HomeMy WebLinkAbout3/4/2009 - STAFF REPORTS - RA.2. r
LAW OFFICE OF
MERHA.B ROBINSON & JACKSON
A PROFESSIONAL CORPORATION
TUSTIN CENTRE
MARLA MFRNA,I3 ROBINSON ISSI NORTH TUSTIN AVENUE, SUITE 910 ROBERT M. THNNANT
JAI,A T.JAcKsONI P.C. SANTA ANA, CALIFORNIA 92705-8639 JENNir•ER L MCCLAIN
FACsIMILE! (714) 972-2296
TELEPHONE: (714) 972.2333
February 19, 2009
Via E-Mail Steve.Pougnet(a-),palmspringS-ea.gov
and Regular U-S. Mail FEB 2 3 2009
Mr. Steve Pougnet, Mayor
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
Re: Santiago Sunrise Village Mobile Home Park Corporation,
A California Nonprofit Corporation
Dear Mr. Mayor:
This office is general counsel to Santiago Sunrise Village Mobile Home Park
Corporation,a California non profit corporation ("Sunrise Corporation")formed in August,
2000 and organized to operate exclusively for public charitable uses and purposes by
lessening the burden of the government of the City of Palm Springs. To that end,the Sunrise
Corporation acquired the Sunrise Village Mobile Home Park located at 1500 E. San Rafael
in the City of Palm Springs ("the Park")with bonds issued by the City of Palm Springs (the
"Issuer"' or "City"). The purpose of this letter is to address issues relating to the relationship
between the Sunrise Corporation and the Issuer.
The organizational documents of the Sunrise Corporation require that at least one
board member of the Sunrise Corporation be appointed by the City of Palm Springs
Redevelopment Agency ("Agency") and that such person be a member of the Agency. The
initial appointed member was Mr. John Raymond,who has since left the Agency for another
city. Accordingly, request is hereby made that you instruct the Agency to appoint another
member of the Agency to sit on the board of directors of the Sunrise Corporation. Failure
to do so could result in the loss of Sunrise Corporation's tax exempt status and similar tax
concerns with respect to the Issuer's bonds.
StUC Paugnet Mnyor It 00I.wpd
ITEM NO. RA 2
Mr. Steve Pougnet, Mayor
February 19, 2009
Page: 2
A non-related yet equally important issue between the parties concerns funding for
an office and laundry facilities at the Park. Currently there are two buildings at the Park that
previously operated as laundry facilities. They have been vandalized to the point of disrepair
requiring their demolition. The Park financing includes I IUD financing under section 207
of the National housing Act and Regulations. HUD has placed the Park into its
"enforcement center" due to exigent health and safety deficiencies related to the laundry
facilities. Specifically,the existing laundry facilities must be repaired or tone down. Neither
the existing laundry facilities or the current office space are ADA compliant- The Park's
management company has recommended that the facilities be torn down and a single facility
at a central location, with an office, be constructed to provide for security to deter future
vandalism. Plans for the construction and request for funds were presented to Mr- John
Raymond who advised the Sunrise Corporation that he had received initial consent to the
project and funding from the then mayor and at least one council member.It was determined
that the best structure of the transaction would be an amendment to the DDA between the
Sunrise Corporation and the City. This office prepared such an amendment and the matter
was initially heard at a council meeting in November, 2008 but was rescheduled to be heard
in December, 2008. Mr. Raymond advised the Sunrise Corporation that someone
anonymously raised an issue regarding the City spending money on laundry facilities when
fire hydrants should be considered. In response, Mr- Raymond requested the Fire Chief
inspect the Park and was told that no improvements were necessary to the Park's fire hydrant
system. Notwithstanding, since Mr. Raymond's departure, the Sunrise Corporation has not
been able to get a response from any of the individuals who have taken over his duties as to
why the matter has not been put back on the agenda for council approval.
In addition to the need to comply with the I-IUD violation, the residents of the Park
are in desperate need of laundry facilities in the Park- If necessary, they are more than
willing to fill the council chambers and voice their needs. When Mr. Raymond advised the
management company that approval of the funds for the laundry facilities was imminent,the
management company advised the residents, They are now questioning what the City is
holding up the project. The Sunrise Corporation does not have the funds necessary to
construct the facilities without the assistance it was told it would receive from the City. The
Chairman of the Board of the Sunrise Corporation,Mr. Garry Edrnundson,and the Chairman
of the Board of the management company, Mr.Richard Simonian,hereby request a meeting
with you to discuss the request for finds for the laundry facilities.
Steve Pougnet Mayor It OOl.wpd
C2
Mr. Steve Pougnet, Mayor
February 19, 2009
Page: 3
Please respond at your earliest convenience to the two issues above which affect the
interests of both the City and Sunrise Corporation.
Sincerely yours,
Marla 2hab Robinson
MMR:lho
cc: Mr. Garry l dmuridson
Mr. Richard Simonian
Ms. Aimee Molsberry
Visit us on the web at h&.I/iiiei-habrobinsanjackson.coirr
Steve Pougnet Mayor It OO Lwpd
� �
CITY OF PALM SPRINGS
COMMUNITY REDEVELOPMENT AGENCY
MINUTES
WEDNESDAY, FEBRUARY 2, 2005
PALM SPRINGS CITY COUNCIL CHAMBER
CALL TO ORDER: Chair Oden called the meeting to order at 7:23 P.M.
ROLL CALL:
PRESENT: Agency Members Foat, Mills, Pougnet, McCulloch, Chair Oden.
ABSENT, None.
PUBLIC COMMENTS: None.
CONSENT AGENDA:
ACTION: Approve Consent Items A. and B. Motion Agency Member Pougnet,
seconded by Agency Member McCulloch and unanimously carried on a roll call vote.
A. ACTION: Approve Minutes from the January 5, 2005, Community
Redevelopment Agency meeting. Approved as part of the Consent Agenda.
B. ACTION: Adopt Resolution No. 1273 "A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
' CALIFORNIA, APPROVING A MEMORANDUM OF UNDERSTANDING WITH
MILDRED BROWNE REGARDING THE EXCHANGE OF A 4.96 ACRE
AGENCY-OWNED PARCEL AT THE NORTHWEST CORNER OF SUNRISE
WAY AND TAHQUITZ CANYON WAY FOR A 7.9 ACRE PARCEL WEST OF
BMW OF PALM SPRINGS, MERGED AREA #1 AND MERGED AREA #2:'
Agreement Number 0492C. Approved as part of the Consent Agenda.
PUBLIC HEARINGS: None.
EGISLATIVaij
CC. Desighe 'Governmental Representative' to the Santiago Sunrise
Villagme Park Corporation:ACTIt John Raymond as the 'Governmental Representative' to theSanti Village Mobile Home Park Corporation. Motion Agency
Memconded by Agency Member Foat and unanimously carried-
ADJOURNMENT: The Community Redevelopment Agency adjourned at 7:26 P.M.
APPROVED BY A MOTION OF THE CITY OF PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY THIS 16" DAY OF FEBRUARY, 2005.
' Attest:
/Jsslstant Secretary Chair
C
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