information,
testimony and evidence provided during the public hearing on May 18, 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. Pursuant to the California Environmental Quality Act (CEQA), the
Community Redevelopment Agency finds that in connection with
the approval of the DDA, the project is Categorically Exempt
because all the work is to occur on existing facilities and there are
no changes in the effects of the proposed project or the
circumstances in which it is being carried out which require any
modification of the Categorical Exemption. Any work to be
performed off the current project site will be subject to CEQA and a
separate agreement.
SECTION 3. The Developer proposes to expand the Mercedes dealership into
the current Infiniti building with additional new- and certified pre-
owned vehicles; the Infiniti dealership shall be moved to the current
BMW dealership building. Certain interior renovations shall be
made to both dealerships to accommodate the corporate guidelines
of the brands
SECTION 4. This project improves a previously blighted corner of Merged
Redevelopment Project Area #1 (formerly #9G) and will further
increase tax increment to the Agency and sales tax collections to
the City.
SECTION 5. The Agency will continue to lease the three separate dealership
properties from FDH Enterprises, Inc., the property owner, for an
aggregated amount of$58,250 in the first year, to increase annually
by the Consumer Price Index as published by the U.S. Department
of Labor for the Los Angeles-Anaheim-Riverside SMSA. VIP Motor
Cars, Ltd. shall, in turn, sublease the three properties from the
Agency for an aggregated amount of $58,250 in the first year, to
increase annually by the Consumer Price Index as published by the
U.S. Department of Labor for the Los Angeles-Anaheim-Riverside
SMSA. The amount of payment for the lease and sublease shall be
the same. The sublessee shall construct the improvements as
described in Section 3 of this resolution, at a cost of at least one
million seven hundred thousand dollars ($1,700,000). Additionally,
the Agency shall participate in the cost of the improvements, as the
lessee's share, as described in Section 3 of this resolution, by
rebating annually to the sublessee an amount up to one million
seven hundred thousand dollars ($1,700,000) using tax increment
from Merged Project Area #1. The annual amount rebated for the
cost of the improvements shall be determined by the combined
dealerships' sales tax performance over a base amount determined
in the DDA, less the amount attributable to the BMW dealership.
The agreement shall be for a period of twelve (12) years or until the
$1,700,000 is rebated, whichever is sooner.
SECTION 6. The Agency does hereby find and determine as follows:
(a) The property was originally developed in the 1950's
and was occupied by Palm Springs Ford until the
1970's when it departed; however, while the
dealership currently has luxury brand names, the
dealership itself has declined in economic value over
the past two decades due to aging and obsolete
facilities and poor visibility from East Palm Canyon
Driven. In 1998, the current owners acquired VIP
Motor Cars, Ltd. and began negotiating with the
manufacturers regarding the manufacturers'
requirements for the dealership's facilities..
(b) The DDA Amendment further 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
assistance will facilitate the redevelopment and
operation of the automobile dealership by causing the
reconstruction and upgrade of the property, placing
the property in the hands of a first class and
experienced operator, in order to maintain existing
sales tax revenue and attract additional commercial
development within the City and increase the City's
tax base.
(c) The DDA Amendment further 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 7. The proposed project is consistent with the Implementation
Plan for this area, insofar as this project will increase tax
increment and will expand an already-existing successful
business. It will increase the City's commercial sector by
expanding a major retail business in the City, in order to
further capture a portion of the significant sales tax leakage
that occurs in Palm Springs.
SECTION 8. Based on foregoing reasons, this Amendment No. 1 to the
Disposition and Development Agreement is hereby approved
and incorporated herein by this reference.
SECTION 9. The Executive Director of the Agency, and/or his designee,
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
CITY OF PALM SPRINGS, CALIFORNIA
j„
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA,
CONCURRING WITH THE COMMUNITY
REDEVELOPMENT AGENCY REGARDING
THE APPROVAL OF AMENDMENT NO. 1 TO
DISPOSITION AND DEVELOPMENT
AGREEMENT WITH VIP MOTOR CARS, LTD.
AND FDH ENTERPRISES, INC.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs
that it concurs with the action of the Community Redevelopment Agency in the matter of
approving Amendment No. 1 to a Disposition and Development Agreement with VIP
Motor Cars, Ltd. And FDH Enterprises, Inc.
