HomeMy WebLinkAbout4/7/2004 - STAFF REPORTS (6) DATE: APRIL 7, 2003
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
ACQUISITION OF SINGLE-FAMILY PARCELS IN THE DESERT HIGHLAND GATEWAY AREA
FOR THE PURPOSE OF FACILITATING THE DESERT HIGHLAND INFILL PROGRAM
RECOMMENDATION:
That the Agency approve two separate actions to acquire vacant single-family-home lots
in the Desert Highland Gateway area for the purpose of assembling lots for the Desert
Highland Infill Program, including: (1)an Agreement to Negotiate with Siham Shtayyeh for
the exchange of two C-1 zoned lots for an equivalent-sized R-1 Lot on El Dorado
Boulevard; and (2) notification to the County of Riverside that the Agency intends to
purchase two tax lien properties in the neighborhood through a direct sale.
SUMMARY:
The Community Redevelopment Agency established a Desert Highland Infill program in
2002 with the issuance of an RFP to builders interested in constructing single-family
homes in the neighborhood on Agency-owned parcels. These properties will be targeted
at moderate-income families recently priced out of the single-family market in Palm
Springs. The successful proposer to the RFP was Century Homes, the developer of the
nearby Mountain Gate project. Century is proposing to build several of their successful
model 102 and 103 homes from Mountain Gate on the Agency-owned lots. The current
Agency-owned lots were acquired in the past for various reasons, including CVHC's 1996
self-help program in the neighborhood and to abate non-conforming structures. The
Agency has tried to acquire additional lots to add to the program to create more economy
of scale for the developer and raise the profile of the program.
Staff expects to have the DDA with Century to the Agency within the next 30 days. In
addition, a separate action will be brought forward to purchase CVHC's five remaining self-
help lots at the same meeting: the fair market value of those lots is being confirmed now.
The two current actions are as follows: to trade two small C-1 lots totaling about 8,900 s.f.
owned by the Agency and located in the strip between Indian and El Dorado to a
developer now proposing market-rate duplexes there, for an 8,000 s.f. R-1 lot located
further north on El Dorado Boulevard to be included in the infill program; and, to start the
formal Proposition 7 process of direct negotiated sale with the County of Riverside for two
lots — one at 400 Avenida Cerca that went to tax sale this year and one at 233 W.
Tramview that was offered at tax sale last year but went unsold.
The Exclusive Agreement to negotiate with Siham Shtayyeh allows the Agency to include
the single family parcel in the Century DDA and allows the Developer to proceed with
planning the duplexes until such time the exchange agreement comes forward for
approval.
The purchase of the lots from the County is at a much-higher price than the market price,
but the difference is due to liens placed on the properties by the City of Palm Springs
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because of abatement and demolition activity. The City could, upon sale, choose to waive
the charges to the Agency or dedicate the reimbursed funds to other abatement activities
in the neighborhood.
The proposed purchase by the Agency of vacant lots located at 233 W. Tramview Road
(APN 669-401-010) and 400 Avenida Cerca (669-393-023) would be completed as part
of Riverside County's Sale of Tax-Defaulted Property. Since there were no other bidders
for the property at its current minimum bid price, the Agency postponed submitting a bid
for the Tramview property in 2003. The County did not lower its price last year after the
unsuccessful auction, and has not lowered its price after the March Public Auction.
The proposed purchases and trade would increase the number of vacant lots owned by
the Agency in the Desert Highland Gateway neighborhood of Palm Springs from five to
eight, with anticipated future actions adding at least five more.
The funds for the purchase from the County are available in the Agency's Low& Moderate
Income Housing Fund - Desert Highland Infill Program. No funds are involved in the swap
of land.
