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Community Redevelopment Agency Staff Report
DATE: February 18, 2009 Hearing: 1A
SUBJECT: JOINT PUBLIC HEARING OF THE COMMUNITY REDEVELOPMENT
AGENCY AND THE CITY COUNCIL CONSIDERING THE APPROVAL
OF THE FIRST AMENDMENT TO A DISPOSITION AND
DEVELOPMENT AGREEMENT WITH ENDURE, LLC (FORMERLY
GEIGER, LLC) THAT AUTHORIZES THE AGENCY TO PAY $1,385,000
TOWARDS THE $13,000,000.00 IN COSTS FOR REMEDIATION AND
MONITORING THE SITE OF A 393,000 SQUARE FOOT RETAIL
SHOPPING CENTER AT THE NORTHEAST CORNER OF RAMON
ROAD AND GENE AUTRY TRAIL (Highway 111) IN THE CITY OF PALM
SPRINGS, MERGED REDEVELOPMENT PROJECT AREA NO. 1.
FROM: David H. Ready, City Manager
BY: Thomas Wilson, Assistant City Manager
SUMMARY
Approval of the proposed First Amendment to the Disposition and Development
Agreement between the Community Redevelopment Agency and Endure, LLC (formerly
Geiger, LLC), that authorizes the Agency to pay $1,385,000 over five years, with no
interest, towards the over $13,000,000 costs for remediation and monitoring the site of a
393,000 square foot retail shopping center at the northeast corner of Ramon Road and
Gene Autry Trail.
RECOMMENDATION:
1. Open the joint public hearing and receive public testimony;
2. [Community Redevelopment Agency] Adopt Resolution No. _ "A RESOLUTION
OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS APPROVING THE FIRST AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT WITH ENDURE LLC (FORMERLY GEIGER LLC) FOR
THE DEVELOPMENT OF THE SPRINGS PROJECT;"
610536 1 ITEM NO. '�'`
City Council Staff Repoit
February 18,2008
Amendment to DDA
3. [City Council] 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 THE DISPOSITION AND DEVELOPMENT AGREEMENT
WITH ENDURE, LLC (FORMERLY GEIGER, LLC.);"
4. [Community Redevelopment Agency] Authorize the City Manager to execute a
budget transfer of $277,000 from unallocated capital outlay funds to an account
established for the purposes of executing this agreement.
STAFF ANALYSIS:
On November 16, 2005, the Agency entered into a DDA with Geiger LLC (now Endure,
LLC) for the sale of Agency land and the development of entire site as a commercial
retail center currently referred to as the "Springs" at the northeast corner of Ramon
Road and Gene Autry Drive. At the time the DDA was entered into, the value of the
Agency's 14 acres.was valued at $4,480,000 and the cost to Geiger LLC to remediate
the property was estimated at $4,605,108, however, the total costs for the remediation
and continued monitoring of the entire site is in excess of$13,000,000.
The proposed amendment would provide for Agency payment towards the total cost of
remediation and monitoring, Under the proposed amendment, the agency would pay
$277,000 a year for five years for a total of$1,385,000. Under this formula, the value of
the land plus the Agency payment towards the remediation and monitoring of the site
would still be less than one-half of the total cost of remediation.
FISCAL IMPACT
This expense is being paid for from unallocated capital outlay funds in Merged Area #1.
Thomas Wils n, Assistant City Manager Geoffrey Kiehl, Finance Director
David H. Ready, C' ager
n:nsn i
RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS APPROVING THE FIRST AMENDMENT TO THE
DISPOSITION AND DEVELOPMENT AGREEMENT WITH
ENDURE LLC (FORMERLY GEIGER LLC) FOR THE
DEVELOPMENT OF THE SPRINGS PROJECT.
The Community Redevelopment Agency of the City of Palm Springs ("Agency") finds:
A. On November 16, 2005, the Agency and Geiger LLC, now known as Endure,
LLC, ("Developer") entered into a Disposition and Development Agreement ("DDA") for
the sale of Agency real property and the development of a commercial retail center
commonly referred to as the "Springs."
B. The Agency property was formerly a landfill and required extensive remediation
of soil conditions to make the property marketable and suitable of commercial use.
Developer has incurred over $13,000,000 in total costs for the remediation of the
property. The proposed amendment to the DDA would authorize the Agency to pay
$1,385,000 towards the cost of remediation and ongoing monitoring costs in five equal
annual payments of $277,000, without interest. The Agency's payment towards
remediation and monitoring costs added to the fair market value of the land of
$4,480,000 is less that half of the total cost of remediation that the Developer paid at its
sole cost and expense-
C. The Agency reaffirms its findings in contained in Resolution No. _ approving the
original DDA, and finds that such findings remain fully applicable to the current situation
and the First Amendment to the DDA.
NOW, THEREFORE, the Community Redevelopment Agency of the City of Palm
Springs resolves:
1. The First Amendment to the Disposition and Development Agreement with
Endure LLC (formerly Geiger LLC) is approved.