ADOPTED this day of 2005.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED & APPROVED AS TO FORM
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS, CALIFORNIA, MAKING FINDINGS PURSUANT
TO SECTION 33421.1 AND 33445 OF THE CALIFORNIA
HEALTH & SAFETY CODE RELATING TO AMENDMENT
NO, 1 TO A DISPOSITION AND DEVELOPMENT
AGREEMENT WITH VIP MOTOR CARS, LTD. AND FDH
ENTERPRISES, INC. FOR PROPERTY IMPROVEMENTS
AT AN AUTOMOBILE DEALERSHIP AT 4095 EAST PALM
CANYON DRIVE, MERGED PROJECT 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 in the City of Palm Springs ("the City"); and
WHEREAS, VIP Motor Cars, Ltd., FDH Enterprises, Inc. ("Developer") and the Agency
entered a Disposition and Development Agreement in January, 2000 for the Agency to
provide financial assistance in their efforts to expand and upgrade their automobile
dealership at 4095 East Palm Canyon Drive, in order to retain the business in Palm
Springs, make it a more profitable facility for the dealer and the City, and increase the
level of employment; and
WHEREAS the California Health & Safety Code Section 33421.1 requires that the City
Council find that the provision of such improvements will effectuate the Redevelopment
Plan; and
WHEREAS the California Health & Safety Code Section 33445 requires that the City
Council find that the improvements benefit the Project Area; that no other means of
financing the improvements are available; that payment of the funds will assist in
eliminating blight, and that assistance to the project is consistent with the Agency's
adopted Five Year Implementation Plan; and
voncn uay, Year
Page 2
NOW THEREFORE, it is hereby resolved that the City of Palm Springs, California, does
hereby give its consent and find that the provision of such improvements, including the
financing of the installation of public improvements with tax increment funds, as
provided in the OPA, are necessary to effectuate the purposes of the Redevelopment
Plan.
ADOPTED this day of 2005.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED AND APPROVED:
FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT AGREEMENT
This FIRST AMENDMENT TO DISPOSITION AND DEVELOPMENT
AGREEMENT ("First Amendment") is made and entered into as of , 2005
("Effective Date"), by and between the COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, a public body, corporate and politic ("Agency"), and
VIP MOTOR CARS, LTD, a California corporation, wholly owned by VIP MOTOR CARS
ACQUISITION, INC., a California corporation (collectively "Developer") and FDH
ENTERPRISES, INC. an Arkansas corporation ("Owner"). All attachments and exhibits
hereto are incorporated herein by reference.
RECITALS
A. Agency is a public body, corporate and politic, exercising governmental
functions and powers and organized and existing under the Community Redevelopment
Law of the State of California (Health and Safety Code Section 33000, et. seq.).
B. On January 15, 2000 the Agency approved a Disposition and
Development Agreement ("Agreement") with Owner pursuant to which Owner agreed to
lease certain real property designated as the "Site" to Agency, and Agency agreed to
sublease the Site to Developer under the terms of the Lease and Sublease attached to
the Agreement (hereinafter referred to as the "Lease" and "Sublease," respectively). As
part of the Agreement, the Agency also agreed to provide financial assistance to
Developer through a land write-down of the sublease payments to facilitate Developer's
construction of renovations to the automobile dealership facilities on the Site.
C. The Site is within the Agency's Merged Project Area No. 1 ("Project
Area").
D. From the date of execution of the Agreement through December 31, 2004,
Developer's operation of automobile dealerships on the Site has generated over
in tax increment revenue to the Agency and over $1,725,000 in sales tax
revenue to the City.
E. The improvement of the Site by the Developer has been a significant
benefit to the Project Area and Agency would like to induce Developer to make a longer
commitment to remain within the Project Area. In addition, Developer will be relocating
one of the current automobile dealerships to an adjacent parcel.
F. At this time, the Agency desires to execute this First Amendment to
extend the term of the Agreement, Lease and Sublease pursuant to the terms of the
"Amended Lease" and "Amended Sublease," attached hereto and incorporated herein,
in exchange for a covenant from Developer that Developer will continue to-operate the
existing automobile dealership facilities on the Site for the duration of the extended term
of this First Amendment. The Amended Sublease shall allow the Agency to continue
the implementation of the Redevelopment Plan for the Project Area.
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AGREEMENT
The foregoing Recitals are incorporated herein by reference and the Agreement
is hereby amended as follows:
1. Section 8.4 "Notices, Demands, and Communications Between The
Parties" is amended to read as follows:
"Formal notices, demands, and communications between Agency
and Developer shall be sufficiently given if: (i) personally delivered;
(ii) delivered by overnight courier (acknowledged by receipt); or (iii)
dispatched by registered or certified mail, postage prepaid, return
receipt requested, to the addresses set forth below:
Agency: Community Redevelopment Agency of the City of Palm
Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attn: Executive Director
A copy to: Community Redevelopment Agency of the City of Palm
Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attn: Agency Counsel
Developer: VIP MOTOR CARS, LTD.
Jerry G. Johnson
11300 Rodney Parham Rd., Suite 300
Little Rock, AR 72212
All notices shall be deemed to be received as of the earlier of
actual receipt by the addressee thereof or the expiration of forty-
eight (48) hours after depositing in the United States Postal System
in the manner described in this Section."
2. The Lease is amended by approving the "First Amendment to Lease
Agreement," attached as Exhibit B, which amends Section 4 thereof,
entitled 'Term" to extend the term of the Lease.
3. The Sublease is amended and replaced with the "First Amendment to
Sublease Agreement" attached as Exhibit C.
4. It is the intent of the parties that obligations and rights of the parties which
are set forth in the Agreement which relate to the Lease shall relate to the
Lease as amended by the First Amendment to Lease Agreement, and that
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obligations and rights of the parties which are set forth in the Agreement
which relate to the Sublease shall now relate to the Sublease as amended
by the First Amendment to Sublease Agreement.