J hn S. Raym�in
Di r of Community & Economic Development
APPROVED: 2'✓ r'� � /f
City Manager
ATTACHMENTS:
1. Resolution Approving Exclusive Agreement
2. Resolution Approving County Purchase
3. Exclusive Agreement to Negotiate
REVIEWED BY DEPT.OF FINANCE
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EXCLUSIVE AGREEMENT TO NEGOTIATE
SIHAM SHTAYYEH
THIS EXCLUSIVE AGREEMENT TO NEGOTIATE ("AGREEMENT") , is made this day of
2004, by and between the PALM SPRINGS COMMUNITY
REDEVELOPMENT AGENCY("AGENCY"), and SIHAM SHTAYYEH ("DEVELOPER").
RECITALS
The parties entered into thisAgreementon the basis of the following facts,understandings,and
intentions:
A. The 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 Sections 33000, et seq.).
B. The Agency desires to effectuate the Redevelopment Plan for the Merged Palm
Springs Redevelopment Project Area No. 1 (formerly,the Highland Gateway Project Area)by providing
for the development of a affordable housing units in the Desert Highland Gateway neighborhood (the
"Site").
C. Agency is negotiating a Disposition and Development Agreement with Century Vintage
Homes ('Builder") to construct single-family homes for moderate-income buyers on Agency-owned
parcels. As part of the DDA,the Agency is seeking to acquire parcels through purchase,trade,or other
means for inclusion in the DDA. This Exclusive Agreement is solely for the purpose of acquiring a
single-family home lot for the DDA.
D. The Developer desires to construct and operate several market-rate duplexes in the
area between El Dorado Boulevard and Indian Canyon Drive. The Agency and Developer desire to
trade two small(3,000 s.f.and under 7,000 s.f.)parcels suitable for duplexes for the Developer's 8,000
s.f. parcel on El Dorado Boulevard for inclusion in the Builder's project.
D. The Agency and Developer desire,forthe period setforth herein,to negotiate diligently
and in good faith to prepare an agreement whereby the Developer's parcel would be included in the
Builder's DDA, and the Agency would convey the two small parcels to Developer.
NOW,THEREFORE, and in consideration of the mutual covenants hereinafter contained, it is
mutually agreed upon by the parties as follows:
SECTION 1. NATURE OF NEGOTIATIONS.
A. Good Faith. The Agency and the Developer agree that for the period set forth in
Section 2 herein they will negotiate diligently and in good faith to prepare and enter into an agreement
(the"DDA")consistentwith the provisions of this Agreement forthe development of a residential project
on the Site specified herein. The development will be subject to all rules, regulations, standards, and
criteria set forth in the Redevelopment Plan, the City's General Plan, applicable specific plans and
zoning regulations, and with this Agreement.
B. Site. The Project shall be located upon the following real property,as shown in the"Site
Map,"attached hereto as Exhibit"A"and incorporated herein by this reference.
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C. Construction and Ownership Concept. The Developer's design for the duplexes shall
be consistent with the Agency's and the City's design guidelines. Developer's architect shall work with
the City's design guidelines to create a harmonious and attractive residential project with a distinct
identity. The Developer is responsible for financing and constructing all improvements upon the Site.
The Grant Deed conveying the Agency-owned properties to Developer shall contain a declaration of
covenants, conditions, and restrictions to govern the continued operation of the residential project,
including a non-discrimination clause and requirements to maintain the property. No covenants shall
affect the affordability of the Developer-constructed units.
D. Financial Provisions. The Developer is responsible for acquisition of the site and
financing and constructing all improvements upon the Site. Developer shall pay for all necessary public
improvements and pay all City's fees for processing the Project, without assistance from the Agency.
E. Schedule. The Developer's goal is to develop the residential project by June 30,2005.
The Developer's project shall commence construction before December 31,2004. The Builder's DDA
shall contain a Schedule of Performance to cover the construction of the single-family homes.
