HomeMy WebLinkAbout12/12/2007 - STAFF REPORTS - RA.2. �o�pP1.MgA� .
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City Council/Community Redevelopment
Agency Staff Repo
DATE: DECEMBER 12, 2007 LEGISLATIVE ACTION
SUBJECT: APPROVAL OF THE SALE OF THE CONVENTION CENTER NORTH
PARKING LOT, PALM CANYON THEATER, THE. DESERT ART
CENTER AND FRANCES STEVENS PARK BY THE CITY OF PALM
SPRINGS, CALIFORNIA, TO THE COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM SPRINGS; AND, A RESOLUTION OF
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS APPROVING THE. PURCHASE AND ACCEPTING
GRANT DEEDS FROM THE CITY OF PALM SPRINGS FOR THE
PROPERTIES
FROM: David H. Ready, City Manager/Executive Director
BY: Community & Economic Development Department
SUMMARY:
These actions approve the sale of the Convention Center North Parking Lot and
Frances Stevens Park, including all of the facilities in the Park (Desert Art Center and
Palm Canyon Theater) by the City of Palm Springs to the Community Redevelopment
Agency, The Agency desires to implement the Amended and Restated Redevelopment
Plans for Merged Redevelopment Project Area #1 and Merged Project Area #2 ("Project
Areas") by providing for the acquisition of certain public facilities in the Project Areas.
The Agency finds that these properties are being acquired to implement and further the
purposes of the adopted redevelopment plan for Merged Project Area No. 1 and
Merged Project Area #2.
The Convention Center North Parking Lot (APNs 508-023-012, 013, and 014) is the site
of the proposed Mondrian Hotel. The City of Palm Springs entered an Exclusive
Agreement to Negotiate with the developers of the hotel in February, 2006, which
allowed the Developer to process the entitlement application for the hotel and
condominium project. The Developer received approval of the project on July 18, 2007
and is proceeding with the final development plans. That site is in Merged
ITEM NO. _� _
Redevelopment Project Area #2; the acquisition of the parcel by the Agency would allow
the Agency and Developer to enter a Disposition and Development Agreement for the
property, which is legally preferable than a direct City-to-Developer transaction. The
Agency would acquire the property from the City at the fair market value price of
$4,675,000 and would resell the property to the Developer at the same price as part of
the Disposition and Development Agreement. The property was appraised by Lidgard &
Associates, Inc.
The second transaction approves the purchase by Agency from the City of Palm
Springs of a parcel of land within Merged Project Area No_ 1, generally identified as
Frances Stevens Park (APN 505-325-003). The Park property includes two
buildings, the Palm Canyon Theater (538 North Palm Canyon Drive) and Desert Art
Center (550 North Palm Canyon Drive).
The Agency action would accept the Grant Deeds from the City and agree to pay fair
market value for the Park and the associated properties, in the amount of $4,823,000,
based on an appraisal undertaken by Dozier Appraisal Company dated May 3, 2007.
The properties are subject to Lease Agreements between the City of Palm Springs and
Palm Canyon Theater and the Theater Use Agreement with the Palm Springs
International Film Festival for the use of the Palm Canyon Theater, and a Lease
Agreement between Desert Art Center, Inc. of the Coachella Valley and the City for the
Desert Art Center.
The City would execute the Grant Deeds and the Agency would execute two Promissory
Notes to the City, one for $4,675,000 for the Convention Center Parking Lot and one for
$4,823,000 for Frances Stevens Park, for a total amount of $9,498,000. The resolutions
also authorize and direct the City Manager/Executive Director to execute on behalf of the
City and Agency all such documents related to this transaction.