5. The First Amendment to the Sublease provides a new formula for rent
assistance for the Project. This new formula shall only apply after the
relocation of one of the current automobile dealerships, presumed to be
BMW, off of the Site, which date shall be presumed to be the "Trigger
Date."
6. Except as expressly provided herein, all other terms and conditions of the
Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this First
Amendment to be effective as of the date first written above.
Agency
ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, a public body
corporate and politic
Agency Secretary Executive Director
APPROVED AS TO FORM:
David J. Aleshire, Special Counsel
"Developer"
VIP MOTOR CARS, LTD, a California
corporation, wholly owned by VIP MOTOR CARS
ACQUISITION, INC., a California corporation
By:
Title:
By:
Title:
(
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EXHIBIT "B"
FIRST AMENDMENT TO LEASE AGREEMENT
THIS FIRST AMENDMENT TO LEASE AGREEMENT ("Amended Lease") is
entered into as of , 2005 ("Effective Date") by and between the
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a
public body, corporate and politic ("Agency"), and FDH ENTERPRISES, INC., an
Arkansas corporation ("Lessor").
RECITALS
A. On January 15, 2000, the Agency approved a lease pursuant to which the
Agency agreed to lease that real property located in the City of Palm Springs, State of
California, commonly known as 3919, 4057 and 4095 E. Palm Canyon Drive, and more
particularly described in the legal description attached hereto and incorporated herein
as Exhibit "A" ("Site") from Lessor ("Lease Agreement").
B. The Lease Agreement has a twelve (12) year term.
C. At this time, Developer intends to relocate one of the three automobile
dealerships located on the Site off site to an adjacent newly acquired parcel. It is
currently intended that this will be the BMW dealership.
D. At this time, the parties desire to execute this First Amendment to
Lease Agreement to extend the term ("Amended Lease").
NOW, THEREFORE, the parties hereto agree as follows:
The foregoing Recitals are incorporated herein by reference and the Lease
Agreement is hereby amended as follows:
1. Article 4 "Term" is amended to read as follows:
"This Amended Lease shall commence on the Effective Date of
the First Amendment, and shall terminate on the date that is the
earlier of (i) December 29, 2028; (ii) Lessor's or VIP's breach of
any provision in the DDA, the First Amendment to the DDA, the
Sublease or Amended Sublease, after the expiration of the time to
cure, as set forth in the DDA, First Amendment, Sublease or
Amended Sublease, respectively, or (iii) expiration of the term of
the Amended Sublease; or (iv) Lessor's breach of any provision of
the Lease or this Amended Lease, after the expiration of the time
to cure, as set forth herein. Notwithstanding anything herein to the
contrary, all of the terms, covenants, agreements, or conditions set
forth in the Lease and this Amended Lease shall extend for the
duration of this Amended Lease, except as applicable to the
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interpretation and enforcement of particular matters, which terms,
covenants, and conditions shall survive as stated with reference to
those matters."
2. Section 15(d) "Notices" is amended to read as follows:
"Formal notices, demands, and communications between Agency
and Developer shall be sufficiently given if: (i) personally delivered;
(ii) delivered by overnight courier (acknowledged by receipt); or (iii)
dispatched by registered or certified mail, postage prepaid, return
receipt requested, to the addresses set forth below:
Agency: Community Redevelopment Agency of the City of Palm
Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attn: Executive Director
A copy to: Community Redevelopment Agency of the City of Palm
Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attn: Agency Counsel
Lessor: FDH ENTERPRISES, INC.
Jerry G. Johnson
1300 Rodney Parham Road, Suite 300
Little Rock, AR 72212
All notices shall be deemed to be received as of the earlier of
actual receipt by the addressee thereof or the expiration of forty-
eight (48) hours after depositing in the United States Postal System
in the manner described in this Section."
3. It is the intent of the parties that obligations and rights of the
parties which are set forth in the Lease which relate to the
Disposition and Development Agreement shall now relate to the
First Amendment to Disposition and Development Agreement.
4. Except as expressly provided herein, all other terms and
conditions of the Lease shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amended Lease
to be effective as of the date first written above.
"AGENCY"
COMMUNITY REDEVELOPMENT AGENCY
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OF THE CITY OF PALM SPRINGS, a public
ATTEST: body corporate and politic
Executive Director
Agency Secretary
APPROVED AS TO FORM:
David J. Aleshire, Special Counsel
"LESSOR"
FDH ENTERPRISES, INC., an Arkansas
corporation
By:
Title:
By:
Title:
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EXHIBIT "C"
FIRST AMENDMENT TO SUBLEASE AGREEMENT
RECORDING REQUESTED BY
AND WHEN RECORDED, MAIL TO:
Community Redevelopment Agency of the City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attn: Executive Director
(Space above this line for recorder's use
only)
This Document is recorded at the request of
the
Redevelopment Agency of the City of Palm
Springs and is therefore exempt from the
payment of recording fees pursuant to
Government Code Section 6103
FIRST AMENDMENT TO SUBLEASE AGREEMENT
THIS FIRST AMENDMENT TO LEASE AGREEMENT ("Amended Sublease") is
entered into as of , 2005 by and between the COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body,
corporate and politic ("Agency"), and VIP MOTOR CARS, LTD, a California corporation,
wholly owned by VIP MOTOR CARS ACQUISITION, INC. (collectively "VIP").