F. Use and Transfer Restrictions. The Exchange Agreement and Grant Deed will generally
be subject to restrictions on use and transfer during construction and for a specified period thereafter
through recorded restrictions (i) to assure that the use will be consistent with and promote the
residential project, (ii) to prevent speculation, (iii) to assure that any transferee has the resources,
capability and experience to successfully develop, market, and operate the residential project, (iv) to
assure long-term maintenance of the project in a productive and attractive condition,and(iv)to provide
an adequate financial return to the Agency.
G. Property Acquisition. The Developer's Parcel is owned by Developer. One of the
Agency parcels is owned by the City of Palm Springs and another is owned by the Agency. During the
period of this Agreement,the Agency and Builder,which will receive Developer's parcel,shall negotiate
a DDA by which the properties would be traded between the Developer and Agency at fair market
value. Nothing in this Agreement conveys the property to the Developer.
H. Exclusivi . The Agency agrees for the period set forth in Section 2 that it will not
negotiate with or enter into any agreement with any other entity for development of the Site, and the
Developer agrees not to negotiate with any other person or entity regarding the development of a
residential project on the Developer's parcel without the approval of Agency.
I. Site Plan/Architecture. The Developer's project which shall be compatible with the
development standards of the community.
SECTION 2. PERIOD OF NEGOTIATIONS.
The period of negotiation shall be one hundred eighty(180)days from the date this Agreement
is signed by the Agency, and this Agreement shall terminate after the expiration of such period unless
extended as follows:
A. For sixty(60) days if an agreement has been prepared by the Agency and executed
by the Developer,and has been submitted to the Agency but has not yet been approved by the Agency
Board; or
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B. For thirty(30)days if the major business terms have been agreed to and the Executive
Director determines that further negotiations are likely to result in a written agreement; or
C. By mutual agreement of the parties.
Developer understands and acknowledges that if negotiations culminate in an agreement,such
agreement shall be effective only after and if the agreement has been considered and approved by the
Agency Board after public hearing thereon as required by law.
SECTION 3. DEVELOPER'S RESPONSIBILITIES.
During the period of negotiation, Developer will prepare such studies, reports, and analysis as
shall be necessary to permit Developer to determine the feasibility of its participation in the residential
project. The Developer shall fully cooperate in the development of the Project design and financing
plan. During the period of negotiation and as requested by the Agency,the Developer shall submit to
the Agency the following:
A. Full disclosure of Developer's principals, partners, joint venturers, negotiators,
consultants, professional employees, or other associates of the Developer who are participants or
principals of the Project, and all other relevant information concerning the above.
B. Statement of financial condition in sufficient detail to demonstrate Developer's financial
capabilities,those of its principals, partners,joint venturers,and those of its prospective Developers to
satisfy the commitments necessitated by the Project. To the extent Developer wants such financial
statements to remain confidential,they shall be supplied to the Agency only if the confidentiality of the
statements can be maintained.
C. All information necessary for the design of the Project to meet the Developer's
reasonable requirements. In addition, Developer shall take all actions necessary to obtain construction
and permanent financing.
The Developershall negotiate exclusivelywith the Agency's negotiating team and with no other
persons unless expressly authorized to do so by the Agency's negotiating team. During the period of
negotiations, no statements will be made by the Developer to the media without the approval of the
Agency's negotiating team. No prepared statements shall be released to the media without the mutual
consent of the respective negotiating teams.
SECTION 4. AGENCY'S RESPONSIBILITIES.
A. Preparation of Agreement. If agreement is reached on the business terms for inclusion
in the agreement, the Agency shall prepare such agreement for consideration by the Developer.
SECTION 5. MISCELLANEOUS.
A. No commissions. The Agency shall not be liable for any real estate commission or any
broker's fees which may arise herefrom. The Agency represents that it has engaged no broker,agent,
or finder in connection with this transaction, and the Developer agrees to hold the Agency harmless
from any claim by any broker, agent, or finder retained by the Developer.