RECOMMENDATION:
COMMUNITY REDEVELOPMENT AGENCY RECOMMENDATION:
1. Adopt Resolution No. , "A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS,
CALIFORNIA, APPROVING THE PURCHASE AND ACCEPTING GRANT
DEEDS FROM THE CITY OF PALM SPRINGS FOR PURCHASE OF THE
CONVENTION CENTER NORTH PARKING LOT, FRANCES STEVENS PARK,
PALM CANYON THEATER, AND THE DESERT ART CENTER;"
2. Adopt Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING THE SALE TO
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM
SPRINGS, CALIFORNIA, OF THE CONVENTION CENTER NORTH PARKING
LOT, FRANCES STEVENS PARK, PALM CANYON THEATER, AND THE
DESERT ART CENTER;"
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3. AUTHORIZE THE EXECUTIVE DIRECTOR TO EXECUTE ALL THE
DOCUMENTS RELATED TO THE PURCHASE AND SALE ON BEHALF OF
THE AGENCY AND THE MAYOR TO EXECUTE ALL THE DOCUMENTS
RELATED TO THE PURCHASE AND SALE ON BEHALF OF THE CITY, IN A
FORM ACCEPTABLE TO THE CITY ATTORNEY,
C�ITO
4 L.� I —
John S. q8 m4d, Director of Thomas J. Wils
omm ity conomic Development Assistant City Manager, Development Services
David H. Ready
City Manager/Execu ive D� irector
Attachments:
1. CRA Resolution
2. City Resolution
3. Promissory Note on Frances Stevens Park
4. Promissory Note on Convention Center North Parking Lot
000003
RESOLUTION NO.
A RESOLUTION OF THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING
THE PURCHASE AND ACCEPTING GRANT
DEEDS FROM THE CITY OF PALM SPRINGS
FOR PURCHASE OF THE. CONVENTION
CENTER NORTH PARKING LOT, FRANCES
STEVENS PARK, PALM CANYON THEATER,
AND THE DESERT ART CENTER
WHEREAS, The Community Redevelopment Agency of the City of Palm Springs
("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.)
WHEREAS, The Agency desires to implement the Amended and Restated
Redevelopment Plan for its Merged Redevelopment Project Area #1 and Merged
Redevelopment Project Area #2 ("Project Areas") by providing for the acquisition of
certain public facilities in the Project Area designated herein.
WHEREAS, The Agency finds that the properties which are the subject of this
resolution are being acquired to implement and further the purposes of the adopted
redevelopment plans for Merged Redevelopment Project Area #1 and Merged
Redevelopment Project Area #2.
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of
the City of Palm Springs, as follows:
SECTION 1. The Agency approves the purchase of a parcel of land from the City of
Palm Springs within Merged Project Area No. 1, generally identified as
Frances Stevens Park (APN 505-325-003), which includes the Palm
Canyon Theater (538 North Palm Canyon Drive) and the Desert Art
Center (550 North Palm Canyon Drive).
SECTION 2_ The Agency agrees to pay the fair market value of Four Million Eight
Hundred Twenty Three Thousand Dollars ($4,823,000) to the City of Palm
Springs for said parcel, and accepts the assignment of the Lease
Agreement between the City of Palm Springs and Palm Canyon Theater
and the Theater Use Agreement with the Palm Springs International Film
Festival for the use of the Palm Canyon Theater, and a Lease Agreement
between Desert Art Center, Inc. of the Coachella Valley and the City for
the Desert Art Center.
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I
SECTION 3. The Agency approves the purchase three parcels of land within Merged
Project Area No. 2, generally identified as the Convention Center North
Parking Lot (APNs 508-023-012, 013, and 014) from the City of Palm
Springs.
SECTION 4. The Agency agrees to pay the fair market value of Four Million Six
Hundred Seventy Five Thousand Dollars ($4,675,000) to the City and
accepts the provisions of the Amended Exclusive Agreement to Negotiate
between the City and the Oasi Group, LLC, which provides for the sale of
the property to the Developer per the terms of a Disposition and
Development Agreement.
SECTION 5. The Community Redevelopment Agency of Palm Springs authorizes and
directs the Agency Executive Director to pay to the City the purchase
price, execute an acceptance on behalf of the Agency, and to execute
such other documents as may be reasonably necessary or prudent to
complete this transaction.
ADOPTED THIS day of 2007
AYES:
NOES:
ABSENT:
ABSTAIN:
COMMUNITY REDEVELOPMENT
AGENCY OF THE CITY OF PALM
SPRINGS
Chairman
ATTEST:
James Thompson, Assistant Secretary
�Qaa�o�
I
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF PALM SPRINGS, CALIFORNIA,
APPROVING THE SALE TO THE COMMUNITY
REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS, CALIFORNIA, OF THE
CONVENTION CENTER NORTH PARKING LOT,
FRANCES STEVENS PARK, PALM CANYON
THEATER, AND THE DESERT ART CENTER
The City Council of the City of Palm Springs resolves:
SECTION 1. The Council of the City of Palm Springs, pursuant to authority provided
under Health and Safety Code Section 33220, approves the sale of a
parcel of land to the Community Redevelopment Agency of the City of
Palm Springs within Merged Project Area No. 1, generally identified as
Frances Stevens Park (APN 505-325-003), including the Palm Canyon
Theater (538 North Palm Canyon Drive) and the Desert Art Center
(550 North Palm Canyon Drive). The City Council finds that the sale of
this parcel of land to the Community Redevelopment Agency of the City
of Palm Springs will aid in the planning, undertaking, construction, and
operation of redevelopment within Merged Project Area #1.