RECITALS
A. On January 15, 2000, the Agency and VIP entered into a sublease
pursuant to which VIP agreed to sublet that real property located in the City of Palm
Springs, State of California, commonly known as 3919, 4057 and 4095 E. Palm Canyon
Drive, and more particularly described in the legal description attached hereto and
incorporated herein as Exhibit "A" ("Site") from Agency ("Sublease Agreement").
B. The Sublease Agreement has a twelve (12) year term.
C. Developer has acquired additional property within the City and is intending
to relocate on of the automobile dealerships now on the Site, intended to be BMW, to
the new property and from the time of such relocation, BMW would not be included in
the rent assistance formula.
D. At this time, the parties desire to execute this First Amendment to
Sublease Agreement to extend the term ("Amended Sublease") and the amount of rent
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assistance provided to VIP, and also making the adjustment in the rent assistance
formula required by the relocation of BMW.
NOW, THEREFORE, the parties hereto agree as follows:
The foregoing Recitals are incorporated herein by reference and the Sublease
Agreement is hereby amended as follows:
1. Trigger Date. The following revisions to the rent assistance provided in
the Sublease Agreement shall only apply after the "Trigger Date." Until the Trigger
Date, all the existing provisions of the Sublease shall continue in full force and effect.
Moreover, all existing provisions of the Sublease not specifically modified herein shall
continue in full force and effect even after the Trigger Date. The Trigger Date shall be
the date that Developer gives Agency written notice that it has completed relocation of
the BMW dealership off of the Site and has commenced reporting sales from the new
location.
2. Section 1.6 "Cumulative Increment Rent Assistance" is amended to read
as follows:
"Cumulative Increment Rent Assistance" shall mean the total
Annual Increment Rent Assistance provided by Agency to VIP
throughout the Sublease Term, which amount shall in no event
exceed Two Million Seven Hundred Thousand Dollars
($2,700,000.00) in actual dollars paid in the aggregate (no interest
or present value adjustment, as more specifically provided at
Section 4.3(d) herein) during the Sublease Term and the Amended
Sublease Term combined."
3. Section 2.3 "Sublease Term" is amended to read as follows:
"This Amended Sublease shall commence on the Effective Date of
this Amended Sublease and shall terminate on the date that is the
earlier of (i) June 30, 2018; (ii) Owner's or VIP's breach of any
provision in the DDA, Amended DDA, Lease or Amended Lease,
after the expiration of the time to cure, as set forth in the DDA,
Amended DDA, Lease or Amended Lease, respectively, (iii) the
date that the Cumulative Increment Rent Assistance equals Two
Million Seven Hundred Thousand Dollars ($2,700,000.00); or (iv)
VIP's material breach of any provision in the Sublease or this
Amended Sublease, after the expiration of the time to cure, as set
forth herein ("Amended Sublease Term"). Notwithstanding
anything herein to the contrary, all of the terms, covenants,
agreements, or conditions set forth in the Sublease and this
Amended Sublease shall extend for the duration of this Amended
Sublease, except as specifically stated elsewhere in this Amended
Sublease, including but not limited to the duration of the Use
(D` ),° A
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Covenants at Section 3, and as applicable to the interpretation and
enforcement of particular matters, which terms, covenants, and
conditions shall survive as stated with reference to those matters."
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4. Section 4.2 "Determination of Increment Rent Assistance" is amended to
read as follows:
"Commencing with the Effective Date of the Amended Sublease
and ending at the close of business on the day prior to the one (1)
year anniversary of the beginning of the Amended Sublease Term,
and for each year thereafter for the entire Amended Sublease
Term, Agency shall pay to VIP the Annual Increment Rent
Assistance, which shall be a rebate of a portion of the Base Rent.
The "Annual Increment Rent Assistance" shall be measured by the
Sales Tax Revenue as defined in this Section 4.2 below,
generated at the Site over the Base Year Revenue, as defined at
Section 4.2 below, for each given year of the Amended Sublease
Term pursuant to the Financial Assistance Schedule in Exhibit "B",
which Annual Increment Rent Assistance shall be calculated in
accordance with Exhibit "B" for each given year of the Amended
Sublease Term. (Exhibit B is a sample, and actual data shall be
utilized to calculate Annual Increment Rent Assistance actually
paid). The Annual Increment Rent Assistance shall be payable by
Agency to VIP pursuant to Section 4.3 below. The following terms
and provisions shall apply with respect to the foregoing obligation:
(a) As used herein, the term "Sales Tax Revenue" shall mean
the sales and use taxes paid or payable by the State Board of
Equalization to the City that are generated from sales from the Site
upon which sales or use taxes are imposed pursuant to applicable
California law, including but not limited to California Revenue and
Taxation Code Section 6000, et. seq., and shall include the sales
or use taxes imposed on the leasing of vehicles (including but not
limited to the sales or use taxes paid for the capitalized cost
reduction on vehicle leases) which are included in VIP's quarterly
sales tax filings to the State Board of Equalization. Sales tax data
for VIP's BMW dealership will be excluded as of the Trigger Date.