2. The Executive Director of the Agency or his designee is authorized to execute all
necessary documents, in a form approved by Agency Counsel.
w�
ADOPTED this 18l" day of February, 2009.
AYES-
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS,
CALIFORNIA
By:
James Thompson Stephen P. Pougnet
Agency Secretary Chair
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL FO THE CITY OF
PALM SPRINGS, CALIFORNIA, CONCURRING WITH THE
COMMUNITY REDEVELOPMENT AGENCY'S APPROVAL
OF THE FIRST AMENDMENT TO THE DISPOSITION AND
DEVELOPMENT AGREEMENT WITH ENDURE LLC
(FORMERLY GEIGER LLC).
NOW, THEREFORE, the City Council of the City of Palm Springs resolves and concurs
with the action of the Community redevelopment Agency in its approval of the First
Amendment to the Disposition and Development Agreement with Endure LLC (formerly
Geiger LLC).
ADOPTED this 18" day of February, 2009.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By.
James Thompson David Ready
City Clerk City Manager
1,�
CITY OF PALM SPRINGS
PUBLIC HEARING NOTIFICATION
(a
CITY CLERK'S DEPARTMENT
James Thompson, City Clerk
Date: February 18, 2009
Subject: Amendment No. 1 to A0503 a DDA with Geiger LLC
City Council and CRA Joint Public Hearing
AFFIDAVIT OF PUBLICATION
1, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby
certify that a copy of the attached will be published in the Desert Sun on January 31, and
February 7, 2009.
1 declare under penalty of perjury that the foregoing is true and correct.
Kathie Hart, CMC
Chief Deputy City Clerk
AFFIDAVIT OF POSTING
I, Dolores Strickstein, Secretary, of the City of Palm Springs, California, do hereby certify
that a copy of the attached Notice was posted at City Hall, 3200 E. Tahquitz Canyon Drive,
on the exterior legal notice posting board and in the Office of the City Clerk on January 30,
2009.
1 declare under penalty of perjury that the foregoing is true and correct.
l
F
Dolores Strickste4n `
Secretary
PROOF OF PUBLICATION This is space Tor County Clerk's Filing Stamp
(2015.5.C.C.P)
STATE OF CALIFORNIA
County of Riverside
1 am a citizen of the United States and a resident of Proof of Publication of
the County aforesaid;I am over the age of eighteen -----------------------------------------
years,and not a party to or Interested in the
above-entitled matter.I am the principal clerk of a
printer of the,DESERT SUN PUBLISHING
COMPANY a newspaper of general circulation,
printed and published in the city of Palm Springs,
County of Riverside,and which newspaper has been
adjudged a newspaper of general circulation by the
Superior Court of the County of Riverside,State of — - -
California under the date of March 24, 1988.Case No oaCT
CITY OF PALND SPRINGS
Number 191236;that the notice,Of which the 'COMMUNITY REDEVELOPMENT AGENCY
annexed is a printed copy(set in type not smaller OF THE CITY OF PALM SPRINGS
than non pariel,has been published in each regular NOTICE OF JOINT PUBLIC HEARING
and entire issue of said newspaper and not in any NOTICE IS HEREBY GIVEN that the Ci Council
supplement thereof on the following dates,to wit: (City) and Community Redevelopmen Agency
("Agency' of the City of Palm Spring,,will hold a
Joint Pubic Hearing at 600 p.m. Wednesday,
January 31",February 7`h,2009 3200 EasttTahgOul}z canyon Way,P.OmaSpill
pl rlJat
Calllorno 92262
The purpose of the hearing is to consider the ap-
proval of Amendment No. 1 to Agreement No
-- --- -- -- -- - -�-��, A0503, a Disposition and Dcvelopment Agree-
All in the year 2009 ment,with Geiger LLC.
The Agency prapesss to amend the o%isling Di5-
posltlon and Development Agreement with Geiger,
I certifyor declare under penalty of perjury that the tscll to prpvioe for the reimbursement of ce ain
( P' Y P J Y costs for the landltll romediation and the opomlion
foregoing i5 true and correct. of the landfill monitoring system.
Response to Ihid fiel=may bo mace verbally at
d the Public Hearing and/or in writing buforr.the-
Dated at Palm Springs,California this--9 day hearing.-Written comments.may.bamade to the
,Oily/Agency el the❑Ily of Palm Sprigs by letter
(for mail or hand dchvory)to
ll February ,2009 James Thompson
City astTnsjUill! ArgoSecre ry
3200 East Tdhgtnl8 Canyyon Wey
Palm Springs CAD 22G2
1 - �_ l --x - Any challenge of Ipe proposed project In court
_ /' may be Imdud to rli,in9 Only Igotic Issues raised
.-�[l_ r� --------------" at the public hearing described m this:ncbco,or in
S(mo lr wrlben correspondence dellvered to the City
ClorIUA:aSlent SGcrolery it,or prior to the public
hearing (Government Code Scc6on 65003(b)(3))
.•� ram'-� An opponunity,will be given at said hearing tar all
U mlOM:aed portions to be heard. Ouestlons regerd-
iU ice 4 ing This pass may be directed to Thomas J.Wil-
son Assistant City Manager (760)323.6246
L L
C) Is CiudadadolPalm Spnngan e�ha cy pdedeahatior con
Nadine Fieger telefono 76 -323-6241.