SECTION 2. The City Council accepts the sum of Four Million Eight Hundred Twenty
Three Thousand Dollars (54,823,000) from the Community
Redevelopment Agency of the City of Palm Springs in full payment of
said parcel. The City Council assigns its rights, title, and interest in the
lease of the Palm Canyon Theater and the Desert Art Center to the
Community Redevelopment Agency and agrees to the assignment or the
Lease Agreement between the City of Palm Springs and Palm Canyon
Theater and the Theater Use Agreement with the Palm Springs
International Film Festival for the use of the Palm Canyon Theater, and a
Lease Agreement between Desert Art Center, Inc. of the Coachella
Valley and the City for the Desert Art Center, to the Agency.
SECTION 3. The Council of the City of Palm Springs, pursuant to authority provided
under Health and Safety Code Section 33220, approves the sale of three
parcels of land within Merged Project Area No. 2, generally identified
as the Convention Center North Parking Lot (APNs 508-023-012, 013,
and 014) to the Community Redevelopment Agency of the City of Palm
Springs. The City Council finds that the sale of these parcels of land to
the Community Redevelopment Agency of the City of Palm Springs will
aid in the planning, undertaking, construction, and operation of
redevelopment within Merged Project Area #2.
5506551
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SECTION 4. The City Council accepts the sum of Four Million Six Hundred Seventy
Five Thousand Dollars ($4,675,000) from the Community
Redevelopment Agency of the City of Palm Springs in full payment of
said parcels, and agrees to assign the provisions of the Amended
Exclusive Agreement to Negotiate between the City and the Oasi Group,
LLC, which provides for the sale of the property to the Developer per the
terms of a Disposition and Development Agreement, to the Agency.
SECTION 5. The City Council authorizes and directs the City Manager to execute grant
deeds in favor of the Community Redevelopment Agency of the City of
Palm Springs, to accept payment, and to execute such other documents
as may be reasonably necessary or prudent to complete this transaction
as provided in this Resolution.
ADOPTED THIS day of 2007
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY OF PALM SPRINGS
Mayor
ATTEST:
James Thompson, City Clerk
550655,1
000067
Do Not Destiny This Note When Paid,This
Note M11A Be SU1Tendered To The Tivztee
For Cancellation c
PROMISSORY NOTE
Convention Center Parking Lot
54,675,000.00 Palm Springs, California
December 12, 2007
FOR VALUE RECEIVED, the REDEVELOPMENT AGENCY OF THE CITY
OF PALM SPRTNGS, a public body, corporate and politic ("Obligor ') promises to pay to
the CITY OF PALM SPRINGS, a public body, corporate and politic ("Holder"), the
principal sure of FOUR MILLION SIX HUNDRED SEVENTY FIVE THOUSAND
DOLLARS (U.S.$4,675,000.00) plus accrued interest in legal currency of the United
States, on the teens described in this Note. The entire unpaid principal and any accrued
interest shall be fully and immediately payable upon demand of Holder.
This note is made with reference to the sale of the Convention Center North Parking Lot
(APNs 503-023-012, 013, and 014) from the Holder to the Obligor- Tnterest shall accrue
monthly at a yearly Tale between six percent (6%) and ten percent (10%) established in
the sole discretion of the Holder on or before the April 15 preceding the subsequent fiscal
year commencing on July 1. The initial interest rate shall be six percent (6%). If Holder
does not change the interest rate on or before April 15 of a given year for the following
fiscal year beginning July 1, the rate of interest shall remain unchanged until the
following fiscal year.
On July 1 of each year, Obligor shall pay that portion of accrued interest demanded by
Holder on or before the preceding April 15. If Holder makes no demand on or before
April 15 of a given year for the Following fiscal year beginning July 1, or if the holder
only demands a portion of accrued interest, the interest not demanded shall continue to
accrue and be added to the principal for the following fiscal year.