All calculations hereunder shall be as of the first full sales tax
reporting period following the Trigger Date. All calculations
hereunder shall be as of the first full sales tax reporting period
following the Trigger Date.
(b) As used herein, the "Base Revenue" shall mean the amount
set forth at the 4th column, column (d) of Exhibit "B" (entitled
"Projected Sales Tax Base (1998) Plus 3%, Grow at 4%/Year after
2006") for each given year of the Amended Sublease Term. The
Base Revenue shall be the projected sales taxes from 1998
escalated by three percent (3%). The Base Revenue shall remain
the constant for three (3) years following the Trigger Date. The
Base Revenue shall then be escalated by four percent (4%) each
year thereafter for the remainder of the Amended Sublease Term.
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(c) VIP shall timely report all sales and use taxes from the Site
to the State Board of Equalization in accordance with the laws,
rules, and regulations applicable to such reporting.
(d) If due to a change in state law, the City loses Sales Tax
Revenue so that it is not receiving an amount equal to the Base
Revenue (shown in column (d) of Exhibit "B"), the Annual
Increment Rent Assistance shall be reduced or eliminated to the
extent necessary to assure the City receipt of such Base Revenue.
(e) The parties hereto acknowledge that the State Board of
Equalization makes payments to the City based on both actual and
anticipated sales and use tax revenues and that the State Board of
Equalization makes periodic reconciliations. The determination of
Sales Tax Revenue for any annual, quarterly, or other period shall
be subject to the timing and reconciliation process related to the
processing by the State Board of Equalization of payment of such
Sales Tax Revenue to the City. Any adjustments resulting from
any interim or estimated determination of Sales Tax Revenue for
any annual, quarterly or other period shall be reconciled by the
parties as soon as practicable without inclusion of, or any
obligation to pay, interest.
(f) Sales Tax Revenue shall be determined based on actual
amounts received by the City based only on the City's share of the
State sales and use tax applicable to the Site (which, as of the
Effective Date, is 1% of the taxable amount). Sales Tax Revenue
shall not include amounts paid to the City by the State Board of
Equalization derived from any sales tax overrides or special tax
amounts received by the City, nor shall include any administrative
fees or charges imposed by the State Board of Equalization that
reduce the actual amounts of sale sand use taxes received by the
City.
(g) VIP shall keep at its office in the City of Palm Springs, full
and accurate books of account, records, and other pertinent data
showing all gross income earned upon the Site that is reportable
for California sales and use tax purposes, including all documents
required to be maintained by VIP by the State of California for
sales and use tax purposes.
(h) VIP shall furnish to Agency true and correct photocopies of
its quarterly California sales and use tax returns at the time each is
filed with the State of California, together with a copy of all checks
or wire transfers or other forms of transfer of funds sent by VIP for
such payment of sales and use taxes.
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(i) Agency shall be entitled, during the Amended Sublease
Term and for two (2) years following expiration of the Amended
Sublease Term, to inspect and examine all of VIP's books of
account, records, and other pertinent data so that Agency can
ascertain VIP's gross sales upon which California sales and use
tax is payable."
5. Section 4.3 (d), regarding Agency payment of Annual Increment Rent
Assistance, is amended to read as follows:
"Notwithstanding anything in the Amended Sublease to the
contrary, in no event shall Agency owe any funds to VIP, in the
event that VIP generates in any year of the Amended Sublease
Term or cumulatively, Sales Tax Revenue from the Site that is
greater than the Annual Increment Rent Assistance for any given
year of the Amended Sublease Term, nor shall Agency owe any
additional funds or rent assistance to VIP after the Cumulative
Increment Rent Assistance equals Two Million Seven Hundred
Thousand Dollars ($2,700,000.00) in actual dollars paid in the
aggregate from the commencement of the original Sublease (no
interest or present value adjustment). Moreover, in no event shall
the Annual Increment Rent Assistance exceed one hundred twenty
percent (120%) of the Base Revenue in any given year of the
Amended Sublease Term ("Rent Assistance Cap"). Any sales tax
exceeding such 120% shall not be used to calculate the Rent
Assistance Cap and shall go to City.
Nothing herein shall prevent or preclude VIP from challenging the
Annual Increment Rent Assistance stated in any Agency invoice or
the calculation thereof. VIP and the Agency's Executive Director
shall promptly meet and confer in an attempt to resolve any
differences concerning the calculation. The Agency's Executive
Director shall make a final determination concerning the Annual
Increment Rent Assistance. The Agency's Executive Director's
determination shall be given to VIP in writing. If VIP is not satisfied
with the Agency's Executive Director's determination, VIP may, in
writing, appeal such determination to the Agency's Board within ten
(10) days of receipt of the Agency's Executive Director's written
determination."
6. Section 4.4 "Time Limit on Assistance" is amended to read as follows:
"Agency's goal is to encourage the retention of VIP on the Site.