G —I Joni TlIDmpe0ll
City Clerk/Assistani Secretary
lll i Published:1131,27/0�_
I�
CITY OF PALM SPRINGS
AND
COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
NOTICE OF JOINT PUBLIC HEARING
NOTICE IS HEREBY GIVEN that the City Council ("City") and Community
Redevelopment Agency ("Agency") of the City of Palm Springs will hold a Joint Public
Hearing at 6:00 p.m., Wednesday, February 18, 2009, in the Council Chamber at 3200
East Tahquitz Canyon Way, Palm Springs, California 92262.
The purpose of the hearing is to consider the approval of Amendment No. 1 to
Agreement No. A0503, a Disposition and Development Agreement, with Geiger, LLC.
The Agency proposes to amend the existing Disposition and Development Agreement
with Geiger, LLC, to provide for the reimbursement of certain costs for the landfill
remediation and the operation of the landfill monitoring system-
Response to this notice may be made verbally at the Public Hearing and/or in writing
before the hearing. Written comments may be made to the City/Agency of the City of
Palm Springs by letter (for mail or hand delivery) to:
James Thompson
City Clerk/Assistant Secretary
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
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/Assistant Secretary 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 Thomas J. Wilson, Assistant City
Manager, (760) 323-8248.
Si necesita ayuda con esta carta, porfavor [lame a la Ciudad de Palm Springs y puede
hablar con Nadine Fieger telefono 760-323-8241.
Yes Thompson
lerk/Assistant Secretary
AMENDMENT NO. 1 TO
DISPOSITION AND DEVELOPMENT AGREEMENT
This Amendment is entered into this 18t' day of February, 2009, by and between
the Community Redevelopment Agency of the City of Palm Springs, a California
community redevelopment agency ("Agency"), and Endure Investments, LLC (formerly
Geiger, LLC), a Nevada Limited Liability Company ("Developer"), with reference to the
following facts:
A. On November 16, 2005, Agency and Developer entered into a Disposition
and Development Agreement (the "DDA") with regard to the development of 393,000
square foot retail shopping center ("Project") on an approximately 37 acre site (the
"Site"), commonly referred to as the "Springs Shopping Center."
5. Under the provisions of the DDA, the Agency agreed to sell @ 14 acres of
the Site to the Developer at no cost to the Developer in recognition of the Developer's
substantial costs in the remediation of the Site. Pursuant to the Summary Report
issued in 2005 at the time the DDA was approved, the Developer incurred $4,605,108
in pro-rated remediation costs, which exceeded the fair market value of the land of
$4,480,000. The parties have subsequently acknowledged that the total remediation
costs for the Site, including on-going monitoring expenses, are in excess of
$13,000,000. The parties agree that the Site would not have been marketable or
usable for any economic purpose if the Site had not been remediated and that the
Agency should pay a portion of the remediation and monitoring costs which were
necessarily incurred to make the Site usable. The parties agree that the sum of
$1,385,000, payable in five equal installments, without interest, is a fair and equitable
payment towards the remediation and monitoring costs of the Site.
C. The development of the Project and the payment of Agency funds
towards the remediation and monitoring of the Site, including Agency owned land, as
provided for in this First Amendment is in the vital and best interest of the City and the
welfare of its residents and is in accordance with the public purposes and provisions of
applicable state and local laws.
NOW, THEREFORE, the parties hereto agree as follows:
1. Section 4.3 is added to the DDA to read:
4.3 Agency Payment Toward Remediation and Monitoring Costs. Agency
shall pay to Developer the sum of$1,385,000.00 in five equal annual installments,
without interest. The first annual payment will be made on or after March 1, 2009, at
the direction of the Executive Director, and on each subsequent March 1 each year
thereafter until the full amount has been paid to the Developer. The payments provided
under this Section shall be deemed a payment towards the total remediation and
monitoring costs incurred by the Developer on the Site and those costs were and are
26562 1
necessary to ensure that the Site was and is marketable and usable.
3 Except as expressly amended herein, the DDA shall remain in full force
and effect.
IN WITNESS WHEREOF, Agency and Developer have signed this Amendment
on the respective dates set forth below.
"Agency"
Dated: Community Redevelopment Agency of
the City of Palm Springs, a California
community redevelopment agency
By:
David Ready, Executive Director
APPROVED AS TO FORM: ATTEST:
By: By:
Douglas Holland James Thompson
Agency Counsel Agency Secretary
"Developer"
Endure Investments, LLC
Dated By
Its
�6562 1