This Note is entered into and shall be governed by the laws of the State of California,
without reference to principles of conflicts or choice of law. Obligor consents to
jurisdiction over in any state or federal court situated in the County of Riverside, State of
California, on any action based on or arising out of this Note.
Any person or entity who takes over the any duties and obligations under this Note, is
also liable for the satisfaction of all such duties and obligations. Holder may enforce its
rights under this Note against each such person or entity individually or against all such
persons or entities together_
Each Obligor for itself and each of its respective representatives, successors and assigns,
expressly waives presentment, demand, protest, notice of dishonor, notice of non-
payment, notice of maturity, notice of protest, diligence in collection and any exemptions
under applicable insolvency laws.
000008
5549042
No delay or failure by Holder in the exercise of any rights or remedy provided Por
hereunder shall be deemed a waiver of any other right or remedy which Holder otherwise
may have under or by reason hereof. No waiver of any payment or performance due
under this Note shall operate as a waiver of any other pay�iient or peifonnance.
"OBLIGOR" "HOLDER"
Redevelopment Agency of the City of City of Palm Springs, a public body,
Palm Springs, a public body, corporate and corporate and politic.
politic.
By: David Ready By: Steve Pougnet
Its: Executive Director Its: Mayor
5546042
Do Not❑espoy This Note when Paid."I"hie
Note Must Be Snncndered To The Tnistce
f nr Cnncelluhnn c
PROMISSORY NOTE
Frances Stevens Park
(Including Palm Canyon Theater and Desert Art Center)
S 4,823,000.00 Patin Springs, California
December 12, 2007
FOR VALUE. RECEIVED, the REDEVELOPMENT AGENCY OF THE CITY
OF PALM SPRINGS, a public body, corporate and politic ("Obligor") promises to pay to
the CITY OF PALM SPRINGS, a public body, corporate and politic ("Holder"), the
principal sum of FOUR MILLION, EIGHT HUNDRED TWENTY TIIREE
THOUSAND DOLLARS (U.S. $4,823,000.00) plus accrued interest in legal currency of
the United States, on the tern7s described in this Note. The entire unpaid principal and
any accrued interest shall be fully and immediately payable upon demand of Holder.
This note is made with reference to the sale of Frances Stevens Park (APN 505-325-003),
including without limitation the Palm Canyon Theater (538 North Patin Canyon Drive)
and the Desert Art Center (550 North Palm Canyon Drive). Interest shall accrue
monthly at a yearly rate between six percent (6%) and ten percent (10%) established in
the sole discretion of the Holder on or before the April 15 preceding the subsequent fiscal
year commencing on July 1. The initial interest rate shall be six percent (6%). If Holder
does not change the interest rate on or before April 15 of a given year for the following
fiscal year beginning July 1, the rate of interest shall remain unchanged until the
following fiscal year.
On July 1 of each year, Obligor shall pay that portion of accrued interest demanded by
Holder on or before the preceding April 15. If Holder makes no demand on or before
April 15 of a given year for the following fiscal year beginning July 1, or if the holder
only demands a portion of accrued interest, the interest not demanded shall continue to
accrue and be added to the principal for the following fiscal year.
This Note is entered into and shall be governed by the laws of the State of California,
without reference to principles of conflicts or choice of law. Obligor consents to
jurisdiction over in any state or federal court situated in the County of Riverside, State of
California, on any action based on or arising out of this Note.
Any person or entity who takes over the any duties and obligations under this Note, is
also liable for the satisfaction of all such duties and obligations. Holder may enforce its
rights under this Note against each such person or entity individually or against all such
persons or entities together.
Each Obligor for itself and each of its respective representatives, successors and assigns,
expressly waives presentment, demand, protest, notice of dishonor, notice of non-
payment, notice of maturity, notice of protest, diligence in collection and any exemptions
under applicable insolvency laws.
0o®o,0
554604.2
No delay or failure by Holder in the exercise of any rights or remedy provided for
hereunder shall be deemed a waiver of any other right or remedy which Holder otherwise
may have Under or by reason hereof. No waiver of any payment or performance due
under this Nole shall operate as a waiver of any other payment or performance.
"OBLIGOR" "HOLDER"
Redevelopment Abcncy of the City of City of Palm Springs, a public body,
Palm Springs, a public body, corporate and corporate and politic.
politic.
By: David Ready By: Steve Pougnet
Its: Executive Director Its: Mayor
2 00001'
554604,2