Therefore, Agency's obligation to provide Financial Assistance
through payment of the Annual Increment Rent Assistance shall
terminate if VIP elects to relocate either of the two (2) remaining
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dealerships on the Site or otherwise cease using the Site for the
sale and leasing of vehicles on or before December 29, 2028."
7. Section 11.5 "Notices, Demands, And Communications Between The
Parties" is amended to read as follows:
"Formal notices, demands, and communications between Agency
and Developer shall be sufficiently given if: (i) personally delivered;
(ii) delivered by overnight courier (acknowledged by receipt); or (iii)
dispatched by registered or certified mail, postage prepaid, return
receipt requested, to the addresses set forth below:
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Agency: Community Redevelopment Agency of the City of Palm
Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attn: Executive Director
A copy to: Community Redevelopment Agency of the City of Palm
Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
Attn: Agency Counsel
Developer: VIP MOTOR CARS, LTD.
Jerry G. Johnson
11300 Rodney Parham Rd., Suite 300
Little Rock, AR 72212
All notices shall be deemed to be received as of the earlier of
actual receipt by the addressee thereof or the expiration of forty-
eight (48) hours after depositing in the United States Postal System
in the manner described in this Section."
8. Exhibit "B" to the Sublease, the "Financial Assistance Schedule" is
amended by adding the attached Exhibit "131" as the "Amended Rental Assistance
Schedule," which new schedule will apply after the Trigger Date.
[SIGNATURES ON NEXT PAGE]
11°f ,,rr-1
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IN WITNESS WHEREOF, the parties hereto have executed this Amended
Sublease to be effective as of the date first written above.
"AGENCY"
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, a public
body corporate and politic
Agency Secretary Executive Director
APPROVED AS TO FORM:
David J. Aleshire, Special Counsel
"VIP"
VIP MOTOR CARS, LTD, a California
corporation wholly owned by VIP MOTOR
CARS ACQUISITION, INC.
By:
Title:
By:
Title:
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STATE OF CALIFORNIA )
ss.
COUNTY OF RIVERSIDE )
On before me, 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 signatures(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.
Notary Public
[SEAL]
STATE OF CALIFORNIA )
ss.
COUNTY OF RIVERSIDE )
On before me, 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 signatures(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.
Notary Public
[SEAL]
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STATE OF CALIFORNIA )
ss.
COUNTY OF RIVERSIDE )
On before me, 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 signatures(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.
Notary Public
[SEAL]
STATE OF CALIFORNIA )
ss.
COUNTY OF RIVERSIDE )
On before me, 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 signatures(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.
Notary Public
[SEAL]
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EXHIBIT "B1" TO THE AMENDED SUBLEASE
AMENDED RENTAL ASSISTANCE SCHEDULE
(a) (b) (c) (d) (e) M (g) (h) (i) G) (k)
Projected Projected Projected/
City Share of Sales Tax Projected Sales Actual Maximum Under Under Cumulative
Paid to City
Sales Tax (Adjusted) Tax Base (1998) Incremental Amount Under Basic Maximum Basic Deal Maximum Deal (Assuming
Fiscal (Adjusted) Minus BMW plus 3%, grow Sales Tax Cap (120%) Cumulative Cumulative Annual Annual 120%
Year w/3% qrowth w/3% qrowth 4%/year after Paid to VIP Paid to VIP Paid to VIP Paid to VIP "Paid"to 'Paid"to City Cap Applies)
2006 CCU
1999-00 $ $231,893 $
231,893 222,814
2000-01 $ $302,606 $
302,606 226,156
2001-02 $ $377,856 $ $ 148,308 $ $ 148,308 $ 148,308 $ $
377,856 229,548 148,308 229,548 229,548
2002-03 $ $391,434 $ $ 158,443 $ $ 306,750 $ 306,751 $ $
391,434 232,991 158,443 232,991 232,991
2003-04 $ $451,756 $ $ 215,270 $ $ 552,020 $ 522,021 $ $
451,756 236,486 215,270 236,486 236,486
2004-05 $ $504,735 $ $ 264,701 $ $ 786,721 $ 786,722 $ $
504,735 240,034 264,701 240,034 240,034
2005-06 $ 519,877 $337,920 $ $ 138,644 $ 166,372 $ $ $381,233 $
156,022 925,365 953,094 353,505
2006-07 $ 535,473 $348,058 $ $ 142,023 $ 170,427 $ $ $393,450 $
156,022 1,067,388 1,123,522 365,046
2007-08 $ 551,538 $358,499 $ $ 145,503 $ 174,604 $ $ $406,034 $
156,022 1,212,891 1,298,126 376,933
2008-09 $ 568,084 $369,254 $ $ 151,689 $ 182,027 $ $ $416,395 $
171,624 1,364,580 1,480,153 386,057
2009-10 $ 585,126 $380,332 $ $ 156,526 $ 187,831 $ $ $428,601 $
178,489 1,521,106 1,667.983 397,296
01003/0012/33394.06
2010-11 $ 602,680 $391,742 $ $ 161,519 $ 193,823 $ $ $441,161 $
185,629 1,682.624 1,861,806 408,857
2011-12 $ 620,760 $403,494 $ $ 166,674 $ 200,008 $ $ $454,087 $
193,054 1,849,298 2,061,814 420,752
2012-13 $ 639,383 $415,599 $ $ 171,996 $ 206,395 $ $ $467,388 $
200,776 2,021,294 2,268,209 432,988
2013-14 $ 658,565 $428,067 $ $ 177,490 $ 212,988 $ $ $481,075 $
208.807 2,198,784 2,481,197 445,576
2014-15 $ 678,322 $440,909 $ $ 183,163 $ 219,795 $ $ $495,159 $
217,159 2,381,947 2,700,993 458,526
2015-16 $ 698,671 $454,136 $ $ 189,020 $ 226,824 $ $ $509,652 $
225,846 2.570,966 2,927,816 471,848
2016-17 $ 719,631 $467,760 $ $ 195,067 $ 234,080 $ $ $524,565 $
234,879 2,766,033 3,161,896 485,551
2017-18 $ 741,220 $481,793 $ $ 201,310 $ 241,572 $ $ $539,910 $
244,275 2,967,343 3,403,469 499,648
(a) These are the fiscal years of the agreement. The original agreement was projected to commence in 1999-00 and expire in 2008-9 with a
cumulative payment to VIP of$1 M. The amendment would extend the agreement to 2017-18 or a cumulative payment of$2.7M,whichever first
occurs.
