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Home My WebLink About6/16/2004 - STAFF REPORTS (4) DATE: JUNE 16, 2004 TO: COMMUNITY REDEVELOPMENT AGENCY FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT EXTENSION OF OVERFLOW VALET PARKING LICENSE AGREEMENT WITH THE AGUA CALIENTE BAND OF CAHUILLA INDIANS FOR THE USE OF A PORTION OF A 5.7 ACRE AGENCY-OWNED PROPERTY, KNOWN AS THE PRAIRIE SCHOONER PARCEL, FOR 200 OVERFLOW VALET PARKING SPACES FOR A PERIOD OF FOUR ADDITIONAL MONTHS RECOMMENDATION: It is recommended that the Agency extend the Overflow Valet Parking License Agreement for the use of a portion of the Prairie Schooner Parcel with the Agua Caliente Band of Cahuilla Indians (the "Tribe") for a period of four additional months, for 200 spaces of overflow valet parking for the Spa Hotel & Casino SUMMARY: On December 17, 2003 the Agency approved an Overflow Valet Parking License Agreement with the Tribe that allows them to use a portion of the Prairie Schooner property, now developed as a parking lot, for overflow valet parking for the new Spa Casino. The agreement overlapped with the original License Agreement, signed in November 2002, for the use of the site as a construction trailer campus; that agreement ran until January 31, 2004. Under this license the Tribe has the use of 200 parking spaces for overflow valet parking for the Spa Casino operation. The Tribe's primary valet parking spaces are on its own property, directly in front of the casino. The Tribe only uses the Prairie Schooner lot only during peak usage periods at the casino, which are generally off-peak from the primary intended use of the lot, as Convention Center parking. In the case of a major event held at the Convention Center, the Convention Center has the use of the entire lot, including the licensed spaces. In addition, the Agency has the right to move the 200 spaces to different portions of the lot, if the need arises. The original Agreement was for a short-term use of the property — approximately six months — and is at fair market value. No financial assistance is given to the Tribe in the transaction. As a result of approving the License Agreement, the Agency was sued by Citizens for Local Government Accountability (CLGA). The CLGA suit is pending, though one of the remedies proposed is to formalize the License into a lease subject to the provisions of Redevelopment Law. That lease would be part of an Amendment to the Disposition and Development Agreement between the Agency and the Tribe. That amendment has been drafted but has not yet been presented to either the Tribal Council or the Agency. Staff expects that the DDA could be approved by both bodies in July. However, the License Agreement expires on June 30, 2004, so staff is proposing a four month extension to give adequate time for both parties to review and approve a DDA Amendment. All of the other terms of the License Agreement shall remain unchanged and in effect until October 31, 2004. The additional term shall be four months (to 103104), in case the DDA is not adopted by both bodies in July, since they do not meet in August. As in other Agency agreements (such as Exclusive Agreements to Negotiate), the Agreement may already be extended for up to 60 days if a DDA has been prepared but not yet approved, or has been approved by one party but not yet by the other but with the August gap it is more prudent to extend the term. This license only affects the use of the 200 spaces, and does not deal with the Tribe's contribution toward tourism or the lease of the remaining balance of the site. These issues are to be resolved in the DDA. This Licen e Agreement is also categorically exempt from CEQA, as it is for,01p short-term use of isting improvements. JONI S. AYM Director o Com uni and Economic Development APPROVED: Executive Director ATTACHMENTS: 1. Resolution 2. Amendment No. 1 to a Valet Parking Overflow License Agreement AMENDMENT NO. 1 TO VALET PARKING LICENSE AGREEMENT FOR OVERFLOW PARKING THIS AMENDMENT NO. 1 TO A VALET PARKING LICENSE AGREEMENT FOR OVERFLOW PARKING (the "Valet Parking License") is made and entered into as of , 2004 by and between the Community Redevelopment Agency of the City of Palm Springs, a public body, corporate and politic (the "Agency") and the Agua Caliente Band of Cahuilla Indians (the "Tribe"), "), and is intended to amend the Valet Parking License to extend the term by an additional four months, to October 31, 2004. RECITALS A. Agency is the Owner in fee simple of the real property commonly known as the Prairie Schooner Parcel located in the City of Palm Springs, County of Riverside, bearing APN Numbers 508-055-008, 508-055-009, and 508-055-007, and is legally described in Exhibit "A" attached and made a part hereof. Said property is hereafter referred to as the "Agency Parcel". Pursuant to this Valet Parking License, and subject to the terms and conditions set forth herein, the Agency is granting to the Tribe a license to enter upon and utilize a portion of the Agency's Parcel pursuant to the conditions set forth herein for the purpose of facilitating overflow valet parking to avoid excessive vehicular parking on City streets. B. As consideration for the use of the Agency's Parcel pursuant to this Valet Parking License, Tribe has agreed to pay a License Fee equivalent to a fair market lease of the licensed property, with extra payment for additional usage for the temporary use of Agency's Parcel. NOW, THEREFORE, based upon the foregoing recitals and the terms, conditions, covenants, and agreements contained herein, the parties hereto agree as follows: Section 2.2. Tribe and Agency agree that Section 2.2 of the Valet Parking License shall be amended as follows: 2.2 Term of License. The license granted to the Tribe pursuant to Section 2.1 above shall commence on December 17, 2003 and terminate on October 31, 2004. The Valet Parking License may also be extended for an additional sixty (60) days if a Disposition and Development Agreement for long-term use of the property has been drafted but not yet approved by one or both parties. [SIGNATURE PAGE FOLLOWS:] A 4 11J Revised Valet Parking License Agreement C ra 6/15/2004 "TRIBE" By: Name: By: Name: Agua Caliente Band of Cahuilla Indians 600 East Tahquitz Canyon Drive Palm Springs, CA 92262 "AGENCY" COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attn: Executive Director By: Its: ATTEST: Assistant Secretary APPROVED AS TO FORM: Agency Counsel Revised Vale[Parking License Agreement 6/15/2004 RESOLUTION NO. OFTHE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 1 TO A LICENSE AGREEMENT WITH THE AGUA CALIENTE BAND OF CAHUILLA INDIANS FOR THE USE OF THE PRAIRIE SCHOONER PARCEL FOR OVERFLOW VALET PARKING BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT AGENCY of the City of Palm Springs, California, that Amendment No. 1 to a License Agreement with the Agua Caliente Band of Cahuilla Indians for the use of the Prairie Schooner parcel for overflow valet parking, is approved; and,the Executive Director or his designee is authorized to sign any documents related to the Contract. ADOPTED this day of , 2004. AYES: NOES: ABSENT: ABSTAIN: ATTEST: COMMUNITY REDEVELOPMENT AGENCY By Assistant Secretary Chairman REVIEWED &APPROVED C f a. �