B. Ownership of Documents. If the negotiations contemplated by this Agreement do not
result in the execution of an agreement, Developer shall transfer to Agency copies of any reports,
studies, analysis, site plan layouts, development cost estimates, engineering studies, memorandums,
or similar documents regarding the proposed development and prepared during the period of
negotiations,which copies shall become the property of Agency. Such transfer shall be made without
any representation or warranty by the Developer as to the accuracy or sufficiency of the contents of
such documents and shall be made subject to the rights of the preparers of such documents including,
without limitation, the copyright(if any)associated with such documents.
C. Purpose of Contract. It is expressly understood and agreed by the parties hereto that
this is an Agreement regarding the conduct of contract negotiations only and does not convey any
interest in the property whatsoever. it is further agreed and understood that this Agreement does not
imply any obligation on the part of the Agency to enter into any agreement that may result in
negotiations contemplated herein.
D. Amendment. This Agreement may only be amended by a document in writing signed
by the parties hereto.
E. Time for Acceptance. This Agreement,when executed by the Developer and delivered
to the Agency,shall constitute a binding offer which cannot be withdrawn prior to April 30,2004,so that
the Agreement may be presented to the Agency Board. Notwithstanding any other provision herein
to the contrary,Agency shall not be obligated hereunder unless and until the Agency Board authorizes
the Chairman to execute this Agreement.
F. Corporate Authoritv. The persons executing this Agreement on behalf of the parties
hereto warrant that(i)such party is duly organized and existing, (ii)they are duly authorized to execute
and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement, such party is
formally bound to the provisions of this Agreement, and (iv)the entering into this Agreement does not
violate any provision of any other Agreement to which said party is bound.
IN WITNESS WHEREOF,the parties have executed this Agreement as of the day first above written.
"AGENCY"
COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, a public body,
corporate and politic
Chairman
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
Agency Counsel
[SIGNATURES CONTINUED ON NEXT PAGE]
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"DEVELOPER'
SHAM SHTAYYEH
(Check One: _individual, _partnership, _corporation)
[NOTARIZED]
Signature
Print Name:
Print Title:
[NOTARIZED]
Signature
Print Name:
Print Title:
Mailing Address:
(Corporations require two signatures; one from each of the following: (A) Chairman of Board,
President,any Vice President;AND(B)Secretary,Assistant Secretary,Treasurer,Assistant Treasurer,
or Chief Financial Officer.)
[END OF SIGNATURES I NOTARY JURAT(S) FOLLOW]
crac -s
EXHIBIT"A"
TO EXCLUSIVE AGREEMENT TO NEGOTIATE
LEGAL DESCRIPTION OF THE PROPERTY
The Land is that certain real property located in the City of Palm Springs, County of Riverside, State
of California, more particularly described as follows:
Agency-Owned Parcels
APN 669 414 010 (3710 El Dorado Boulevard) and APN 669 414 018 (3862 El Dorado Boulevard)
Developer-Owned Parcel
APN 669 401 012 (4015 El Dorado Boulevard)
CC co, G-
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS,CALIFORNIA,APPROVING
AN EXCLUSIVE AGREEMENT TO NEGOTIATE WITH
SIHAM SHTAYYEH OF PALM SPRINGS, CALIFORNIA
FOR THE EXCHANGE OF TWO LOTS FOR AN 8,000 S.F.
LOT AT 4051 EL DORADO BLVD. IN MERGED AREA #1
(HIGHLAND GATEWAY CONSTITUENT AREA)
WHEREAS the Community Redevelopment Agency is responsible for eliminating blight within
the Merged Project Area #1; and
WHEREAS in the project area is a site of a fourplex owned by the Developer that has been
razed after being rezoned to R-1, and is characterized by broken slabs and weeds; and, two
small commercial parcels owned by the Agency that are also blighted; and
WHEREAS the Agency is negotiating a Disposition and Development Agreementwith Century
Vintage Homes to build single family homes on Agency-owned lots in the area for moderate-
income families; and
WHEREAS, under Section 33391 of California Redevelopment Law "an agency may: (a)
Purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise, or otherwise, any
real or personal property, any interest in property, and any improvements on it..."; and
WHEREAS, the Agency seeks to exchange its parcels with the Developer's in a fair market
value transaction, leaving Developer free to construct market-rate duplexes and the Agency
free to include the R-1 parcel in the Desert Highland Infill Program; and
WHEREAS, the DDA with Century has not yet been adopted and such DDA would consider
the exchange of property to assemble the property.