(b) Total projected City sales tax with an assumed 3% growth in sales. Based on past experience, they are likely to outperform this over time.
(c) The sales tax number is reduced by an assumed 35% to reflect BMW's relocation to a different site and reducing the numbers accordingly. The
35% assumption will be adjusted to actual. Accordingly, the 2005-6 assumed date of this adjustment may be delayed as Developer is still
processing this project through City Planning, must complete design and obtain permits and then must construct the project. The existing
provisions of the Sublease and Exhibit B (including the $1 M cap)will continue until Developer gives written notice of the relocation of BMW. All
figures in Exhibit B1 shall be calculated for the first full sales tax reporting period following the receipt of said notice (i.e. following the Trigger
Date).
(d) The base was calculated by taking 35% out of the older base (240,034), the base is then held constant for 3 years, then the base is increased by
10% in 2008-09 ($178,489) and thereafter increases by 4% per year rather than the prior 3%.
(e) This is 1/2 the base, plus 1/3 of the amount over the base. Which is a 2:1 (City to Developer) ratio over the base.
(f) If sales taxes exceed VIP projections,VIP's share is now capped at 120% of the City's base. This will prevent VIP from getting paid off
excessively early as possible in the old schedule. City retains sales taxes above the 120% cap.
(g) Cumulative minimum amount paid to VIP
(h) Cumulative maximum amount paid to VIP if 120% cap reached every year.
(i) Annual sales taxes to City, including BMW taxes, assuming VIP reaches 120% cap annually. This is illustrative only as BMW sales are not a part
of this agreement.
2
01003/0012133394.06
(j) Cumulative sales taxes to City under (i)above.
(k) Cumulative paid under the basic share.
(1) Cumulative paid under the maximum share. There is about 2 years difference in the
deals.
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01003/0012/33394 06
Proof of Publication
In Newspaper
STATE OF CALIFORNIA
County of Riverside
Laura Reyes says:
1. 1 am a citizen of the United States, a
resident of the City of Indio, County of COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL
-
Riverside, State of California, and over CITY OF PALM SPRINGS
NOTICE OF JOINT PUBLIC HEARING
the ears.age of 18 AMENDMENT NO.IOFTHEDISPOSITIONANODEVEL-
g Y OPMENT AGREEMENT WITH
2. 1 am the Office & Production Manager of VIP MOTORS,LTD.AND FDWENTERPRISES,INC.
g NOTICE IS HEREBY GIVEN that the Community
The Public Record -a newspaper of - --Redevelopment Agency of the City of Palm Springs,California
general circulation printed and published In -
("Agency"),and the City Council of the City of Palm Springs,
California,will hold a joint public hearing on May 18,2005,at
the Cityof Palm Springs, Count of approximately 6:00 orm or as soon as possible thereafter,in
Y the City Council Chamber at CityHall,3200 E Tahquitz Canyon
Riverside, State of California. Said The Way,Palm Springs,CA 92262.
The purpose of Ihis hearing Is to consider the approval of_
Public Record is a newspaper of general AmendmentNn,,arthaDsoasitipn and Develgement Agreamend-.:1
circulation as that term is defined in with VIP Motors,Ltd.and FAH Entiepnses,Inc To appax.Lfi is
amendment,the Agency and the City Council are required to make
Government Code section 6000, its status certain findings,pursuant to Health end Satety Code Section
as such having been established b judicial public'1,33ng is hold
dto racrive.pu rto making these titter Tngs e
g y j politic heating is held to receive public input on the mailer The
decree of the Superior Court of the State of nature cf:the amendment is that the Agencywill,amend the lease
an the subject propertywhich it leases from FDH Enterprises,Inc.
California in and for the County of Riverside and subleases to NIP Mmcrs, Ltd.in order to restructure.,he
in Proceeding No. Indio 49271, dated March Agency assistance which allows'the Agency loassisl the dealer-
ship with<Is expansion and extendsuch assistance for a period of
31, 1987 entered in Judgment Book No. 129, another'twelve years ThaLurendri increases the amount of
fame the dealer must operate In Palm Springs to receive the mods-
page 355, on March 31, 1987. lance,removes the BMW dealership from the annual calculation
3. The Public Record is a newspaper of and mducesdhe maximum,amount received each year,
The staff report and other supporting documents regarding
general circulation ascertained and this matter are available for public review at the Cily Hall between
[he hours ot&00 a.m and 5:01agm.Monday through Friday Please
established in the City of Palm Springs in the contact Itk ity Clark's Department at(760)3M 8204111 you would
County of Riverside, State of California, like to schedule an appointment o review.theaedwamems
Response to this notice can be made verbally al the
Case No. RIC 358286, Filed June 8, 2001. Public Hearing and/or in,writing before the hearing.Written
4. The notice, of which the annexed is a comments can be made to the Community Redevelopment
Agency of the City of Palm Springs and City Council by letter -
true printed copy was published in the lor real or hand delrvandtoo,
James Thompson,City'Clerk
newspaper on the following publication 3200 E.Tahguita Canyon Way
dates t0 wit: - - 'RD.Box 2743 _
Palm Springs,CA 92263
Any challenge of the proposed project in court may be
May 3, 2005 1 limited to raising only(hose issues raised at the public hearing
described in this notice,or In Written correspondence delivered
to the City Clerk at,or prior,to the public hearing (Government
I certifyunder penalty of perjury that the Code Section65unity (2)).
P y P � Y An opportunity will.ba given at said hearing for all inter-
above is true and Correct. sated persons to be heard.Questions regarding[his case may
be directed to Jahn S.Raymond, Director of Community &
Dated at Palm Springs, California, this 3`d Economic Development(760)323-8228
day of May, 2005, St necewa sense con safe cecta,podavor flame a la Ciudad do 1I
Palm Springs y puede,hablar con Nadine Fieger lelefono(76D)
323-8245. ..
/s/James Thompson,City Clerk
May 3;2005
� yes rodg P anager
;,�. •�, ER
COMMUNITY REDEVELOPMENT AGENCY/CITY COUNCIL
CITY OF PALM SPRINGS
NOTICE OF JOINT PUBLIC HEARING
AMENDMENT NO. 1 OF THE DISPOSITION AND DEVELOPMENT AGREEMENT WITH
VIP MOTORS, LTD. AND FDH ENTERPRISES, INC.
NOTICE IS HEREBY GIVEN that the Community Redevelopment Agency of the City of Palm
Springs, California ("Agency"), and the City Council of the City of Palm Springs, California, will
hold a joint public hearing on May 18, 2005, at approximately 6:00 p.m. or as soon as possible
thereafter, in the City Council Chamber at City Hall, 3200 E. Tahquitz Canyon Way, Palm
Springs, CA 92262.
The purpose of this hearing is to consider the approval of Amendment No. 1 of the Disposition
and Development Agreement with VIP Motors, Ltd. and FDH Enterprises, Inc. To approve this
amendment, the Agency and the City Council are required to make certain findings pursuant to
Health and Safety Code Section 33421.1, 33433 and 33445, and prior to making these findings
a public hearing is held to receive public input on the matter. The nature of the amendment is
that the Agency will amend the lease on the subject property which it leases from FDH
Enterprises, Inc. and subleases to VIP Motors, Ltd. in order to restructure the Agency
assistance which allows the Agency to assist the dealership with its expansion and extend such
assistance for a period of another twelve years. The amendment increases the amount of time
the dealer must operate in Palm Springs to receive the assistance, removes the BMW
dealership from the annual calculation and reduces the maximum amount received each year.
The staff report and other supporting documents regarding this matter are available for public
review at the City Hall between the hours of 8:00 a.m. and 5:00 p.m. .Monday through Friday.
Please contact the City Clerk's Department at (760) 323-8204 if you would like to schedule an
appointment to review these documents.
Response to this notice can be made verbally at the Public Hearing and/or in writing before the
hearing. Written comments can be made to the Community Redevelopment Agency of the City
of Palm Springs and City Council by letter (for mail or hand delivery) to:
James Thompson, City Clerk
3200 E. Tahquitz Canyon Way
P.O. Box 2743
Palm Springs, CA 92263
Any challenge of the proposed project in court may be limited to raising only those issues raised
at the public hearing described in this notice, or in written correspondence delivered to the City
Clerk at, or prior, to the public hearing. (Government Code Section 65009(b)(2)).
An opportunity will be given at said hearing for all interested persons to be heard. Questions
regarding this case may be directed to John S. Raymond, Director of Community & Economic
Development (760) 323-8228.
Si necesita ayuda con esta carta, porfavor Ilame a la Ciudad de Palm Springs y puede hablar
con Nadine Fieger telefono (760) 323-8245.
' l j-
kES THOMPSON, City C9erk