NOW THEREFORE BE IT RESOLVED by the Community Redevelopment Agency of the City
of Palm Springs, that the Exclusive Agreement to Negotiate between the Agency and Siham
Shtayyeh, in a form approved by the Agency Counsel, is hereby approved.
ADOPTED this day of , 2004.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Chairman
REVIEWED & APPROVED AS TO FORM
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RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS APPROVING THE
PURCHASE OF VACANT PROPERTY LOCATED AT
233 W. TRAMVIEW ROAD AND 400 AVENIDA
CERCA FOR INCLUSION IN THE DESERT
HIGHLAND GATEWAY INFILL HOUSING PROGRAM
WHEREAS, the Community Redevelopment Agency of the City of Palm Springs ("Agency") was
informed that the vacant property located at 233 W. Tramview Road and 400 Avenida Cerca,
further identified as Assessor's Parcel Number 669-401-010 and 669-393-023 669 (the
"Properties"), were included in a Sale of Tax-Defaulted Property Public Auction by the County of
Riverside on March 17, 2003 and March 15, 2004; and
WHEREAS, the Agency wishes to purchase the vacant property located at 233 W. Tramview
Road and 400 Avenida Cerca in Palm Springs for inclusion in an infill housing program being
developed for the Highland-Gateway constituent area of Merged Redevelopment Project Area No.
1; and
WHEREAS, Riverside County has established the minimum bid price for the Property for the
Public Auction for 233 W. Tramview as $52,196 with additional associated transaction and
administrative costs for the acquisition of approximately $1,000; and
WHEREAS, Riverside County has established the minimum bid price for the Property for the
Public Auction for 400 Avenida Cerca as $21,583.09 with additional associated transaction and
administrative costs for the acquisition of approximately $1,000; and
WHEREAS, the Agencywould include the parcels in the moderate-income infill program as a way
of writing down the land cost for qualified families; and
WHEREAS, funds for the purchase of the Property are available in the Agency's Low/Moderate
Income Housing Fund - Desert Highland Infill Program.
NOW, THEREFORE, BE IT RESOLVED by the Community Redevelopment Agency of the City
of Palm Springs, as follows:
SECTION 1. The Agency approves submittal of the necessary bid documents and funds
to purchase for an amount not to exceed $53,200 the vacant property
located at 233 W. Tramview Road (APN 669-401-010) in conjunction with
the County of Riverside's 2003 Sale of Tax-Defaulted Property.
SECTION 2. The Agency approves submittal of the necessary bid documents and funds
to purchase for an amount not to exceed $22,000 the vacant property
located at 400 Avenida Cerca (APN 669-323-023) in conjunction with the
County of Riverside's 2004 Sale of Tax-Defaulted Property
SECTION 3. The purpose of the purchase is the potential inclusion of the property in an
infill housing program being developed for the construction of for-sale
detached single family homes for lower and moderate income households
in the Highland-Gateway constituent area of Merged Project Area No. 1.
SECTION 3. The purchase is to be funded from the Agency's Low/Moderate Income
Housing Fund.
SECTION 4. The Executive Director, or his designee, is hereby authorized to execute on
behalf of the Agency the necessary bidding and transaction documents to
complete the approved purchase.
ADOPTED this day of , 2004.
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY OF
THE CITY OF PALM SPRINGS, CALIFORNIA
By
Assistant Secretary Executive Director
REVIEWED &APPROVED
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